< Previous18 A R K A N S A S : T H E S T A T E T H A T R U N S L I K E A B U S I N E S SYou have joined the governor in making business recruitment trips to Japan, China, France and other global locations since January 2015. How are these international visits paying o for Arkansas?MIKE PRESTON: Our international visits are paying off big for Arkansas. e state is attracting more foreign direct investment than ever before and is attracting attention around the globe. Over the past two years, fi ve Chinese companies have announced they will create a total of , new jobs in Arkansas and invest about $. billion. Shandong Ruyi Technology Group alone will be responsible for about half of those new jobs, making it one of the largest job-creation announcements in the history of our state. But it’s not just manufacturing that’s benefi tting — the company will process more than , tons of Arkansas cotton, almost the state’s entire crop, to be spun into yarn for textile use. What do you feel are the most important assets that make Arkansas an attractive destination for business?PRESTON: We have low costs of doing business, we have a great location in the middle of the country with access to major ports where we can easily reach tens of millions of customers, our unemployment rate consistently ranks below the national average, we have an integrated network of campuses of higher learning to train our current and future workforce, and we have a great quality of life. Whatever your passion is, you will fi nd it in Arkansas.HBO’s True Detective series is fi lming its third season in Arkansas now. What does that say about what your state has to o er businesses in the fi lm and TV production sector?PRESTON: Arkansas has been in the fi lm industry for many years. Our state’s diverse landscape and natural beauty includes mountains, lakes, rivers, prairies and more. With a single point of contact, producers can access skilled crews, casting agencies and other resources.What do you think have been your state’s three biggest economic development wins of 2018?PRESTON: Can I name four? In March, Gov. Hutchinson and AEDC launched the Competitive Communities Initiative, an evaluation process that aims to ensure all communities in the state are fully prepared to successfully compete for jobs and investments. e initiative is the result of a strategic plan that included input from communities, site selection consultants and utility partners. e evaluation is designed to identify ways a community can be more competitive with their economic development organizational structure, their economic development funding, their workforce, and their product readiness, and will receive the Competitive Community designation upon completion of the criteria.Early in the year, Arkansas 20 A R K A N S A S : T H E S T A T E T H A T R U N S L I K E A B U S I N E S Slaunched the 10x Cyber Accelerator, a partnership with Metova, AEDC and Startup Junkie. The accelerator provides targeted support to growth-oriented ventures with a specific focus on offering recommendations for software and world-class cybersecurity technology. The accelerator is reflective of the state’s growing technology sector and is proactive in addressing concerns involving cybersecurity.In January, Col. Robert Ator joined AEDC as our Director of Military Affairs. Gov. Hutchinson is focused on supporting and growing the state’s military installations, so he established the Military Affairs Committee in 2015 with the mission of bringing together public and private leaders around the state to prepare and advocate for the state’s military installations and missions. The first Military Affairs Grant was awarded to the City of White Hall to conduct a Joint Land Use Study with the intent of improving the military value of the Pine Bluff Arsenal. The Arsenal was established in 1941 and continues to serve as a critical source of smoke ammunition and chemical defense equipment for the military.The most recent Military Affairs Grant was recently awarded for $377,182 to the Little Rock Airforce Base Community Council and the Jacksonville High School for a cyber training curriculum. This will allow cyber students to finish their diploma along with two important certifications: Continue their education at several state colleges or universities, join the military as a Cyber Warrior, or join the workforce as a trained cyber technician.Finally, “True Detective” began filming its third season in Northwest Arkansas. The production has a $70 million budget and is estimated to have an economic impact of at least $100 million in Fayetteville. It is the largest and most expensive production we’ve had in Arkansas. It gives us a chance to showcase to the film industry the many local actors, extras and production crews that call Arkansas home. At least 300 local people are expected to be employed as part of the production. And one more production company will see the beauty of our state and learn first-hand about the benefits of filming here.What’s the one thing you wish more business leaders outside your state understood better about Arkansas?PRESTON: We’re a small state, and sometimes we aren’t the first state they think of when they are looking to expand. I wish more leaders understood that we are here in the heart of America and that we have all the tools in place to handle their needs.“Over the past two years, five Chinese companies have announced they will create a total of 1,650 new jobs in Arkansas and invest about $1.5 billion.” — Mike Preston, Executive Director, AEDCWhat role do colleges and universities play in supporting economic development in Arkansas?PRESTON: One of the most important components of economic development is workforce. Colleges and universities are instrumental in ensuring that our workforce meets the needs of business and industry. We have a great network of both two- and four-year colleges that understands this and works with our businesses to meet their specifi c needs for jobs that require everything from certifi cate programs to advanced degrees. Arkansas has adopted a new formula for funding higher education to increase the number of Arkansans who are workforce ready with degrees and industry-recognized certifi cates.How does AEDC support entrepreneurs and innovation in Arkansas? PRESTON: We are excited to see how much entrepreneurship has grown in Arkansas. Startup hubs including Arkansas Made, the Arkansas Innovation Hub and Innovate Arkansas bridge the gap between innovation and commercialization. We have accelerators that provide funding and support for new tech companies. Finally, entrepreneurs also have targeted tax incentive programs to help them get off the ground and reach their full potential. Delivering What Companies Want22 A R K A N S A S : T H E S T A T E T H A T R U N S L I K E A B U S I N E S Sfter spending time in Arkansas and Missouri leading successful recruitment and expansion projects with companies like Cooper Tire, Firestone, Nucor, American Outdoor Brands and Amazon, Clint O’Neal has a good idea what top employers want most.At the top of that list is skilled labor. O’Neal, executive vice president of global business for the Arkansas Economic Development Commission, makes sure that Arkansas satisfi es that need.In this interview, he discusses Arkansas’ approach to workforce development and related economic development initiatives.You have experience in working with a lot of big companies on business recruitment projects. What are the most important things they say they need in a business location?CLINT O’NEAL: Site selection decisions typically start with an evaluation of logistics, and are driven by the following key factors: a skilled workforce, favorable business costs, government and community support, and a real estate option that helps facilitate growth. In Arkansas, we pride ourselves on being a solution provider in each of these key areas.Ensuring a steady supply of skilled workers is job one in Arkansas.by RON STARNERADelivering What Companies WantS T A TE LE A DE R I NTE R V I E W : C LI NT O ’ N E A LA R K A N S A S : T H E S T A T E T H A T R U N S L I K E A B U S I N E S SA R K A N S A S : T H E S T A T E T H A T R U N S L I K E A B U S I N E S SA R K A N S A S : T H E S T A T E T H A T R U N S L I K E A B U S I N E S S22 A R K A N S A S : T H E S T A T E T H A T R U N S L I K E A B U S I N E S SA R K A N S A S : T H E S T A T E T H A T R U N S L I K E A B U S I N E S SA R K A N S A S : T H E S T A T E T H A T R U N S L I K E A B U S I N E S S22 A R K A N S A S : T H E S T A T E T H A T R U N S L I K E A B U S I N E S SA R K A N S A S : T H E S T A T E T H A T R U N S L I K E A B U S I N E S S 23How is Arkansas making its workforce more globally competitive?O’NEAL: In Arkansas, we facilitate the connection between education and economic development. Under Governor Hutchinson’s leadership, Arkansas leads the nation in computer coding education — preparing students for the technology and manufacturing jobs of the future. Initiatives across the board including the alignment of higher education institutions with the needs of industry, the resources of AEDC’s Manufacturing Solutions team, and utilizing our Customized Training Incentives are leading to Arkansas-based companies having the workforce needed to be globally competitive.How important are incentives to a deal? And how does Arkansas compete in that area?O’NEAL: Incentives can’t make up for fatal flaws in the key drivers of making a successful site selection decision, but they can certainly reduce the cost of doing business and make states and communities more competitive. Arkansas is recognized as one of the most competitive states in the county. Our incentives are performance based, they allow us to compete effectively while also practicing good stewardship with taxpayer dollars. From tax credits to training funds, payroll rebates to cash from the Governor’s Quick Action Closing Fund, Arkansas has the tools to allow us to continue winning at business attraction.24 A R K A N S A S : T H E S T A T E T H A T R U N S L I K E A B U S I N E S SWhat would you say is the global brand identity of Arkansas?O’NEAL: e “Arkansas Inc.” brand was launched in to tell the story of momentum that Arkansas runs its economic development eff orts much like a CEO runs a company — leaner, faster and focused. We have one point of contact for businesses looking to locate or expand here. We want businesses to know that we understand their needs and we will address those needs quickly, decisively and effi ciently.What are some emerging industries that are gaining a foothold in Arkansas?O’NEAL: Technology has been getting a lot of national press lately — and rightly so — due to the governor’s Computer Coding Initiative. With Arkansas becoming the fi rst state in the nation to require all its public and charter high schools to off er computer science, we are already starting to see the growth in that sector. But there are other industries emerging as well. Mississippi County in eastern Arkansas is now one of the largest steel-producing counties in the country thanks to the investments of such companies as Nucor and Big River Steel. In South Arkansas, we are seeing growth in the timber industry and in Northwest Arkansas, we continue to see growth with the headquarters of Walmart, J.B. Hunt, Tyson, Simmons Foods, and related companies.Arkansas is synonymous with Walmart. How does that association help promote the Arkansas brand both nationally and internationally?O’NEAL: When you’re home to the world’s largest company, it is a positive when it comes to business reputation. When you think about it, Walmart is still considered a relatively young company at only . It is proof that entrepreneurs — and established businesses — in Arkansas have all the tools they need to grow and succeed in a global economy. A R K A N S A S : T H E S T A T E T H A T R U N S L I K E A B U S I N E S S 25S T A T I S T I C A L P R O F IL EPopulationCentral Location52,035 SQ. MI.LAND AREA3.0 MILLIONPOPULATION (2017)$$40,7912017 PER CAPITA PERSONAL INCOME $110,299 MILLIONGDP (2009, Chained)$Source: U.S. Census, Bureau of Economic AnalysisARKANSASby the NumbersNEW YORKCHICAGOLITTLE ROCKHOUSTONDALLASNEW ORLEANSPHOENIXLOS ANGELES1,000 MILES550 MILESWASHINGTON D.C.26 A R K A N S A S : T H E S T A T E T H A T R U N S L I K E A B U S I N E S SCost of LivingEducation in ArkansasArkansas is#1for Cost of Doing BusinessEducation AttainmentHigh School or GEDSome College or Associates DegreeBachelors Degree or HigherLess than High School35%29%22%15%Source: U.S. Census, 2016 dataArkansas ranks#2 for Cost of Livingin the U.S.Source: CNBC’s America’s Top States for Business 2018Source: CNBC’s America’s Top States for Business 2018Source: C2ERThe Jonesboro MSA has the 16th lowest cost of living among 269 micropolitan & metropolitan statistical areas in the U.S.The Conway MSA ranks 2ndA R K A N S A S : T H E S T A T E T H A T R U N S L I K E A B U S I N E S S27AgricultureSector GrowthJune 2016-2017, Arkansas GDP relative to the USA56%of the state is comprised of forests(2016)14.5Macres of farmlandcontributing $16Bto the state’seconomyTrade, Transportation & UtilitiesProfessional & Business ServicesOther ServicesMining & LoggingManufacturingLeisure & HospitalityInformationGovernmentFinancial ActivitiesEducation & Health ServicesConstruction-6% -4% -2% 0 2% 4% 6% 8%ArkansasUSASource: Conway Analytics#2 Poultry#1 Rice#11 Soybeans#5 CottonSource: Arkansas Farm BureauSource: Arkansas Farm BureauSource: USDAArkansas leads in producing:Agriculture is the state’s leading industrySource: Arkansas Farm BureauNext >