< Previous18 ARKANSAS ECONOMIC DEVELOPMENT GUIDE orporate executives and site consultants have a new reason to consider Arkansas as a business destination: Arkansas has emerged as one of the most popular relocation spots for workers and their families. Consider the findings of United Van Lines. The global moving company recently named Arkansas the No. 4 state for inbound movers. According to United’s 2023 Annual National Movers Study, Arkansas tallied a 60.1% inbound move rate. The study factors in all moves, both inbound and outbound, to determine the rankings. Of the folks who relocated to Arkansas, 32% said they moved for job reasons, while 20% said they moved to be closer to family. Another 16.5% moved to Arkansas to retire; and 7.2% said they moved for lifestyle reasons. The remainder said they moved for either cost-related reasons or their health. These movers bring healthy earnings with them. Nearly 75% of the inbound movers reported annual incomes of $100,000 or more, with 40.3% reporting incomes of $150,000 or more. Another 10% reported incomes between $75,000 and $100,000. This study is not a one-off anomaly. In 2022, the moving company known as HireAHelper named Arkansas as the No. 1 state for inbound movers in the company’s annual migration report. The following year, the firm named Arkansas as the fifth-most-popular state for inbound movers by percentage. Many factors prompt people to pick Arkansas, but the chief reasons are economic. Job opportunities and cost of living are the most frequently cited factors. Arkansas is home to many large companies, including four Fortune 500 firms that are headquartered in the state. And with Bentonville-based Walmart issuing a return-to-office directive to its office employees nationwide, many of them will trek back to the Natural State. Walmart is not alone. Tyson Foods, Murphy USA and J.B. Hunt call Arkansas home too, as do 19 of the INC. 5000 fastest-growing companies in America. Statistically, these firms grow faster than the national average. That means they frequently expand their workforce and recruit new talent. Factors Driving the Movement The state’s low cost of living is a draw. According to the U.S. government, Arkansas has the third lowest cost of Recent transplants share what motivated them to relocate. by RON STARNER C WHY ARKANSAS On the Move: New Arkansas Residents Tell Their Stories Photo courtesy of Arkansas Tourism20 ARKANSAS ECONOMIC DEVELOPMENT GUIDE living in the country. Entrepreneur magazine named Arkansas as the No. 2 most affordable state in the publication’s “Cheapest States to Live in 2023” ranking. The magazine found that the average prices for groceries, housing, utilities, transportation and health care were lower in Arkansas than nearly every other state. Plenty of other factors motivate people to move to Arkansas. Folks seeking an active, outdoor lifestyle gravitate to the Natural State due to its abundance of state and national parks, mountains, hiking and biking trails, and watersports. Tech workers like the fact that they can work virtually from anywhere in Arkansas, which since 2020 has become a go-to state for remote working. And because of the state’s central U.S. location, it is easy to fly to either coast or drive to places like Texas, Louisiana, Missouri, Georgia and Florida. The Arkansas Economic Development Commission and the Arkansas Department of Parks, Heritage and Tourism are taking advantage of these factors by teaming up to manage a recruitment campaign called See Why Arkansas. This initiative encourages people from all over to move to Arkansas. Early returns show that the program works. Two success stories are Amy Charpentier and the Lewis family. ‘I’m a Big Fish in a Small Pond’ Charpentier first moved to eastern Arkansas after college so that she could teach school as part of the Teach for America program. Graduate school took her to North Carolina, but she wanted to come back. “When I moved to Little Rock, I was looking for the feel of a big city life but without all the expenses and the driving that would come with New York City or LA,” she says in a video testimonial on the Arkansas EDC website. “I live just south of downtown Little Rock and within walking distance of my house are restaurants, gift shops, all kinds of things that make it easy and accessible to go out to dinner, to see a play with friends, to see the waterfront. I pay less for my mortgage here than I would pay for rent in a bigger city.” Today, she works as director of implementation for Apptegy, a homegrown technology startup in the K-12 educational field. Apptegy announced last year that it would expand its operations in Little Rock and add 300 new jobs over the next few years. Charpentier says that moving to Little Rock and taking a job with Apptegy was the best decision she could have made for herself and her career. “One of the things that strikes me about the opportunities that I’ve had is that it’s been so much easier to get growth opportunities here than it would be in a bigger city. I’m a big fish in a small pond, and that means I’ve been able to take on new opportunities and to grow into leadership much more quickly than my peers in bigger cities,” she said. Jaxson and Inge Lewis moved their family from Surprise, Arizona, to Conway, Arkansas, in January of 2021 because they wanted a better way of life. “The city where we lived in Greater Phoenix was really crowded,” says Jaxson. “We would spend hours in traffic to go five miles. We wanted to get our kids back to nature — somewhere with trees and water. And with my ability to work remotely, it made sense to move to Arkansas.” Inge says they wanted a place “where the climate is better and where the kids could go outside to play without it being 100 degrees. Here, our kids can climb trees, run around, go fishing and boating, and play sports year-round.” Jaxson says the move has been a home run for the family. “I absolutely love it here,” he says. “We have met many people, and they are all so friendly. Random people just stop by the house and ask if they can help. Our kids have never had so many friends.” When asked if they would do it all over again, Inge said, “I would. I absolutely love it here. It was definitely worth it.” Jaxson adds that it is a great place for remote tech workers like himself. “I work for a technology company. The infrastructure is being built up here,” he says. “Some big companies here have great opportunities for employment. A lot of health care jobs are here; and a lot of call center companies in Arkansas need workers with technology skills. Working from home was one of my requirements. We found everything we need in Arkansas. This is our forever home now.” “ I pay less for my mortgage here than I would pay for rent in a bigger city. ” — Amy Charpentier, Director of Implementation, Apptegy in Little Rock Jaxson and Inge Lewis moved their family from Arizona to Arkansas for a better way of life. Photo courtesy of Jaxson & Inge LewisARKANSAS ECONOMIC DEVELOPMENT GUIDE 21 he simple pleasures that come with building a life outside of a bustling urban landscape are not lost on Arkansas residents. Of the over 3 million residents who call the Natural State home, a majority choose to reside outside of Arkansas’ largest metros. Most Arkansas cities hold a population of less than 10,000 residents but are by no means ghost towns in terms of economic development. The value of living in a rural community for most is that the quality of life desired is attainable without sacrificing quality jobs or educational opportunities. There is no shortage of skilled talent to be found around the state. As corporate leaders and local entrepreneurs continue to reinvest in rural Arkansas communities, one thing remains true: The Arkansas workforce will get it done right. Deeper Roots Nestled along the White River about 60 miles east of Little Rock lies the city of Des Arc, the largest city in Prairie County with a population of 1,905 as of 2022. Des Arc is representative of one of the state’s oldest river ports whose earliest economy was driven by agriculture. Arkansas native and current Des Arc Mayor Roger Scott has had a front row seat to the growth of this community. Scott first served as the city’s mayor for two terms about 30 years ago, returning How rural Arkansas communities exceed the needs of corporate growth strategy by ALEXIS ELMORE T RURAL COMMUNITIES Rural Communities Thriving in Arkansas Small Towns, Big Business: Photos courtesy of AEDC22 ARKANSAS ECONOMIC DEVELOPMENT GUIDE to the role in 2020. His goal was to continue to push the city’s progress forward, centering the community’s voice at the heart of new development initiatives. “Everyone here pulls together and they stick together,” says Mayor Scott. “You don’t find many little towns or communities do that anymore.” The tight-knit community has allowed for an entrepreneurial spirit to flourish and find the support needed to grow a small business beyond the region. Homegrown companies such as White River Energetics, D3 Auto Sales and Guess and Company are prime examples of the trust Arkansas residents have in the capabilities of their community. Guess and Company owner Paul Guess left his role at leading pharmaceutical company Eli Lilly and Company to come home to Des Arc and pursue his own business venture. The home goods manufacturer opens warehouse doors from October to December selling holiday decor, candles and accessories and annually draws in visitors from around the state to the city. “Our community built this town,” says Mayor Scott. “I have to say that young business people right now are really stepping up and that’s what you want to see.” In September 2024, ammunition primer and energetics manufacturer White River Energetics announced its plans to expand the company’s home base in the city. The current 14,000 square-foot manufacturing facility will receive a $10 million investment to add an additional 90,000 square feet of space by 2026. This upgrade will not only allow for the company to scale current capacity but will afford space to dedicate to the development of new products to serve domestic and international customers. A global shortage of smokeless propellant led the D&M Holding Company subsidary to also invest in the construction of a $60 million single base smokeless propellant manufacturing plant on the site. Once that plant is complete, the company will look to add 100 new roles at the site, which currently employs nearly 200 individuals. “We are proud of all the people and employees who have worked tirelessly to support WRE and make this happen,” said D&M Holding Company Vice President of Operations BJ Rogers. “Having grown up in Des Arc, I’m personally proud to see the successes that have been made with primers and look forward to continued success in the future production of propellant.” New Hope That same entrepreneurial spirit can be found throughout every region of Arkansas, especially as these companies build upon their success where it all began. Hope Baking Company, formerly known as Southern Bakeries, was given new life when Massachusetts-based East Baking Company acquired the closed business site in 2023. Owner Dan Serra first arrived in Hope in 2022 to explore the possibility of expanding his company’s portfolio. The opportunity to meet former Southern Bakeries In September 2024, White River Energetics announced it will create 100 new jobs with an investment of more than $70 million in an expansion of its operations in Des Arc, Arkansas. Photo courtesy of AEDCARKANSAS ECONOMIC DEVELOPMENT GUIDE 23 employees gave Serra a taste of the loyalty this community had to the plant since 2003, a characteristic he knew not to pass up on from a business perspective. “Everyone has been so welcoming. I’m from the north, we don’t have this,” Serra said at the time of the investment announcement. “It’s refreshing to know that the bakery’s in the right hands of the right people.” A few days into January 2024, Hope Baking Company announced that it would be investing $37 million to expand the site. At the time of acquisition 300 employees worked at the facility. Now 266 new jobs are set to be created in the region. The site will produce a number of bakery items including breadsticks and English muffins. “Hope Baking Company is excited to be reinvigorating the operation of the bakery and equipment located in Hope, Arkansas, and looks forward to steady expansion of its employment count,” said Serra. The city, located in Hempstead County, is home to a little over 8,600 residents. Hope is the birthplace of former U.S. President Bill Clinton and current Arkansas Governor Sarah Huckabee Sanders, proving the city knows a thing or two about producing hardworking citizens who know how to lead the way. “We’re excited to see a local business expand,” said Hope Mayor Don Still. “We’re glad Hope Baking Company believes in investing in our community. Our bakery has been a stable business in our community for many years. Again, we’re always excited for new businesses to come to Hope, but we’re just as excited to see an existing one grow.” A Trusted Investment In 2024, the northern Arkansas city of Pocahontas was chosen by Tate, Inc. for a significant investment. A nationwide site selection search was led by the raised access floors and data center company to solidify its decision to invest in Randolph County. The new manufacturing facility represents the first plant of its kind in the state and will produce fabricated steel frames catering to data center development. “Tate is excited to expand our operations with a new production site in Pocahontas, Arkansas,” said Tate Global President of Cloud Solutions and Innovation Daniel Kennedy. “This move strengthens our commitment to delivering innovative solutions and supports our long-term growth. We are grateful for the strong local support as we begin this new chapter.” The new 420,000-square-foot facility is slated to welcome 148 direct jobs by 2029. Pocahontas is currently home to more than 7,500 residents and is representative of one of Arkansas’ largest National Historic Districts. The city’s residents value the outdoor recreational lifestyle available as it connects to five rivers, notably the Black River. The notion of live-work-play is not lost on those who call the city home, as the location provides an avenue to enjoy activities like watersports, hunting and fishing year-round. In January 2024, Hope Baking Company announced an expansion of its manufacturing facility in Hope, Arkansas, that includes the creation of 266 new jobs and a $37 million investment. Photo courtesy of AEDC24 ARKANSAS ECONOMIC DEVELOPMENT GUIDE ould Smackover become a name as affiliated with the Arkansas lithium boom as it was with the Arkansas oil boom when prospectors struck oil in 1921 in El Dorado? Companies such as ExxonMobil, Albemarle, Equinor and Standard Lithium are counting on it. According to calculations from Argonne National Laboratory cited in Ernest Scheyder’s 2024 National Book Award nominee “The War Below: Lithium, Copper and the Global Battle to Power Our Lives,” a standard 55.4-kilowatt-hour battery in the popular Tesla Model 3 electric vehicle requires 13.2 pounds of lithium. The oil & gas and bromine industries have paved the way for white-hot pursuit of the white metal. by ADAM BRUNS LITHIUM C The inaugural Arkansas Lithium Innovation Summit was held in Little Rock in February 2024. Photo courtesy of AEDC White Gold: Arkansas’ Lithium Industry Making Global Impact ARKANSAS ECONOMIC DEVELOPMENT GUIDE 25 That’s a lot of the white metal. But there is a lot of demand. Why? A memo on the material from the U.S. Geological Survey puts it plainly: “Lithium supply security has become a top priority for technology companies in Asia, Europe and North America. Strategic alliances and joint ventures among technology companies and exploration companies continued to be established to ensure a reliable, diversified supply of lithium for battery suppliers and vehicle manufacturers.” Of the 105 million tons of measured and indicated lithium resources in the world, the USGS says, the United States has around 14 million tons, with actual production climbing to 180,000 tons in 2023. There is more for the taking, and a rich vein runs through southwest Arkansas. Among the projects looking to access the lithium deposits found in the Smackover Formation in southern Arkansas are Vancouver, B.C.-based Standard Lithium with more than $1.6 billion of plans in Lewisville and El Dorado (in addition to East Texas); ExxonMobil’s big plans for Walker Creek; and Albemarle’s opportunity to layer lithium processing on top of the $540 million it’s investing at its two bromine facilities in Magnolia, where the company has operated for over 50 years and employs more than 400 people. “Standard Lithium’s focus is to build a U.S. lithium supply chain,” said Robert Mintak, Standard Lithium’s former CEO who recently retired to an advisory post for the company. “We’ve targeted the Smackover location in Arkansas because not only is it the highest grade, but it’s in a region where you can actually build a project.” Translation: You can do Smackover business in Arkansas without getting smacked around by regulatory and permitting red tape. Sixty years of the bromine business, after all, mean a regulatory and permitting framework for extraction, reinjection and other related processes has gradually taken shape. Bromine’s uses range from oil & gas exploration to fire safety to paper manufacturing and poultry processing. Arkansas is the world’s second largest producer of bromine, derived from the same brine that has lithium concentrations, too. “We have a long, rich history of operations in Columbia County with a strong commitment to both the community and the economy in the region,” said Netha Johnson, Albemarle’s president of Bromine. “The facility investments, along with the jobs and the economic stability they bring, reaffirm our dedication to the area and to meeting our customers’ needs as we work together to build the technologies of the future for a safer, greener world.” “Arkansas is poised to become a major domestic supplier of lithium, and we’re excited to be at the forefront of creating new jobs and attracting more investments for this great state,” said Patrick Howarth, Lithium Global Business Manager for ExxonMobil. “There’s not a better place to build a lithium business than in south Arkansas,” said retired Standard Lithium CEO Robert Mintak. Albemarle Corporation Invests Up To $540 Million in Arkansas Facility Expansion26 ARKANSAS ECONOMIC DEVELOPMENT GUIDE Standard Lithium’s Arkansas plan includes the $1.3 billion, greenfield South West Arkansas (SWA) Project for lithium brine in Columbia and Lafayette Counties and a partnership with Lanxess to process tail brine from the existing bromine operations at the Lanxess South Plant in Union County that will feature a $365 million commercial-scale Direct Lithium Extraction (DLE) and lithium carbonate conversion facility. In April the company announced it had successfully commissioned and validated the performance of the largest continuously operating DLE equipment in North America at its demonstration plant in El Dorado, which is currently extracting brine at an input flow rate of 90 gallons per minute. Moreover, the DLE method doesn’t scar the landscape the way open-pit mines do. The company in spring 2024 said over the last four years it’s processed more than 17 million gallons of Smackover brine and produced approximately 330,000 gallons of concentrated and/or purified lithium chloride solution for further process testing or for conversion into battery-quality lithium carbonate or hydroxide. The SWA Project is said to have some of the highest reported lithium brine concentrations in North America. Industry news site NS Energy reports that Lanxess owns around 10,000 brine leases in the 150,000- acre Smackover lithium project area, with 65 bromine operations wells and three bromine production plants. Standard Lithium’s exploration, production and lithium extraction rights on 27,262 acres of brine leases are about 25 miles west of the Lanxess project site. “One hundred years of resource development, 60+ years of commercial brine operations for bromine production, and the highest reported lithium in brine values in North America make the Smackover Formation a promising lithium production powerhouse with room to scale,” Standard Lithium states. Two miles south of Smackover you can find this replica of an oil derrick from the 1920s oil boom at the Arkansas Museum of Natural Resources. Now the area is welcoming a lithium boom. Photo courtesy of Arkansas Museum of Natural ResourcesARKANSAS ECONOMIC DEVELOPMENT GUIDE 27 ilots from fi ve nations friendly to the United States are beginning to arrive at Ebbing Air National Guard Base in Fort Smith, Arkansas. ere, they will learn to fl y the F- Lightning II, the most lethal fi ghter aircraft of the U.S. military and an expanding array of allies. e new F- training program — under the Pentagon’s Foreign Military Sales (FMS) regime — is part of an intensifying U.S. eff ort to remain militarily supreme in what is shaping up as the era of “Great Power Competiton.” For the Fort Smith region, it’s an opportunity that could inject north of $ billion into the economy. “ is is going to be transformative for Fort Smith,” says Air Force Col. (Ret.) Rob “Gator” Ator, director of Military Aff airs at the Arkansas Economic Development Commission (AEDC). Ator helped lead the eff ort to land the new mission. “Any time you inject more than a billion dollars you didn’t have before,” he says, “you’re going to change things.” It’s largely for that reason that the successful eff ort to secure the project, a victory announced on March , , by Air Force Secretary Frank Kendall, was a multi-year, full court press by Arkansas leaders. In addition to AEDC and the Fort Smith Chamber of Commerce, it involved the state’s political representation in Washington, several of The impact of Arkansas military installations is far-reaching and dramatic. by GARY DAUGHTERS P Taking Flight: Military Installations Drive Economic Growth in Arkansas MILITARY INSTALLATIONS Polish Air Force officials visit Ebbing National Guard Base in Fort Smith, Arkansas. Photo courtesy of DVIDS/Tech Sgt. Christopher SherlockNext >