MARCH 2013

A NEW DIRECTIONLinn’s Auto

Refocuses with LAunch of thRee new compAnies,

STORY PAGE 4

2 | FAULKNER COUNTY BUSINESS JOURNAL

The Annual Meeting awards recognized individ-uals and businesses that have made a difference in Conway and Faulkner

County over the past year. Community members

submitted nominations, and a panel of chamber executives from across the nation selected the

following award recipients. More information about

the award winners can be found in the April issue of

501 Life magazine.

Approximately 900 business and com-munity leaders at-

tended the Conway Area Chamber of

Commerce’s 2013 Annual Meeting at the University

of Central Arkan-sas’ HPER Center. Annual Meeting attendees were

the first to hear the Toad Suck Daze

entertainment announcement

and view the 2012 annual report.

Scott Howe, presi-dent and CEO of Acxiom Corporation, was the featured guest at the Conway Area Chamber of Commerce’s Annual Meeting. In a con-versation with THV 11’s Melissa Dunbar-Gates, Howe said Acxiom’s Conway location was poised for growth. “There would not be an Acxiom without the people of Conway,” he said.

CONWAY AREA CHAMBER OF COMMERCE ANNUAL MEETING 2013

Business of the Year – Nonprofit Category: Boys and Girls Club of Faulkner County

Business of the Year – Retailer Category: Arkansas Golf Center, owned and operated by Bran-non and Sarah Watson

Business of the Year – Small Business Category: Conway Copies, owned and operated by Greg and Karen Lamb

Young Business Leader of the Year: Travis Walls, controller, Arkansas Roofing Kompany

Business Executive of the Year: Terry Kimbrow, president, Cen-tral Baptist College

Distinguished Service Award: Hal Crafton, co-founder, Rush-Hal Properties

Good Neighbor Award: Billie Carter, engineer/vice president, Conway Firefighters Local 4016

Business of the Year – Hospital-ity Category: Stoby’s Restaurant and pattiCakes Bakery, owned and operated by Patti and David Stobaugh

Business of the Year – Large Employer Category: Hewlett-Packard

FAULKNER COUNTY BUSINESS JOURNAL | 3

TOAd SUCk dAzE CORpORATE T-SHIRT ORdER dEAdLINE AppROACHING

The Conway Area Cham-ber of Commerce is cur-rently accepting corporate orders for 2013 Toad

Suck Daze t-shirts. Corporate orders must be for a minimum of ten shirts.

The shirts range in price from $13 to $18 depending on size. The shirts can be customized to include a business logo on the sleeve for no additional cost. “Toad Suck Daze t-shirts are great for casual Fridays,” said Conway Area Chamber Director of Events Mary Mar-garet Satterfield. “It’s a fun way for local businesses to show their support for the festival and support our mission.”

Proceeds from the Toad Suck Daze festival and all t-shirt sales benefit col-lege scholarships and education initia-tives. The deadline for corporate orders is Friday, March 22nd. To pre-order t-shirts for your business or organiza-tion email Mary Margaret Satterfield at mary@ConwayArkansas.org or call 501.932.5412.

CONWAY REGIONAL WOMEN’S COUNCIL TO HOST STATE OF HEALTH LUNCHEON

As part of the Conway Regional Women’s Council Program Series, the Arkansas Depart-ment of Health is presenting

the annual State of Health Luncheon on Thursday, March 28, from 11:30 a.m. until 1 p.m.

The event will take place in the Student Center Ballroom at the University of Central Arkansas.

The State of Health Luncheon will discuss the overall health of the community and the im-pact of health care reform. Featured speakers are Jim Lambert, president and CEO of Con-way Regional Health System, and Dr. Joseph Bates, deputy state health officer, chief science officer and science advisory committee chair at the Arkansas Department of Health.

Reserved tables of eight are $200. Space is limited, so reservations must be made by Monday, March 25. For more information, call 501-513-5191 or email foundation@conwayre-gional.org.

kIMBERLY-CLARk RANkS AMONG ‘WORLd’S MOST ETHICAL COMpANIES’ FOR SECONd CONSECUTIvE YEAR

The Ethisphere Institute – a research-based, international

think-tank – has ranked Kimberly-Clark Corpora-tion (NYSE: KMB) among the “World’s Most Ethical Companies” for the second year in a row.

To compile its rankings, Ethisphere reviewed hundreds of candidates and a record number of applications using its proprietary process. Those

companies that excel beyond their industry peers are named to the exclusive list of “World’s Most Ethical Companies.” This year’s list, the largest since the award’s inception in 2007, includes organizations from 36 industries and more than 100 countries.

Kimberly-Clark repeats on the list for the first time in 2013 after its debut appearance in 2012.

According to the press release, Kimberly-Clark has received multiple honors and awards for its governance, citizenship and sustainability

practices over the past year. In addition to the Ethisphere ranking, the Great Place to Work Institute ranked Kimberly-Clark No. 4 among the “World’s Best Multinational Workplaces” in 2012. Kimberly-Clark was named the No. 1 consumer goods company in Newsweek’s “2012 Green Rankings” and No. 56 overall among the 500 biggest U.S. companies. The company was No. 18 among Corporate Responsibility Maga-zine’s “100 Best Corporate Citizens 2012,” which was its fourth straight year in the top 20.

Kimberly-Clark has more than 140 locations in 61 coun-tries around the world.

Since 1968, the Conway location has manufactured a variety of personal hygiene products.

With more than 600 employ-ees at its Conway location, Kimberly-Clark is one of the city’s largest employers.

About Kimberly-ClArKKimberly-Clark and its

well-known global brands are an indispensable part of life

for people in more than 175 countries.

Every day, nearly a quarter of the world’s population trust K-C’s brands and the solutions they provide to enhance their health, hygiene and well-being.

With brands such as Kleen-ex, Scott, HUGGIES, Pull-Ups, Kotex and Depend, Kimberly-Clark holds No. 1 or No. 2 share positions in more than 80 countries.

To keep up with the latest K-C news and to learn more about the Company’s 141-year history of innovation, visit www.kimberly-clark.com.

4 | FAULKNER COUNTY BUSINESS JOURNAL

Linn’s Auto has been serving the automotive needs of central

Arkansas for more than 47 years. From salvage vehicles to parts and rebuilders, Linn’s Auto in Conway has always been in the automobile industry.

Last year, however, unexpected insurance company changes caused owners Danny Linn, Linda Linn, Susan Linn-McCoy and Christy Priester to consider closing the business’s doors.

After serious consideration, the owners, along with the support of long-time employees Roger Riggs and Pete Deden, decided to take Linn’s in a new direction instead of closing the business.

“We just couldn’t let go!” said Susan Linn-McCoy. “The community has been so good to us for so many years that we knew we had the opportunity to offer products and services the community needs.”

While Linn’s isn’t working

with insurance companies any longer, they are still in the auto business with the three new businesses they opened over the last 10 months: Oak Street Auto Sales, U-Pull-It of Conway, and Just Scrap It! Metal Recycling.

Oak Street Auto Sales opened in May of 2012 and is a pre-owned auto dealership offering late model, high-quality cars, trucks and SUVs.

They offer guaranteed financing regardless of credit history.

Good credit, bad credit or no credit at all, they can find a way to help people get into the car they need. Located just one mile east of I-40 on Oak Street in Conway, this lot has a great selection to choose from. Unlike some other pre-owned car dealers, Oak Street Auto Sales has its very own service department to make sure automobiles purchased from Oak Street Auto Sales continue to run well throughout the term of purchase and beyond.

U-Pull-It of Conway is located at the same location as Linn’s Auto has been for 47 years – 850 Simon Road in Conway. U-Pull-It opened in September 2012, and is

designed for the budget-conscious, do-it-yourself crowd. They have more than five acres of cars, trucks, minivans and SUVs, so customers are almost guaranteed to find the parts they need. Pulling their own parts can save up to 70 percent off retail. U-Pull-It puts new inventory out weekly so there is always something new to see.

Just Scrap It! Metal Recycling is located behind U-Pull-It of Conway. As a metal recycling facility, they

pay cash for all kinds of metal from tin and aluminum to copper, old car bodies and brass. “Everyone has some scrap metal lying around their shop or garage. Instead of throwing it away, they bring it to us and we buy it from them. Then the metal is recycled so it is better for the environment and the economy,” said Stephen Christie, Non-Ferrous Specialist with Just Scrap it!

Since opening in November 2012, Just Scrap It! has received a very warm reception

from the central Arkansas community.

“It’s just amazing how excited people in the community have been about this business opening,” said employee Kris Hesson. “Every day, people tell us how happy they are that we’re here.”

With these three new businesses, and the continued commitment of the Linn family, Linn’s Auto is positioned to continue serving the diverse community in central Arkansas for another 47 years.

IN A NEW DIRECTION

COvER STORY

Linn’s Auto Refocuses with LAunch of thRee new compAnies

6 | FAULKNER COUNTY BUSINESS JOURNAL

PRICE ADDRESS CITY BED/BA/HB SUBDIVISION SQ. FT. $/SQ. FT. BUILT

$998,000 14 Hilton Conway 5/7/1 Hilton Estates 6,300 $158.41 2010

$570,000 3265 Majestic Circle Conway 5/4/1 Cresthaven 6,100 $93.44 2002

$386,500 5220 Bay Town Conway 4/2/1 Fairways at Centennial 3,166 $122.08 2006

$350,000 2820 Glohaven Conway 5/3/1 Cresthaven 3,500 $100.00 2007

$314,000 4530 Bay Hill Drive Conway 4/3/1 Centennial Valley 3,600 $87.22 2001

TOP 5 RESIDENTIAL HOME SALES

Tupelo Bayou Site One Reservoir

Carter Lake

Gentry L

an

Laurel Park

Gatlin Park

CollegeHendrix

Central ArkansasUniversity Of

Baptist CollegeCentral

ClubValley GolfCentennial

Cadron Valley Country Club

ClubCountryConway

Tyle

r St

Oak St

Skyline Dr

S Sa

lem

Rd

Caldwell St

Oak

Don

aghe

y Av

eD

onag

hey

AveMeadowlake Rd

Highway 60 W

Sale

m R

d

Harkrider St

Prince St

Old Morrilton Hwy

Dave Ward Dr

60

60

286

60

60

60

286

286

65

64 65

65

64

64

Gleason

Conway

4530 Bay Hill Drive

2820 Glohaven Drive

3265 Majestic Circle

14 Hilton Drive

5220 Bay Town Drive

The Neighborhood Market by Walmart is a 22,000 square foot store that will offer grocery, pharmacy and other shop-ping products. The site will be linked to the Tucker Creek trail and features extensive landscaping. This is the second Neighborhood Market in central Arkansas. Where is that? On the northwest corner of the Prince and Far-ris roundabout.When is it gonna open? Estimated to open at the end of July.

Neighborhood Market by Walmart

What’s that gonna be?

NOW ACCEpTING AppLICATIONS FOR ACAdEMIC SIGNING dAY

Each year, Conway Aca-demic Signing Day recognizes a select few of the high-achieving graduating seniors in the city who have received significant academic awards and substantial scholarships. The Conway Area Chamber of Commerce is now accepting applications from the class of 2013.

The purpose of the event is to recognize a select few of Conway’s high-achieving graduating seniors who have received significant aca-demic awards and substantial scholarships. Mary Margaret Satterfield, director of events at the Conway Area Chamber, said Academic Signing Day gives high academic achiev-ers and their support systems the recognition they deserve.

“Academic Signing Day is based loosely on letter of intent ceremonies for athletic scholarship recipients,” Sat-terfield said. “It gives us an opportunity to gain insight into the collegiate destinations and academic achievements of Conway graduates.”

Graduating seniors from Conway High School-West, St. Joseph High School, Con-

way Christian High School, and those home-schooled in the Conway School District are eligible to apply. Other qualifications include having a cumulative GPA of 3.8 or higher on a 4.0 scale and be-ing recognized in one of these five areas:

• the recipient of a top scholarship from the four-year accredited college or univer-sity of their choice;

• a National Merit Scholar or National Merit Finalist designation;

• acceptance into a U.S. Service Academy;

• the winner of a state or national scholarship program; and

• the recipient of a Gover-nor’s Distinguished Scholar-ship or Governor’s Scholar-ship.

The application is available online at www.conwayar-kansas.org/signing, and the deadline to apply is Friday, April 12, at 5 p.m.

For more information, students may contact their high school counselor or Mary Margaret Satterfield at 501-932-5412 or Mary@Conwa-yArkansas.org.

information provided by pulseofconway.com

Conway economy at a Glance

unemployment rateDecember 2012

US ......................... 7.8%Arkansas ................ 7.1%Faulkner County .... 6.6%Conway .................. 6.3%*Faulkner County & Conway not Seasonally AdjustedSales tax Collections

Conway*December

2012............. $2,164,8942011............. $2,321,068Percent Change -6.73%

Annual*2012........... $22,944,1632011........... $22,366,4642010........... $21,868,102Percent Change (2013-2012) 2.6%*Tax Rate 1.75%

Faulkner County*December

2012................ $765,5412011................ $834,052Percent Change -8.2%

Annual*2012............. $8,465,6862011............. $8,279,3012010............. $7,834,226Percent Change (2013-2012) 2.3%*Tax Rate 0.5%

restaurant Sales*January

2013........... $12,623,5872012........... $12,303,653Percent Change (2013-2012) 2.6%

Annual Sales2012......... $153,412,9882011......... $144,646,0552010......... $134,082,891Percent Change (2012-11) 6.1%*Not including mixed drink sales

Hotel SalesJanuary

2013............. $1,032,4782012............. $1,357,3192011............. $1,125,729Percent Change (2012-2012) -23.9%

Annual Sales2012........... $18,683,6762011........... $18,662,1362010 ......... $17,590,242Percent Change (2012-11) .12%

Conway building Permits

Single Family HomesFebruary

2013.............. 13 Permits2012.............. 13 Permits 2011.............. 11 Permits2010 ............ 19 PermitsPercent Change (2013-12) 0%

Average Construction Cost*

February2013................ $264,5152012................ $215,4682011............... $188,718Percent Change (2013-12) 22.8%

Average Square Footage*February

2013...................... 3,2452012...................... 2,9142011...................... 2,509Percent Change (2013-12) 11.4%Average Construction Cost Per Square Ft.*

February2013.................... $81.512012.................... $73.942011.................... $75.22Percent Change (2013-12) 10.2%

Annual2012............ 186 Permits 2011............ 153 Permits2010 .......... 223 PermitsPercent Change (2012-11) 21.6%Average Construction

Cost* Annual

2012................ $207,5372011............... $204,3872010................ $182,340Percent Change (2012 -11) 1.5%.*Not including land or lot improvements

Average Square Footage* Annual

2012...................... 2,9102011...................... 2,8142010...................... 2,722Percent Change (2012-11) 3.4%Average Construction Cost Per Square Ft.*

Annual2012.................... $71.322011.................... $72.632010.................... $66.99Percent Change (2013-12) -1.8%* Total under roof

lottery SalesFaulkner County

February2013............. $1,486,9832012............. $1,776,5072011............. $1,365,8582010............. $1,771,377Percent Change (2013-12) -16.3%

Annual2012........... $18,393,2422011........... $16,788,6782010........... $17,540,450Percent Change (2012-

11) 9.6%total StateFebruary

2012........... $40,574,8422011........... $48,236,5522010........... $44,982,226Percent Change (2012-11) -15.9%

Annual2012 ........ $452,245,2172011 ........ $474,879,7012010......... $459,916,256Percent Change (2021-2011) -4.8%

Natural GasSeverance tax

DistributionFebruary

Faulkner County2013.................. $14,3952012.................... 13,599Percent Change 5.9%

Conway2013.................. $17,7892012.................. $16,844Percent Change 5.6%

AnnualFaulkner County

2012................ $131,4182011................ $204,052Percent Change -35.6%

Conway2012................ $162,4572011................ $254,822Percent Change -36.2%

Wellhead Price per mCF*

December2012 ..................... $3.352011 ..................... $3.142010 ..................... $4.682009...................... $4.662008...................... $5.942007...................... $6.87

yearly Average2012......................$2.662011......................$3.95 2010......................$4.48 2009......................$3.672008......................$7.972007......................$6.252006......................$6.392005......................$7.332004......................$5.462003......................$4.882002......................$2.95*MCF=1000 cubic feet

Number of Active Wells*

Faulkner County ...... 350Total in Field ......... 4,481*As of December 12, 2012

estimated life timeValue of Production*

Total Field ......................$11,382,327,198*As of September 30, 2012

EdUCATION ANd THE CONWAY/FAULkNER COUNTY WORkFORCE

by roger lewis

Conway and Faulkner County have a highly educated work force. Of those in the U.S. aged 24 to 65, 27 % hold at least a bachelors degree. For Conway the percentage is 35%. The Faulkner County percentage is 27%, matching the national percentage. For Arkansas the number is 19%. One of the facts of economic life is that education and employment are closely related. (Among the states Arkansas is next to the bottom; only West Virginia has a lower percentage of college graduates -17%.)

In the past ten years, Faulkner County gained 7000 jobs, a 22% increase. More than half of these jobs, 3800, were in the education, health, and government sectors. The largest percentage increase was in Nat-ural Resources (mainly natural gas exploration). The number of jobs there went from 56 to 2507. Construction jobs, surprisingly, had a slight increase (2%), from 2452 to 2507. Although home construction plummeted, commercial construction was very strong. The manufacturing sector on the other hand lost 2800 jobs. Manufacturing has become much more efficient, which means increasing produc-tion with fewer workers. These workers must be more skilled than before so an educated workforce is essential for highly efficient manufacturing. The remainder of the employment increase in Faulkner County has been mostly in the service and trade industry.

As for unemployment, the rate in Conway and Faulkner County has been lower than the state and the nation for more than a decade. The 2012 unemploy-ment rate for Faulkner County (6.6%) and Conway (6.4%) are significantly below the national average of 8.1% and also below

the Arkansas average of 7.3%. In Arkansas the median unem-ployment percentage for 2012 was 7.9%. Northwest Arkan-sas’s Madison County had the lowest rate (4.4%) and Clay County in Northeast Arkansas was highest (11.8%). Faulkner County is 17 ranks from the lowest among the 75 counties. Higher unemployment rates tend to be in the southeast part of the state, which is predomi-nately dependent on agricul-ture. Lower rates are in are more populated and diversified areas of Central and Northwest Arkansas. As for size, Faulkner County is the 5th most populous county in the state.

Faulkner County’s low un-employment rate is partly due to its stable employers. Of the approximately 40,000 work-ers, nearly a third (31.5%) are in education, health services and government. These sec-tors include public and private colleges and schools, hospital and health facilities, and state agencies such as AETN and the Human Development Center. These employers tend to be very stable and thus buffer large swings in employment that might occur in manufacturing, construction, and gas explora-tion industries.

For Arkansas’ economy to grow we need a better-educated workforce. That means more investment in higher education. Unfortunately, the opposite has been happening. When you consider enrollment growth, inflation, and increased operat-ing costs, the state’s funding of higher education has not kept pace. In the face of insufficient appropriations from the state, tuition at the public four-year institutions has increased dramatically over the past decade. A college education is much less affordable today than earlier. For the fiscal year 2000, the state’s appropriations

covered 57.6% of the education and general budget of Arkansas four-year public universities; tuition provided 33.7%. By the fiscal year 2010 this relationship had flipped. Tuition was 48.9% of the budget and state appro-priations were 44.3%.

This change is even more dramatic at our University of Central Arkansas. Tuition at UCA is 53.8% of the budget and the state appropriation is only 43.9%. In actual dollars, UCA received a smaller state appro-priation per student in 2012 than it did in 2000. Decades ago the state provided in the neighbor-hood of 75 to 80 percent of a university’s education and gen-eral budget; tuition provided less than 20%. A college education today has become much more expensive at Arkansas public institutions of higher education because of the lack of state support.

It was possible, not too many years ago, for a student to work summers and part-time during school to pay tuition. That time is long past. Now, it takes all of that from the student plus family resources and student loans for the majority of the students. An increase in scholarships and grants has helped, particularly the state Challenge Scholarship, but it does not cover everyone nor all the costs for the recipi-ents.

The mood of the current legislature is to reduce taxes. The fact is that many of the State’s expenditures are set by court orders, federal regula-tions, and mandates, which leaves little discretion for cutting expenditures. The agency that is affected most by a reduction in revenue is higher education and this is an area where we should be investing heavily and not stunting our future.

I thank my friend Chris Spatz for editing and helping me with this article.

FAULKNER COUNTY BUSINESS JOURNAL | 7