An economic landscape that enables success.
From the state’s most populated metropolitans, to smaller communities, new and expanding companies are finding a place for themselves in diverse communities across Arkansas.
In a state known for its favorable tax rates, lower cost of living and housing, logistics capabilities and natural resources, this round-up of advantages paints a clear picture as to why Arkansas secured 41 capital investment projects in 2023. With initiatives ranging from steel and wood products to advanced manufacturing and food production, multiple sectors of the state’s economy grew alongside its communities over the last year. Look at any of the state’s regions and see for yourself.
SOUTH ARKANSAS
While southern Arkansas might be known for its small-town charm and easy-going atmosphere, its economy is anything but slow-paced. From Hot Springs to El Dorado, the communities spanning the lower half of the state are bustling with business opportunity, incited by their resource-rich environment. The abundance of timber, oil and fertile farmland located in the area has given way to robust industry sectors that continually attract major investments.
In August, Canfor Corporation, a global leader in producing sustainable wood-building solutions, acquired the Resolute El Dorado Inc. lumber manufacturing facility in Union County for $73 million. The plant is also anticipated to receive an additional $50 million in upgrades to increase the company’s production capacity to 175 million board feet annually.
“The acquisition, together with the intended investment and expansion in the mill, is a strategic opportunity for us,” said Lee Goodloe, president of Canfor Southern Pine. “As a growth-oriented forest products company, we see this as an opportunity to expand the depth and breadth of our manufacturing capabilities in Arkansas’ rich, high-quality wood basket and to provide our customers with a more comprehensive product offering.”
Renamed the Iron Mountain sawmill, this facility was selected to complement the company’s existing operations in the region, including its El Dorado Laminating Plant and its nearby Urbana sawmill, which recently underwent a $130 million upgrade and expansion.
In addition to lumber investments, the region has also recently secured significant expansions in the food and beverage industry. Hope Baking Company is investing more than $37 million to expand its food manufacturing facility in Hope, creating 266 new jobs (see p. 22 of this guide). And Hostess Brands completed construction of its new 330,000-square foot facility in Arkadelphia in late 2023, hiring more than 150 workers.
NORTHEAST ARKANSAS
Over the last decade, Northeast Arkansas has attracted a slew of significant investments from global steel manufacturers. Key companies such as U.S. Steel, Nucor and Zekelman have built advanced mills in the area, annually producing millions of tons of steel vital to various industries. Essential and rapidly growing industries such as energy, automotive and construction rely on the products these companies produce, emphasizing the important role Northeast Arkansas plays in several sectors of the American economy.
Arkansas State Capitol Building, Little Rock.
Photo courtesy of Arkansas Department of Parks, Heritage and Tourism
Like many locations across Arkansas, the Northeast region is exceptionally well connected. Not only is it situated along the Mississippi River, but its communities have access to three Class I rail systems, increasing the cost-effectiveness and efficiency of product distribution.
United States Marshals Museum – Fort Smith.
Photo courtesy of Arkansas Department of Parks, Heritage and Tourism
For example, Mississippi County, the No.1 steel producing county in the country, is a strategic location that has encouraged over 20 steel-related businesses to set up shop in the area. Located between Memphis, Tennessee, and St. Louis, Missouri, the county’s easy access to major cities, infrastructure, land availability and well-established industry network continue to attract investment and job creation. Currently, Mississippi County boasts more than 3,600 steel workers.
In an effort to increase the pipeline of skilled workers, U. S. Steel’s Big River Steel facility and Entergy Arkansas have entered into a partnership with Arkansas Northeastern College (ANC) to support The Steel Tech Academy, a two-year, hands-on internship program for high school students to prepare them for career opportunities in the steel industry.
Additionally, in 2023, Arkansas Northeastern College received $1.2 million in funding from the Arkansas Office of Skills Development (OSD) to create the Arkansas Steelmaking Boot Camp. Designed as a response to “the urgent labor demand in the steel manufacturing industry in Mississippi County,” this 80-hour, two-week program is free for participation and, according to the Arkansas Department of Commerce, will help train an estimated 500 people in steelmaking practices within the first year.
NORTHWEST ARKANSAS
The number of recognizable companies headquartered in Northwest Arkansas is astonishing. Tyson Foods, Walmart, Simmons Foods (which provides poultry for restaurants such as Chick-fil-A, Panda Express, Cheesecake Factory, KFC and dozens of other chains), and the list goes on.
These enterprises aren’t anchored in one area alone. Each calls a different city home, whether it be Bentonville, Springdale, Siloam Springs or one of many other vibrant communities in the region.
As this impressive list suggests, food and beverage are big business in Northwest Arkansas. Companies affiliated with the various aspects of this industry continue to grow their footprints in the area. Americold Realty Trust, a global leader in temperature-controlled logistics, real estate and value-added services, recently expanded its existing facility in Russellville.
Backed by an investment of $90 million, Americold has constructed an additional 131,000 square foot cold storage and distribution facility at its location in the region, adding 42,000 pallet positions and 30 new jobs.
“We’re excited to expand our presence in Arkansas,” said Americold CEO George Chappelle. “This facility was built with state-of-the-art automation to support production and the supply chain for one of North America’s leading branded food companies. We continue to innovate to provide best-in-class service for our customers as we help them feed the world.”
As part of Americold’s commitment to give back to the local communities it serves, Americold and its long-time partner Feed the Children came together to support more than 300 Russellville families. Following the company’s ribbon-cutting ceremony last March, each participating family received a 25-pound box of food and a 15-pound box of personal-care essential items.
“We are excited about the expansion of the Americold facility in Russellville, showcasing yet another great community partnership,” said Russellville Mayor Fred Teague in March. “The increased capacity will not only bring new job opportunities but will also allow Americold’s customer to increase production and distribution. Both Americold and its customer are valued community partners, not only contributing to local employment but also impacting families worldwide.
“They are great examples,” he said, “of our strong local industry in the Arkansas River Valley.”
CENTRAL ARKANSAS
Positioned at the crossroads of major transportation routes ranging from interstates and railways to the Arkansas River, Central Arkansas serves as a crucial logistics hub. Little Rock is located within a 500-mile radius of 11 major markets, including Atlanta, Chicago and Dallas. Its strategic location offers businesses seamless access to key economic centers, making it an ideal choice for companies prioritizing distribution and supply chain efficiency. This geographic advantage, combined with the region’s low cost of living, affordable housing and natural beauty, has attracted the likes of industry leaders such as L’Oréal USA, Caterpillar, Dillard’s, Axicom and Dassault Falcon Jet.
When Windsor Doors decided to grow its operations in Little Rock, access to something else helped seal the deal. As a manufacturer and distributor of residential garage and overhead door products, steel is an essential ingredient to the company’s production process. By growing its footprint in one of the top steel producing states in the U.S., Windsor Doors will have no problem sourcing this resource.
Alongside adding a $21 million high-speed production line, the Little Rock-based business plans to double its purchase position from Arkansas steel mills. Overall, the company expects for the increased output the new line enables to be instrumental in affordable housing initiatives throughout the country as it will help ensure a steady supply of quality doors to builders nationwide.
“When Arkansas businesses grow, our entire economy grows with them,” said Governor Sarah Huckabee Sanders, noting that the project is “great news for Windsor Door and its Central Arkansas employees, but it’s also a win for our steel industry, our home builders, our logistics companies and everyone who works at and benefits from these homegrown businesses.”
