The revised story around job creation in Northwest Arkansas is a positive one, with 10,000 new jobs created in 2014, according to Kathy Deck, director of the Center for Business and Economic Research at the University of Arkansas.

The data revisions were discussed at a press conference conducted Friday (April 10) by the Northwest Arkansas Council and attended by area mayors and chamber of commerce officials.

Deck also confirmed that the population data revisions show the area is growing at1.9% annually or by 25 people a day. This is 2.5 times faster than the rest of the country’s 0.75% average.

While growth has slowed from the pre-recession period, but the engines are ginning again at a nice pace, according to Deck. The Bureau of Labor Statistics’ latest revision of the local metro area shows a 4.5% increase in jobs last year putting NWA in the top 30 job growth metros in the country.

“We are seeing that Northwest Arkansas looks like its old self again,” Deck said. “It’s an economy where our key industries drive our construction growth, our financial markets and everything else in Northwest Arkansas. You could not have concluded that with the old data.” 

The original data indicated new jobs rose by just 3,000 in 2014, the revision shows 10,000 new jobs were created last year, which is more inline with what economists and local city officials saw on the ground.

The region’s largest employment sector — trade, transports and utilities — experienced at wide swing from 1,300 jobs lost as first reported to 3,000 new jobs noted in the March revision. 

Another important sector that showed positive growth were the professional service sector which added 2,000 jobs in 2014. Manufacturing also grew a few hundred jobs as opposed to jobs lost in the pre-revised numbers.

“This is great news to share,” said Mike Malone, president of the Northwest Arkansas Council.

Deck said the labor force growth data has been somewhat muted through 2014. She expects there will be further revisions to that as well, noting that internal data seems to support a healthier growth than what the original numbers indicate.

“We have beem growing at rates you can only dream about for several years. When these original data came out we were scratching our head about it because everything we have been experiencing has been running counter to what we were seeing with our own eyes,” Deck told the group.

Bentonville Mayor Bob McCaslin asked if perhaps the region would be better served to collect its own data and rely more heavily on that that what comes in from the government. 

Deck said there is no need to throw out the national data despite the ongoing revisions that come with it. She said if anything the public needs to know that the first numbers, deemed “preliminary” are likely the least reliable set and with each revision the numbers are likely to be more accurate.

She said the revised data shows growth above 4% which is tough to sustain. She expects the region will likely average about 3% annual job growth in the next few years. A larger concern for Deck and Fayetteville Mayor Lionel Jordan is that wages are not growing fast enough.  

“I still have a concern on downward pressure on wages. I remain concerned that we live in a competitive environment and we are not doing everything we can do be competitive where wages are concerned,” Deck said.

Jordan said more needs to be done to raise the bottom wages so citizens can have a shot at home ownership and actually afford medical care. He said Fayetteville continues to grow both south and west with added infrastructure and quality of life amenities. The one thing lacking for many he said is earning an affordable living wage.

Mike Harvey said work the Council has done with local chambers of commerce to survey area businesses the past two year has given them tremendous insight. He said there are good stories to share but a major challenge remains in having the right workforce to staff the growth of local businesses.

“When I moved here in 2011 I looked at the 5-year plan and thought adding 19,000 could be a stretch. In just four years we have exceeded that goal by 4,000,” he said.

The Walton Family said it plans to divest roughly 6% of it’s majority stake in Wal-Mart Stores over the next few years into a new trust entity in order to keep the Walton family’s direct ownership at 50%, and redirect shares to fund more charities.

In a statement to shareholders Friday (April 10) the Walton Family said its ownership position in Wal-Mart Stores has risen in recent years amid a more aggressive buyback strategy by the board of directors. As the retailer plans to continue with its buy back plan, possibly buying up to $10.3 billion in shares, the family said it will trim its ownership stake to the keep the balance of Walton Enterprises LLC at 50% of the outstanding shares. If Wal-Mart were to buy back shares of other holders without also acquiring shares from Walton Enterprises, the percentage of Walton ownership would grow beyond 50%.

There has been no time table set for the divestiture but the family did say it plans in the next few years to transfer shares owned by Walton Enterprises into the newly formed Walton Family Holdings Trust. The 6% transfer is valued at roughly $15.6 billion and amounts to some 193.5 million shares as of Friday.

The family noted in the release that keeping their ownership at 50% is consistent with an appropriate balance of family and non-family ownership that supports the goals of all Wal-Mart shareholders and long term business success.

Wal-Mart Stores is one of eight family owned Fortune 500 companies and is deemed a controlled company given the founder’s family owns at least 50% of the outstanding shares. Friday’s news does not change that fact. Rob Walton, son of the founders Sam and Helen, remains board chairman and his son-in-law, Greg Penner was named vice chairman and Walton’s chosen successor at last’s years shareholder meeting (June 6.)

That announcement answered the question many had about who might take over board leadership when the 70-year-old Rob Walton steps down. Rob Walton’s departure and a more independent board is something minority shareholders have advocated for in recent years following the alleged bribery scandal in the retailer’s international segment, which is still under investigation.

Wal-Mart is often in the center of a battle between Wal-Mart insiders and any number of outside groups seeking change from and within the family control through various shareholder proposals each year. Corporate governance expert Alan Ellstrand at the University of Arkansas said closely held corporations maintain control over the governance process by helping to ensure that minority shareholder proposals have little chance of being adopted. 

In addition, Ellstrand said this provides insurance to maintain near complete control of directors to serve on the board. Even with dispersed ownership in companies like Wal-Mart renegade directors are never elected, but it can be embarrassing to firms when such candidates receive even a significant minority vote. He said having control of the stock also ensures that the family can influence some control over the firm’s strategic agenda like choosing a CEO who will carry out their plan, Ellstrand said.

“I believe that the Walton family is concerned about their shareholding becoming too dominant – they are likely sensitive to ensuring that Wal-Mart continues as a publicly traded firm in every sense, and that the stock continues to be a dynamic, widely traded investment,” Ellstrand said.

Analysts said investors know on the front end, that the Walton Family controls the company from the board room by handpicking a CEO who will most align with Sam Walton’s mission. While there have been ups and downs for the retailer over the years Wal-Mart Stores remains one of the best performing companies among its peers in the Fortune 100.

Wal-Mart shares (NYSE: WMT) closed Friday at $80.65, down 19 cents. During the past 52 weeks the share price has ranged from a $90.97 high to a $72.61 low.

Tanya Lewis, a work-from-home mom in Palm Harbor, Fla., put her ingenuity to work around eight years ago when she became obsessed with a more sustainable way to clean the floors upon which her toddler constantly crawled.

“I had a Swiffer wet jet mop and loved it, but when I went through an entire box of cleaning pads that first week I knew there had to be a better, more sustainable solution. That’s when I began to look for a greener cleaning pad online, one that could be washed and reused instead of clogging landfills with disposable alternatives. In 2007, there was no such thing, so I set out to create one,” Lewis told The City Wire.

She has patented her design which marries the cleaning traits of microfiber with the absorbency of shammy cloth layered beneath the pad’s surface. Lewis saw no need to recreate the wheel and fashioned her pad so that it easily straps to Swiffer and most other brands including the basic sponge mop. Because it was a sustainable, more eco-friendly solution she named it the Green Glider and has since trademarked that brand.

BEFORE SELLING TO WAL-MART
Lewis, a graphic design freelancer by trade, said when her friends and family started asking her to make them a mop pad she decided to roll the dice and test the market for a greener floor cleaning solution. 

Working with CEO Space International, an entrepreneurial alliance, Lewis said she was able to locate two manufacturers in China and ultimately chose one of them for the product she’s now marketing.

“It’s been three years of double-time work to get this product in front of brick and mortar retailers like Wal-Mart, Kroger, Lowe’s and Target as well as others. We sold on QVC and did very well selling out in eight minutes on our first airing. We aired 11 other times and sold well in the channel, but when I had an opportunity to pitch to Wal-Mart I couldn’t turn that down,” Lewis said.

Given her woman-owned status, Lewis said she completed the rigorous Women’s Business Enterprise National Council (WBENC) certification and got a meeting with a Wal-Mart buyer through the retailer’s supplier diversification program in January 2014. 

By the time Lewis had her first buyer meeting at Wal-Mart she had already sold more than $250,000 in mop pads on QVC in the preceding year. Lewis admits during this time she was still figuring out the business and changed manufactures to get the quality standard she wanted.

BUYER MEETING
Lewis brought her invention to Bentonville and met with her buyer on the premise that there is no other sustainable alternative in the market today that can help consumers who want cleaner floors save money and worry less about contributing to landfills.

“I showed Wal-Mart all the homemade inventions out-there on websites that consumers had concocted like strapping diapers, tube stocks and other items to the mop head, instead of buying expensive, disposable mop pads. I told Wal-Mart this is a market craving a solution that they didn’t offer, but could, if they sold Green Glider,” Lewis said.

She spent the next nine months getting ready to do business with Wal-Mart, securing her WBENC certification and unleashing inventory warehoused by QVC so that when Wal-Mart called she would have the inventory to ship.

Lewis said her second Wal-Mart meeting took place in September. After repackaging the inventory released by QVC, Lewis made her first shipment to Wal-Mart Stores in February.  

“We got into nearly 300 stores in 49 states and I am in all 42 distribution centers, which sets me up for a bigger rollout if the product does well. Now we just have to let folks know Green Glider is available at Wal-Mart for $9.98, which is about $3 less than if they buy from our direct website or on Amazon.com,” Lewis said.

For Lewis getting into Wal-Mart has been a surreal experience, and she has found her buyer and his team to be nothing but helpful.

“I told my buyer there is not a ‘Plan B’ on my agenda so I am doing everything I can to make Green Glider a success. It looks to me like Wal-Mart also works hard to help small startups like Green Glider succeed where they can,” Lewis said.

SERIAL ENTREPRENEUR
Lewis said she brought on early angel investors to help her initial startup who continue to be supportive in all endeavors. Lewis said the company is making money but it’s all going back into more product and what will be marketing costs as Green Glider reaches more retail shelves in the coming months.

While she’s focused on building out the Green Glider brand, Lewis said she has 10 other inventions sitting on the back burner – some within the same category as well as children’s products and other solutions for women.

“We will soon have a 17 inch mop pad with the same patented technology that works atop the larger Swiffer, Libman, and Rubbermaid mops. There are other Green Glider products in the planning stages as well,” she said.

Lewis said she is working with mentors who continue to provide guidance in everything from marketing to day-to-day consulting on various operational metrics.

“Lionshark Marketing and Management has been hugely instrumental in helping me build my company. Consultants Ben Rizzo, and Mike Nole provide business management to entrepreneurs like myself and Bryan McGuire of Lionshark is also my chief financial officer,” she said.

Lewis also said Dwight Sinclair of the Sinclair Group has been her right arm in helping get the Green Glider in front of more retail buyers. One area Lewis is passionate about is getting to a place where she too can mentor others.

“It’s so important to learn, earn and return, which is the motto of CEO Space and one I too, have adopted,” Lewis said.

NOTABLE CHALLENGES
Lewis admits there have been challenges along the journey to the shelf, but she’s optimistic the years she’s devoted will pay dividends. She said the days can be long for a single mom but Lewis reiterates “there is no Plan B.”

One notable challenge for Lewis is figuring out the best way to market Green Glider that is just one item sitting obscurely on an aisle covered with big brand names controlled by corporate giant Proctor & Gamble.

“Right now when you are only in 300 stores it can be hard to market, especially when those stores are spread out coast to coast. We are using social media at this point to target consumers looking for sustainable mopping solutions. We feel good that there are some 50 million users of Swiffer and other spray jet mop systems and the fact that our product easily attaches to them is a huge potential market for Green Glider,” Lewis said.

Lewis said while her product is sustainable, it is manufactured in China and there is the additional transport time where shipments are concerned.

“I just want consumers to know there is a $9.98 alternative to costly disposable mop pads and it’s finally on the shelf at some 300 Wal-Mart stores and hopefully coming to more soon,” Lewis said.

The Northwest Arkansas Food Bank just purchased a new freezer made possible by a $75,000 donation from Tyson Foods. The addition will help the food bank store more product for the 180 partner agencies it distributes food to annually.

Last year the NWA Food Bank distributed 6.7 million pounds of food serving nearly 700,000 hungry people in Washington, Carroll, Madison and Benton counties.

Food bank officials said the agency has had to turn away food donations in recent years because of a lack of cold storage capacity.

Bank of the Ozarks kept its profitable winning streak going with first quarter earnings of 47 cents per share, easily besting year ago results and Wall Street expectations of 42 cents per share, the company announced after the close of market on Monday.

For the quarter ended March 31, the Little Rock regional bank reported earnings of 47 cents per jump, up 38.2% from 34 cents per share for the first quarter of 2014 on net income for the quarter of $39.9 million – more than 50% higher than last year’s comparable net quarterly income of $25.3 million.

The bank’s first quarter results included $4.8 million from tax-exempt income insurance benefits and sales of investment securities, which were partially offset by $4.5 million for prepayment penalties related to a federal loan advance and administrative expenses. Those one-time items, however, only added a penny to the company’s quarterly earnings results, bank officials said.

That put the Arkansas bank five cents better than Wall Street’s forecast of 42 cents per share, according to analysts surveyed by Thomson Reuters. Analysts’ estimates do not include special or one-time items.

The highlight of the Arkansas regional bank’s first quarter was the completion of its acquisition of Intervest Bancshares Corp., a publicly traded banking group based in downtown New York City with operations across the East Coast state as well as six banking locations in Florida. During 2014, the Little Rock banking holding company also completed its acquisitions of Texas-based Bancshares Inc. in March and Arkansas-based Summit Bancorp, Inc. in May.

“This was very good growth considering the seasonal headwinds we typically experience in the first quarter,” Bank of the Ozark Chairman and CEO George Gleason said, adding that the bank’s non-purchased loans and leases grew $331 million, and its unfunded balance of closed loans grew to $445 million.

Bank of the Ozarks completed a 2-for-1 stock split, in the form of a stock dividend on June 23, 2014, by issuing one share of common stock to shareholders for each share of such stock outstanding on June 13, 2014.

At the close of trading Monday, Bank of the Ozarks’ shares (NASDAQ: OZRK) closed at $37.63, down three cents as more than 678,000 shares traded hands. The fast-growing Arkansas bank is just off its 52-week high of $38.22.

A company laid its proverbial chips on the table Monday night by announcing a nearly $50 million expansion at its location in Jonesboro.

Frito-Lay officials announced Monday night that they would expand an existing Jonesboro manufacturing facility with a $45.7 million addition.

Company officials with Frito-Lay spoke to Craighead County justices about the major announcement.

The expansion will provide about 30 new jobs and expand its facility on Arkansas 18 by nearly 80,000 square feet. Frito-Lay’s Jonesboro plant employs 453 workers. The factory makes Dorito’s, Lay’s, Ruffles and other brands of chips.

Cynthia Baker, spokesperson for Frito-Lay North America, tells Talk Business & Politics that the expansion will include investments in “high technology distribution equipment” and that it should be online by 2018.

“The facility has been operating for 17 years and has more than 450 full-time employees. The new equipment increases the stability of the site and enhances the site’s operations with faster delivery of products to our customers,” Baker said.

Net profits at Lowell-based J.B. Hunt Transport Services rose 34% to $91.932 million for the first quarter of 2015 that ended March 31. The first quarter net income compared to $68.664 million earned in the year-ago period. 

On a per-share basis, J.B. Hunt posted net earnings of 78 cents, which exceeded Wall Street analysts expectation of 72 cents for the period and fueled shares higher in active trading Tuesday (April 14) at the opening bell. Shares (NASDAQ: JBHT) rose more than 4.6% higher pushing through the $90 threshold to close at $91.82, up $4.09% in an active day of trading. Over the past 12 months shares are up 27%.

In its release on Tuesday, the Lowell-based logistics giant cited strong gains in the number of loads hauled across its diversified transport system, but said lower revenue per load and a 5% jump in interest costs amid higher debt levels curbed revenue gains. The lower revenue narrowly missed Wall Street’s consensus estimate. Consolidated revenue increased 2.4% to $1.44 billion in the quarter, but fell short of the $1.54 billion analysts predicted.

Operating revenue and net profits were pushed higher by a 6% load growth in the Intermodal segment, and revenue hikes of 7% in the Dedicated Contract Services segment from rate increases. The Integrated Capacity Solutions segment posted a 17% load growth over a year ago, while Truckload segment revenue slid 1% on lower revenue per tractor rates.

J.B. Hunt reports operating income of $155 million for the quarter was up from $117 million in the same period last year. The company cites financial gains on the ability to raise customer rates in some divisions, savings realized from lower fuel costs and a more effective use of third-party carriers. However, the company said profits and revenue were hurt by driver wage hikes, higher levels of equipment depreciation as well as added toll expenses and increased storage costs across all of its segments.

Looking ahead, logistics analysts expect 2015 to be a good year for the transports amid tighter capacity restraints, decent demand from retail and manufacturing gains on the backs of lower fuel costs propelling consumer confidence. Analysts with Little Rock-based Stephens Inc. rate J.B. Hunt shares a “buy” citing that the diversified logistics platform gives Hunt ample opportunity to grew sales, particularly in the back half of this year. 

“As a result of a strong intermodal pricing data points that we expect to see play out in fiscal 2015, we are overweight on JBHT shares,” noted Brad Delco, analyst with Stephens Inc. (Stephens conducts investment banking services with J.B. Hunt and is compensated accordingly.) 

Delco said his team was "impressed by intermodal rates which we believe are running mid-single digits given mix impact and volumes given the West Coast ports lockout and toughening weather conditions in the quarter. Additionally, we were encouraged by results in the Truckload segment."

Stephens raised its target price to $100, as Hunt's shares rolled past the $90 target price set ahead of the solid earnings.

SEGMENT PERFORMANCE
• Intermodal (JBI) — 59% of total revenue
1Q Revenue: $844 million, up 1%
1Q Operating income: $104.3 million, up 12%

J.B. Hunt officials said overall load volumes rose 6% from the year-ago period with the Eastern network seeing a 12% gain in loads from the same time last year. Transcontinental loads rose just 2% as the carrier cited West Coast port issues limiting its eastbound intermodal traffic in the period. The carrier said revenue per load in this segment declined 5% which is the combination of lower fuel surcharges and freight mix. 

At the end of the quarter J.B. Hunt had approximately 74,200 units of trailing capacity and 4,900 power units available to the dray fleet.

• Dedicated Contract Services (DCS) — 24% of total revenue
1Q Revenue: $345 million; up 7%
1Q Operating Income: $35.8 million; up 130%

This segment was able to raise its customer rates and added 336 revenue producing trucks from the prior year to accommodate the new business.

• Integrated Capacity Solutions (ICS) — 11% of total revenue
1Q Revenue: $163 million; flat
1Q Operating Income: $6.6 million; up 8%

This brokerage segment saw a 17% rise in load volume, but revenue per load fell 14.5% from lower fuel surcharges and less transactional (spot) demand in the quarter. The segment’s contract business loads rose 49% from the year-ago period and accounted for about 74% of the total load volume for the segment in the quarter.

This segment has grown to 30 branches with its employee count rising 21% from a year ago.

• Truck (JBT) — 6% of total revenue
1Q Revenue: $91 million; down 1% 
1Q Operating Income: $8.5 million; up 248%

Increased truck count, improved freight lane networks and core customer rate increases of approximately 9% contributed to the improved revenue, excluding fuel surcharge. JBT operated 2,020 tractors at the end the first quarter compared to 1,917 in 2014.

Under the leadership of Shelley Simpson, this laggard segment increased its operating income by 248%, helped by increased rates per loaded mile, lower fuel expenses, less maintenance costs, lower insurance rates and claims expenses relative to a year ago.

Cox Charities, a newly created foundation funded by donations from local employees of Cox Communications, said it plans to award its inaugural grants to Arkansas nonprofits and schools this year. The charity is now accepting applications for the Community Investment and Innovation in Education grant programs at this website. 
 
The grants are designed to assist 501(c)(3) organizations and pre-K through 12 grade schools with programs that benefit the Arkansas Cox Communications service areas. The Community Investment grants are targeted toward nonprofit programs focused on education, technology, social issues and the arts. Innovation in Education grants will support needed classroom resources and collaborative school-wide projects, the release states.

       
“Cox Charities is completely funded and guided by Arkansas employees who decide how every dollar is invested back into the community,” said Curt Stamp, market vice president for Arkansas. “Our company and our employees are passionate about supporting local programs that positively impact Arkansans and the areas where we do business.”
 

A new form of city transportation, building on the notions of sustainability and car sharing, is coming to Fayetteville and owners are banking on local residents using low speed electric vehicles for short trips around downtown or to the University of Arkansas.

Sustained Urban Mobility (SUMO), with its “Benign Disruption," plans to open May 1 at the northeast corner of Lafayette and West streets, one block north of Dickson Street, said co-owner MIkel Lolley. A white brick building stands at the corner, once the site of filling station. Lolley said he and his partner, Bob Monger, entered a land lease with the building’s owner, Eric Close. They plan to bring in a 40-foot shipping container to put under the awning, which will serve as the office.

Lolley said the two met about six years at a green building conference where the idea was originally hatched, and since has grown into a full-scale business model. 

The low speed electric vehicles — described by Lolley as “souped up, street legal golf carts” — are governed to move at a top speed of 25 miles per hour. The company also has 14 of the low speed electric vehicles; an electric Toyota; and a four-door sedan. The vehicles are small and agile and “can turn on a dime,” he said. The vehicle averages about 40 miles per charge; the four-door sedan has a range of about 70 miles. 

He said the initial investment has been about $250,000, mostly for equipment.

The concept is similar to the international Car2Go (www.car2go.com), which started in 2008 in Ulm, Germany and is now in 29 European, Canadian and U.S. cities, such as Washington, D.C., Columbus, Denver, Miami and San Diego, to mention a few, with more than one million memberships worldwide. It’s simple process: A user buys a cost efficient membership and uses the membership card to access the vehicle, drive from point A to B, then park the car. The cost is based on the minutes the car is in motion. No reservation is required and you don’t have to return the car where you picked it up. The preferred model of car is the Smart Car.

Lolley said his business model is similar to Car2Go. 

“Car sharing has been around for 20 years. The difference is ours is a low speed electric car share for members only and offering free parking,” he said.

The company is negotiating with the University of Arkansas and businesses around Fayetteville to establish parking pods for the vehicles that will allow the user to park for free. The pods will be striped with signage and charging stations. Lolley estimated a typical parking space could accommodate three of the vehicles. 

In Fayetteville, the plan has been in testing since last December. The partners conducted five focus groups, reaching about 50 participants. For their participation, they will be the first members and have earned credits to use the service. Driving record checks have been conducted on about 30 people.

Each low speed electric vehicle has been equipped with a GPS antenna to keep track of the vehicles. Payment for rental will be made through PayPal once the membership is set up. Lolley said charges will be based on the number of minutes a vehicle is in use, estimating the cost will be about $1.50 for a five-minute trip. 

Lolley and Monger also are authorized dealers for The Star EV, a low-speed electric vehicle manufactured in China and the Cushman EZ Go, a similar model. They range in price from $9,500 to $10,500. To special order either model takes six to eight weeks for delivery.

“We have seen a lot of interest elsewhere, such as in Colorado, Georgia and Hawaii,” Lolley said, noting he has owned a low-speed electric vehicle for about a year.

He estimated he is saving about $3 or more in fuel costs every time he drives it over his pickup truck. He drives the vehicle from his home in downtown Fayetteville to Fayetteville Athletic Club at Zion and Crossover roads a 20-mile round trip, and has been doing so for nearly a year.

“Only one person has honked,” he said. “We’re not trying to replace the family car. I have a passion for sustainability. We see a future in this, particularly with millennials.”

When shareholders gather in Fayetteville June 5, they will not hear a proposal that sought director oversight on certain gun sales at the mass retailer, according to a federal appeals court ruling on Tuesday (April 14)

The 3rd U.S. Circuit Court of Appeals in Philadelphia lifted an injunction imposed late last year by U.S. District Judge Leonard Stark that would have required a shareholder vote regarding more oversight on gun sales at the retail giant.The court is to issue a formal opinion in the next few days on their ruling.

The proposal by Trinity Church in downtown Manhattan, would have required Wal-Mart's board to more closely examine the sale of products that might endanger public safety, hurt Wal-Mart's reputation or offend "family and community values" integral to the retailer's brand.

Trinity has said these products might include guns with clips holding more than 10 rounds, a type it said "enabled" mass killings in Newtown, Connecticut and Aurora, Colorado.

Wal-Mart spokesman Randy Hargrove, told The City Wire the court of appeals “reached the right decision in reversing the district court’s ruling. We appreciate the court’s quick consideration of the issues.”

ABF Freight has been named the national LTL (less than truckload) Carrier of the Year by the National Shippers Strategic Transportation Council. It’s the third consecutive year ABF Freight has received the honor.

The company, which is the largest subsidiary of Fort Smith-based ArcBest, also received the award in 2011 and 2010.

“Being named the 2015 National LTL Carrier of the Year is indeed an honor. Recognition from NASSTRAC is particularly rewarding since this council represents the vitally important voice of shippers,” ABF Freight President Tim Thorne said in a statement. “By giving ABF Freight this award, NASSTRAC is honoring employees whose dedication to safety, cargo handling and customer service inspires confidence among customers throughout North America. Our people have earned a reputation as the safest, most conscientious, highly innovative members of our industry, and it’s gratifying to have their efforts once again recognized as exemplary.”

The NASSTRAC program helps shippers to identify the best of the best in carrier performance and value. Regular members of NASSTRAC who are qualified buyers of transportation services grade all carriers that are members on a quantitative scale in five key areas: customer service; operational excellence; pricing; business relationship; and leadership and technology.

The NASSTRAC Carrier of the Year program is co-sponsored by Logistics Management, a leading trade magazine for buyers of logistics services.

Brooke Elder has been hired by Beall Barclay & Company as an in-charge accountant in the firm’s Fort Smith office.

Prior to Beall Barclay, Elder worked for a private accounting firm in Texas for four years. She holds a bachelor’s degree in accounting with a focus on entrepreneurship and tax from Texas A&M University.

Beall Barclay & Company is one of the largest locally owned certified public accounting firms in Arkansas with offices in Fort Smith, Rogers and Russellville.

Analysts and retail experts say Wal-Mart, while focused on fresh grocery, customer service and employee relations, could also do better with its stagnant apparel division that represents about 7% of the U.S. annual sales, or $20.16 billion last year. 

Apparel sales rose by 3% from the prior year while still averaging just 7% of the company’s overall U.S. sales. Moving the needle just 1% percentage point would have meant an additional $3 billion in annual revenue last year, according to the company’s financial reports.
 
Two retail analysts recently asked Walmart U.S. CEO Greg Foran about the “status quo” apparel agenda, noting that there has been little mention of plans to better merchandise this high margin category under his leadership. Walter Loeb, analyst with Loeb Associates, said fashion retailing has become important internationally. 

“Particularly companies like Uniqlo and H&M have been very important competitors to Walmart and to everybody. We're soon going to see another entry with London-based Primark coming into the Northeast. I was wondering how Wal-Mart is going to address that competitor and all of fashion competitors because I think that it has lost share of market in fashion and lost it to other retailers,” Loeb asked Foran at the U.S. Stores Update meeting held in New York City on April 1. 

Foran acknowledged that Primark is a “very, very good competitor.” He told the analysts that Wal-Mart is well aware that Primark is coming to the U.S.

“We have had teams over there looking at their business. ... We know where they are coming and when they are coming. We have been leveraging off the (Esther) team and George brand and you can assume that we're going to compete very, very aggressively,” Foran said.

Foran also said the merchant team, who now reports directly to him, “is not frightened to lean in and have a go,” looking at jeans that might be on sale at Primark or a fashionable T-shirt. Foran said the merchants are “pulling in all the pieces.” He said they understand sourcing requirements and differences in tariffs and Wal-Mart will compete aggressively with Primark and anyone else in apparel.

“We won’t back away from having great prices,” he added.

Ernie Salsner, analyst with Gilford Securities, appreciated Foran’s focus on more attention to detail in the massive retail operation, but he told Foran that there’s another important element that has not been adequately discussed — the excitement of merchandising. 

“I really don't hear much of that (from this management team),” Salsner said.

Foran wasted no time in firing back by saying he’s plenty excited about merchandising sharing one of the items he’s most proud of this year which is a tank top that retails for $1.68.

“Assortment is absolutely the key to running our business. You've got to have the store operating discipline, but actually that is secondary to getting the assortment right. You can run the cleanest, tidiest nicest store that you've ever seen, but if the product in there isn't right, it actually doesn't matter. If you get the product right and the store isn't clean and nice and tidy, you'll still have a business. So merchandise is absolutely critical,” Foran answered.

OTHER INSIGHT
Carol Spieckerman, CEO of newmarketbuilders.com, applauds Wal-Mart for “battening down the hatches in grocery as threats” continue from all side.

“Family Dollar and Dollar Tree are already plotting their combined efficiencies and Aldi, and soon, Lidl, are pushing pedal to the metal on U.S. expansion,” she told The City Wire.

She said even apparel-savvy Target is taking a hard right turn toward grocery so Wal-Mart is right to gird its grocery business. That said, Wal-Mart is a multi-category retailer and apparel remains a high-margin opportunity area.

“Wal-Mart’s approach to apparel has been lopsided as of late. Active wear may be the new casual wear but not to the degree that focusing on it should come at the expense of better basics and true fashion, both from a brand partnership and space allocation perspective,” Spieckerman said.

Under the merchandising management of Duncan Mac Naughton, who left the company in November, the retail giant had been content with offering basic underwear, T-shirts, socks and licensed logo apparel. In the past two years the retailer signed new deals with Avia, Russell and Starter and expanded the lines of Danskin and OP which offer active wear, one of the fast growing categories within apparel.

Foran has given little insight into the apparel category since he took charge of Wal-Mart U.S. in October outside of his prized $1.69 tank top which he has mentioned on at least three prior occasions.

“Well-priced basics are Wal-Mart’s bread and butter, but it isn’t making a compelling statement in ‘better’ and ‘best’ apparel outside of active wear,” Spieckerman said. “Apparel does staggering numbers at Wal-Mart, of course, simply by virtue of its scale, yet asking how much better it could be should be keeping someone awake at night.” 

She said there are opportunities in the apparel category and as Foran plans to introduce an element of surprise in the grocery business it could also be parlayed into apparel.

“Suppliers can’t drive this strategic shift, but no doubt many will be more than happy to gear up once it happens,” Spieckerman said.

Jason Long, CEO of Shift Marketing Group, said Wal-Mart could and should do better with its apparel offerings. He noted that the “Win, Show, Place” agenda used in recent years has not played out well in apparel. He said there are niche opportunities that other retailers are taking in apparel, something Wal-Mart could definitely tweak to fit their low price model.

“Dick’s Sporting Goods recently unveiled a line of trendy, active wear inspired by Carrie Underwood under the ‘Calia’ brand. It’s doing quite well at a price point much higher that would likely work at Wal-Mart. But Carrie Underwood would have also appealed to the Wal-Mart demographic,” Long said. 

He said Target’s recent launch of Liv and Ava for curvy women was a great move for that retailer. He said there is “plenty of demand” for trendy clothes for women of all sizes.

Laura Heller, executive editor of Fierce Retail, told The City Wire that Target’s new line of plus-sized clothing made absolute sense for a retailer that is known for trendy fashion.

“Wal-Mart has never been known for its fashion,” Heller said.

Tyson Foods recently handed out eight award to its top suppliers for 2014. The “Supplier of the Year” winners include:
• Newly Weds Foods Inc.,
• Zip-Pak,
• Hantover Inc.,
• Hugg & Hall Equipment Co.,
• Kerry Ingredients & Flavours,
• Zones Inc.,
• Midland Industrial Service, and
• Reliance Construction.

The recipients were chosen based on supply-chain performance, total cost of ownership, pricing programs, customer-service performance, sustainability initiatives and other performance metrics observed throughout the year.

“We believe it’s important for us to recognize our top our suppliers, since they’re an important part of our success as a company,” said Melanie Russell, senior vice president of procurement for Tyson Foods.

With Gov. Asa Hutchinson and Mike Preston, his new jobs boss, in attendance, the mood was celebratory at the formal groundbreaking for the $30-plus million new corporate headquarters for Fort Smith-based ArcBest. But company CEO Judy McReynolds brought a sense of urgency. Her comments during Wednesday’s (April 15) event touched on market opportunity and a 2015 revenue goal of $3 billion.

“Let’s get the shovels digging,” she said, drawing laughter from the more than 50 people gathered near McClure Amphitheatre at Chaffee Crossing for the ceremony.

McReynolds, a tax accountant by training and a 17-year veteran with ArcBest, is serious. The company just pulled together two consecutive years in the black. Full year net income in 2014 was $46.177 million, up 192% compared to the $15.811 million in 2013, and a wide swing from the $7.7 million loss in 2012. Total revenue during 2014 for the publicly held company (NASDAQ: ARCB) was $2.612 billion, up 13.6% compared to 2013.

The transportation and logistics company is expected to spend $200 million during 2015 to modernize and expand its trucking equipment, build new facilities – about $55 million planned for buildings and real estate – and invest in technology.

Such spending is part of the company’s goal to push beyond $3 billion in annual revenue in 2015. McReynolds is likely counting on financial momentum, a favorable rate environment resulting from capacity constraints in the freight sector, a more flexible labor contract with the International Brotherhood of Teamsters, growth in non-trucking subsidiaries, and acquisitions to meet and exceed the self-imposed goal.

As to acquisitions, the company has little debt, and as of Dec. 31 was sitting on almost $205 million in cash or holdings easily converted to cash. ArcBest officials have said they continue to seek companies to buy.

NEW BUILDING
ArcBest officials first announced in May 2014 the plan to invest $30 million in a new 40-acre corporate campus. The news was part of a larger announcement in which the company plans to add 975 corporate jobs in the area by 2021. As of May, there were about 1,400 ArcBest employees in the Fort Smith area. The company employed more than 11,480 at the end of 2014.

When first announced, the new corporate office was estimated to be up to 150,000 square foot. The building is now projected to be 200,000 square foot and four stories, with completion expected by late 2016. ArcBest corporate offices and its technology subsidiary will move into the new building. Walter Echols, a vice president at ArcBest and head of real estate for the company, is managing the process.

The company will retain its high-profile, 195,000-square-feet corporate headquarter building on Old Greenwood Road in Fort Smith. That facility, which opened in early 1995, is expected to provide space for the consolidation of ABF Freight and ArcBest Technologies offices. Moving corporate and logistics jobs out of the existing corporate headquarters will allow room for expansion at ABF Freight and ArcBest.

ArcBest’s largest subsidiary is less-than-truckload carrier ABF Freight System. The non-asset subsidiaries are Panther Premium Logistics, ABF Logistics, FleetNet, ABF Moving and ArcBest Technologies (formerly known as Data-Tronic.).

COMMUNITY HISTORY, FUTURE
In her opening comments, McReynolds said the ceremony is another example of how the company has “grown from a local trucker” to a global logistics and transportation company.

Arkansas Best began as a small local freight hauler –  OK Transfer – in 1923 operating in the Fort Smith area. The company has grown organically and through acquisitions to provide global shipping and logistics services. Fort Smith attorney Robert A. Young Jr. bought the a small regional trucking company in 1951 and through several acquisitions grew the company to a national freight carrier.

Mike Barr, with Fort Smith-based Harry G. Barr Company and board chairman of the Fort Smith Regional Chamber of Commerce, thanked McReynolds and ArcBest Board Chairman Robert A. Young III, for the investment in the region. Barr noted that one of the ceremonial shovels is from the chamber vault and was part of a 1970 headquarters groundbreaking for Arkansas Best Corp. (The company changed its named to ArcBest in May 2014.)

“It’s (the shovel) a good reminder of the partnerships between our community and our corporations,” Barr said prior to introducing Gov. Hutchinson.

Hutchinson said he was living in Fort Smith and remembers when the corporate building at Old Greenwood Road opened in 1995. He also said Wednesday’s ceremony is another example that “good things are happening in Arkansas,” and that economic development “pieces are fitting together for future growth.”

The Governor also said the $5 million investment in computer coding classes in Arkansas schools – part of his legislative package and recently approved by the Arkansas Legislature – will help companies like ArcBest who depend heavily on information technology.

“It means something, I believe, to Arkansas ... and to the future of Fort Smith,” Hutchinson said.

Hutchinson also took the opportunity to introduce Mike Preston, executive director of the Arkansas Economic Development Commission, to the Fort Smith community. Preston, who has worked with an economic development agency in Florida, was named the new director on March 26.

Real estate agents in the Fort Smith metro area like what they are seeing from the local market to start 2015. 

The number of homes sold in the first quarter of this year rose 17% from the same period last year. Total sales volume for Sebastian County equaled $41.281 million in the first three months of 2015, up 18.4% from the $34.851 million reported a year ago, according to MountData.com.

March delivered a strong showing on the heels of solid results reported in the preceding two months. Agents sold 131 homes in Sebastian County in March worth an estimated $19.987 million. This compared to 104 home sales valued at $15.117 million in the same month of 2014. 

“I attribute the strong results to improving consumer confidence readings that are back to higher levels on par with 1990s. It’s been years since that was the case,” said Kevin King, broker and owner of Weichert King Realty in Fort Smith.

King said he continues to see positive vibes from buyers and investors on the residential and commercial side of the business.

“Rental demand is very strong in Fort Smith and there are nearly always investors in the buying market. We are seeing buyers coming in from out of town. The new medical school (Arkansas College of Osteopathic Medicine) is drawing more interest out to the Fort Chaffee area. That and ArcBest are expected to double the traffic count at Massard Road and Zero giving that entire area a shot in the arm,” King said.

MODEST PRICE GAINS
MountData shows home prices have increased modestly in Sebastian County year-over-year. The average home price for the first quarter of 2015 is $136,241 with a median square foot price of $69. This compared to $134,563 a year ago, while median square foot prices are up 3.75% year-over-year, according to MountData.com.

King said inventory levels across the Fort Smith market are mixed. He said there are more higher-dollar homes listed than buyers at this time. The lower priced homes, particular those in good shape, are moving quickly either by investors or first-time buyers looking to lock into a home before interest rates move higher later this year.

He said an active new home market is also hindering some prices of older homes in certain price bands and that is expected to continue.

Interest rates are projected to move toward the mid-5% range before the end of 2015. That’s nearly a full percentage point from where they are now and King said that can make a significant difference in payments.

MountData.com also reports the number of days on market from list to contract was 125 in the Fort Smith metro area, up from 119 a year ago. King said anything under 150 days is pretty good for the Fort Smith area, and under 100 days is really good. 

While the Fort Smith metro is off to a strong start in 2015, King expects to see the market activity to taper as the year progresses.

“I think this will be a good year overall. My predictions are modest gains of between 3% and 6% over last year,” King said. 

Cliff Warnock, broker with Warnock Real Estate, also told The City Wire he expects 2015 will be a good year.

“Many of the right variables are lining up: the threat of higher interest rates, rising rental costs, improving job market, competitive prices and slightly looser qualifying requirements,” he said.

CRAWFORD COUNTY
Mount Data reports agents sold 120 homes in Crawford County during the first three months of this year, down from 133 sales in the year-ago period. Total sales volume for the quarter equaled $13.554 million, down 6.6% from a year ago.

The smaller Crawford County does offer between 15% and 20% price value over neighboring Sebastian County. The average home price of those sold in Crawford County this year was $112,950, some 17% cheaper than the $136,241 average sales price record in Sebastian County.

One other interesting factor in Crawford County was the 85 median days on market reported in the quarter. That was down from 114 days reported a year ago.

For March, MountData.com reported there were 41 home sales in Crawford County valued at $4.798 million. Market activity is down from 59 homes valued at $15.117 million in the same month last year.

The real estate market in Northwest Arkansas is heating up according to industry experts who report new and existing home sales, home prices and buyer demand are each showing signs of strength through the first quarter of 2015 – and that’s compared to healthy 2014 numbers.

Agents across Benton and Washington counties sold 1,596 homes valued at roughly$306 million in the first three months of this year. Unit sales are up 11.2% from the same period last year, while total volume rose 27%.

Paul Bynum, analyst with MountData.com, says it’s “a very hot market” based on his research. Bynum said it’s the best first quarter start for the region post the 2008 recession. He reports Benton County home sales totaling 976 units or $187.985 million in the first quarter. This compared to 903 units valued at $158,118 million in the year-ago period.

The big story in Benton County are rising home prices. The median home price of $160,000 as of April 1, is up 14.3% from a year ago. On a per-square-foot basis the median home price of $87.4 rose 9.25% from a year ago. This compared to $79.20 per square foot in 2013, a gain of 10.3% in the two-year period.

Stephen Brooks, agent with Keller Williams, told The City Wire that rising prices somewhat attributed to fairly tight supplies of new and existing homes which are a good sign for sellers. He said rising home prices and the threat of higher interest rates are enticing more first-time buyers into the market.

“I have one client right now who wasn't planning to buy for another year or two but decided they didn't want to wait and risk getting a higher rate. That and rising home prices are motivating factors,” Brooks said. “I expect this summer to be a very good one for real estate in this region.”

Buyers looking in Washington County are facing the same issues with median prices at $90.6 per square foot or $159,000 as of April 1. Median prices are up 9.15% over the past two years, according to MountData.com.

Agents sold 620 homes in Washington County in the first quarter, up from 532 in the first quarter of 2014. Their value came to $118.262 million, a gain of 24.8% from the same period last year. 

MountData reports homeowners with properties priced under $200,000 are in a seller’s market with inventory levels at three to four months. Bynum said homes selling from less than $200,000 this year have ranged from 54 days to 62 days on market.

The new home market shows properties priced under $399,000 to favor the seller as supplies range from two to four months of inventory based on present buyer demand.

MountData.com also reports that of the 1,596 sales so far this year, 276 of them have been new homes. These new homes command a median price of $107 per square foot, which is 27% more expensive than the median price of $84 per square foot in the two-county area.

Bynum also reports there have been two homes selling for more than $1 million so far this year in the two-county area. Neither of these were new homes. The most expensive new home sold this year to date was valued at $705,000. 

NWA Home Sales Data (January-March)
Benton County
Home Sales
2015: 976
2014: 903
2013: 914

Sales Value
2015: $187.995 million
2014: $158.118 million
2013: $159.600 million

Median Prices
2015: $160,000
2014: $139,975
2013: $142,500

Washington County
Home Sales
2015: 620
2014: 532
2013: 546

Sales Value
2015: $118.262 million
2014: $93.136  million
2013: $89.256 million

Median Prices
2015: $159,000
2014: $142,250
2013: $139,000

More than three dozen employers and training providers plan to take part in the Fayetteville Chamber of Commerce annual job expo slated for Friday (April 24).  The event will take place between noon and 3:30 p.m. at the Hilton Garden Hill Inn located at 1325 N. Palak Drive, Fayetteville.

The job expo is open to the public and gives area employers the opportunity to fill open positions. The expo will also allow job seekers to sign up for training provided by a number of participating firms.

The participating employers and training providers include:
Arkansas Department of Human Services
Arkansas Health & Wellness
Arkansas Workforce Services
Best Buy
BioLife Plasma Services
Braum's
Bright Technology
Candlewood Suites
Central EMS
CH2M Hill
Chipotle Mexican Grill
Cedar Crest Academy
Consumer Testing Laboratories
Courthouse Concepts
DaVita Fayetteville
Domino's Pizza
Fayetteville Auto Park
Fayetteville Health & Rehab
Fayetteville Police
Goodwill Industries
Hilton Garden Inn
Jefferson Adult Education Center
JMark Staffing
Life Styles
Marshalltown Company
Northwest Technical Institute
NWA Community College
PenMac
PRN Medical Staffing
TEC Staffing
The Job Guide
Transportation & Refrigeration
Tyson Foods
University of Arkansas
US Postal Service
Walmart Optical Lab
Webster University
Whataburger

Dr. Evelyn E. Jorgenson, NorthWest Arkansas Community College President, announced a restructuring of her administrative team, effective immediately. 

The new organizational chart eliminates the level of senior vice president. Debi Buckley’s title will change to vice president for administrative services and chief financial officer. She will continue reporting directly to Jorgenson.

Dr. Steve Gates’ duties will change to include special projects. He will serve as vice president for special projects through August. Dr. Gates will continue reporting directly to Jorgenson.

“I want to thank Dr. Gates for his dedication and commitment during the time he has served as provost, senior vice president for learning,” said Jorgenson.

Dr. Meredith Brunen, executive director for development, and Steven Hinds, executive director of public relations and marketing, will continue reporting directly to Jorgenson.

The following individuals will begin reporting directly to Jorgensen with this restructure.

• Tim Cornelius, vice president for learning, global business, health professions;
• Jim Hall, executive director of community and government relations;
• Dr. Todd Kitchen, vice president for learner support services;
• Dr. Ricky Tompkins, vice president for learning; and
• Dr. Tompkins will serve as chief academic officer.

“This restructuring of our administration will allow us to be more efficient,” said Jorgenson.  “Everything I’m trying to do is for the benefit of the students. By removing the level of senior vice president, I believe we will operate more effectively as we continue moving the college forward.”

Arkansas foreclosure activity continues to slow and are part of a national trend in which first quarter foreclosures were their lowest rate in 8 years, according to Irvine, Calif.,-based RealtyTrac.com. Filings were down in Northwest Arkansas, up in Sebastian County, but down overall in the Fort Smith metro.

There were 313,487 U.S. properties in foreclosure during the first quarter of this year, down 8% from a year ago. These properties included those in default, scheduled auctions and bank repossessions. 

Arkansas had 1,302 foreclosure filings reported in the first quarter, down 4.12% from the year-ago period, according to RealtyTrac. Also following a national trend, the number of bank repossessions reported in March ticked higher in most Arkansas counties and marked a 17-month high for bank repossessions in the country.

“The 17-month high in bank repossessions in March corresponds to a 17-month high in scheduled foreclosures auctions in October,” said Daren Blomquist, vice president at RealtyTrac. “The March increase is continued cleanup of distress still lingering from the previous housing crisis; not the beginning of a new crisis by any means. Some of most stubborn foreclosure cases are finally being flushed out of the foreclosure pipeline, and we would expect to see more noise in the numbers over the next few months as national foreclosure activity makes its way back to more stable patterns by the end of this year.”

Despite the spike in March, bank repossessions in the first quarter were still down from a year ago. Lenders repossessed 82,081 U.S. properties during the quarter, up 7% from the previous quarter but still down 14% from a year ago.

Properties that completed the foreclosure process in the first quarter took an average of 620 days to complete the foreclosure process, up from 572 days in the first quarter of 2014.

States with the highest foreclosure rates in the first quarter were Florida, Maryland, Nevada, Illinois, and New Jersey. Among metropolitan statistical areas with a population of 200,000 or more, those with the highest foreclosure rates were Atlantic City, N.J., Rockford, Ill., Ocala, Fla., Lakeland-Winter Haven, Fla., and Miami, Fla.

NORTHWEST ARKANSAS
In Benton County RealtyTrac.com reports there were 119 new foreclosure filings in the first quarter of 2015, down 35% compared to the first quarter of 2014.. The majority of those (68) homes were bank repossessions.

RealtyTrac reported one in every 789 households in Benton County were in some phase of foreclosure in the first quarter of 2015.

In neighboring Washington County there were 64 new foreclosure filings in the quarter, down 14.67% from a year ago. The majority of these filings (51) were scheduled auctions, which can take an average of six to eight weeks to complete once the date is filed with the court. The foreclosure rate represents one in every 1,377 households in Washington County. 

FORT SMITH REGION
Foreclosure activity in the Fort Smith region bucked the state trend with Sebastian County reporting an uptick in new filings compared to a year ago. Sebastian County reported 41 new foreclosure filings in the first quarter, up 5% from the same period last year. The majority of these filings (31) were homes slated for auction. This could mean  the number of filings remain higher through the next quarter or so as these properties work their way through the pipeline. 

One in every 1,341 homes in Sebastian County were in the midst of foreclosure in the first quarter of this year. 

In Crawford County there were 15 homes in foreclosure in the first quarter, down 44% from the same period last year. Like in Sebastian County, the majority of new filings (13) were for homes slated for auction within the next two months. 

One in every 1,742 homes in Crawford County had a foreclosure filing in the recent quarter.