Grant Tennille, director of the Arkansas Economic Development Commission, says it’s time for Arkansas to refocus economic relations with Taiwan, the democratic island nation whose connection and relationship with China has improved.

Tennille recently returned from a week-long Asian trade trip that involved meeting with Taiwanese and Chinese officials. Tennille said he re-upped a trade agreement on behalf of the state and has hopes it will pay dividends.

“In Taiwan, I was recently honored and fortunate to re-sign to reactivate a trade agreement between the state of Arkansas and TAITRA, which is the Taiwanese trade ministry. That agreement was first signed by then-Gov. Clinton in 1979,” Tennille said.

There have always been tense relations between Taiwan and mainland China, and Clinton never visited there as President. He did, however, make four visits to Taiwan as Arkansas governor.

“It was very, very clear to me that he [Clinton] had developed some very strong and warm relationships over there and I had somewhat regretted that they hadn’t been kept up as well as they should have been,” said Tennille.

“We’re planning on rebuilding those relationships because there’s an enormous amount of opportunity, not only obviously in mainland China, but in Taiwan. The business relationships between those two countries have improved light years in the last five years. So I think that some success in China is going to require some effort in Taiwan,” he said.

ON A ROLL
Arkansas economic officials have participated in several major groundbreakings in the last month.

“I think some of its confidence. And I’ve been saying for the better part of a year that people are just sort of running out of patience. There’s never, it feels like, ever going to be the perfect time to launch one of these big things. Sometimes you just have to go,” Tennille said.

In Central Arkansas, Dassault Falcon officials recently turned dirt for a $60 million expansion at its Little Rock facility. Two weeks later, officials announced a subsequent location of a French aircraft interior manufacturer that supplies Dassault.

In El Dorado, officials broke ground on a $100 million incinerator project. And, last week, the state officially helped launch construction at the $1.3 billion Big River Steel superproject.

Tennille said he is not worried about a lawsuit filed by competitor Nucor Steel, which has two steel mills in Mississippi County, the site of Big River Steel. Tennille said he’s confident that environmental regulators were thorough in their review of Big River’s air quality permit. He said it’s nearing time to move on.

“I think that we’re hopefully at some point in the not-too-distant future in for some really energetic softball games in Mississippi County,” Tennille said.

Overall, conditions are favorable for more economic prospects, Tennille said, calling activity in his agency’s circle “wall-to-wall.” He cited Dassault’s optimistic forecast for a civilian aircraft market rebound that could lead to more suppliers in Central Arkansas and said more is in the pipeline.

“There are some very, very large projects circling out there that we’re working on,” Tennille said, adding that he is worried about the low balance in the Governor’s Quick Action Closing Fund, which has less than $7 million in available funds to incentivize projects.

Grocery drive-up convenience with low price guarantees are the latest ploy by Wal-Mart Stores Inc. to bridge the digital and physical retail worlds. And on Monday (Sept. 29) the retail giant is unveiled its Walmart Pickup Grocery service to registered customers in Northwest Arkansas.

A grand opening ceremony is set to take place at 7:30 a.m. at the warehouse site located near the intersection of J Street and S. Walton Boulevard in Bentonville. Wal-Mart said its employees have in recent weeks tested the new format and it wants to continue expanding the test by allowing registered shoppers to use the service beginning Monday.

Former Walmart U.S. CEO BIll Simon first announced the plans for a drive-up grocery depot in March. The Bentonville City Council approved the warehouse site in early May and construction was underway within days. Last month Wal-Mart revealed the name for the format– Walmart Pickup Grocery – and began letting employees test the service.

USER GUIDE
Consumers who want to use the service must first register online with an email address. Wal-Mart said it will begin extending invitations to try the same-day service via email. 

Registered shoppers can order from the online site (Link here for the page.) which contains roughly 10,000 grocery and consumable items including fresh meat, dairy, produce and common household products. The consumer then schedules a pickup time ranging from two hours to three weeks after the order is placed.

The shopper then drives to one of the kiosk stations at the pickup grocery site at the scheduled time and notifies the attendant who will bring their order to the car. Orders are paid for online. Wal-Mart said this test extends its everyday low prices with no hidden fee or surcharges.

“We know at Wal-Mart our customers’ needs are changing. They want and need more shopping options and we have the means to give them low prices, wide assortments along with value and convenience in a seamless shopping experience,” Deisha Barnett, Wal-Mart spokeswoman, told The City Wire in April when the new format was made public.

Barnett said the new convenient grocery format in no way is meant to replace traditional stock-up trips at its supercenters and Neighborhood Market stores.

MIRRORING A U.K. MODEL
Judith McKenna, the chief development officer at Walmart U.S. who has years of expertise as the retailer’s British grocery chain ASDA, is one of the leaders of the new format. In June, she said the ASDA model offers “learnings” as the U.K. market is more adept at online grocery than the U.S.

“ASDA customers have moved quickly to online and pickup grocery models. A program called Click & Collect was not available two years ago. It’s in 300 stores now and will be in 600 stores by next year,” McKenna said.

McKenna said population density is needed for the home delivery option to make financial sense for retailers. But in drive commuter markets, she said the click & collect models for grocery could find favor among many shoppers. She said the new format in Bentonville is a trial, but there is evidence in other places that it has possibilities.

Wal-Mart has been clear from the beginning that the new mini warehouse format is a test, one of many it’s conducting across the country to assess consumer sentiment toward delivery options versus pickup services for groceries. 

The retailer has said the grocery home delivery tests in Denver were going well, but one   lesson learned in the process has been that more consumers would just as soon pickup their online orders at their own convenience for no added fees. The home delivery fee in the Denver market ranges between $5 and $10.

The online grocery market, worth $6 billion annually, is projected to grow at 9.5% a year between 2012 and 2017, according to the market research firm IBISWorld.

EXPERT INSIGHT
“Wal-Mart is testing this format because it is a vehicle – literally – for next-stage scale-building and a complement to its small format strategy,” said Carol Spieckerman, CEO of newmarketbuilders.

Continuing, Spieckerman noted: “Wal-Mart has everything to gain as it offers yet another option for convenience-starved customers and without the overhead of its other physical formats. Shopping eats up time and can be a major inconvenience for parents with small children and the elderly and infirm. This is also a great way for Wal-Mart to make the most of its digital platform, to acclimate more customers to using it and to gather more information on its customers’ searching and shopping habits as they place orders online.”

She adds that the while the click & collect locations are common in the U.K., this new format may have more influence in the U.S.

“It’s a pioneering move in the U.S. and that alone has the potential to bring new customers into Wal-Mart’s physical and digital ecosystem,” Spieckerman said.

WHY BENTONVILLE?
During shareholder’s week in June, Wal-Mart execs were asked why they chose Bentonville as the home for this newest concept. They responded, “Why not?” 

Northwest Arkansas is a commuter society – with some estimates of more than 500,000 living in the metro area – and thousands of potential shoppers drive by the 15,000 square-foot pickup warehouse each day. In Wal-Mart’s own corporate ranks there are roughly 10,000 working just a few blocks away, many of whom commute into Bentonville from nearby towns.

Analysts said having the new grocery format close to the home office and technology center is also a benefit because they will be able to test new technology capabilities quickly and conveniently without travel.

The plume of potentially cancer-causing trichloroethylene (TCE) found under the former Whirlpool manufacturing facility and an adjoining neighborhood in South Fort Smith could be spreading in the area near the near a Boys and Girls Club location.

News of the potentially growing plume was disclosed in a Sept. 22 letter from the Arkansas Department of Environmental Quality to Robert Karwowski, director of environmental, health and safety at Whirlpool's corporate headquarters in Benton Harbor, Mich.

ADEQ Engineer Mostafa Mehran wrote to Karwowski regarding a report by Whirlpool about additional TCE pollution that was found near a Boys and Girls Club located in South Fort Smith not far from the shuttered factory facility.

The company previously disclosed the discovery on the site of the Boys and Girls Club of trichloroethylene (TCE), a potentially cancer causing chemical used as a degreasing agent at Whirlpool's former Fort Smith manufacturing facility, in an Aug. 4 letter to the Arkansas Department of Environmental Quality.

The Whirlpool report written by environmental consultant Michael Ellis of ENVIRON — the firm hired by the company to implement an ADEQ-approved remediation plan — said the TCE discovered at the site of the Boys and Girls Club posed no threat to the general public.

"In summary, following a well-defined scientific process, no trichloroethylene (TCE) was found in any soil samples or in eight of the nine groundwater samples taken at the Boys and Girls Club property," Ellis wrote to the ADEQ. "These results indicate that impacted groundwater only marginally extends beyond the boundaries of the Jenny Lind Road expansion project. The impacted groundwater is only beneath a small corner of the undeveloped piece of the Boys and Girls Club property that will be separated from the rest of the Boys and Girls Club property by the Ingersoll Avenue Expansion project."

But in Mehran's letter to Whirlpool, the ADEQ engineer said the company failed to indicate that the TCE plume could be growing. He cited several detections of the chemical used as a degreasing agent at the factory through the 1980s, noting that the levels are above detection limits and that TCE was also discovered in groundwater samples taken at the site.

"This could be an indication of plume expansion," Mehran wrote, advising the company to make changes to the August report where it wrote indicating that the TCE at the Boys and Girls Club posed no threat. The report, he said, should indicate that the plume could be growing. Mehran also directed Whirlpool to install additional monitoring wells to keep track of the TCE plume.

"Given the apparent shape of the plume, ADEQ requires an additional monitoring well in the northwest corner of City of Fort Smith property (three properties)," he wrote.

The land owned by the city is located at Ingersoll Road and Boys and Girls Club Lane, where a road widening project has already necessitated a land sale between Whirlpool and the city, in addition to resolutions requiring Whirlpool to conduct testing during the road work and cover any costs associated with protecting construction workers at the site.

City Administrator Ray Gosack said during a Sept. 2 Board of Directors meeting that a resolution adopted by the Board would further the city's efforts to protect construction workers at the site from possible exposure to TCE contamination, which has been discovered at 15 feet below the surface in water.

"So we've drafted an agreement with Whirlpool that would give them access to the construction site if they need it. It would also require that if the city has to take extraordinary measures during the construction because of the TCE contamination, that Whirlpool would reimburse the city for the cost of implementing those measures to deal with the TCE contamination," Gosack said at the time.

Whirlpool must submit a response to ADEQ's letter within 10 days of receiving the correspondence, according to Mehran's letter.

Link here for Mehran’s letter to Whirlpool.

The deal by Spartan Logistics to acquire the large warehouse and distribution center and a little more than 50 acres from Whirlpool has closed, with Fort Smith Regional Chamber of Commerce President and CEO Tim Allen saying the ownership change should streamline economic development efforts related to the property.

Benton Harbor, Mich.-based Whirlpool Corp. announced in October 2011 it would close the Fort Smith plant, which included around 2 million square foot of manufacturing space with an adjacent large warehouse and distribution operation. The eventual June 2102 closure of the plant marked the end of more than 45 years of Whirlpool operations in Fort Smith. Employment at the refrigerator production plant ranged from a high of 4,600 in early 2006 to around 1,000 when the plant closed.

A Chamber statement issued Monday (Sept. 29) said Spartan, working with R.H. Ghan and Cooper Commercial Properties, has purchased the 619,508 square foot warehouse facility and about 54 acres it occupies. The remaining and vacant 2,191,430 square foot manufacturing building and offices sits on 151 acres and is still owned by Whirlpool.

Officials with Jones Lang LaSalle, the real estate company hired by Whirlpool to market its shuttered Fort Smith facilities, said the warehouse and manufacturing space had a replacement cost of $111.6 million.

Spartan Logistics is a second generation family business with more than 25 years in the business of supply chain solutions. The company employs 300 in and operates 17 locations in four states. The company has more than 3 million square feet of space under management. The company also manages two building in Little Rock for customers, with customer-support operations also in California. Spartan and its associated companies provide “one-stop shopping” to many Fortune 500 companies with a packaging handling, light manufacturing, packaging assembly, inventory controls, shipping and other needs. One of its customers is Owens Corning, which has a manufacturing operation in Fort Smith.

Spartan first landed on the property in October 2013 when it acquired 100,000 square foot of the warehouse space and employed 12 for operations. At the time, Spartan Chairman Ed Harmon said up to 200 could be employed by Spartan and other tenants if the warehouse was fully utilized. Monday’s statement from the Fort Smith Chamber did not discuss job numbers or the sales price.

“We are excited to offer enhanced services to our current clients and believe this facility will enable us to significantly expand our presence in the Fort Smith area,” Harmon, chairman of Spartan Logistics and president of its development company, said in the chamber statement. “We are so pleased with the efforts of Fort Smith city leaders who helped move the approval process forward and get us to the closing table quickly with this purchase.”

Allen said with the deal in the books, the “repurposing of the site” is underway.

“Since Spartan announced their intent to purchase the property in May, we have been getting numerous calls from companies that are interested in leasing sections of the building. We expect that after today’s news, inquiries about the building will increase. It’s great to have an energetic company like Spartan Logistics as the new owner,” said Tim Allen, president of the Fort Smith Chamber, said in the statement.

In a brief interview with The City Wire, Allen said he has shown the property to three different companies, and is now able to work directly with Spartan on putting the property to good use.

“For me, having a new owner of that building really helps us with economic development, because we know we have that speed-to-market factor. The decision-making process is much faster,” Allen said.

Allen said having “a big piece of that property” clear from Whirlpool shows the progress being made to return jobs to the area.

“We’re really getting a lot of interest in that ... and I will really be surprised if we don’t land something else out there,” Allen said.

Ability to quickly assess customer demand, redefine the shopping process and give consumers time savings on top of low prices are just a few reasons Wal-Mart Stores – the nation’s largest grocer – is testing its unique “Pickup Grocery” format in Bentonville

On Day 1 of operation, smiles were a mile wide from the executive team who often noted that the pickup operation site located near the intersection of J Street and S. Walton Boulevard in Bentonville is an ongoing test and a learning lab that can only be a successful if customers use the facility and provide their feedback.

Judith McKenna, chief development officer at Wal-Mart, said during the grand opening ceremony Monday (Sept. 29) that to open a new store is “challenging enough, but to open a brand new format from the ground up is something really very special.” She said this test format has been a major collaboration between many different teams within Wal-Mart from real estate to innovations to e-commerce and logistics, grocery and technology. McKenna said the new format went from a concept sketched on paper in early 2013 to a fully functional operation 18 months later.

She said the “why” of Wal-Mart’s investment in this new format is to gain insights into the ever-changing needs and demands of consumers around the globe who are craving more options about when, where and how they shop.

“Choices, that’s what customers want today. … As one of the nation’s largest grocers and fastest growing e-commerce companies Wal-Mart is uniquely positioned to meet customers needs by bringing together our digital and physical expertise like no one else can do,” she added.

Mitch Levold, manager of the Walmart Pickup Grocery, reminded guests at the grand opening that the concept is now an ongoing beta test now expanded to the general public who takes the time to register online.

“We need and want all consumer feedback so that we can continue to refine the operations,” Levold said.

The 10,000 items in the mini warehouse are similar to the best selling products in a typical Neighborhood Market, according to Betsy Hardin, Wal-Mart spokeswoman. She said the item count and selection will be modified as needed to suit changing consumer demands.

Levold said he has received some valuable feedback. One demographic that appreciates the convenience are mothers with small children. Levold said Sunday he delivered an order to a shopper’s car who told him that this format has saved her an hour of time on her Sunday afternoon. Another shopper said she had wrestled with her toddler son to try and get his shoes on before they left for the store. Then she realized it didn’t matter if he wore shoes to the new grocery format because he would never get out of his car seat.

PERSONAL REVIEW
The City Wire registered online to try the new grocery buying experience. The registration was easy, requiring only an email address and password, home address and phone number – very similar to the registration for the Savings Catcher program or a typical online purchase.

Consumers may browse by grocery category, but we found using the search tool was the fastest way to find an item. Typing in a brand or product name such as “Tide w/Downy,” or “Great Value bottled water” brings up the items available. Shoppers then select the item and it goes into the electronic shopping cart keeping a tally of the total on the screen. Each product on the shopping list has the option for item substitution. The customer can opt in or out.

The shopping list entered by The City Wire included 5 items, all of which showed to be in-stock. The item substitution box was checked for each product.

During the online shopping trip The City Wire also checked prices and availability against a grocery receipt from the Bentonville Walmart Supercenter from the previous day (Sept. 28).

Items not found online, but purchased at the nearby supercenter included: Arizona tea mix singles, Propel drink mix singles in grape, large container of Great Value whipped cream topping, Beneful Dog Food in the Playful Life variety. The online site did have other varieties of Beneful Dog Food and Propel flavors other than grape. The Great Value whipped topping was available in the smaller size and Tide w/Downy was only available online in the larger size.

Other items available both in-store and online were priced identical; products like Jello instant pudding, Rotel tomatoes and Dole crushed pineapple.

Levold said Savings Catcher is not available for receipts from the online Pickup Grocery format, but it should be available in the future.

Once all items are in the cart, the user moves to the checkout and selects a pickup time from those available. Earlier times range from 2 hours up to three weeks. Levold said the hours of operation are seven days a week from 7 a.m. to 10 p.m.

After the order is complete and credit card payment information is added, a confirmation is emailed immediately with the pick-up time and step-by-step directions. Users are also asked if they want to save the shopping list for future use.

The City Wire placed its order at 11:30 a.m. on Monday and selected a 1:30 p.m. to 2:30 p.m. pick-up time. Driving up to the kiosk at 1:50 p.m. the user enters their last name or their order number and they are then prompted to pull into one of the 19 waiting lanes.

By 1.56 p.m. an attendant by the name of Robert brought the order to the car. He explained there was one substitution in soft drink variety and gave us the opportunity to opt out. The diet Dr. Pepper order was substituted with the new Dr. Pepper 10 product at the same price.

He loaded the product order in the back hatch and once that was done he asked for a signature to run the credit card that was provided online. The delivery attendant also asked if we had a pet and he gave us a complimentary package of dog treats for trying the service and providing feedback. The entire drive-up process took around eight minutes to complete from the kiosk check-in time until the drive away.

ORDER ISSUE, RESPONSE
The City Wire purposely ordered fresh produce to see the quality the pickers would deliver. Two Gala Apples were in the order, the color was nice, but one of them had a small blemish that would not have met the buyer’s approval had they seen the product.

Levold said consumers may ask to see their fresh produce before they sign the ticket, and may refuse the item. Wal-Mart said produce has been one of the most ordered items in recent days. That’s no surprise to analysts who said people like to thump the cantaloupe or pick out their own tomatoes and if the produce and bakery items pass muster that’s a seal of approval in some circles.

In The City Wire order, the 24-count bottle water was omitted from the order, but charged to the customer. All the other products were there and met customer approval. The City Wire called the customer service line dedicated to grocery once it was discovered the water had been omitted from the order. The wait time on the phone was less than 3 seconds and a representative asked for the order number and item omitted. She apologized for the inconvenience and entered a credit back to the card for that item — $2.97. Wal-Mart said it could take up to 7 days for the credit return.

According to The City Wire’s trial run, the ease of use throughout the process from registering to shop to reporting an order mishap went smoothly and quickly on the new format’s first day of operation with the general public.

MATURE MARKET FEEDBACK
Stewart Samuel, analyst with IGD, told The City Wire that his firm talks to more than 1,000 shoppers each month about attitudes, motivators and barriers to food and grocery shopping online. The research is done in Great Britain, a market more advanced with online grocery buying than the U.S.

Looking at this data is perhaps one way to assess how U.S. demand could develop if the options were available.

McKenna was brought to the U.S. by Wal-Mart from the ASDA grocery business in the U.K. to head up the small format and online grocery innovations for the retailer’s massive grocery division, which is 55% of its U.S. sales. McKenna said pick-up depots are gaining in popularly across the Europe, home delivery has been around for quite a while.

Samuel said IGD’s research shows 18% of online grocery shoppers use home delivery and pick-up options. While the majority of those surveyed still prefer home delivery, the pick-up option is attracting more users with each quarter of the survey.

One in five online grocery shoppers in the U.K. use that service once a week or more. Another 20% said they shop online every two weeks, while 23% said they use it as a stock-up trip one time a month.

The major motivation behind using online shopping among those surveyed by IGD is the convenience factor, with 82% saying it’s easy and convenient, and 59% saying they shop online because its quicker.

Deposits were up 3.32% and 1.45%, respectively, among banks in Northwest Arkansas and the Fort Smith metro area, according to a report issued Monday (Sept. 29) by the Federal Deposit Insurance Corp.

The report, which measured deposits as of June 30, showed that the local regions bucked a national trend in the same period as U.S. insured deposits totaled $6.1 trillion, down 0.2% from a year ago.

Economists have said several signs point to an overall stronger economy for the nation. Personal income ticked up 0.3% last month and personal saving rates remain high at 5.4%, though they have receded slightly from a two-year peak in July at 5.6%, according to the Bureau of Labor Statistics.

Consumer Sentiment surveys by Arvest Bank across the state have indicated that a higher savings mentality which could be responsible for the uptick in deposits in Northwest Arkansas and Fort Smith, two of the three most populated metro areas in the state.

NORTHWEST ARKANSAS
Surpassing the half million mark in population. banks continue to expand into Benton and Washington counties. There are 39 different banks operating in this metro area with deposits exceeding $8.552 billion, as of June 30. This compared to 38 banks holding $8.277 billion in deposits one year ago.

While there is one more bank, there was also the consolidation of Metropolitan National by Simmons First National and the acquisition of Liberty Bank by Centennial Bank.

Arvest continues to control the lion’s share of this market with 47.62% of the deposits valued at $4.072 billion, up from $3.926 billion in the previous reporting period.. Arvest managed to increase that share from 47.44% a year ago.

First Security Bank conceded some share from a year ago. The Searcy-based bank had deposits of $645.462 million as of June 30, for a 7.55% market share. Deposits dipped $25.8 million from a year ago, trimming back the market share from 8.11%.

Bank of America also picked up some added share to 3.76% of the market with deposits of $321.505 million, up from $305.633 million in the year-ago report. Signature Bank ranked fourth in terms of deposits holding steady at $297.498 million worth 3.48% of the market.

The Bank of Arkansas grew its deposits year-over-year by $34.68 million, moving it up the fifth spot, up one slot from a year ago. Conversely the Bank of Fayetteville lost some market share taking the No. 6 spot, but still saw a $5.8 million uptick in overall deposits.

Simmons FIrst picked up  market share with the purchase of Metropolitan National Bank last fall. Simmons grew market share to 2.85% or $289 million, up from $198 million a year ago.

Legacy National Bank also grew its deposits year-over-year by $20 million. As of June 30 the Springdale-based Legacy had $230.7 million in deposits worth 2.7% of the local market.

TOP 10 MARKETSHARE – NORTHWEST ARKANSAS

Arvest: 47.62%, $4.072 billion

First Security: 7.55%, $645.46 million
Bank of America: 3.76%, $321.5 million

Signature Bank: 3.48%, $297.49 million

Bank of Arkansas: 3.41%, $291.73 million

Bank of Fayetteville: 3.38%, $289 million

Simmons First National: 2.85%, $243 million

Legacy National: 2.70%, $230.76 million

Centennial Bank: 2.42%, $206.59 million

Iberiabank: 2.08%, $177.64 million

FORT SMITH METRO
The local banking sector in the Fort Smith metro area which includes eastern Oklahoma has 21 different banks holding deposits of $4.116 billion as of the June 30. Deposits in this region rose $59 million over the past year and there is one less bank.

First National Bank of Fort Smith has the majority of deposits in this region again this year. Deposits totaled $878.95 million or 21.35% of the market share, increasing $75.9 million in the past year, and growing share from 18.31%.

Arvest comes in at No. 2 and grew its deposits to $679.432 million to control 16.51% of the local market. Deposits rose $88.9 million from year ago and picked up two full percentage points in market share.

BancorpSouth controls the No. 3 spot this year with deposits of $462.13 million, or 11.23% of the market. The Tupelo, Miss.-based bank saw its Fort Smith area market deposits fall by $45.9 million and conceded 1.29% percentage points in market share.

Citizens Bank & Trust picked up market share and also grew its deposits year-over-year. The Crawford County-based bank has 7.7% of the market share with deposits of $317.32 million. This compares to 7.65% market share and deposits of $310.46 million a year ago. Citizens is owned by First Bank Corp., which is also the parent company of First National Bank of Fort Smith.

Region’s Bank rounded out the top 5 in the metro area. Regions has a market share of 4.95% with deposits of $203.69 million. Regions lost market share, falling from 5.56% a year-ago with $21.8 million fewer deposits.

The next four largest banks in terms of deposits are: Central National of Poteau: $186.55 million, 4.53%; Armstrong Bank of Muskogee: $168.16 million, 4.09%; The Community State Bank Poteau: $165.7 million, 4.03%; and Firstar Bank of Sallisaw: $163.97 million, 3.98%.

Benefit Bank ranks No. 10 in deposit size with $148.66 million or 3.61% of the market. Deposits have shrunk by $7.36 million from a year ago, when the Fort Smith-based bank held 3.85% of the market share.

Farmers Bank of Greenwood was just one spot out of the top 10 with deposits of $147.712 million at the end of June. This was 3.59% of the local market. A year ago the bank held deposits of $148.32 million or 3.66% of the market share.

TOP 10 MARKETSHARE – FORT SMITH METRO

First National Bank of Fort Smith: 21.35%, $878.95 million

Arvest: 16.51%, $679.432 million
BancorpSouth: 11.23%, $462.133 million

Citizens Bank & Trust: 7.71%, $317.324 million

Regions Bank: 4.95%, $203.691 million

Central National Bank of Poteau: 4.53%, $186.566 million

Armstrong Bank.: 4.09%, $168.165 million

Community State Bank: 4.03%, $165.701 million

Firstar Bank of Sallisaw: $163.97 million, 3.98%

Benefit Bank: 3.61%, $148.864 million

ARKANSAS MARKET SHARE
Arvest Bank again captured the top spot in terms of deposit share in all of Arkansas. Centennial Bank moved to the third spot, up from eight in 2013, after the acquisition of Jonesboro-based Liberty Bank.

Following are the top five banks in terms of market share as of June 30. The parenthesis notes the rank in 2013.

Arvest Bank
June 30, 2014: $6.635 billion, 12.33%
June 30, 2013: $6.2 billion, 11.67% (1)

Regions Bank
June 30, 2014: $4.01 billion, 7.45%
June 30, 2013: $4.188 billion, 7.89% (2)

Centennial Bank
June 30, 2014: $3.487 billion, 6.48%
June 30, 2013: $1.627 billion, 3.06% (8)

First Security Bank
June 30, 2014: $3.404 billion, 6.33%
June 30, 2013: $3.333 billion, 6.28% (3)

Bank of America
June 30, 2014: $3.237 billion, 6.02%
June 30, 2013: $2.977 billion, 5.61% (4)

The kidnapping and murder of Little Rock area real estate broker Beverly Carter has caused the real estate industry to re-examine policies and procedures in light of her death.

Carter was last seen Thursday before showing a home near Little Rock. She was found Tuesday (Sept. 30) in a shallow grave at a concrete company northeast of Little Rock. She was 49.

According to Emily Morgan, director of public relations at the Arkansas Realtors Association, Carter's murder has been a "big reality check."

"As far as updating our policies, we definitely are. This is been a big reality check. We have a lot of our leadership coming in today to meet with our CEO and implement new policies statewide," she said.

While it is up to each real estate agent and broker to implement a safety plan, Morgan said the ARA works with local Realtor boards to provide training statewide.

"Many of them hold classes and many boards have office safety plans that they give new agents and brokers."

The Association issued this statement Tuesday (Sept. 30): “On behalf of the Arkansas REALTORS Association, we would like to extend our deepest sympathy and condolences to Beverly Carter’s family. Words cannot express how truly sorry we are that this tragedy has happened. Though not every REALTOR in Arkansas may have known her, we all feel a deep connection with her as a part of our REALTOR family.

“We feel an obligation to re-educate our members on best safety practices and plan to implement a statewide, if not nationwide, safety plan. It is our goal to make sure that all REALTORS have the information and means to keep themselves safe during showings, open houses and in their day-to-day business.”

TECHNOLOGY SUPPORT
Vickie Davis, a realtor with Sagely & Edwards Realtors in Fort Smith, said she always makes sure to notify her husband, son or mother where she will be, much like Carter had done with her husband before going on the showing that result in her death. But Davis said she has another way to let her family know where she is at all times.

"On my cell phone, I have the 'Find My Phone' app, so they can usually track me wherever I am," she said.

Davis said there were other simple steps she took to protect herself on the job, such as listening to the needs of the client and listening to your own instincts.

"Whenever you're talking to someone on the phone and have a few red flags, in that case you have them meet you at the office first. Some Realtors even ask you to fill out forms and show a drivers license," she said.

MEET PEOPLE FIRST
Aimee Edens, an agent with Chuck Fawcett Realty in Fort Smith, said that was exactly the procedure followed at her agency if agents and brokers do not know potential clients.

"When we show a house to someone or someone calls in and wants to see a house and it’s someone we don't know, we meet them at the office first and take a copy of their drivers license," she said. "A lot of times people who don't want to come in, we don't show them the house. We try to meet with our people first and find out what they're looking for. People who are serious about looking for a house will come in."

Edens said another step to protect herself includes not entering a vacant property with a client.

"A lot of times what we'll do is unlock the property and let them go in and look around. We wait outside of the property," she said, adding that repeat customers such as investors are treated a little differently since the client is known and would likely be less of a risk.

In spite of all the training and available resources for agents, the ARA's Morgan said an incident had occurred in the Fort Smith region within the last several years involving realtor safety. Davis recalled the incident while contemplating Carter's murder.

"We have an agent that works for us now that was assaulted and raped many years ago. It's not anything new," Davis said. "I've known some people who have had problems over the years. But you try to look at what you can eliminate as far as a risk factor."

CONCEALED CARRY PERMIT
Edens said Chuck Fawcett agents often will team up for a showing to ensure safety. Other agents have resorted to carrying weapons to protect themselves from potential predators.

"Several agents in our office have a concealed carry (permit) and I am considering it. I've talked about it with my broker, especially after what has happened, about getting that conceal and carry permit."

But Edens said the Carter murder will be a reminder for agents at her office of best practices in the real estate field.

"Probably what we'll do, and what we've done in the past, is we have training meetings about once a week and we'll discuss safety. It's something we do often and try to reinforce so our realtors aren't going to houses just by themselves with people we don't know."

Vickie Briolat, a broker with Crye-Leike Real Estate in Bentonville, is proud to have a concealed carry permit, but is not sure in some situations it could protect her, which is why agents need to follow measures of safety protocol when there is a higher element of danger.

“It takes two hands to open a lock. I have my phone in one hand scanning in the code and the other hand on the lock box to retrieve the key and my back is to the buyer. Even if you have a concealed carry weapon and are packing, it’s likely in your purse which is on your shoulder or locked up in car,” Briolat said.

THE ‘RED FILE’
Briolat said the terrible crime against Carter could have just as easily been against any number of agents including herself.

“It’s been a huge wake-up call for everyone. Crye-Leike has long advocated for agent safety instituting a ‘Red File’ program years ago. The procedure hangs in our Bentonville office and we have had several meetings on safety in recent years,” Briolat told The City Wire.

The “Red File” procedure requires agents to meet prospective buyers at the office first, where they can obtain copies of their drivers licenses, which are put into a red file folder along with the addresses of the properties to be shown that day. Briolat said any time an agent is uncomfortable with a client they can call the office or an agent and say they forgot the red file, which is a trigger that they need backup.

“We have this protocol, but we all have made exceptions. If someone called to say they wanted to pay cash for a $250,000 listing, it’s in our nature to jump toward that opportunity,” she said.

RURAL LISTINGS
Briolat added that on the listing side of the business, at least two times in recent months when she has felt uncomfortable going into deep rural areas, she has provided that listing to a male colleague.

“The reason I passed on two listings is because I did not feel comfortable going to those remote locations by myself several times a week. There is no amount of money that will compensate for that feeling of uneasiness. Sometimes you have to draw the line for yourself, because we are independent contractors and at the end of the day it’s our decision,” Briolat said.

One insight Briolat gained from the tragedy is that she will no longer use her photo on her business cards. She believes perhaps Carter was first targeted because of a prominent photo used by the victim.

Nicky Dou, a broker with Keller Williams in Bentonville, also has a high level visibility throughout various social media formats that she uses in her business. Dou told The City Wire she will continue to use her photo, because she can’t live in fear. That said, she adds that in the future she will be better prepared and cautious.

“This very well could have been me or any one of us. My thoughts and prayers go out to Beverly's family and friends. It has definitely had a huge impact on me and my daily activities,” Dou said.

Briolat said the buddy system is important for agents who spend a lot of time alone in the car or at listings. She said it’s important to keep cell phones charged and have someone who can text them at regular intervals to check in. That is the procedure she and her husband have followed for several years.

Like other agents, Dou said this incident has her considering a concealed carry weapon permit.

Year-to-date home sales and sales volume in Arkansas through August remains positive, but August home sales were down more than 5% and sales were down more than 8%.

Home sales in Arkansas’ four largest metro areas during the first eight months of 2014 totaled 14,527, up 3.65% compared to the same period in 2013, according to The City Wire’s Arkansas Home Sales Report. The average price per home sold in the four markets was $165,056, down 2.31% compared to the same period in 2013, and the total value of $2.397 billion in the four markets was up 1.25%.

The year-to-date comparisons are up against what was a robust 2013 in terms of Arkansas home sales and sales values. For example, the 2014 year-to-date home sales are up 17.4% over the same period in 2012 and the value of home sales is up 19.04% compared to the same period in 2012.

The City Wire’s Arkansas Home Sales Report captures home sales data in the state’s 14 most populated counties within its four largest metro areas — Central Arkansas, the Fort Smith area, Jonesboro/Northeast Arkansas and Northwest Arkansas. The report, which records closed sales, accounts for between 70% and 75% of total Arkansas home sales.

Bob Downum, broker with Weichert Downum Group in Springdale, told The City Wire that the numbers are strong on the surface.

“They’re steady, no big surges up or down and while overall sales are lagging last year, 2014 is a lot better than 2012,” Downum said. “It looks to be a sustainable pace.”

Larry Stanfill, a broker with Chuck Fawcett Realty's Greenwood office near Fort Smith, said the back half of a year is sometimes slower, but he continues to be busy.

"We will probably remain steady, but winter months are typically the slower months. As for me, I'm having the best year I've ever had and I still have quite a bit going on for closings in the next month and I'm hoping it holds,” Stanfill said.

AUGUST NUMBERS
August home sales in the four markets totaled 2,048, down 5.62% compared to August 2013, and up 17.36% compared to August 2012. The average price per home in the four markets during August was $168,896, down 3.03% compared to August 2013, and down 3.06% compared to August 2012. The total value of sales in the four markets during August was $345.899 million, down 8.48% compared to August 2013 and up 13.77% compared to August 2012.

There were 897 homes sold in central Arkansas, down 5.68% compared to August 2013, and up 15% compared to August 2012.

August home sales totaled 742 in Northwest Arkansas, down 9.18% compared to August 2013, and up 16.85% compared to August 2012.

Jonesboro area home sales totaled 223, up 9.31% compared to August 2013 and up 29.65% compared to August 2012.

In the Fort Smith area, home sales totaled 186, down 6.06% compared to August 2013, and up 17.72% compared to August 2012.

The total value of the sales during August were down 8.71% in central Arkansas, down 7.14% in Northwest Arkansas, down 5.45% in the Jonesboro area, and down 17.78% in the Fort Smith region.

THE REGIONAL PICTURE: 2014
Central Arkansas — Home sales
Jan.-August 2014: 6,827
Jan.-August 2013: 6,535
Jan.-August 2012: 5,894

Fort Smith area — Home sales
Jan.-August 2014: 1,320
Jan.-August 2013: 1,162
Jan.-August 2012: 1,084

Jonesboro area — Home sales
Jan.-August 2014: 1,513
Jan.-August 2013: 1,297
Jan.-August 2012: 1,188

Northwest Arkansas — Home sales
Jan.-August 2014: 4,867
Jan.-August 2013: 5,022
Jan.-August 2012: 4,208

The top five counties in terms of Jan.-August 2014 home sales:
Pulaski — 3,171, up compared to 3,025 in 2013
Benton — 3,087, down compared to 3,146 in 2013
Washington — 1,780, down compared to 1,876 in 2013
Craighead — 1,198, up compared to 1,029 in 2013
Saline — 1,105, up compared to 1,034 in 2013

Link here for a PDF document of the August 2014 data.

STUDENT DEBT IMPACT
A possible minor drag on future home sales could result from student loan debt.

Trulia recently released a report that reveals a trend in which homeownership rates among young adults ages 18-34 has dropped to a new low of 13.2%. Trulia reports that Millennials are struggling with sluggish job markets, student loan debts and tight lending standards.

Conway Bankruptcy Attorney James Wyre said the Trulia research is not a surprise.

“I’m consistently seeing people that have decent incomes but don’t make enough to pay their student loans,” he said, adding that tuition costs have risen dramatically in just the past decade.

Wyre said student loan debt, as a rule, cannot be discharged but people are filing bankruptcy and adding them to Chapter 13 plans, anyway. In a Chapter 13 bankruptcy, a consumer will generally pay off debts through a low, monthly payment for about five years. After the five years is up, portions of unpaid, unsecured loans are discharged.

Student loans cannot be discharged, but paying on them through a Chapter 13 plan can reduce monthly payments and a consumer can avoid having wages garnished for not paying back those loans under the original terms. Consumers who choose to file for bankruptcy solely to deal with student loan debt hope their income levels will improve enough over the length of the plan to handle student loan payments after the bankruptcy has ended.

Wyre said consumers who file for bankruptcy because of student loans have their money tied up for five years while the Chapter 13 plan is in place, so they will not be in a position to purchase homes. Also, their credit will be hurt because of the bankruptcy and their chances of taking out a mortgage is low.

Eastside Elementary in Rogers and St. Joseph’s Catholic School in Fayetteville received the distinction of being named National Blue Ribbon Schools for 2014. The honors were made public Tuesday (Sept. 30) by the U.S. Department of Education.

Only five Arkansas schools were on the 2014 Blue Ribbon list. Other Arkansas schools named as 2014 Blue Ribbon Schools were:
• Centerpoint Primary School, Glenwood, Ark.;
• M.A. Hardin Elementary School, Redfield, Ark.; and
• Norfork Elementary School, Norfork, Ark.

St. Joseph’s held a reception on campus in Fayetteville celebrating the first time the honor has gone to a private school in Northwest Arkansas. Nationwide, 287 public schools and 50 private schools were named a 2014 Blue Ribbon School. The U.S. Department of Education estimates there are “just under” 7,900 schools in the U.S.

The award was established in 1982 to recognize public and nonpublic elementary, middle, and high schools where students perform at very high levels or where significant improvements are being made in students’ academic achievement. The National Blue Ribbon School award is considered the highest honor an American school can achieve.

Of the approximately 1,200 schools in the state of Arkansas, only 37 public schools and three private schools have received the award in the 32-year history of Blue Ribbon. 

School officials in Rogers said Eastside is the third of its schools to receive the honor in recent years. Russell Jones Elementary was selected in 2012 and Bellview Elementary received the honor in 2011.

“I am so happy and so proud of Eastside’s students, teachers and administration and their hard work,” said Janie Darr, district superintendent. “The individual success of so many students has resulted in the school virtually closing the achievement gap between different groups of students. To have several National Blue Ribbon Schools in the district is a testament to the consistent quality of education in Rogers.”

St. Joseph Catholic School officials said its high standardized test scores qualified the school to submit a lengthy application to the Council for American Private Education (CAPE) highlighting the school’s operations in areas such as assessments and utilization of assessment data, curricula, professional development, leadership, and community and family involvement. 

Once reviewed and approved, CAPE recommended St. Joseph to the U.S. Department of Education as one of only 50 private schools to be considered for the award. St. Joseph was chosen based on the criteria of schools whose students score in the top 15% nationally in both reading and mathematics on nationally-normed tests. 

According to the Department of Education, common qualities found in Blue Ribbon Schools are leaders who articulate a vision of excellence, but also stay close to the real action of teaching and learning. 

“We credit our success to a ‘Can-do attitude’ of high expectations for all of our students and staff,” Eastside’s principal Robin Wilkerson said. “The collaboration and embedded professional development that is possible through co-teaching, coaching cycles, and teachers working together has created a learning culture based on teamwork.”

Eastside will join the other honorees from across the nation at a special ceremony in Washington, D.C., Nov. 10-11.

So far no Northwest Arkansas companies have become subzones of Foreign Trade Zone 14 in Little Rock. Rumors that a new foreign trade zone was coming to the area do not appear to be accurate given the issue was researched and discarded a year ago.

A foreign trade zone (FTZ) is the same as a free trade zone with the foreign trade zone moniker the most common in the United States, according to the Small Business Administration.

An FTZ is a class of special economic zone where companies can import goods that may need to be reconfigured or manufactured then either put into the US economy or re-exported to another country. No duty fees are charged on those components until the finished product goes into the U.S. commerce. Essentially, the FTZ acts as “foreign soil” despite being geographically located in the United States.  

About a year ago there was an effort to research applying for an FTZ in Northwest Arkansas but the idea was vacated. The Northwest Arkansas Council worked with several people more than a year ago to explore whether a free trade zone was needed in the area, and concluded that it isn’t needed.

“We hosted a group meeting to answer questions about what a FTZ does and doesn’t do. We priced the application/requirements process for us, and we stopped there,” said Rob Smith, spokesperson for the Northwest Arkansas Council. “Our alternative is that we can refer people to the Little Rock Free Trade Zone. They have a unique arrangement that allows them to extend their zone to individual companies anywhere in the state.”

The Arkansas Economic Development Commission is the grantee for FTZ 14 (the Little Rock Port), said spokesperson Scott Hardin.

“In this role, we approve subzone requests (subzones of FTZ 14),” he said. “We also monitor subzone reports from all FTZs in the state (subzone reports are completed annually). AEDC certainly supports the establishment of Foreign Trade Zones or subzones in the state as we want to take full advantage of any opportunity to help Arkansas companies with foreign trade.” 

James Firestone is the director of operations for the Little Rock Port Authority explained that when a subzone is approved, it must be for a specific product purpose. For example, a whiskey distributor could import glass, which is usually has a high duty, then “reassemble” the product into gift packs. The imported product also can’t be intermixed with locally produced products.

Usually a subzone must be two hours of driving time from Little Rock because of the inspections that customs agents must perform at the companies but the customs agents have been willing to work with them to accommodate companies that might be outside that range, Firestone said.

So far there are four subzones of FTZ  14: Shaw Mid States Pipe Fabricating, Inc. in El Dorado; Lion Oil Company in Jackson, Miss.; and Husqvarna Outdoor Products, Inc. in DeQueen and Nashville.

At one point a company with operations in the Fort Smith region applied to produce wind turbines, Firestone said. Mitsubishi, which completed an almost $100 million 200,000-square-foot wind turbine assembly plant in Fort Smith, never operated the plant.

What Northwest Arkansas does have is a Port of Entry, which is at the Rogers Airport, said Dan Hendrix, CEO of World Trade Center Arkansas. The only other Port of Entry in Arkansas is located in Little Rock.

A Fort Smith automobile dealership is getting national attention for its efforts in the world of social media.

According to a press release from the Driving Sales Executive Summit, Harry Robinson Buick GMC's social media team, headed up by Social Media Manager Cathy Nesbit, will be one of only five dealerships nationally to be recognized for "best ideas" at the group's Las Vegas convention in October.

The idea garnering Nesbit and the dealership attention is its "Free Gas Friday" promotion that has run weekly since the start of the year. According to Nesbit, she and a photographer seek out a vehicle with either a Harry Robinson front-mounted license plate or a Harry Robinson sticker on the rear and award the driver with a goody bag and a $50 gas card.

After Nesbit or someone from the dealership awards the winner with a gas card, the entire event is then uploaded to the station's YouTube channel.

"We wanted a video series and a way to honor our loyal customers specifically and just do something that they were eligible for," Nesbit said.

While the series rewards loyal customers with free gas, the efforts are gaining national attention and resulting in increased conversions to the company's website where new and used vehicles are listed for purchase.

"We put the videos on Facebook and our YouTube page. On Facebook video plays, we've had over 24,000 views and I checked Friday and we had 33,123 views on YouTube," she said, adding that another 456 views had been logged since Friday.

Nesbit said the numbers were a vast improvement from the year prior, when the company had only logged 8,000 views on its YouTube channel.

Beyond the "Free Gas Friday" promotion, other promos like "Test Drive Tuesday" were pushing up the views and also driving traffic to the dealership. Nesbit said a third of sales could be tied to customers having previously seen the information online.

"And that's traceable. If you're asking me, it's much much higher. But we have to be able to prove every number and I'm a numbers person, (and) the average is 33.3%," she said.

But the numbers were not always so strong, according to General Manager Renee Durham. Durham said Nesbit started at the company four years ago and was brought in without a defined job description.

"When we identified social media as being important in marketing and recognizing our employees and customers, we added a social media person," she said.

And even though Harry Robinson could have gone with any number of national firms that specialize in social media and web management, Durham said the decision was made to hire Nesbit and have her build the position and the new marketing arm of Harry Robinson from the ground up.

During that time, Nesbit has taken strategies she has developed on her own and strategies used in other larger markets and applied them locally to take Harry Robinson to a new generation of digitally connected customers, reaching not only the Fort Smith region but others, as well.

In that time, Nesbit has done what many in the automotive world find impressive — she has taken social media and made it one of the primary drivers of customers at the dealership.

"It's nearly unheard of for a dealership to capitalize on any kind of traffic to their website from Facebook specifically. And our number one referrer of traffic outside of Google and Yahoo! is Facebook," she said.

And with the nation's automobile dealerships watching Oct. 12-14 in Las Vegas, Nesbit will have five minutes to explain her social media strategy for "Free Gas Friday" and who knows? She could be chosen by a panel of judges as having the best marketing idea in the auto industry for 2014.

The two major party candidates for Arkansas Attorney General tout their experience as positives for voters to consider this fall, but don’t worry — this race also has its fair share of controversies.

Republican Leslie Rutledge of Little Rock and Democrat State Rep. Nate Steel of Nashville, who are joined by Libertarian Aaron Scott Cash of Springdale in the race, recently sat down with Talk Business and Politics to talk about their campaigns.

The position has been a steppingstone for individuals seeking other offices. Democrats Mike Beebe and Mark Pryor parlayed their terms as attorney general into higher office as did one-time AG Bill Clinton.

Rutledge, a Batesville native, is seeking to become the first Republican and first woman to be elected to the post, while Steel is seeking to become the fourth consecutive state legislator — joining Pryor, Beebe and current occupant Dustin McDaniel — to be elected.

In recent days, there has been controversy over an ad being aired by the Republican Attorney General’s Association (RAGA) in which Rutledge appears. The commercial, called the “salt shaker” ad, has Rutledge sitting at a table, talking about issues involving state and federal government.

Critics of the ad, including the pro-Democratic Southern Progressive Fund, contend Rutledge and RAGA are coordinating their efforts and may be violating the rules of independent expenditure spending. Arkansas’ ethics rules define independent expenditure activity as “expressly advocating the election or defeat of a clearly identified candidate for office” that is made without “arrangement, cooperation, or consultation” with a candidate, committee, or their representatives.

The RAGA ad does not advocate voting for or against Rutledge. It also does not identify her as a candidate for Attorney General. Rutledge says the interaction between RAGA and herself is above board. She points to a 2006 Arkansas Ethics Commission advisory opinion that involves advocacy issues involving Arkansas Right to Life in defending the arrangement. The opinion quotes the 1976 Supreme Court case, Buckley v. Valeo, involving campaign finance issues and California Pro-Life Council v. Getman, a 2003 9th U.S. Circuit Court of Appeals case.

The 2003 ruling, reads in part, “Communications that discuss the record and philosophy of specific candidates, like the one before us, do not constitute express advocacy under Buckley and MCFL unless they also contain words that exhort viewers to take specific electoral action for or against the candidates.”

“I appreciate RAGA being willing to talk about important issues and where I stand on them. If this election is about issues, then I will win,” Rutledge said.

When asked if she views the ad as coordination between her campaign and RAGA, she added, “Yes, legally.”

Steel said he has questions about the ad, but is unclear on if it violates any particular rules.

“I can’t answer that just by seeing the ad,” he said. “It certainly suggests some kind of coordination. I don’t know how it would be possible to produce an ad and speak directly into the camera without coordinating, but I don’t know how it was produced or aired. I would just be speculating.”

A new RAGA ad out this week as a follow-up to the “salt shaker” ad is more aggressive in its message. It seeks to attach Nate Steel to President Obama, calling him a “lap dog” for the administration. The ad advocates for Rutledge saying she’ll be “a guard dog” against the President as Arkansas Attorney General.

The ad follows the traditional formula of using footage and photos obtained in the public domain and does advocate for and against the candidates in the race.

The Democratic Attorneys General Association has not aired any commercials on Steel’s behalf or against Rutledge, but a group known as the Committee For Justice And Fairness has spent six-figures in support of Steel in an ad that touted his toughness as a prosecutor. The Justice and Fairness group is based out of Denver and supports Democratic attorney general candidates nationwide, according to the Center for Public Integrity.

ISSUES, RECORDS & PHILOSOPHIES
The Arkansas Attorney General’s race has already been heavily influenced by outside group spending. In the GOP primary, Rutledge was assaulted with an estimated million dollars in negative campaign ads and mailers by the Judicial Crisis Network, which promoted the candidacy of Republican David Sterling.

The ads attempted to link Rutledge’s positions to those of Democratic President Obama and former House Speaker Nancy Pelosi. Many political observers contend the attacks backfired and helped propel Rutledge to her historic run-off victory.

And while third party ad spending may influence the AG’s race, there are plenty of issues and philosophical approaches to the office that define these two major party candidates for the state’s top legal post.

During a recent campaign appearance in Jonesboro, Rutledge said she would like to expand the current Cyber Crimes unit with the AG’s office, going after internet predators and scam artists.

She said local departments often do not have the funding to handle major cases and that her experience as a deputy prosecutor will help. She said the program is one place where the AG’s office can do some work.

Steel said he supports the Cyber Crimes Unit and wants to see the program succeed.

“I carried the enabling legislation in the state House to give the Attorney General the authority to subpoena,” said Steel, who is a former prosecutor. “It is a great investigative tool and does not meddle in the local affairs. It is not a top-down approach and it utilizes the resources that are out there.”

Rutledge also said she wants to work to support efforts on pushing back on the overreach of the federal government.

A perfect example is Obamacare, where 28 attorneys general filed suit or amicus briefs on the federal law when it went to the Supreme Court, Rutledge said.

“We have to make sure people know it is the role of the Attorney General. It is not a Republican or Leslie Rutledge thing,” Rutledge said.

Also during her recent Jonesboro stop, she touched on questions about the Environmental Protection Agency.

“The EPA has its foot on the throat of farmers and business owners in our state,” Rutledge said. “We also need a fair business environment.”

For his part, Steel said there are plenty of state issues to deal with.

“I am frustrated with Washington as much as the next guy. But the parole and child predator problems in the state are big. It is a huge disservice to just focus on D.C.,” Steel said.

Steel has rolled out a multi-point plan that he says he’ll take to the state Legislature on Day One.

“My opponent said there is no need for the Attorney General’s office to have a legislative package for this upcoming session,” Steel said in a late August press conference. “Because your legislature convenes every other year, that’s a long time for the many problems I’ve mentioned to go without resolution. We can’t look to a national agenda for marching orders.”

Rutledge says while she doesn’t have plans to bring a package to the state capitol, she will work with state agencies to help educate officials on the law’s boundaries.

“We need an attorney general to work to make sure that state agencies do not go beyond the scope of the statutes. From what I am hearing, I am hearing it is a big problem,” Rutledge said. “We need a strong governor and a strong legislative branch. We do not need a Big Brother or in my case, a Big Sister. But we need to review the scope.”

Rutledge also questioned a 2013 legislative vote by Steel involving Level 3 and Level 4 sex offenders being allowed in state parks. Steel said he voted present on the bill until a park in his district could get further information.

“The Crater of Diamonds State Park had concerns over it, on whether they could patrol the area,” Steel said. “There was not a single no vote on it and I expressed my support. I voted present until I could hear from Crater … she is trying to make my record something that it is not.”

Rutledge said the record stands for itself.

“It is not a misrepresentation of his record. He was the only representative to vote against prohibiting Level 3 and Level 4 sex offenders in state parks,” Rutledge said.
Steel said he believes public safety is the top priority for the attorney general’s office.

“It does not matter if it is consumer protection, consumer advocacy, victim protection or cyber crimes, it is all about public safety,” Steel said.

Steel said his experience as a prosecutor has helped him in his job as a state legislator as well as in the AG’s race.

“I personally prosecuted murder, rape, child predator and drug cases,” Steel said. “That is the major distinction between us. It is the major difference.”

Rutledge countered that her experience as a deputy prosecutor in Lonoke County, dealing with cases involving foster children, as legal counsel to former Gov. Mike Huckabee, and working in the Arkansas Court of Appeals are examples of her work experience that will guide her in the AG’s role.

Her work with foster children as an attorney at the Arkansas Department of Human Services has come under scrutiny from critics calling on her to release her personnel files with the agency. A partial release of her personnel file indicated that her status for rehire was changed nearly 10 days after she departed the agency.

Both candidates said they opposed Act 570 – a 2013 law that revamped the state’s criminal justice system by changing certain drug-related crimes from being felonies to being misdemeanors.

The Greater Fort Smith Association of Home Builders Parade of Homes kicks off Oct. 3 and its showcase home features design elements that feature both beauty and functionality.

The home, located at 7230 Stonebrook Drive in Chaffee Crossing, boasts 2,201 square feet with design features including a natural gas-powered emergency generator, a garage heater, a multi-head master shower and an outdoor kitchen with a mounted outdoor television.

The home, built by Fort Smith-based Carrington Creek Homes, also features 26 windows bringing natural light into all the main living quarters, including the dining room, living room and kitchen.

"I think one of the things that is a little more unique than most homes (are) the big open windows. Now the ones over there will roll out. But you don't walk into a house and see a bank of windows that's great big where you can see out," said Melody Harshbarger, who did the interior decorating of the home and is handling marketing for Parade of Homes sponsor Arkansas-Oklahoma Gas Corp.

She said a design element of smaller windows upon the entry coupled with the dark woods throughout and decorative lighting provide the home with a "story book" feel.

Among the unique features of the 2014 Showcase Home is the natural gas generator, which is powered by a connection to AOG and will atomically kick on should power go out for any reason. With the generator having a direct connection to the utility, its capability is virtually unlimited, Harshbarger said.

"It's the first time there's ever been one in the showcase home. There's been generators before, but this is a (natural) gas-powered generator," Harshbarger added.

Stephanie Stipins, executive director of the Greater Fort Smith Association of Home Builders, also noted the home's inclusion of a tankless natural gas-powered hot water heater.

Both natural gas features add to the cost of building a home, Stipins said — the generator runs about $6,000 while the tankless hot water heater adds about $2,500 in cost — but the overall cost of the home and all its features are on par with other homes in the Chaffee Crossing area.

With all the features of the showcase home, including the natural gas amenities and an outdoor kitchen, the home comes in at a price of $289,500, or about $132 per square foot.

"This whole division is roughly around the $300,000 price range," she said. "… We feel like we underpriced this a little bit. We felt like it was a higher price point, but we didn't want to overprice it for its area. So it's actually a bargain for all the amenities it has."

Harshbarger said whoever purchases the showcase home each year gets one of the region's most updated, advanced homes that she said comes with that extra little "oomph."

"They get an extra bang for their buck, so to speak," Harshbarger said.

"Plus the prestige of owning the showcase home," Stipins added. "So much time and resources have gone into this home and to own that home has to be very beneficial to the new owner, as well."

The time and resources going into the Stonebrook home include more than 30 local vendors working to complete construction of the house in time for the Parade of Homes.

In the 27 years the Home Builders have sponsored a Parade of Homes and had a showcase home, there have been ups and downs in the market, with the housing bubble of 2008 being the most recent example.

But Stipins said activity has started to shift and return to the Fort Smith region. In the region, building permits have increased 10% for the first eight months of 2014. Last month in Fort Smith, new residential permits were valued at $3.313 million and accounted for 77.66% of all residential construction permits issued.

From August 2013 to August 2014, permits increased by 5.66% in value in the city.

Stipins said a lot of the drive in Fort Smith has been activity happening at Chaffee Crossing, adding that the planned Arkansas School of Osteopathic Medicine and construction of a new headquarters for ArcBest had made the former military property the hot spot in Fort Smith residential construction.

"According to the National Association of Home Builders, we're on a record high for the improvement in home sales. We continue to climb since last August, new home sales have continued to climb. And in the Fort Smith area with developments at Chaffee Crossing … the desirability of living in Chaffee has increased as well."

The Parade of Homes runs from Oct. 3 to Oct. 12, with homes open from 1 p.m. to 7 p.m. daily featuring 17 different homes across Sebastian County.

More information can be found at FortSmithHomeBuilders.com.

Building permits for the three largest cities in the Fort Smith region dropped 55.86% from September 2013 to the same month this year.

The cities of Fort Smith, Greenwood and Van Buren had collective permits of $22.728 million in September, down 55.86% from September 2013's total of $51.494 million.

Driving the totals during September of last year were two commercial building projects. One, a $26.2 million permit for the new Mercy Orthopedic Hospital set to officially open Friday (Oct. 3) at the intersection of 79th Street and Phoenix Avenue. The other permit was a $6.35 million permit for relocation of Smith Chevrolet from the corner of Zero Street and Towson Avenue to a location at 6500 Autopark Drive along Interstate 540.

Permits for September 2014 were on par with September 2012, when $22.822 million in permit values were issued.

Collectively for the year, the three cities have seen a decline of 9.49% in permit value from $175.487 for the first nine months of 2013 to $158.836 million for the first three quarters of 2014.

Driving permits during the first third of the year was the city of Fort Smith, with $136.634 million in permits. Van Buren tallied $16.404 million in permits, while Greenwood came in last at $5.799 million.

FORT SMITH
The city of Fort Smith had a total of 195 permits issued in September to reach its $22.078 million value for building permits. That value represents a drop of 55.82% from the same month last year, when 191 permits were issued at a value of $49.976 million.

Commercial projects were the low point for the city of Fort Smith in September, only bringing in $5.179 million on 42 permits.

It was a different story for residential permits, which includes multi-family and duplex. In total, $11.009 million in residential permits were issued across the spectrum from single family to multi-family. The total number of permits issued across the three different residential categories stood at 128, bringing the average residential permit to $86,009.

GREENWOOD
Only three permits were issued in Greenwood last month with a total value of $194,000.

The figure represents a decline of 73.77% from last year's total permit value of $739,650, largely driven by residential developments in the city.

The total last month also represents a decline of 76.29% from September 2012, when the city issued permits valued at $818,360.

VAN BUREN
The city of Van Buren also had a large decline from September 2013 to September 2014, dropping 41.35% in value from last September to the same month thisyear.

Driving Van Buren's building permits during this same month last year was new duplex construction, with eight new units being approved along North 24th Street for a collective total of $425,000.

Residential construction continued to drive figures last month, with $367,000 in permits issued in the city. An additional $73,500 in permits were issued for construction of swimming polls and two sign permits were issued at $16,060. No commercial building permits were issued in the city last month.

2013 RECAP
Combined values in the three cities during 2013 were $203.037 million, compared to $157.32 million during 2012. The 2013 value is above the $201.079 million in 2011.

Fort Smith closed 2013 with the largest share of valuations, logging $177.687 million (a one-year increase of about 30.24% from $136.428 million in 2012), while Van Buren was the next largest with $17.067 million (a one-year increase of 38.96% from $12.282 million in 2012). Greenwood posted an additional $8.283 million, the only city to show a decrease from the previous year's total of $8.609 million (a decrease of 3.79%).

The gains in the Fort Smith market were largely from industrial construction projects at Chaffee Crossing, the construction of Mercy's new orthopedic hospital along Phoenix Avenue and various municipal construction projects across the city.

As a culture, Americans got used to the idea that manufacturing was a dying industry as more and more jobs went overseas and automation made a workforce seemingly unnecessary.

With the “onshoring” efforts of companies like Wal-Mart attempting to return manufacturing back to the United States, hundreds if not thousands of skilled laborer jobs are open across the country. Northwest Arkansas is no exception. Manufacturing decreased in the last decade in the region but has never died out. The Northwest Arkansas manufacturing sector employed an estimated 26,200 in August, down more than 21% compared to August 2004.

Culinary and hospitality (travel and tourism) is another growing industry that faces as shortage of well-trained workers.

Local companies are working to bridge those gaps through their own training programs and with the help of community colleges like NorthWest Arkansas Community College. 

Mike Harvey, chief operating officer for the Northwest Arkansas Council, told The City Wire recently that the gap between skilled workers available and the number of job openings continues to widen. In the local market he said there are two openings for every one welder certified last year. Machinists, tool & die makers, industrial maintenance and installation repair as a local employment sector reported 382 openings last year, according to Harvey. At the same time local schools graduated 57 workers with those certifications.

“It’s surprising to some that there are shortages in the production occupations because for the last 13-15 years they’ve been losing jobs in the terms of net,” Harvey said in September. “People look at that and they see no future there. It’s a vicious circle there where we’re losing jobs in manufacturing but then we can’t find people (for the jobs that do exist).”

Harvey and several local manufacturing industry leaders agree that another factor they are facing is the aging workforce. Those who are long-time skilled workers are aging out of the industry or they are not up-to-speed on the newer, higher level technology used in manufacturing. Many of the jobs now available are for machinery/robotics maintenance and machine workers with skills on the high-tech machines. 

“The more you automate, the more people you need to work on those machines,” Harvey said. 

CORPORATE INTERVENTION
Keith Scheffler, owner and CEO of Creative Things, characterized the shortage for skilled machine operators and machine maintenance workers as “severe.” 

“When you do find good machine operators, you do what you can to hold on to them,” he said. 

One way that Creative Things is helping its workforce get the training it needs is to send them to classes that provide the necessary training. There are not a lot of local resources for certain skills, Scheffler said, so Creative Things sends staff members to Kansas to learn skills such as plastics technician. For other skills training such as CNC operator, the company utilizes NWACC. They also offer an increasing amount of on-the-job training if an employee demonstrates the aptitude for a given type of skill. 

The company also works to make the work environment easily adaptable to people’s lives. For example, they now run 24 hours a day for five days a week, giving employees more choices for shifts. 

At Pace Industries, the story is similar in that a good chunk of the openings are for skilled technical workers, said Director of Talent Acquisition and Development Ken Stuckey. 

“We are needing people who can automate robots, do technical maintenance on machinery and also engineering,” he said. “There’s not been enough people who have the skill set to step in and do these jobs without going back to school or having additional training.” 

Pace Industries is bringing more training for employees into their plants as well as helping pay for employees to earn an associate’s degree in a related field. Stuckey said Pace has already seen a return on its investment. 

“If you don’t have a local group of people who can do these kind of skilled jobs, then you have to go outside of the region to recruit, which is very expensive. You then run the real risk that they won’t stay in the area more than a year or two years (once they move to the region). The cost of losing a technical skilled worker really shows that training locally is a win for everyone. People can stay in their community and make more money. It allows us to have a more stable workforce.” 

WORKFORCE INNOVATION
Gene Eggman, executive vice president of Human Resources and Government Affairs at Pace, said the July passing of the Workforce Innovation and Opportunities Act (WIOA) was a major win for manufacturers. 

According to the U.S. Department of Labor website, “WIOA is designed to help job seekers access employment, education, training, and support services to succeed in the labor market and to match employers with the skilled workers they need to compete in the global economy. Congress passed the Act by a wide bipartisan majority; it is the first legislative reform in 15 years of the public workforce system.”

“The WIOA Bill passage in the Senate and President Obama signing into law was truly a win for manufactures like Pace Industries in our state,” Eggman said in an email interview. “May 27th Governor Beebe and members of his Workforce Cabinet hosted 50 manufacturers of which I attended to discuss our needs for a competent and interested workforce.”

Eggman said it was learned at the meeting that there were at least 1,000 skilled positions in Arkansas that were open but could not be filled.

“Some manufacturers said that their need was so critical that they may have to shut their doors in the next year,” Eggman added. “So the passage of WIOA may be too late to help this manufacturer but it should help others like Pace in the future.” 

Keith Peterson, dean of Workforce Development at NWACC, said skills gap training is a need statewide and colleges like NWACC are working to address those needs. Part of that is creating programs that meet specific and changing needs. 

“It’s a creative time right now in workforce (training) in that with manufacturing coming back to the U.S., it’s something that culturally, we’re trying to wrap our heads around it,” Patterson said.

NWACC’s workforce training programs are versatile with several standardized certification and degree programs, as well as the ability to customize training for a given industry client. Peterson said the college works directly with a lot of different entities from many industries to assess the various workforce needs. 

“What we’re hearing right now is that the mostly the industrial trades is what we’re looking at,” he said. “We’ve had a 20% growth in those programs in the last year.” 

HOSPITALITY, CULINARY JOBS
Another skills gap area is in hospitality and culinary arts industry and various entities including NWACC are working to bridge that gap. 

“The labor market data is very encouraging in Northwest Arkansas in hospitality,” Peterson said. 

Encouraging would be correct. The region’s “leisure and hospitality” sector employed an estimated 22,800 in August, according to federal Bureau of Labor Statistics updated Wednesday (Oct. 1). The August job number, if not revised, sets a new record for the sector in Northwest Arkansas.

The growth in area tourism and business travel has increased the need for all kinds of hospitality jobs from front management to chef. 

“We have found that we are pretty much full in enrollment in those programs,” he said, adding that they have an approximate 80% placement rate for when students graduate. 

The workforce gap in culinary and hospitality has been known for several years, which is why NWACC and other state colleges created certification and degree programs.  Christie Ison lives in North Little Rock and is the founder of the new website ARFoodJobs.com. It started as a site where those looking for work in the hospitality industry and those seeking employees in that industry could connect. It’s developed to become a networking organization in the short time since the site went live.

Ison said those graduating with the hospitality and culinary skills’ certificates weren’t sure where the jobs were.

“I saw the need for connection,” she said. “We have a huge amount of secondary programs all over the state and some are pretty well established while others are new. It’s become the next cool big thing in education. But it takes a few years for that to translate into putting people into the workforce.” 

Ison said there is a lot of turnover in the culinary industry but it’s not because of poor work environment. 

“Job satisfaction is super high so it’s something people stick with. It used to be perceived as something you did when you were young but now it’s becoming more of a career choice,” she said. “There’s a lot of turnover in culinary because it’s growing so much and people are advancing quickly.”

Gov. Mike Beebe thanked hundreds of Southwestern Energy Co. employees on Wednesday (Oct. 1) for not only boosting the state’s economic fortunes over the last decade, but for also investing $10 billion in Arkansas to help lessen the nation’s dependence on foreign energy sources. 

“As a result of what you are doing, America now has more than 100 years of natural gas,” Beebe said of the nation’s domestic supply of the shale-produced energy resource.

Beebe made his remarks at the Conway Expo Center, where Southwestern executives from the company’s Houston headquarters joined nearly 1,000 employees who had traveled to Central Arkansas from across the Fayetteville Shale in their distinct white “SWN-logo’ed” natural-gas powered trucks. The occasion was to celebrate the energy giant’s 10 year anniversary as the leading natural gas producer in the Arkansas shale play.

Southwestern, whose Arkansas roots go all the way back to the 1920s as a Fayetteville-based natural gas provider, celebrated the milestone by recognizing employees for their contributions to the company and helping to put Arkansas on the “global energy map.”

Southwestern CEO Steve Mueller began the two-hour celebration by sharing that the Fayetteville Shale played a major role in the company’s growth from a small, struggling Arkansas-based drilling concern into the nation’s four-largest natural gas producer. 

“Arkansas is where it all started,” Mueller told the cheering employees. 

“This is certainly a milestone in the development of the play, and I’m proud of our role in its discovery and production,” he said. “Our work together in the Fayetteville Shale play has helped make us a strong company and put the state on the map as a major contributor to the country’s energy supply.”

Beebe followed Mueller and echoed the Southwestern CEO’s comments by telling the company‘s employees they have help strengthen America’s national security because the U.S. no longer has to purchase high-priced natural gas from unfriendly nations, including Iran and Russia.

“We know how (natural gas) transforms our economy, but what people don’t often talk about is what it has done for our national security,” Beebe said. “How many thousands of lives will be saved? How many times will we not have to go into harm’s way ... because of the work you do to get this resource out of the ground?”

Altogether, Southwestern officials said the company has invested more than $10 billion in development into the Arkansas shale play over the past decade. That capital investment is also largely responsible for making Arkansas one of the top natural gas producers in the U.S.

According to the U.S. Energy Information Administration (EIA), Arkansas is the eight largest producer of marketed natural gas with more 1.14 trillion cubic feet (Tcf) of production. Between 2004 and 2008, as Fayetteville Shale drilling and development matured, Arkansas’ annual production of marketed natural gas jumped nearly 140% from 187 billion cubic feet (Bcf) to 446.5 Bcf, EIA statistics show.

Then in 2009, Arkansas first joined the list of the nation’s top 10 marketed natural gas producers when sales of Arkansas natural gas spiked 53% to 683 Bcf of production. In 2010, Arkansas natural gas sales continued on an upward trend, jumping 35.7% to 927 Bcf of annual production, according to EIA figures.

Since 2011, despite fewer drilling rigs, Arkansas' marketed production moved over a trillion cubic feet for the first time, joining other top natural gas producing states in the top tier – including Texas, Colorado, New Mexico, Pennsylvania, Oklahoma, Wyoming and Louisiana.

Severance tax collections in Arkansas reached an all-time high of $77.3 million in fiscal 2014, pushed upward by stronger natural gas prices and better drilling techniques and production at the wellhead, industry experts say.

For the fiscal year ended June 30, 2014, gross natural gas severance tax revenue were up more than 50% from $50.6 million for fiscal 2013, according to tax data compiled by the Revenue Division of the Arkansas Department of Finance & Administration.

At the same time, collections of $8.44 million in July, the beginning of fiscal 2015, put the state on track to top $100 million for the first time since the state began keeping such records.

A decade ago, Southwestern began development of the Arkansas shale play by spending nearing $8.5 million to drill about 20 test wells in the basin in August 2004. Today, Southwestern plans to invest nearly $900 million in the Fayetteville Shale properties, which includes participating in nearly 460 to 470 company-operated wells.

Altogether, Southwestern has spudded a total of 4,110 wells in the Fayetteville Shale since its commencement in 2004 through the end of 2013, of which 3,538 were operated by Southwestern and 572 were outside-operated wells. Of these wells, 527 were spud in 2013, 491 in 2012 and 650 in 2011. Of the wells spud in 2013, 525 were designated as horizontal wells.

In addition, Southwestern has seen continuous improvement in its drilling practices in the Fayetteville Shale, the company said. In 2013, Southwestern’s operated wells had an average completed well cost of $2.4 million per well, average horizontal lateral length of 5,356 feet, and an average time to drill to total depth of 6.2 days from re-entry to re-entry.

After the event, Southwestern Senior Vice President Paul Geiger said the Fayetteville Shale will be viable for years to come, especially with the industry’s improving technology and drilling techniques. Geiger, who is based in Houston, was appointed in May to head the company’s Fayetteville Shale operations.

“The most exciting thing to me is that we got another decade (of production), based on what we know today,” Geiger said.

Michael Paladino and Joe Saumweber met while working at Rockfish as a software developer and business strategies specialist working primary in the retail sector. In September 2012 they jumped ship to launch RevUnit, a Bentonville-based boutique digital software development company. It was a good jump.

Paladino said the duo bootstrapped the business with a little help from friends and family and have grown the venture to 14 employees in just two years with small offices in Dallas, Las Vegas and most recently St. Louis.

“We started really small scale. Joe and I both working out of home offices until we could begin to grow our client base,” Paladino said. 

Paladino said they sought out business outside the retail segment to start in hopes of developing new relationship in other industries. But retail has always been a sweet spot given their experience in that sector.

The digital software tech company has since added large corporate clients such as Mary Kay, Virgin Hotels, and Park Place Dealerships, a high-end auto group in Dallas. Paladino said they recently signed on to help Sam’s Club with proprietary technical work, and with Unigroup, which owns Mayflower and United Van Lines.

Sam’s Club, under the leadership of CEO Rosalind Brewer, has made an effort to use more digital technology with its member base. The timing of this effort coincided with RevUnit’s circling back to the retail sector and the two were able to connect on a deal.

SMASH METRICS DEAL
There’s no shortage in companies that need help with digital software applications that allow them to connect with customers though mobile phones, kiosks, tablets, social media, web or at the point of sale. In January, RevUnit acquired Smash Metrics for an undisclosed amount. The deal provided digital marketing capabilities for RevUnit’s software development.

“When I was home sick from school as a kid, one of my favorite movies to watch was Field of Dreams. At a great turning point in the movie, Kevin Costner hears a voice that whispers, ‘If you build it, they will come.’ While this was true for Costner and his long lost father, I have found it to be utterly false in every other aspect of life. Especially digital,” Saumweber said.

Saumweber adds that when RevUnit “builds it,” it is Smash Metrics that makes sure people “will come.” For true techies, marketing can be a dirty word, but Paladino said even the best software is of no value if people can’t find it and use it effectively. He said the Smash Metric team in Las Vegas have already helped the firm expand their client list.

CONNECTIVE SOLUTIONS
Paladino said digital technology is helping businesses of all types connect with their customer bases directly and personally.

“We think of ourselves as problem solvers for companies that need to make those connections, whether it’s an auto dealership in Texas or Sam’s Club in Bentonville,” he said.

One of the more recent successes has been a customized digital app RevUnit developed for Park Place Dealerships to communicate with its client base. He said there hasn’t been much work done in the space, but the demand is there and they are getting lots of calls from other dealers wanting a similar product.

“Park Place Dealerships can provide a personalized experience created by an ongoing connection with their clients through the mobile app we built for them. The app allows their clients to view their vehicle information, retrieve service info and schedule their appointments. It also gives them immediate access to the dealership sales and management force through a message option,” Paladino said of customize product.

Paladino is excited about the work RevUnit is doing in hospitality with Virgin Hotels. He said a new hotel opening in Chicago has hired RevUnit to develop an app that will provide management a way to engage with their workers.

He said now that RevUnit has added several large clients and a marketing arm they are in a better position to call on bigger companies in the retail and supplier community, hence the new business with Sam’s Club.

STARTUP SUPPORT
Another key function of RevUnit is to provide work and service in the local startup community. 

“Working with young entrepreneurs keeps us sharp and it’s fresh and exciting. It’s a good balance with the large custom contract work we are doing,” Paladino said.

Paladino and Saumweber also have a vested interest in Overwatch, the gaming startup they founded with Josh Moody, a high school student at the time. The RevUnit duo were brought in to develop the mobile apps for Apple and Android that go with the gaming hardware manufactured by Cybergun. The system is slated to hit online stores later this year and brick and mortar retailers early next year.

Moody told The City Wire last year when the startup won the Ark Challenge competition that Overwatch was lucky to have the RevUnit development teamin its corner because that meant it could better control the quality and precision of the software apps and it was also better on Overwatch’s slim budget.

“Our involvement with Overwatch goes much deeper than most of the work we do in the startup community. It’s been an exciting sideline venture for us.” Paladino said.

NITROUS EFFECT
Paladino said RevUnit recently joined Nitrous Effect, an agency collective group based in St. Louis. Saumweber subsequently moved to St. Louis.

“This is an opportunity for RevUnit to work collectively with other firms specializing in creative event planning like the Walmart Year Beginning Meeting, to a branding agency, video production and content and creative strategies for instance. Being part of this collaborative group gives RevUnit the ability to offer turnkey operations for larger clients in the retail sector and others,” he said.

Paladino said given their small size and specialized service they could never get an shot a bigger turnkey jobs that included digital app development. He said that is likely to change now they have become one of the six specialty firms in the Nitrous Effect collective group.
http://www.nitrouseffect.com

“We are already getting business from this association like our work with United Van Lines and Mayflower. We are working with these companies to enhance the web traffic to their sites,” he said.

TALENT SHORTAGE
Paladino said the biggest hurdle to RevUnit’s future growth is the shortage of talent in software developers and creative visionaries as well as engineers. 

“Part of the reason we have locations in four cities is because that’s where we could find the talent. It’s also nice to have some geographic diversification, but that’s just part of it,” he said.

Paladino said he has a college degree in computer science but he had to spend six months working in the corporate world before he was of any value in real problem solving. 

“We aren’t graduating enough software engineers and those we do graduate aren’t ready to contribute in the real work world until they can get some practical experience. I am glad I got a college degree but around here we are agnostic toward them. We need developers with experience in popular code languages, real problem solving experience which you can get in online supplemental classes,” Paladino said.

He adds that programs like Nerdies that encourage 13-year-olds to delve into software coding, drone applications and video gaming in a creative setting can go along way in getting this younger generation ready for work world by the time graduate high school.
http://www.nerdies.me/fall-sessions/

“I don’t think there is one answer to solving the talent shortage. It’s going to take lots of effort from universities, corporations, STEM education efforts and programs like Nerdies to ensure there are enough software engineers and creative visionaries for the work demand ahead,” Paladino said.

WHAT’S NEXT?
WIth two years under its belt, RevUnit has proven its feasibility by not having to raise outside capital and still growing its employee base to 14 from two. Paladino said this year the company’s revenue will be three to four times that posted in the first year and he expects that upward trajectory to continue if the overall economy continues improving.

Paladino said there much competition in the digital marketing space, but RevUnit’s ability to customize problem solving apps gives it a slight edge over those firms that use technology to analyze data. 

He rebuked the notion that RevUnit is building a business to sell. Paladino said he does work for plenty of startups with that objective and vicariously through those ventures he can feel what it’s like to cash in and move on.

Instead of selling, Paladino and Saumweber hope in the next five years to have a much larger customer base.

“I want to offer the best digital software applications in the area and everywhere. We are about helping businesses use digital technology to solve their problems and better understand their customers and supply chain. I don’t see that changing,” Paladino said.

The one area the owners would like RevUnit to expand is in more unique product development.

“That would mean continued focus on execution and bringing on more developers if we can find them,” he said.

The size of Northwest Arkansas’ regional workforce saw a small decline in August, but year-over-year the regional economy posted a gain in the number of employed and a more than 16% decline in the number of unemployed. In other words, the Northwest Arkansas economy continues to do well.

The August jobless rate of 4.9% was below the July rate of 5.3%, and below the 5.8% in August 2013. August marked the 13th consecutive month the NWA metro jobless rate has been below 6%.

Metro employment of 220,847 was below the 221,086 in July, but just ahead of the 220,556 in August 2013, according to figures released Wednesday (Oct. 1) by the U.S. Bureau of Labor Statistics. The August numbers are subject to revision.

The size of the Northwest Arkansas regional workforce during August was estimated at 232,136, down from the 233,372 in July, and 0.82% below the 234,076 during August 2013. The average annual monthly labor size was 234,412 in 2013, 232,208 during 2012, 228,918 during 2011 and 225,974 during 2010.

All of the eight metro areas in or connected to Arkansas had jobless rate decreases in August compared to July, and jobless rate declines compared to August 2013. During August, the lowest metro jobless rate in the state was 4.9% in Northwest Arkansas and the highest rate was 8.5% in the large Memphis-West Memphis metro.

NWA METRO NUMBERS
Following are other key figures from the BLS metro report.

Unemployed persons in the region totaled 11,289 during August, down from the 12,286 during July and well below the 13,250 during August 2013.

The Northwest Arkansas manufacturing sector employed an estimated 26,200 in August, down from 26,300 July, and down from the 26,500 during August 2013. Sector employment is down 21.3% from more than a decade ago when August 2004 manufacturing employment in the metro area stood at 33,300.

Jobs in the Trade, Transportation and Utilities sector — the region’s largest job sector —  totaled 46,600 in August, below the 46,700 during July, and down from the 48,200 in August 2013. The sector reached record employment of 50,500 in December 2006.

Employment in the region’s tourism industry set a new record of 22,800 during August, up from 22,600 in July and up from 21,900 during August 2013. The previous record was 22,700 set in June.

In Education & Health Services, employment was 24,700 during August, up from 24,400 in July and up from 23,700 during August 2013. May employment of 24,900 set a record for the sector.

In the Government sector, employment was 29,500 during August, up from 28,700 in July and up compared to 28.500 during August 2013.

NATIONAL NUMBERS
Unemployment rates were lower in August than a year earlier in 322 of the 372 metropolitan areas, higher in 44 areas, and unchanged in six areas, noted the broad BLS report.

The U.S. unemployment rate in August was 6.1%, down from 7.2% from a year earlier. Arkansas’ jobless rate was 6.3% in August, up from 6.2% in July and down from 7.7% in August 2013.

Oklahoma’s jobless rate during August was 4.7%, up from 4.6% in July, and down compared to 5.6% in August 2013. The Missouri jobless rate during August was 6.3%, down from 6.5% in July and below the 6.6% in August 2013.

ARKANSAS METRO AREAS
Fayetteville-Springdale-Rogers
August 2014: 4.9%
July 2014: 5.3%
August 2013: 5.8%

Fort Smith
August 2014: 6.1%
July 2014: 6.4%
August 2013: 7.8%

Hot Springs
August 2014: 6.5%
July 2014: 6.8%
August 2013: 7.6%

Jonesboro
August 2014: 5.7%
July 2014: 6.1%
August 2013: 7.1%

Little Rock-North Little Rock-Conway
August 2014: 5.7%
July 2014: 6%
August 2013: 6.8%

Memphis-West Memphis
August 2014: 8.5%
July 2014: 8.8%
August 2013: 9.5%

Pine Bluff
August 2014: 8.4%
July 2014: 9.2%
August 2013: 10.2%

Texarkana
August 2014: 6.4%
July 2014: 6.5%
August 2013: 7.7%

NORTHWEST ARKANSAS METRO AREA HISTORY
Past annual average unemployment rates
2013: 5.7%
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%

Labor market numbers continue to go in the wrong direction for the Fort Smith regional economy. The regional workforce declined 3.26% in August compared to August 2013, and the number of employed declined 1.5% in August compared to August 2013.

Despite the tough topline numbers, the Fort Smith metro jobless rate fell to 6.1% in August compared to 6.4% in July. It was also lower than the 7.8% in August 2013, according to figures released Wednesday (Oct. 1) by the U.S. Bureau of Labor Statistics. The August numbers are subject to revision.

The size of the Fort Smith regional workforce during August was 125,055, down from 127,049 during July, and well below the 130,458 during August 2013s. The labor force reached a revised high of 140,253 in July 2007, meaning the August workforce size is down 10.83% from the peak number.

The number of employed in the Fort Smith region totaled 116,936 in August, down from 118,964 in July, and an estimated 2,820 jobs below the 119,756 employed in August 2013.

All of the eight metro areas in or connected to Arkansas had jobless rate decreases in August compared to July, and jobless rate declines compared to August 2013. During August, the lowest metro jobless rate in the state was 4.9% in Northwest Arkansas and the highest rate was 8.5% in the large Memphis-West Memphis metro.

FORT SMITH METRO NUMBERS
Unemployed persons in the region totaled an estimated 7,684 during August, below the 7,996 during July, but well below the 10,123 during August 2013.

The Fort Smith area manufacturing sector employed an estimated 18,000 in August, down from 18,200 in July, and down from 18,400 August 2013. Sector employment is down almost 37% from a decade ago when August 2004 manufacturing employment in the metro area stood at 28,400. 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 totaled 24,300 during August 2013, down from 24,400 in July and above the 23,800 in August 2013. Employment in the sector reached a high of 25,700 in December 2007.

Employment in the region’s tourism industry set a new record of 9,900 during August, up from 9,800 in July and above the 9,600 in August 2013. The previous record of 9,800 was set in August 2008.

In Education & Health Services, employment was 16,300 during August, up from 16,200 in July and below the 16,700 during August 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 17,800 during August, up compared to 16,500 in July and up from 17,700 in August 2013.

NATIONAL NUMBERS
Unemployment rates were lower in August than a year earlier in 322 of the 372 metropolitan areas, higher in 44 areas, and unchanged in six areas, noted the broad BLS report.

The U.S. unemployment rate in August was 6.1%, down from 7.2% from a year earlier. Arkansas’ jobless rate was 6.3% in August, up from 6.2% in July and down from 7.7% in August 2013.

Oklahoma’s jobless rate during August was 4.7%, up from 4.6% in July, and down compared to 5.6% in August 2013. The Missouri jobless rate during August was 6.3%, down from 6.5% in July and below the 6.6% in August 2013.

ARKANSAS METRO AREAS
Fayetteville-Springdale-Rogers
August 2014: 4.9%
July 2014: 5.3%
August 2013: 5.8%

Fort Smith
August 2014: 6.1%
July 2014: 6.4%
August 2013: 7.8%

Hot Springs
August 2014: 6.5%
July 2014: 6.8%
August 2013: 7.6%

Jonesboro
August 2014: 5.7%
July 2014: 6.1%
August 2013: 7.1%

Little Rock-North Little Rock-Conway
August 2014: 5.7%
July 2014: 6%
August 2013: 6.8%

Memphis-West Memphis
August 2014: 8.5%
July 2014: 8.8%
August 2013: 9.5%

Pine Bluff
August 2014: 8.4%
July 2014: 9.2%
August 2013: 10.2%

Texarkana
August 2014: 6.4%
July 2014: 6.5%
August 2013: 7.7%

FORT SMITH METRO AREA HISTORY
Past annual average unemployment rates
2013: 8%
2012: 7.7%
2011: 8.3%
2010: 8.2%
2009: 7.9%
2008: 4.8%
2007: 5.3%
2006: 4.9%
2005: 4.5%
2004: 5.2%
2003: 5.5%
2002: 5%
2001: 4.2%
2000: 3.7%

Republican Attorney General candidate Leslie Rutledge had her voter registration removed by the Pulaski County clerk Tuesday, according to a letter he sent to her. The action creates uncertainty in the race between Republican Rutledge and Democrat candidate Nate Steel.

“We have received documentation indicating that you are registered in the State of Virginia and/or the District of Columbia. Because of this, we have canceled your voter registration in Pulaski County,” Pulaski Circuit/County Clerk Larry Crane wrote to Rutledge. 

Crane said it was his duty under the law to remove her registration. Crane said he was sent a letter from the "Arkansas Libertarian Coalition" detailing her voter registration in other states. The Libertarian Party says they have no clue who that group is and they are not behind sending the information to Crane. 

“Under amendment 51 to the Arkansas constitution, the voter registrar, that's me in this case, has a mandatory duty to cancel the registration of anyone that's not qualified to vote here,” Crane said.

AMENDMENT 51
There are several provisions of Amendment 51 that leave uncertain a legal path for whether Crane's actions were carried out accurately and what options Rutledge may have.

The Arkansas amendment states that the permanent registrar – Crane, in this instance – has the duty to cancel the registration of voters under certain circumstances. They include voters who have changed their residence to an address outside the county or who are not lawfully qualified or registered electors of this state, or of the county.

Crane contends his research suggested this was the case in Rutledge's cancelled voter registration.

However, the amendment also states that the permanent registrar "shall, thirty (30) days before cancellation, notify all persons whose registration records are to be cancelled" in accordance with the amendment. "The notice may be either by publication or by first class mail," the amendment states.

That provision is embedded in a section that speaks to voters who have not voted in several cycles. The law allows them to be "purged" from voter rolls. Another section in the cancellation provisions says that the permanent registrar "may" send a cancellation notice by first-class mail "within ten (10) days" for cancellations other than dormant voters.

RUTLEDGE RESPONDS
Rutledge's campaign sent out an email Wednesday calling her removal “unbelievable.” Rutledge told Channel 7 News that her removal from the ballot is a political stunt and that she only received word of her cancellation when it also hit the newspaper. 

“They did contact me late afternoon, this was after the decision had been made. They never notified me that there might be a problem. That's the concerning part. You have Larry Crane, a Democrat clerk who is a contributor to Nate Steel's campaign, my opponent's campaign, arbitrarily throwing me off the rolls without any sort of notification,” Rutledge said. 

Crane did donate $100 to Democrat Nate Steel's campaign earlier this year. 

Rutledge said she has been unnecessarily targeted by the news media. Reporters have obtained her emails from her time at the Department of Human Services.  

“I knew it would be difficult to be the first Republican elected attorney general, I had no idea how hard it would be to be the first woman elected attorney general,” Rutledge said. 

She says she believes she is being treated differently than other candidates. 

“Absolutely. I don't think we've seen these sort of personal attacks in races on a candidate just from these quiet underground tones and media lashing out and reporting false stories before getting the evidence,” Rutledge said. 

Crane said the removal of Rutledge isn't political.

“Once I step in these doors, then I become totally neutral and everyone that walks into this office gets treated with respect and dignity,” Crane said.

Rutledge said she thought she took the proper measures to register to vote upon moving back to Arkansas. 

“I had gone down in person and asked the clerk's office and said I need to register, here's my form, they said no you don't need to fill that out, here's a change of address,” Rutledge said.

Crane said Rutledge did fill out a change of address form, but should have re-registered as a voter from another state. Crane provided Rutledge's change of address form. The new form posted on the clerk's website clearly states that a person moving from out of state must re-register with the clerk on the change of address form, but the old form, the one Rutledge filled out, does not say that. 

ELIGIBILITY, LEGAL ACTION
Democrats are hoping that the complications of Rutledge's voter registration will disqualify her from the November ballot. Republicans are prepared to defend Rutledge and are seeking more information from Crane's office.

State law requires a candidate be a registered voter of the state at the time of the candidate's affidavit to run for office, which was last March during filing period. 

“Whenever a candidate's eligibility is questioned, that's a matter for the courts,” said Secretary of State spokeswoman Laura Labay.

A legal determination may be required to clear up Rutledge's candidacy eligibility.

One argument is that her registration removal means in 2014 she has not been a "qualified elector" - a requirement to be a candidate for office. However, technically Rutledge was just declared a "non-qualified elector" and one can argue that when she filed for office, Pulaski County and the state of Arkansas recognized her as qualified.

Monday, Oct. 6, is also the last day to register to vote for the Nov. 4 general election. There are differing schools of thought as to whether Rutledge re-registering, now that she's been removed by Crane, could rectify the confusion.

Drew Pritt, who says he is a former Democratic primary candidate for state offices and writes a political blog, told Channel 7 News he filed a complaint against Rutledge's voter registration in regard to her candidacy Wednesday evening with the county election commission and plans to pursue getting Rutledge kicked off the ballot. 

The Republican Party of Arkansas said Crane violated state and federal law. The GOP is asking for election monitors in Pulaski County and has FOI-ed documents from Crane's office.

"It is shamefully obvious that the old Democrat machine will stop at nothing to keep a well qualified Republican candidate from becoming the next Attorney General of the State of Arkansas,” said Arkansas GOP Chairman Doyle Webb. “Mr. Crane’s actions were clearly unprecedented and in violation of State and Federal law."

Democratic Party of Arkansas chairman Vince Insalaco said Crane was "just doing his job." He questioned if Rutledge was fit to hold the state's top legal post.

“When D.C. lobbyist and Virginia voter Asa Hutchinson moved back to Arkansas, he knew to re-register, so it continues to be confusing as to why Rutledge did not do the same,” said Insalaco. “As someone running to be Arkansas’s top lawyer, it’s disturbing that Rutledge’s own record with the law has been so haphazard.”