< PreviousAdvanced manufacturing finds a foothold in the Natural State. by S AVA N N A H K I N GAARKANSASAD V AN C E D MAN U F A C T U R I N Grkansas’ manufacturing expertise is a catalyst for growth for both home-grown and foreign companies. According to the National Association of Manufacturers, total output from manufacturing was $17.1 billion in 2017. That same year, there were more than 157,520 manufacturing employees — 12.7 percent of the state’s workforce — in the state earning an average of $46,780 a year. From utility vehicles to equipment manufacturing, metal fabrication and more, several companies have recently chosen to locate or expand operations in the Natural State for its highly skilled workforce, low cost of doing business and its strategic central location. In the five years since its inception, Intimidator Inc. has seen considerable growth. The manufacturer of 4x4 utility vehicles and zero-turn mowers, announced it would expand its current manufacturing facility in Batesville, and is building a second facility in Independence County Industrial Park. The company will invest $10.4 million in the facilities and will create 400 full-time jobs over the next few years. Construction of a new 200,000-square-foot manufacturing facility is the first of three planned expansions on the company’s 38-acre campus. The new facility will more than double its existing operating space, and a new corporate headquarters will follow in a later phase. Intimidator Inc. is owned by Robert and Becky Foster, who also own Bad Dawg Accessories, Spartan Mowers and Gourmet Guru Grill and employ more than 100 people through these companies. MADE IN58 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 SARKANSASA 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 59Photo courtesy of Intimidator Inc.“ e Foster family is yet another example of how important the entrepreneurial spirit is to Arkansas,” said Crystal Johnson, CEO of Batesville Area Chamber of Commerce. “ eir expansion to the Independence County business park was a result of collaboration between the City of Batesville and Independence County. We are proud of their continued success and growth. Bad Boy Mowers also began producing its line of zero-turn mower products in Batesville. e company’s rise began in out of a ,-square-foot facility with just employees. Since then, it has grown signifi cantly with facility expansions in and . Today, the company employs people and has expanded its product line to include several versions of mowers, state-of-the-art vehicle accessories, cutters and culvert cleaners. e company sells its products throughout the US, Australia and Canada. Home-grown companies aren’t the only ones choosing the Natural State. China-based Hefei Risever Machinery Co. announced in that it would build its fi rst manufacturing plant in the U.S. in Jonesboro at the Craighead Technology Park where it will build heavy equipment for manufacturers like Caterpillar, Volvo and Komatsu. e company initially looked at more than cities in fi ve states before landing on Jonesboro. Over the next fi ve years the company has committed to invest $ million and create new jobs at the facility, which is targeted to produce , tons of steel annually. “Jonesboro is a perfect fi t for Risever,” said Mark Young, President of Jonesboro Unlimited, the economic development organization in the region. “ eir addition to Jonesboro will add high-paying jobs to our local economy. Risever began their search with cities on their list. In the end, our infrastructure, low utility rates and ability to move goods from Jonesboro to other markets around the country made Jonesboro the right place for Risever to begin their U.S. manufacturing operation. We couldn’t be more pleased.”Canadian-based manufacturing company DBG announced plans to build its U.S. headquarters in Conway in . e -year-old company produces custom metal products for the heavy truck, automotive, agriculture and commercial industries. e company’s decision to locate in Conway comes on the heels of its acquisition of Navistar’s IC Bus operations. DBG kept all of the former company’s employees. “The acquisition of Navistar’s former IC Bus operations allows us to be part of a growing community, provides us with a strong experienced workforce, increases our technical capabilities and diversifies our product offerings,” said President and CEO Mike De Biasi in 2017. “DBG has been looking for a location to establish our USA Operations for many years, and today, we are excited that our research has led us to Conway.” The company plans to aggressively double it business over the next five years and will make substantial investments in its facilities and equipment. Its reputation as one of Canada’s best managed private companies has Conway’s local leadership looking forward to the future. “Our team has seen firsthand how thoughtful and growth-oriented they are,” said Conway Area Chamber CEO Brad Lacy. “They are the perfect fit to carry on Conway’s legacy of advanced manufacturing.” 62 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 Sne of Arkansas’ chief economic engines is hidden in plain sight. From the crop rows and farms dotting the state’s landscape to the forests that occupy the rest of its uninhabited tracts, agriculture and forestry contribute more than $21 billion to the state economy. That’s among many industry facts and figures to be found in the 2017 Arkansas Agricultural Profile, a publication from the University of Arkansas Division of Agriculture, which was released in March 2018.“Many people don’t realize the impact Arkansas agriculture has on the economy. It annually contributes 17.1 percent of the state’s value added — or $21.4 billion — and this does not include the retail food sector — for example, grocery stores, restaurants and food service establishments,” noted Dr. Mark Cochran, Vice President for Agriculture for the University of Arkansas System and head of its Division of Agriculture. “That means a lot of dollars flowing through our communities, both rural and urban,” he said. “This information has been useful to policy makers, analysts and others, and is part of our mission in helping agriculture remain a well-tuned economic engine for Arkansas.” That 17.1 percent figure includes the total value generated by agriculture, including purchases of goods and services such as fuel, electricity, financial services and more by M ARK AREN DOA G R I C UL T UR E & F O R E S T R YAgriculture and forestry make a large economic impact on Arkansas.Rice field harvestPhoto courtesy of Arkansas Department of Parks and Tourism Fieldsof GreenA 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 63by the agricultural industry, according to Wayne Miller, extension economist for the Division of Agriculture. The figure also includes spending by agriculture industry owners and employees on consumer goods and services such as groceries, clothing, automobiles and other things that expand Arkansas’ retail and service sectors. In 2016, Arkansas’ top commodities in terms of cash receipts included more than $3.1 billion in broilers, $1.4 billion in soybeans and $1 billion in rice, according to the profile. However, Miller said the publication also helps illustrate the diversity of agriculture within the state. “It’s not just the Delta row crops, or the livestock and poultry production,” Miller said. “It’s also forestry, specialty crops and sod production. Those activities are also important components of agriculture in Arkansas.”Forestry alone contributed $6.4 billion to Arkansas’ economy in 2017, according to the Arkansas Forestry Association, and it employed more than 27,000 (see sidebar). Among other findings in the latest Arkansas Agricultural Profile are these:• 58 percent of the state is comprised of forests;• In 2016, Arkansas ranked 16th in the U.S. in total agricultural cash receipts, at $8 billion;• It is in the top 10 states in the U.S. in rice (1st), broilers (2nd), cotton, turkeys (5th), grain sorghum and chicken eggs (10th).Over the last eight years, the logging and solid wood products side has been steadily improving. Outside of timber, forests and the abundant wildlife within them are also a significant source of tourism and recreation dollars. According to an article in the International Journal of Environmental Studies in 2016, hunting in Arkansas provided 10,181 jobs and $609 million in value added in 2011 (Poudel, Henderson, and Munn, 2016). Several significant investment have been made in Arkansas sawmills and paper mills since 2014, including Shandong Sun Paper Mill’s $1.8-billion investment in Clark County and the Highland Pellets plant near Pine Bluff, which is expected to hire 75 people. In 2016, the needs of an expanding housing market for flooring, cabinetry and framing, as well as an increasing demand for consumer products, along with its need for more packaging and pallets for shipping helped drive growth in the sector. In a state where the economy is four times more dependent on the forestry industry than the United States is as a whole, this level of growth is planting the seed for an even more bountiful future. ECONOMIC IMPACT OF THE FORESTRY INDUSTRYEmploymentTotal Employment . . . . . . . . . . . . . . . . . . . . . . . . .27,749Annual Payroll IncomeTotal Compensation . . . . . . . . . . . . . . . . . . . . . . $1 .48BLand AreaTotal Land Area . . . . . . . . . . . . . . . . . . . . .33 .3M acresForests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19M acresForests as a Percent of Total . . . . . . . . . . . . . . . . .58%Forest CompositionHardwoods . . . . . . . . . . . . . . . . . . . . . . . . . . 10 .8M acresPine (planted and natural) . . . . . . . . . . . . 6 .2M acresMixed pine/hardwood . . . . . . . . . . . . . . . . 1 .9M acresTimberland OwnershipPrivate, Non-Industrial . . . . . . . . . . . . . . 15 .3M acresPublic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 .7M acresEconomic ImpactTotal Value Added . . . . . . . . . . . . . . . . . . . . . . . . . $6 .4BSource: Economic Impact Data, Economic Contributions of Arkansas Agriculture, 2018; Arkansas Forestry Association64 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 Sed by the likes of First Orion, a growing technology firm providing call transparency solutions, central Arkansas is becoming a hub for tech innovation. First Orion plans to double its 100-person workforce when it moves into its new world headquarters being built in a burgeoning anchor development in North Little Rock.“Central Arkansas is an inspiring place for us to be,” says Charles D. Morgan, a tech industry veteran and founder of First Orion. “We are helping to transform the region into a prominent technology hub.”First Orion Network Enterprise An expanding tech scene in Arkansasby GARY DAUGHTERSLBuilding for TomorrowI N F OR M A T I ON T E C H NOL O G YFirst Orion is erecting a new headquarters and doubling its workforce in North Little Rock.Photo courtesy of First OrionA 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 65Solutions (FONES) provides call control, call blocking, call transparency and call management solutions to millions of mobile handsets. First Orion’s “CallerYD” technology tells mobile subscribers who is calling them and why, “empowering them,” says the company, “with the ability to take action.”With additional outposts in Seattle, London, and Dallas; First Orion has provided call management and transparency solutions for companies such as T-Mobile, MetroPCS, Boost Mobile and Virgin Mobile, protecting mobile and fixed line subscribers by identifying and stopping millions of scam calls daily. “First Orion,” says North Little Rock Mayor Joe Smith, “is a shining example of our state’s best and brightest creating technologies that make the world a better place.”Where the Action IsLittle Rock, in the heart of central Arkansas, also hosts operations by tech powerhouses such as AT&T, Verizon, and FIS Global. Axciom, a data company headquartered in Conway, powers more than 1 trillion transactions each week for clients worldwide. Fayetteville, home of the University of Arkansas, anchors a thriving tech scene in the northwest corner of the state, where retail, food and logistics sectors are propelling the growth of technology companies. Heavy-hitting companies such as Walmart, Tyson Foods and J.B. Hunt offer capital, mentoring and a market for the region’s budding startups.RevUnit is a startup that designs transformation programs for big businesses, including Walmart, AutoZone, Zappos and Sam’s Club. Teesnap, a company that specializes in golf course management, engaged RevUnit to guide the development of a management software system.“RevUnit,” says Teesnap CEO Bryan Lord, “is the kind of partner you dream about having. Their team brought all the talent we were missing and aligned our business strategy with our product strategy.”New incubation spaces are helping to nurture northwest Arkansas tech startups. The Exchange in Bentonville connects entrepreneurs with existing enterprises and provides select early stage ventures with free co-working space. Startup Junkie Consulting specializes in supporting ventures that are innovating in sectors that include retail, consumer packaged goods, supply chain, food and data analytics. Early stage companies aligned with Startup Junkie, the company says, have created 619 jobs and generated $172 million in revenue.A Talented WorkforceIt’s no small wonder that the tech scene is humming in Arkansas, as the state’s workforce has the brains to power innovation. In Site Selection magazine’s 2018 Regional Workforce Development Rankings, Arkansas ranks in the top half of the 8-state South Central Region, placing ahead of Louisiana, Kentucky, Alabama and Mississippi. Forty-eight colleges and universities dot the state’s landscape, and approximately half of Arkansans have a college degree or some college. The University of Arkansas system offers bachelor’s, master’s and doctorate degrees in computer science and engineering, and the George W. Donaghey Emerging Analytics Center at the University of Arkansas at Little Rock offers data analytics and data visualization to provide solutions for big data. “Central Arkansas is an inspiring place for us to be.” — Charles D. Morgan, CEO, First Orion66 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 Ss the home of such Fortune 500 companies as Walmart and the giant trucking line J.B. Hunt, Arkansas is uniquely well-grounded in delivery, logistics and distribution.Born in the town of Rogers in northwest Arkansas as a five-and-dime in 1962, Walmart invented modern retail logistics. Today, the nation’s biggest retailer maintains 76 Supercenters in Arkansas, plus six discount stores, 33 neighborhood markets and, to keep the system running smoothly, 11 distribution Aby G A R Y D A U G HT E RSL OG I S T I C S Via rail, air and road, Arkansas moves lots of product.Arkansas is within a one day drive of 40 percent of the U.S. population. Getty ImagesA 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 67centers as big as 1.6 million square feet. J.B. Hunt, first incorporated in Lowell, Arkansas in 1961, began with five trucks and seven trailers to support the Hunt family’s rice hull business. Today it’s one of the largest transportation companies in the U.S. with more than 25,000 employees and annual revenues of $7.2 billion. Having partnered with railroads beginning in 1990, more than half of the company’s revenues come today from intermodal transportation.In April 2017, J.B. Hunt announced a five-year, $500-million commitment to enhancing the company’s operating systems, developing cloud infrastructure, and creating innovative and disruptive technologies. Subsequently, the company announced that it had placed a reservation to buy multiple electric semi tractors to be manufactured by Tesla.“Reserving Tesla trucks marks an important step in our efforts to implement industry-changing technology,” said John Roberts, president and chief executive officer at J.B. Hunt. “We believe electric trucks will be most beneficial on local and dray routes, and we look forward to utilizing this new, sustainable technology.”In the Middle of ThingsWith Little Rock as its center, Arkansas is equidistant from Mexico City and Montreal, and thus sits in the middle of one of the world’s greatest swaths of commerce. Major markets in the region include Memphis (135 miles from Little Rock), Dallas (320 miles), and Oklahoma City (340 miles). Arkansas is within a day’s drive of 40 percent of the U.S. population.Arkansas’ roads system contains over 16,000 miles of interstates, U.S. routes, state highways and special routes, and includes Interstate 40, which reaches from North Carolina to California and passes through West Memphis, Little Rock and Fort Smith. Interstate 30 connects Arkansas to Texas and Mexico, while Interstate 55 links Arkansas to St. Louis and Chicago to the north and New Orleans to the south.Adding RoutesIn April, Little Rock’s Bill and Hillary Clinton National Airport added direct flights to and from Austin, Texas, adding that city to 14 other prime business destinations. Non-stop service from the airport also includes such commercial centers as Atlanta, Chicago, Phoenix, Dallas, Orlando, Denver, Los Angeles and Washington, D.C. The airport is served by Allegiant, American Airlines, Delta, Frontier Airlines, Southwest, United and Via Air. Clinton Airport handles more than 120 flights daily. In addition, Northwest Arkansas Regional Airport, near Fayetteville, provides 50 flights daily and non-stop service to 14 cities. Five other regional airports serve Arkansas, and Memphis International Airport is just over the state line.Big Wheels Keep on TurningArkansas features over 2,500 miles of active rail lines and three class I railroads, Union Pacific, BNSF and Kansas City Southern, along with 22 short-line railroads. Some 70 percent of the rail freight handled in Arkansas is moved out of state, with the largest destinations being Texas, Louisiana and California. Passenger rail service in Arkansas is provided by the Amtrak Texas Eagle service, a long-distance train that runs between Chicago and Los Angeles; a single train in each direction passes through Arkansas each day, making six stops in the state along the way. Arkansas is uniquely well-grounded in delivery, logistics and distribution.Next >