2,000 new jobs aim of NW region’s firms

Employers in Northwest Arkansas plan to add more than 2,000 new workers and invest $195 million in expansions over the next three years, according to a survey released Monday by the Northwest Arkansas Council.

The Northwest Arkansas 2013 Regional Employer Survey showed businesses were optimistic about the future but were concerned about uncertainty stemming from the federal Patient Protection and Affordable Care Act and issues regarding infrastructure, the availability of skilled labor and transportation.

In 2012, the study’s first year, employers said they planned to add 965 new positions and spend $808 million to expand over the next three years.

Environmental upgrades at Flint Creek Power Plant accounted for most of that 2012 amount. Southwest Electric Power Co. and Arkansas Electric Cooperative Corp. each own half of the coal-fired power plant in Gentry, which supplies electricity to Northwest Arkansas.

Mike Malone, president and chief executive officer of the Northwest Arkansas Council, said the region’s businesses had a strong 2013 and predicted 2014 would be a banner year.

He noted the Fayetteville-Springdale-Rogers metropolitan statistical area - which covers Benton, Washington and Madison counties and part of Missouri - ranked No. 4 nationwide in job growth in 2013. The number of nonfarm jobs grew by 4.56 percent compared with 2012, when the region ranked No. 42 in growth. The area had an average of 219,790 jobs in 2013, up from 210,210 in 2012.

The study is a business retention and expansion effort by the chambers of commerce in Fayetteville, Springdale, Rogers-Lowell, Bentonville-Bella Vista and Siloam Springs. The information was released Monday at a news conference.

Chamber representatives conducted 529 confidential, face-to-face interviews with business representatives in Benton and Washington counties, up from 459 in the 2012 report. Businesses were not required to answer all the questions posed in any part of the survey. The information was then entered into a database maintained by the council, a nonprofit organization that promotes the region.

The survey was divided into a look at the region’s largest employers - usually production, distribution and headquarters operations - and a review of smaller service and support employers.

Sixty-five percent of the 162 larger employers surveyed reported increasing sales and cited a positive business climate, strong community leadership, and a stable regional community and economy as top regional strengths. Regarding community weaknesses, their top concerns included an inadequate supply of skilled workers, poor infrastructure and weakness in transportation.

Malone said Issue No. 1, approved by Arkansas voters in 2012 to provide $500 million in statewide funding for highway improvements, likely will help keep pace with growth, but more will be needed as the region continues to expand.

“Just catching up isn’t enough,” he said.

Bill Locke, owner of Admiral Moving Services in Fayetteville, said the region has become a magnet for growth, but with that comes challenges. He said several cities in the area need to consider more east-to-west roadways. He also said he had trouble finding enough qualified drivers for his trucks.

Other issues, like the need for expanded public transportation as well as the cost of air travel into and out of the regional airport, must be explored, Malone said.

According to the council, travelers to and from the Northwest Arkansas Regional Airport in Highfill paid $83 million above the national average in 2012.

The council supports the efforts of the airport to snag a low-cost daily air service, Malone said.

The report showed low-cost service to Chicago, Dallas/Fort Worth, New York and Atlanta as the highest priorities for local companies.

The 367 smaller employers surveyed indicted they were having difficulty finding qualified workers in the administration, marketing and technical categories. They also cited concerns about how they would be affected by the Affordable Care Act and the Dodd-Frank financial overhaul act.

Mike Harvey, the chief operations officer of the Northwest Arkansas Council, said small-business owners are particularly on edge over issues in Washington.

“They are very worried,” Harvey said.

While the Affordable Care Act may have some small businesses concerned, some said it helped attract jobs to the region.

Steve Cox, vice president of economic development with the Rogers Chamber of Commerce, said the quality of area workers impressed British company Serco, which won a federal contract to process data as part of the health overhaul.

He said that when the company moved to Rogers in 2013, it scrapped plans to hire only 800 workers once it saw the quality of the applicants and instead added a second shift, resulting in a total of 1,600 workers.

Business, Pages 23 on 03/11/2014

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