For Economic Developers, Arkansas Represents Tantalizing Prize

Economic development, whether it comes in the form of a local ribbon cutting or the expansion of a major manufacturing plant, represents Job 1 for those tasked with growing, supporting and expanding Arkansas businesses.

Assisting local communities in supporting innovation and job creation and attracting private investment is the mission of economic developers in Arkansas from the Ozarks to the Delta, and the leader of the organization that speaks for the state’s local chambers of commerce said Arkansas finds itself in an “unusual sweet spot” when it comes to economic development.

“There is a very high level of demand with lots of companies relocating [to Arkansas] and new sectors emerging,” said Randy Zook, president and CEO of the Arkansas State Chamber of Commerce and Associated Industries of Arkansas. “There is much activity, and Arkansas is in a position to be especially attractive.”

Randy Zook

Zook said the state is in a good spot financially and credited the Sarah Huckabee Sanders administration and state legislature with taking consistent steps to lower the corporate tax burden. Local economic developers are “engaged at the community level,” are well prepared and trained, and “know what they’re doing,” he added.

Across the state, economic development is evident in Mississippi County, which has become the nation’s top-producing steel county. Members of the investment group behind U.S. Steel’s multi-billion dollar investment in the area beginning in the 2010s formed a new company, Hybar, which last year announced it had raised $700 million to start up a technologically advanced, environmentally sustainable scrap metal recycling steel rebar mill in Osceola.

Dave Stickler, Hybar’s CEO and the driver behind the $2 billion investment in Big River Steel in 2016 that kickstarted the county’s march to steel hub status, told those in attendance at the Hybar announcement in August 2023 that Arkansas had set itself up to succeed on the economic development front.

Dave Stickler

“After launching and operating the highly successful Big River Steel, our team is excited about locating another facility in the same area,” he said. “Arkansas is a business-oriented, can-do state, and nowhere is that more evident than in Osceola.”

In south Arkansas, the lithium play promises to deliver boomtown status once again to El Dorado, which saw oil gushers in the early 20th century, and the aerospace and defense industry continues to expand in Camden as defense contractors such as Lockheed Martin, Aerojet, General Dynamics and Raytheon, among others, are further investing in their existing operations at Highland Industrial Park.

Lockheed Martin’s missile and fire-control operations are based at the park. Further southwest, the REDI Arkansas Manufacturing Center, a 1,300-acre megasite, opened in Texarkana in 2022.

Business has been good in central Arkansas, as well. The region is now home to distribution centers for Amazon, Dollar General and Tractor Supply Co., as well as an Amazon fulfillment center and the recently announced Amazon last-mile facility in Hot Springs. Major expansion and new growth have been the norm in recent years at the Port of Little Rock, where international companies such as Trex, W&W | AFCO Steel, and Synthesia Technology announced new projects valued in the hundreds of millions of dollars.

In northeast Arkansas, leaders in Mississippi County began working to change the region’s fortunes decades ago. Agriculture was the area’s bread and butter since Europeans arrived and planted roots beginning in the 19th century. As farm technology advanced and required fewer workers, however, the region’s economic prospects began drying up in the 1980s.

Given its access to the Mississippi River, its proximity to Interstate 40, one of the nation’s primary east-west corridors, and strong rail connections, northeast Arkansas was always positioned for something like the steel industry to thrive.

“Over the past 40 years, continued investment from the steel industry has been transformative for Mississippi County,” said Mallory Darby, vice president for Cotton to Steel: Mississippi County Economic Development. “This long-term commitment has brought substantial economic growth, job creation and infrastructure development to the region. The latest announcement of Hybar’s investment signifies ongoing confidence in the area’s potential. This new development is expected to further enhance the economic landscape, providing more opportunities for local businesses and residents. The cumulative impact of these investments underscores the region’s strategic importance and its bright future.”

Mallory Darby

While agriculture remains a major factor in the local economy, Darby noted the potential for the region to capitalize on the state’s growing aerospace and defense sector through the Arkansas Aeroplex in Blytheville, located on the site of the former Eaker Air Force Base.

“The region’s strategic location and robust infrastructure have attracted new businesses and encouraged existing ones to expand,” she said. “The increasing diversity of industries contributes to a more resilient and dynamic local economy, providing a variety of job opportunities and fostering sustainable community development.

The success in Mississippi County would not have been possible without the tireless work of local economic developers. Candice Lawrence, who serves the dual roles of vice president for programs and partnerships at the state chamber and executive director of the nonprofit Arkansas Economic Developers & Chamber Executives, said local chambers play a crucial role in driving economic development in their communities.

Candice Lawrence

“They act as the primary advocates for the business community, working to create a favorable business environment through policy advocacy and support services,” she said. “Chambers provide essential resources such as business networking opportunities, professional development and marketing support, which are vital for the success of local businesses. Additionally, they foster a sense of community by organizing events and initiatives that stimulate economic activity and bring people together.”

AEDCE programs and events are designed to help local officials do their jobs better. On Oct. 16, the group and its members will recognize National Chamber of Commerce Day, which highlights the impact local chambers have on their communities and the overall economic landscape of Arkansas, Lawrence said.

Meanwhile, northwest Arkansas — home to Fortune 500 companies Walmart, Tyson Foods and J.B. Hunt Transport — continues to thrive as new residents and businesses move in daily. Projections from the U.S. Census Bureau estimate the region will exceed 1 million in population by 2050, overtaking Little Rock as the state’s largest metro. In some ways, NWA has already overtaken central Arkansas. United Soccer League, the organization that runs minor-league soccer, similar to Major League Baseball’s farm system, will open a Triple A-equivalent men’s team in Rogers next year, and a women’s club at the same level will come in 2026. Like their baseball counterparts, players on this level are one step away from Major League Soccer. Double-A baseball has long been a staple of Arkansas sports. There are teams in central and northwest Arkansas, and the popular Little Rock Rangers compete in USL2, soccer’s Double A equivalent.

The Arkansas Travelers, launched as the Little Rock Travelers in 1887, played several seasons in the 1960s in the Triple-A International and Pacific Coast leagues, but USL’s debut in Arkansas will represent the state’s highest-level pro sports team. Local leaders have long contended that the region would have to produce the amenities needed to satiate the thousands of annual transplants to NWA from other, more urban-based parts of the country, and one nonprofit is working to help deliver them.

The Northwest Arkansas Council is a collection of regional leaders committed to promoting economic development, including the growth of infrastructure and cultural attractions. Nelson Peacock, president and CEO of the council, said sustaining NWA’s hyper-growth requires thoughtful planning and collaboration across multiple sectors.

Nelson Peacock

“The Northwest Arkansas Council approaches economic development from several angles to ensure continued progress,” he said. “Whether that’s retaining and growing the existing companies, attracting new companies, or building up the region’s entrepreneurial ecosystem, the council works to ensure there is adequate physical and social infrastructure for companies to thrive.”

Council members include a host of Waltons, Tysons and Hunts plus a wide array of business leaders from prominent private businesses, public companies, health care systems, banks, investment firms and more. NWA growth was long fueled by Walmart’s requirement that its vendors open a physical location in the area, and the influx from that policy continues to be a major component to the region’s growth. The area’s cultural and outdoor recreation opportunities alone are drawing folks in and revealing what Arkansans used to call the state’s hidden treasure.

Now home to one of the nation’s best art museums, the Crystal Bridges Museum of American Art in Bentonville, and one of the country’s top mountain biking hubs, the region is no longer hidden. Peacock said one of the council’s priorities is working to ensure the region produces an adequate skilled workforce from which newly arrived or expanding companies can source talent.

“We do this by strengthening local workforce development programs and through efforts to attract and recruit talent from across the country,” he said, referencing billboard advertising the council has purchased in western states aimed at luring new workers to NWA.

The more the region grows, the harder it will become to maintain the quality of life for which it has become known. Peacock said the council is committed to enhancing opportunities while maintaining what he called the region’s exceptional quality of life.

“We must support the development of new commercial and industrial properties as needed,” he said. “Finally, entrepreneurs building companies in northwest Arkansas need access to venture capital to build and scale their companies. Efforts are underway to create new pathways for northwest Arkansas startups to access early-stage capital.”

Moving forward, Peacock said leaders must harness the region’s inherent strengths in retail, supply chain management and food innovation.

“Alongside cutting-edge research from the University of Arkansas, there is a unique opportunity to create an environment where new, knowledge-based firms can thrive and scale,” he said. “Through access to mentorship, talent and investment, these emerging companies will be instrumental in accelerating the economic growth flywheel established by our major corporations over the past generation.”

Economic development wins come in packages big (think Hybar and Amazon) and small. The Delta Regional Authority was created in 1999 by legislation introduced by U.S. Sen. Blanche Lincoln and U.S. Rep. Marion Berry of the Arkansas congressional delegation to help rural counties deliver important small wins. DRA represents a state-federal partnership that administers funds for transportation and infrastructure needs to communities in the lower Mississippi River Valley region. The entire upper and lower Arkansas Delta regions are included in its 252-county footprint that touches parts of eight states.

Arlicia Jordan, communications manager at DRA, said the agency has distributed almost $2 million in economic development-related funds in Arkansas this year. Through the Arkansas Rural Health Partnership, $450,000 was awarded for the Arkansas Delta Advance: Emergency Medical Services Training Initiative.

Arlicia Jordan

“This will bring together nonprofit, education, health care, economic/workforce development and employers within the emergency medical services sector to meet critical workforce shortages,” she said. “Arkansas State University-Mountain Home was awarded $450,000 to establish an extrusion and injection molding program to promote industry-driven training and workforce development, and Ozarka College [in Melbourne] was awarded more than $437,000 to develop a skilled trades program and expand capacity in its welding program to advance the trades workforce in rural communities in north-central Arkansas.”

She added that North Little Rock’s Shorter College received $440,000 for an entrepreneurial technology center that will offer training for high-demand occupations to both strengthen the local workforce and prepare individuals to earn certifications and degrees to fill needed jobs.

Other recent DRA awards include $509,000 for a vocational training center in Cabot, $507,000 for workforce training expansion and welding space renovation at Black River Technical College in Pocahontas, $464,000 for new drug security and ultrasound replacement equipment at McGehee Hospital, $394,000 for a skills training program in Paragould, $256,000 for expansion of the oncology center at White River Medical Center in Batesville, and $221,000 for a nursing and allied-health professions simulation workforce center at ASU-Newport.

Though Arkansas’ big picture looks promising, Zook said the state still has room for improvement. He cited the need for Arkansas employers to offer a more fine-tuned, relevant package of incentives such as built-in childcare; an overall short supply of truly shovel-ready sites for industrial use; and the need to grow the state’s available workforce and equip it with the right skills and training.

“Companies looking to start or relocate here ask, ‘How fast can I get up and running?’” he said. Getting up and running means shovel-ready sites and appropriately trained workers but also extends to include a community’s quality of life. Zook said community leaders looking to attract new businesses or lure existing ones should ask themselves if they would want to live in their city or town if they were a prospective new business owner.

“If the answer is no, then they need to ask themselves how they can make it one where people want to live,” he said. “It’s not rocket science. Communities have to prepare to take responsibility to make themselves attractive to people and capital.”

Zook said the economic development trick is to keep existing businesses thriving while continuing to attract new business. He added that the state’s focus on improving K-12 education bodes well for future economic development.

“It’s a terrific time to be in the economic development world,” Zook said. “There is so much demand and so many opportunities. We’ve got to continue to make hay while the sun is shining.”