Help Wanted

Northwest Arkansas Businesses Adding Workers

Rodney Redman, Executive Vice President and Chief Operating Officer of Redman & Associates, holds a Zumu pogo stick while standing amongst pallets of the toys waiting to be shipped at the new Redman & Associates facility in Rogers on Wednesday December 18, 2013.
Rodney Redman, Executive Vice President and Chief Operating Officer of Redman & Associates, holds a Zumu pogo stick while standing amongst pallets of the toys waiting to be shipped at the new Redman & Associates facility in Rogers on Wednesday December 18, 2013.

Northwest Arkansas businesses of all sizes added workers this year, fueling economic growth leaders hope carries into 2014 and beyond.

“We are a job growth story here plain and simple,” said Mike Harvey, chief operating officer of the Northwest Arkansas Council. “We need to stay vigilant in keeping the work force growing.”

He said the strategy moving forward will focus on work force development, attraction and retention. Much of that work will involve research and marketing programs that will identify needs and spread the word through marketing projects.

October employment numbers from the U.S. Bureau of Labor Statistics show the metropolitan statistical area’s work force grew 4.5 percent, to 224,200 this year from 214,600 in October 2012. The work force grew 11.2 percent since October 2010.

Harvey said the area is on track to gain about 10,000 jobs this year. He expects that growth to extend into next year.

The area’s unemployment rate remains well below the national level. The federal Bureau of Labor Statistics reported the area’s October unemployment rate at 5.1 percent; the national rate was 7.3 percent. The area’s metropolitan statistical area includes Washington, Benton and Madison counties in Arkansas and McDonald County, Mo.

The low unemployment rate isn’t keeping people from applying for jobs.

Mel Redman, president and chief executive officer of Redman & Associates, said his company received 200 applications in the first week after announcing it would hire 74 people over the next three years. He said the company has received more than 1,000 applications for 20 openings since the Oct. 7 announcement.

Redman & Associates manufacturers battery-powered ride-on toys sold at Walmart and is moving production of 6-volt toys from China to Rogers.

“There is a bigger job need in Northwest Arkansas than the numbers reflect,” he said. “People are excited about new manufacturing positions.”

The company moved its sales and executive offices from Bentonville into a 275,000-square-foot factory at 1300 N. Dixieland Road in Rogers a couple of weeks ago. Redman said the company will start hiring manufacturing positions in January and production will start in March. The average wage at the plant will be $18 an hour.

“I’m amazed at the number of applicants we’ve had, and we’ve reviewed every application,” he said.

Redman & Associates’ decision to move to Rogers is part of Walmart’s “Made in the USA” campaign to bring manufacturing jobs back to the U.S. The job announcement included Gov. Mike Beebe and Bill Simon, president and chief executive officer for Walmart U.S.

Many new jobs across the two-county area have ties to one of the area’s and the nation’s largest employer — Walmart.

Cameron Smith, president and founder of executive recruitment firm Cameron Smith & Associates in Rogers, recently hired five recruiters and is expanding services.

“My prediction for all of Arkansas is lukewarm, but for Walmart suppliers it’s very encouraging,” he said.

The biggest job development in 2013 came on the heels of implementation of the federal Patient Protection and Affordable Care Act. The federal government awarded a contract to process and verify health insurance applications to British company Serco, which in turn chose Rogers for one of four processing sites. Serco has added 1,400 jobs to the area since October.

Most new jobs in Northwest Arkansas arrive without fanfare.

“It’s two becoming three, and five becoming seven,” said Kathy Deck, director of the Center for Business and Economic Research at the University of Arkansas. “That is where job growth happens and accounts for hundreds, if not thousands, of jobs.”

Harvey said most growth this year came 10 or fewer jobs at a time.

“It’s what I like to call nickel and dime growth,” he said, adding that most new jobs are created by existing employers.

Regional Approach

Northwest Arkansas’ focus is shifting to a more regional approach.

“It’s Northwest Arkansas competing against areas like Kansas City, Dallas and Chicago and not Rogers competing against Fayetteville,” said Steve Cox, vice president of economic development for the Rogers-Lowell Area Chamber of Commerce. “The Northwest Arkansas Council has helped us be more regional.”

Bill Rogers, vice president of communications and special projects at the Springdale Chamber of Commerce, said the council’s marketing efforts, such as the digital ambassador program it launched in November, are helping the area grow. The program asks residents to sign up and spread good news about Northwest Arkansas through social media sites such as Facebook and Twitter.

“The council makes our jobs better and makes the whole region better,” he said.

Tom Ginn, Bentonville/Bella Vista Chamber of Commerce’s vice president of economic development, said the council’s business retention and expansion program has helped chambers get more involved with existing businesses and allows business leaders to share their opinions in a confidential manner.

“The regional effort needs to keep going forward,” he said. “We want to increase the size of the pie so everyone’s slices get bigger.”

Cox said when he was showing Serco officials potential office locations, he included a site in Bentonville.

“The regional plans are really starting to take effect. We talk to each other and help each other out,” he said. “If I have a site or know of a site in another city, I will recommend it.”

Harvey said a big piece of his job is to build relationships with the companies that help businesses decide where to locate. He said about 250 firms represent two-thirds of business relocation work each year. Many site selection companies are in New York, Chicago, Dallas and Atlanta.

“I want to meet as many of those people as possible,” he said. “We are not on all the maps yet because we haven’t officially hit a half million people yet.”

Even as area leaders work together, each also focuses on building a strong, diverse employment base in their respective communities.

Springdale

Springdale added 365 jobs in the past 12 months and 1,190 jobs in the past two years.

The Arkansas Department of Workforce Development reports Springdale had 33,915 jobs in October, up from 33,550 in October 2012 and 32,725 in October 2011.

“Our emphasis the past few years has been on job and sales tax revenue growth,” Rogers said.

Lance Eads, Springdale Chamber vice president of economic development, said job growth in the city has come from both existing and new businesses.

American Tubing, a manufacturer of copper assemblies and components, is adding an aluminum division. The $3.2 million expansion adds 20,000 square feet and 50 jobs. Employment is near 200 and a third shift with 25 additional workers may eventually be hired. Pay ranges from $12 to $22 an hour. The business has been in Springdale for 37 years.

South Coast Baking Co., a California-based frozen cookie dough company, announced plans to renovate a 104,000-square-foot building in Springdale that will eventually employ 150 people. The company makes more than 2 million cookies a day and has been a Sam’s Club supplier for 22 years. Production is set to begin in July with 80 employees, increasing to 120 in year two before hitting 150 in the third year. Jobs will average $25 per hour.

Rogers said the chamber is going to make technology and entrepreneurial jobs a priority in the next four years.

“We have available and affordable land for companies to build on, and our close proximity to the University of Arkansas make us a good fit for these types of business,” he said.

A downtown redevelopment plan and a new interchange opening next year will help the city, Rogers said.

“The groundwork was laid during the recession, and we’re ready to move forward,” he said.

Rogers

Rogers’ employment was 27,316 in October, up 291 from a year earlier and an increase of 966 from October 2011.

Only a handful of Serco’s 1,400 jobs are included in the October count. Alan Hill, Serco spokesman, said most of Serco’s positions are clerical and range in pay from $10.50 to $12 per hour.

About 500 people were initially hired and the first shift topped off at 700. Serco selected Rogers for a second shift, adding another 700 workers. Other processing centers are in London, Ky.; Lawton, Okla.; and Wentzville, Mo.

Hill named two main reasons the company picked Rogers for expansion: available space and work force.

“The experience we had during the initial job fair showed us we had a large number of qualified people who are eager to work and get trained,” he said. “It was just great to have a ready and able work force.”

He said more workers could be hired depending on the workload, with the possible addition of a third shift. The first shift runs from 6:30 a.m. to 3 p.m. and the second shift is 3:30 p.m. to midnight.

Redman & Associates’ move into the Rogers warehouse filled a vacancy by one of 2012’s big job announcements.

NextLife Asset Recovery Services announced in October 2012 it would add 350 jobs to the local work force. The Florida-based company closed its Rogers site about midyear and its plant in Frankfort, Ky., in October. The company is now out of business.

“There was nothing we could have done to help. Some businesses thrive and it’s great, but others just don’t make it,” Cox said.

Scott Hardin, spokesman for the Arkansas Economic Development Commission, said the state is in talks with NextLife’s former management about getting some equipment the company purchased with money from the Governor’s Quick Action Closing Fund.

NextLife was slated to get $500,000 for renovation and equipment and collected about $225,000, Hardin said.

Bentonville

Bentonville added 183 jobs between October 2012 and October 2013, going from 18,125 jobs to 18,308. Two-year job growth was 633.

Ginn said growth is coming in areas from retail and hospitality to Walmart and the supplier community.

When the 21c Museum hotel opened Feb. 11, it added 125 jobs. When Four Points by Sheraton opens March 31, it will add 15 hotel employees plus event staffing.

Walmart alone employs about 16,000 people in Northwest Arkansas from the home office and distribution centers to the retail stores. It also influences thousands of additional jobs in the area.

Smith said he has more than 120 Walmart supplier job openings right now in Bentonville; 40 percent are new jobs. He said there are 1,384 supplier offices with just more than 6,000 employees in Northwest Arkansas.

One company benefiting from the growth is 8th & Walton, a supplier development company. Jeff Clapper, who was recently promoted to chief executive officer, said the company has grown from four people in its founding year of 2006 to 25.

The company offers classes at its office near Walmart’s home base, at sites in other markets and online. Class topics include getting products on Walmart shelves and servicing accounts. It also produces a weekly talk show, Saturday Morning Meeting with 8th & Walton, shown on YouTube. The show will be aired on KNWA after the first of the year.

The business also provides Walmart news on its website and has an email of the Top 10 Walmart headlines it distributes.

“We started all those things as a way to create a designation for the Walmart community and grow our own business,” Clapper said. He said about 10,000 people have taken a class from the company.

“For the past seven years, suppliers have relied on us for one-day classroom training, but we want to take that to a larger scale,” he said. “We want to create long-term relationships.”

Clapper anticipates hiring additional staff in the next six months.

“We need polished, smart, aggressive people, and if they have Walmart experience it is just an extra bonus,” he said.

Fayetteville

The state’s largest job growth came in Fayetteville. There were 38,182 workers this October, up from 37,775 a year earlier and 36,825 in October 2011.

Chung Tan, director of economic development for the Fayetteville Chamber of Commerce, said four manufacturers in town are in the early stages of expansion projects, but like to do it under the radar.

One manufacturer that grew this year is Hanna’s Candle Co. Burt Hanna points to a renewed commitment from Walmart for much of the boost in sales and employment. Hanna started the business as Hanna’s Potpourri Specialties in 1987 and switched to making scented candles in 1992.

Sales peaked in the early 2000s at $60 million annually. Peak employment was more than 400 in the early 2000s and was back to 90 late last year. Hanna said it is now 225.

“We’ve been a Walmart vendor for 20 years, and we submitted some new samples that were favorable to them and got some new business from them,” Hanna said.

Randy Hargrove, a Walmart spokesman, said the agreement with Hanna’s is part of the retailer’s Arkansas’ Own initiative that highlights more than 1,700 products from 44 suppliers based in the state.

He said Walmart increased its sales from Hanna’s from $4 million in 2012 to $30 million this year. The goal is to hit $45 million in 2017.

Field Agent, a company paying smartphone users to provide location-based data and insights for retail customers, started in 2009 and had about 15 employees. This year, it grew to 34 full-time employees in Fayetteville and four more in locations around the country, said Rick West, chief executive officer. Field Agent also has 22 part-time and three temporary workers.

He expects to hire two more people in the field and five to 10 additional temporary workers next year.

“We really built the infrastructure this past year to handle our growth,” he said.

Enrollment growth at the University of Arkansas is helping the school remain Fayetteville’s largest employer. Enrollment is 25,341, up 5,492 since 2009.

The university’s faculty is 1,333, an increase of 130 from 2012 and up 275 since 2009, according to Steve Voorhies, university spokesman.

Continued Growth

Harvey said the area’s diverse job growth should continue into the new year. A strengthening housing market will push construction numbers higher. New restaurants and stores entering the area will add retail jobs. And a growing population base will increase the need for service providers from doctors to teachers.

Some manufacturers have already announced new jobs, and several others have plans on the drawing board.

Ginn said Walmart’s Made in the USA initiative has the potential to draw more manufacturing jobs to the area.

“Our location is so central to the U.S. that a company could save millions in transportation costs by moving here and hiring even more people,” he said. “We are very attractive from that standpoint.”

Cox said it is hard to predict when big job announcements will come.

“You could not have told me a year ago that one company was going to bring in 1,400 jobs,” he said, referring to Serco. “Northwest Arkansas has proven to be fertile ground for businesses.”

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