Indian pipe maker Man Industries, which announced a $100 million manufacturing plant in Little Rock in March 2008, has reversed its decision. Man was to build the manufacturing facility at the Little Rock Port Authority. It was set to employ up to 300 workers and use the location as its North American headquarters.
State and local officials blamed capital credit and financing problems related to the worldwide economic slowdown for the disappointing news. Man representatives also said that customer commitments had decreased since the plant announcement.
The Little Rock Port Authority will repurchase the land sold to Man Industries and begin marketing it anew.
Arkansas jobless rate jumps to 7 percent in May
Arkansas’ unemployment rate leaped five-tenths of a percentage point in May to 7.0 percent. One year ago, state unemployment stood at 5.5
percent. The U.S. jobless rate also rose five-tenths of a percentage point in May to 9.4 percent.
Acxiom CEO: Conway jobs, recession, & HP
Acxiom CEO John Meyer told a Conway audience that he sees job security for the roughly 2,300 local employees of the database marketer. Meyer, speaking at a Conway Chamber of Commerce luncheon, said that the recent signing of about $350 million in new business is for a segment of Acxiom’s business performed at its Conway base.
Despite that good news, Meyer says the recession has hit Acxiom’s financial customers hard and he does not see an end in sight. He noted a decline in ad-hoc projects and extra marketing campaigns, which account for roughly 25 percent of the database giant’s business.
The Acxiom CEO also discussed Hewlett-Packard, which is building a $28 million corporate complex in Conway in part with help from the state in terms of financial assistance. Meyer said that the HP project would increase the “critical mass” of technical workers in the region.
Lottery may do little for economy in short run
Economists and business observers agreed that the new state lottery may do little to jump-start the Arkansas economy in the short run. Tom Garrett, an economist with the Federal Reserve Bank in St. Louis, said the lottery will have little immediate impact, if any, on the overall Arkansas economy.
“Basically, the lottery is a new consumption alternative, so people will spend their money on the lottery instead of other things, such as movies, restaurants, and other entertainment,” he said.
Of the major contracts to be let for the lottery start-up, vendors for the equipment and communications aspects of the lottery said that they could hire 30-35 local workers, depending on the services that will be required. In large states, as many as 400-500 workers may be hired by lottery vendors. The lottery staff has 95 available positions to be filled.
Advertising for the lottery will be a new category of spending for media outlets. Based on national averages, Arkansas’ lottery could spend one million to four million dollars annually on advertising statewide.
Arvest mortgage volume tops $1 billion
Arvest Bank reported that its mortgage lending activity topped $1 billion in the first six months of this year. It is the seventh straight year that Arvest has met that milestone; however, it has never cleared the billion-dollar hurdle before the month of December in years past.
Mortgage re-financing accounted for about 75 percent of the activity, but new mortgage loan applications have risen in the past three months, according to the bank. Record low interest rates and affordable housing have boosted Arvest’s numbers.
Gambling wagers vault at Oaklawn
Thanks to Oaklawn’s new $40 million gambling hall, the Hot Springs racetrack posted record numbers in May for its electronic games of skill (EGS) wagers. For the month, Oaklawn recorded $27.4 million in EGS wagers for the month, a 60 percent boost from one year ago when monthly wagers totaled $17.1 million. The May 2009 numbers were also 45 percent above the previous month.
Southland in West Memphis posted EGS wagers of $38.6 million during May, up 19 percent from the previous year’s comparable period and 4 percent above April’s report.
Arkansas government Web site gets makeover
The state of Arkansas has a newly designed government web site. The site, www.Arkansas.gov, has new features geared towards smart phones and iPhones, such as improved search functions, a GPS locator, and a host of social media connections. There is also a public meetings calendar, which consolidates state agency meeting notices, and listings of top business and citizen services.
Lincoln expresses health care position
Sen. Blanche Lincoln, D-Ark., is a pivotal player in the health care reform debate due to her position on the powerful Senate Finance committee.
On Thursday, Lincoln told reporters she prefers private insurance cooperatives to a government-run provider that would compete with the private sector.
Lincoln left the door open to supporting a government-option, though she acknowledged she has reservations.
“One of our biggest concerns is that it doesn’t need to be a government plan that usurps that ability to compete in the marketplace, which I’m concerned that a totally government-run option would do,” she said.
