< Previous58 ARKANSAS ECONOMIC DEVELOPMENT GUIDE Rooted in Success: Arkansas Cultivates Forestry and Agtech Industry larm bells began to go off among forestry offi cials in Arkansas during the summer of . at’s when brown spot needle blight, a deadly fungal disease, was confi rmed in certain loblolly pines, having crossed into Arkansas from forests in Alabama and other Gulf states. Loblolly pine — a valued source of lumber, plywood, paper and pulp products — is Arkansas’ most economically signifi cant tree species, accounting for a substantial portion of the state’s prolifi c, $ billion-a-year forestry industry. What’s remarkable about the story is the speed and focus with which Arkansas reacted to the threat — across forestry, academic and political camps. Within months, the state had committed $. million to stand up the Arkansas Forest Health Research Center, which broke ground recently at the University of Arkansas at Monticello (UAM). “It’s been a whirlwind of a process all this year, and it wouldn’t have been possible but for the high level of support within our state legislature and our governor’s offi ce,” says Dr. Michael Blazier, director of the Arkansas Forest Resources Center and dean of UAM’s College of Forestry, Agriculture and Natural Resources. Arkansas is nearly % forested and the eighth largest timber producer in the United States, fourth in solid pine products. “ ere’s a recognition,” Blazier believes, “that forestry is a major contributor to the state’s economy and our quality of life.” e response, he says — also among landowners — “is a really good testament to how well we tend to work in partnerships in Arkansas, understanding that we work best when we work together.” Arkansas forests are a singular source of revenue and innovation. by GARY DAUGHTERS A AG TECH & FORESTRY 19 million acres of forestland cover more than half of Arkansas’ total land area. Photo courtesy of Arkansas Department of Parks, Heritage and TourismARKANSAS ECONOMIC DEVELOPMENT GUIDE 59 Huge Returns on Investment When it opens in 2026, says Blazier, the 18,000-square foot Forest Health Research Center “will have one of the best research labs of its kind in the Southeast,” enabling it to monitor and mitigate threats that continue to emerge from changing weather patterns such as the increasingly wet springs and hot summers that have helped promote the spread of brown spot needle blight. The Center is expected to deliver an annual economic benefit of $157 million, a “conservative estimate,” says Blazier, by protecting against the loss of trees and forest products, adding surety to Arkansas’ timber-based exports and attracting new students whose degrees will command high salaries. “There’s just a lot of downstream benefits,” he says. On the research side, the Center will leverage a high-resolution imaging tool pioneered by UAM’s Hamdi Zurqani, an assistant professor in the Forestry College. Developed through the use of machine learning tools applied to Google Earth software, Zuqani’s forest canopy dataset delivers a profile of every inch of Arkansas forestland at 1-meter spatial resolution. “It can screen the tree canopy and look for the most minor nuances in unhealthy trees,” says Blazier, “and point researchers to precise locations that need to be checked out.” The preliminary results, he says, “are very encouraging. We’ll be looking at diseases, insects and genetics. All three come into play when determining what the health threats are and how to mitigate them.” A Place to Innovate Cross-laminated panels manufactured by Mercer Mass Timber in Conway comprise much of the 62,000 cubic feet of wood products going into the Anthony Timberlands Center for Design and Materials Innovation at the University of Arkansas in Fayetteville. The hotly anticipated project, already the recipient of numerous design awards, hit a milestone in September of 2024 when onlookers gathered for the facility’s “topping out.” The 44,763 square foot Anthony Timberlands Center is part of U of A’s Fay Jones School of Architecture and Design. The school has fostered the development of Arkansas’ forest economy, with a focus on mass timber construction. Mass timber is created from a range of wood products and adhesives that make it stronger and more durable than traditional lumber. It is increasingly seen as a favorable alternative to steel and concrete construction. “Arkansas,” said Peter MacKeith, dean of the Fay Jones School, “is uniquely positioned to respond to the local, national and global trend toward the use of wood in construction and other industries.” Scheduled to open in the spring of 2025, the Anthony Timberlands Center is conceived as an applied research and teaching facility based on Arkansas timber and wood products. The award-winning design by Grafton Architects of Ireland — in partnership with the Modus Studio in Fayetteville — is itself a demonstration of the potential of advanced timber and wood. Supplier Mercer Mass Timber is a growing leader in the space. A primary thrust of the Center will be to develop affordable housing prototypes designed and constructed from engineered wood sourced from Arkansas. Implemented at scale, mass timber offers the potential to deliver attainable and sustainable housing. “The Anthony Timberlands Center,” said U of A Chancellor Charles Robinson, “represents the University of Arkansas’ ongoing commitment to research and innnovation that directly serves the people of our state. As a land- grant institution, we invest in projects like this to drive economic growth, address critical issues such as affordable housing and sustainability, and prepare our students to lead in industries that are vital to the continued prosperity of our state and nation.” Rendering of the Arkansas Forest Health Research Center Image courtesy of UAM60 ARKANSAS ECONOMIC DEVELOPMENT GUIDE tanding in front of a crowd at the USA Partnership Pavilion’s Forum Main Stage of the Farnborough International Airshow, Taber Extrusions President Chuck Stout announced that the company would be expanding its operations in Russellville, Arkansas. “We are excited for this expansion as it provides the capability and capacity needed in the large shape extrusion market, said Stout. “ is investment highlights our commitment to continue to serve our national defense, aerospace, and large industrial market partners.” On alternating years, the Arkansas Economic Development Commission attends the Farnborough Airshow and the Paris Air Show to promote the state’s thriving aerospace and defense industry. In , the Arkansas team had the opportunity to take center stage with the Taber Extrusions announcement. Taber Extrusions announced that it would be introducing the largest direct extrusion press in North America as part of its expansion, serving clients in the aerospace and defense industry. is expansion represents a $ million investment, creating jobs in Russellville. is announcement was just the latest in a series of recent aerospace and defense announcements in Arkansas. Aerospace and defense executives agree that Arkansas has the right stuff for helping their companies succeed. RTX and Rafael Advanced Defense Systems announced a new partnership, RS, that is building a $ million S Soaring High: Aerospace & Defense Industry Wins in Arkansas AEROSPACE & DEFENSE Arkansas puts the ‘A’ in aerospace. by LINDSAY LOPP Arkansas is home to a wide range of Aerospace & Defense companies, from startups to the Fortune 500. Photo courtesy of AEDCmanufacturing facility in East Camden. This facility will produce the Tamir missile for the Iron Dome Weapon System and the SkyHunter® missile variant for the U.S. Marine Corps and U.S. allies. “This expansion will support our ability to address the needs of both current and future customers,” said Jeff Shockey, senior vice president of Global Government Relations at RTX. “Thanks to the unwavering support of Governor Huckabee Sanders and the Arkansas Congressional Delegation, this new facility allows us to expand our presence in Camden, leverage the established defense community and workforce, and build our capacity to support the growing needs of our global customers and eventually augment Rafael’s direct support for Israel Defense Forces.” In December 2023, Dassault Falcon Jet announced that it would be expanding its Little Rock operations – its largest facility in the world. The company is investing $100 million in Arkansas and creating 800 new jobs. “The State of Arkansas has always been a vital part of our success in Little Rock, and we appreciate the leadership of Gov. Huckabee Sanders as we build a bigger presence,” said Eric Trappier, Chairman and CEO of Dassault Aviation. Also, Ebbing Air National Guard Base in Fort Smith was recently selected by the Department of the Air Force as the location for a new Foreign Military Sales Program Pilot Training Center. This center will provide F-16 and F-35 training for Foreign Military Sales Program participants, and it will be the new home for the Republic of Singapore’s 425th Fighter Squadron. This mission is bringing approximately 900 military members and their families to the greater Fort Smith region. Economic development wins like these demonstrate the strength of the aerospace and defense industry in Arkansas. Companies - from aviation leaders like Dassault to defense firms like Lockheed Martin – chose Arkansas because they know all the elements for business success can be found here. In Arkansas, companies can find an experienced workforce with the skillset to handle aerospace manufacturing. There are more than 170 aerospace and defense firms operating across Arkansas, employing approximately 10,900 workers. The established workforce is only part of the story in Arkansas. Every day, Arkansas educational institutions are preparing the next generation of the state’s aerospace and defense workforce. Across the state, there are more than 40 colleges, universities, and two-year colleges, offering degrees, certifications, and training that aerospace and defense companies need for workers to have. For example, five Arkansas educational institutions offer certification in Aviation Maintenance Technology, including both Powerplant and Airframe mechanic career education. Aerospace and defense companies will also find the land and infrastructure they need for their operations. In south Arkansas, the Highland Industrial Park has proven to be an excellent location for companies to land. Highland Industrial Park, located in East Camden, is an 18,780-acre park with 5,408,686-square- feet of facilities and is home to a wide range of notable companies, including General Dynamics, Lockheed Martin, Raytheon, and Spectra Technologies. The aerospace and defense industry is taking off in Arkansas, driven by the state’s favorable business climate with low costs and low taxes, a dependable workforce and a growing talent pipeline, and the infrastructure companies need to grow. ARKANSAS ECONOMIC DEVELOPMENT GUIDE 6162 ARKANSAS ECONOMIC DEVELOPMENT GUIDE ozens of fi rearms and ammunition manufacturers have operations in Arkansas, because they know a fi rearms-friendly state when they see one. Governor Sarah Huckabee Sanders is staunchly pro-Second Amendment, and the state’s legislature routinely passes pro-gun bills — eight were passed in the legislative session alone. Add to that the state’s pro-business environment, including a .% corporate income tax, manufacturing workforce and aff ordability, and Arkansas soon becomes a logical location for the fi rearms industry. In fact, it’s the third most gun- friendly state in the country, according to Ammo.com, an online purveyor of ammunition. Ranking factors include current gun and purchase laws, reciprocity with other states, sales tax and the governor’s voting history. e National Shooting Sports Foundation, a fi rearm industry trade association, ranks Arkansas fourth in total industry economic output per capita and fi fth in fi rearm industry jobs per capita. According to the association’s Firearm and Ammunition Industry Economic Impact Report for , the sector in Arkansas had an economic impact in of $. billion. by MARK AREND Locked and Loaded: Firearms and Ammunition Industry in Arkansas FIREARMS & AMMUNITION D Photos: Adobe StockARKANSAS ECONOMIC DEVELOPMENT GUIDE 63 Where Manufacturers Are Expanding In October, SIG SAUER opened a $ million expansion at its ammunition manufacturing facility in Jacksonville, a year after the project was announced in October . Between the facility and new equipment, the investment is $ million. e expansion adds jobs to the roughly already employed at the site. SIG SAUER is a contractor for the U.S. Department of Defense and NATO allies. e company says the Jacksonville Arkansas Ammunition Center adds , square feet for manufacturing in support of the U.S. Army Next Generation Squad Weapons. “In just one year, we have built a manufacturing facility that will stand for generations with the mission to provide our soldiers an ammunition technology advantage in lethality and overmatch versus our enemies,” said Ron Cohen, SIG SAUER president and CEO, at the ribbon-cutting event. “ is incredible facility gives us the ability to signifi cantly scale manufacturing and grow our output for years to come, and this is only the beginning.” In January, Walther Manufacturing announced a $ million expansion at its Fort Smith operation. Company executives had met with Governor Sanders on a European trade mission in the summer of . e expansion, which is expected to create jobs over fi ve years, adds , square feet to the , already in place. e company shares its campus with Umarex USA, a maker of airguns, pistols and other fi rearms. “Arkansas is proud to be home to Walther U.S. headquarters, both because we love jobs and because we love our Second Amendment,” said the governor at the time. “After meeting with the company during my European trade mission this summer, I’m thrilled they’ve decided to double down on their investment and grow their facility here in the Natural State, helping Fort Smith and the entire River Valley grow.” “Walther Manufacturing is making a substantial investment in our Fort Smith factory to facilitate the expansion of our research, development and manufacturing of U.S.- produced fi rearms and accessories,” said Tom Goike, Walther Manufacturing president and CEO, in a statement. Fiocchi USA in November announced a new ammunition primer manufacturing facility in Little Rock that will add jobs to its operation in Arkansas’ capital city. e company makes defensive and hunting ammunition. Why Little Rock? “Our focus on Little Rock for this major expansion comes from an ideal alignment of several considerations,” said retired Fiocchi of America President and CEO Anthony Acitelli, announcing the new facility. “Aside from our strong ties with the state and local governments, Arkansas has a highly experienced and energetic labor force to call upon. Furthermore, streamlined logistics with other plant operations combined with management and supply chain effi ciencies make Little Rock a logical choice. We will also benefi t from logistical synergies with our ammo manufacturing industry partners.” “ In just one year, we have built a manufacturing facility that will stand for generations with the mission to provide our soldiers an ammunition technology advantage. ” — Ron Cohen, SIG SAUER President and CEO64 ARKANSAS ECONOMIC DEVELOPMENT GUIDE ehind the scenes of the Arkansas film industry, one will find a network of support dedicated to enabling creative freedom. The state is resource rich, both in its ever-growing talent and expertise. Not to mention a roster of more than 440 on- site filming locations and indoor studio spaces fit to bring any vision to life. From small town charm to bustling urban life, Arkansas’ built in character has made the state a sought-after venue to produce a film time and time again. “Not only are we in constant production, but we’re in constant production with producers who have created content here before,” says Arkansas Film Commissioner Christopher Crane. “That doesn’t even go into what’s going on with our local content makers.” Crane notes an out-of-state filmmaker’s return to a smaller market such as Arkansas gives credence to the effectiveness of state film incentives, crew base and infrastructure. The industry’s growth has called attention to every corner of the state, especially as productions look to head outside of popular locations in Central and Northwest Arkansas like Fayetteville, Bentonville, Springdale, Rogers and Little Rock. Over 3,000 residents are employed directly by the state’s film industry and more than 5,700 are employed indirectly, according to the Motion Picture Association. In 2024, the Arkansas Economic Development Commission partnered with non-profit organization Low Key Arts to develop the state’s first film workforce development program. The free training program taught nearly 50 students skills associated with production, camera, art department and grip and electric roles — but not without the opportunity to apply the newfound knowledge. “We’re helping spice up our crew bases, but not too much that we’re sending them to other markets,” says Crane. “We have a production right now using some of those students, who are enthusiastic and energized to get input into the industry. We’re looking at that as a major positive.” Filmmakers have found reason to return to the Natural State. by ALEXIS ELMORE B FILM Through the Lens of Arkansas Production for ‘Trail of Vengeance’ starring Rumer Willis took place in multiple locations around Northwest Arkansas. Photo courtesy of Daniel NanselARKANSAS ECONOMIC DEVELOPMENT GUIDE 65 Action in Arkansas A thriving film industry depends on a strong crew workforce. Developing this crew base – from cinematographers to best boys and from gaffers to grips – is a key initiative for growing Arkansas’ film industry. One program has found success in providing technical training for aspiring film production professionals, giving them the tools they need to work on film sets. The READY FOR ACTION program is an innovative training program for individuals in Arkansas to break into the film industry and build sustainable rewarding careers. Partnering with the Arkansas Economic Development Commission and the Office of Skills Development, Low Key Arts offers cutting-edge apprenticeship program, which provides six weeks of comprehensive technical training in key production areas. Forty participants recently completed the READY FOR ACTION program, and many of the trainees are currently working on a professional feature film in Little Rock, allowing them to earn a living as they fulfill their dreams. This initiative not only strengthens our local film crew base but also contributes to the growth of Arkansas’ creative economy. “READY FOR ACTION is more than just a training program; it’s a pathway to employment with the rapidly expanding film industry in Arkansas,” said Jen Gerber, Film Program Director for Low Key Arts in Hot Springs. “We are dedicated to equipping aspiring filmmakers with the skills they need to thrive and this robust apprenticeship program empowers participants to not only pursue their passion for film but also to build a sustainable career that contributes to our local economy. We believe everyone should have the chance to dream big and achieve success in the world of cinema, regardless of their background or location. By nurturing homegrown talent through specialized training and paid apprenticeships, we are celebrating our state’s unique landscape while growing a vibrant film crew base right here in Arkansas.” With specialized training and apprenticeships, the READY FOR ACTION program is making significant strides to grow Arkansas’ film industry, creating jobs that would otherwise flow to neighboring states and coastal cities. It not only boosts local economies throughout the state but also highlights the stunning natural beauty that Arkansas has to offer. “A thriving film industry brings diverse revenue streams, attracts tourism, and promotes our state’s rich cultural heritage and natural beauty,” Gerber said. “As we empower individuals with the skills needed to succeed in this dynamic field, we are also fostering an environment where creativity and innovation can flourish, ultimately benefiting all Arkansans.” Create With Us In comparison to larger film markets around the U.S., Arkansas makes it feasible to get new projects in motion. Requiring a minimum spend of $50,000 within six months in connection with an in-state postproduction project, or $200,000 within six months for in- state production of a feature project, the state’s incentives help make Arkansas an ideal location to break into or grow within the film industry. “We’re a great indie market,” says Crane. “I think our tax credit supports that and we will continue to look at ways we can improve it.” A recent report on the state’s film production industry by the Arkansas Economic Development Institute revealed that for every $1 million spent on the rebate, $4 million returned to the state’s economy. In 2023, the state’s legislature made the move to advance the state’s film incentive. Currently, the state offers its film incentive in the form of either a rebate or tax credit, up to a 30% total. The incentives mirror each other, providing a 25% base incentive on goods, services and non-resident labor; an additional incentive for below-the-line employees who are full-time Arkansas residents or veterans; or 5% for employing residents for hosting a production located in a Tier 3 or Tier 4 county. Just as hits such as “True Detective,” “Mud” and “Freedom’s Path” found success in Arkansas, the state is prepared to support the next blockbuster hit. An aspiring film production professional operates a slate during the READY FOR ACTION program. Photo courtesy of Low Key Arts66 ARKANSAS ECONOMIC DEVELOPMENT GUIDE L aunching a tech startup is challenging no matter where you are. It takes more than just a groundbreaking idea — success demands capital, mentorship, talent, and an environment that nurtures growth. New companies also drive the economy with small business accounting for nearly % of net new jobs since according to the Small Business Administration. e unfortunate reality is that % of startups fail nationally, with .% not making it past their fi rst year. Startups need an ecosystem of support to survive. While traditional, or coastal tech hubs might seem like the go-to for aspiring entrepreneurs, those ecosystems come with their own barriers: relentless competition, astronomical living costs, and a fundraising landscape that’s increasingly crowded. But there’s a hidden gem on the startup map that many founders are turning to — Arkansas. In fact, technology leaders like Acxiom, FIS, Gainwell Technologies, First Orion, not to mention the corporate headquarters of technology-enabled giants like Walmart, Tyson Foods, and JB Hunt have made Arkansas their home for decades. Arkansas off ers something that’s becoming harder to fi nd elsewhere: signifi cant opportunity, a supportive business climate, and a lighter fi nancial burden. TECHNOLOGY Provalus describes itself as driven by a unique purpose: transforming communities from the inside out. Photo courtesy of Provalus Why Arkansas is the Next Big Thing for Tech Startups by GRACE RAINSARKANSAS ECONOMIC DEVELOPMENT GUIDE 67 Support That Grows With You At the forefront of this shift is ARise — Arkansas Innovators, Startups, and Entrepreneurs — a program that’s revolutionizing where tech startups are looking to build their companies. Backed by the Arkansas Economic Development Commission (AEDC) and spearheaded by Startup Junkie, ARise is quickly positioning Arkansas as the next hotbed for tech and tech-enabled entrepreneurship. What makes ARise diff erent is its deeply personalized, ongoing support. It’s much more than a three-month accelerator or a one-off workshop; ARise support grows and evolves with startups. Whether they’re perfecting a product, navigating the go- to-market labyrinth, raising capital, or preparing to scale, ARise off ers tailored no-cost coaching and consulting to meet tech companies where they are. e program’s strength lies in its community of mentors and subject matter experts — seasoned professionals who’ve been in the trenches, building companies from the ground up. ARise’s mentors span industries from biotech to AI, cybersecurity and more, with not just a breadth of knowledge, but depth in a variety of disciplines and verticals. Capital That Stretches Further Arkansas attracted nearly $ million in venture capital in alone, a testament to the growing confi dence investors have in Arkansas’ tech scene. But the benefi ts of being in Arkansas go beyond access to funding — they extend to how far that funding can go. Lower operating expenses means a startup’s runway is longer, allowing them to invest in the areas that matter most, like product development or team expansion. In cities like San Francisco, where the cost of offi ce space can exceed $ per square foot annually, Arkansas off ers a dramatically diff erent landscape. In Fayetteville, for example, offi ce rent averages just $ per square foot, making it easier for startups to focus on growth rather than just surviving the next rent bill. e state is also investing in startup capital through programs designed to provide non-dilutive capital to early- stage startups, such as the AEDC’s Seed Capital Investment Program (SCIP) and Technology Development Program (TDP). Talent at a Price You Can Afford Attracting top talent is an ongoing challenge for any company, but Arkansas has an edge that many tech hubs can’t off er — a lower cost of living combined with a high quality of life. In places like Silicon Valley, employees may receive high salaries, but the cost of housing and living consumes much of their income. Arkansas, however, off ers a more sustainable balance, where employees can aff ord to buy homes, enjoy outdoor adventures, and build a life that extends beyond the workplace. As remote work becomes more standard in tech, Arkansas’ aff ordability and lifestyle make it an increasingly attractive option for top-tier talent from across the country. A Thriving Ecosystem on the Verge of a Breakthrough Arkansas has invested considerable resources into the cultivation of a strong technology ecosystem across the entire state. In addition to the tech giants previously mentioned, newer Tech companies like Ozark Integrated Circuits, AcreTrader, Arkana Labs, and Cold Steppe are further proof that Arkansas is capable of nurturing high-growth, scalable companies. The Bottom Line: Arkansas is Ready for Technology & Innovation For over years, tech founders serious about growing their companies have looked to Arkansas. For new founders looking to start and/or scale, Arkansas should also be on your radar. It’s a place where resources are abundant, collaboration is king, and innovation is at the heart of everything. Grace Rains, Executive Director – The ConductorNext >