|
|
| |
| Wed, Aug. 20, 2008 |  |
 |
|
||
| |
Beebe: Funding cuts threaten economic development Sunday, Apr 20, 2008 By Roby Brock Gov. Mike Beebe disclosed on Friday that $4.3 million in federal funding cuts to work force training could terminate state programs and force layoffs or furloughs. "It is anticipated that more than 1,900 individuals will either receive fewer benefits or no benefits at all. Some locations will no longer provide summer youth-employment programs," said Beebe. "It will certainly impose a long-term, negative impact on the confidence of workers, employers and potential employers in work force development programs all across Arkansas." He also warned that the cutbacks could result in the temporary closing of local work force offices or forced employee furloughs and layoffs. Beebe questioned the timing of the cuts due to the national economic downturn and said he is working with the state's congressional delegation on alternatives for funding. Jobless rate declines Arkansas' unemployment rate fell one-tenth of 1 percent in March to 4.9 percent, while the U.S. rate rose three-tenths to 5.1 percent. This marks the first time since February 2005 that the state rate fell below the national level, according to the Arkansas Department of Workforce Services. One year ago, Arkansas' jobless rate stood at 5.3 percent. For the month, the trade, transportation and utilities sector added 2,600 positions. More than three-fourths of the seasonal increase occurred in the retail trade. The leisure and hospitality sector expanded by 2,600 jobs. Accommodations and food services posted 85% of the gain. Construction jobs rose by 1,000 workers as did government jobs related to new school hires. Education and health services gained 800 during the month. Chesapeake CEO raises expectations for Shale play This week, Chesapeake CEO Aubrey McClendon told an Arkansas economic development audience that drilling in the Fayetteville Shale play will far exceed predictions. During his address to the Arkansas Economic Development Foundation, McClendon said that he expects natural gas companies in Arkansas to spend between $75 and $100 billion over the next decade, far greater than a recent study's suggested $18 billion impact. AT&T to invest $40 million in Arkansas AT&T, Arkansas' largest telecom provider, announced its capital investment plans for the state for 2008. The company says it will invest nearly $40 million in its Arkansas wireless network over the year, bringing its three-year total investment to $125 million. The investment will expand AT&T's 3G network, also known as "third generation," which allows increased data and video speeds on wireless phones and other products. Oaklawn expansion begins A $20 million expansion of the electronic games of skill (EGS) area has begun at Oaklawn Park in Hot Springs. Track officials plan to add a 60,000 square-foot building that will add another 1,000 electronic blackjack, poker and lock-and-roll machines to its current inventory of roughly 500 machines. According to the latest figures reported to the Arkansas Racing Commission, Oaklawn's EGS wagers totaled $18.2 million in February 2008, up 52 percent from February 2007. Jonesboro lands call center, 500 jobs StarTek, Inc., a Denver-based provider of business process outsourcing services to the communications industry, announced that it has signed a lease for a new contact center in Jonesboro. The facility expects to open in the third quarter of 2008. The Jonesboro center will provide in-bound customer service for an existing Fortune 1000 telecom client, and at capacity, employ more than 500 people. Boot manufacturing to site in Forrest City Belleville Shoe Manufacturing, the largest manufacturer of military boots in the U.S., announced plans to locate a new cutting and sewing operation in Forrest City. The company will put a 31,000 square-foot facility in the Forrest City Industrial Park and add up to 200 jobs within 18 months. Belleville also has manufacturing facilities in Dewitt and n Belleville, Ill., where the company is headquartered. Approximately 500 people are currently employed at the DeWitt operation. Ozark gains jacket plant American Spiritwear Jackets plans to open a clothing manufacturing company by July 15 at the former Garan Inc. plant in Ozark, Arkansas. The company will produce baseball jackets at the factory, initially employing 40 people. J.B. Hunt profits fall 17 percent J. B. Hunt Transport Services announced first quarter 2008 net income of $36.4 million, down 17.6 percent from the previous year's first quarter. Total operating revenue for the quarter was $878 million, a 10 percent increase over the $797 million for the first quarter of 2007. Lowell-based J.B. Hunt said the increase in operating revenue was partially attributable to "higher intermodal volumes" and "significant growth" in its integrated capacity solutions segment, which the company said "more than offset" a reduction of revenue in the trucking segment. USA Truck posts $1.9 million lost USA Truck repeated its fourth quarter performance as industry-wide woes plagued the Van Buren-based dry goods hauler. In the first quarter of 2008, USA Truck reported a $1.9 million loss compared to an $80,000 profit in last year's first quarter. Revenues rose 2.8 percent to $97.1 million. In the fourth quarter of 2007, USA Truck posted a $1.57 million loss. Company officials cited lower freight demand, industry overcapacity, rising fuel prices and higher maintenance costs for the poor quarter. Potlatch eyes company spin-off Potlatch Corp. announced that its board of directors has authorized management to evaluate a potential tax-free spin-off of the company's pulp-based businesses. The move could impact Potlatch's timber holdings in Arkansas as well as a pulp plant in southeastern Arkansas. A spin-off, if pursued, would create two stand-alone, publicly traded entities: a timber real estate investment trust (REIT) and a pulp-based manufacturing company that would include Potlatch's pulp & paperboard plant in Cypress Bend, Arkansas near McGehee. Any transaction would likely be completed during the fourth quarter of 2008, subject to market, regulatory and other conditions, the company added. Simmons First earnings up on visa gains Simmons First National Corp. posted record first quarter 2008 earnings of $8.8 million, an increase of $2.2 million or 37 percent compared to the same period in 2007. A number of one-time items related to its Visa partnership boosted net income for the Pine Bluff-based bank holding company. Simmons gained $1.2 million from a settlement related to Visa credit card's initial public offering. It also gained $3 million as part of a mandatory redemption of its equity interest in Visa. Finally, Simmons received 110,308 class B shares of Visa. The class B shares have a restricted holding period and Simmons will not recognize any gain until the shares are redeemed for cash. Excluding the one-time Visa items, Simmons Q1 2008 earnings were $6.3 million, a slight decrease from the same period in 2007. Home BancShares net income rises 53 percent Home BancShares reported Q1 earnings of $7.3 million compared to quarterly earnings of $4.8 million one year ago. The rise in profits was a 53 percent increase for the Conway-based bank holding company. Company leaders noted that the bank posted loan growth of $67.2 million in the quarter, while deposit growth rose by $83.7 million, excluding the new business Home Bancshares gained with its recent acquisition of Little Rock-based Centennial Bank. Wal-Mart hires consultant for Russian expansion Wal-Mart announced the appointment of Dr. Stephan Fanderl as President of Wal-Mart Emerging Markets - East. The retail giant says that Fanderl will lead the company's efforts to explore retail business opportunities in Russia and neighboring markets. Fanderl has experience with the Rewe Group, a German retailer and travel company, where he has served as a board member and as chief executive of the company's hypermarkets and supermarkets. Prior to Rewe, Fanderl also held roles with Metro AG, which bought Wal-Mart's German operations when it exited that country in 2006. South Korea, U.S. strike beef trade pact U.S. and South Korean officials have reached a formal agreement to lift the Asian nation's long ban on U.S. beef exports as part of a larger trade pact between the two countries. The move should help cattle farmers, especially in the Tyson Foods' chain. South Korea was once one of Tyson's largest export markets before a 2003 mad cow scare eliminated trade in the country. There has been a "start-and-stop" process to trade re-entry over the last year, but tight restrictions and isolated violations have curtailed business between Tyson and South Korea. Under conditions of the agreement, imports could resume after mid-May. ------- Roby Brock, a freelance journalist based in Little Rock, writes weekly for the Arkansas News Bureau. His weekly television program airs at 10 p.m. Sundays in Central and Northwest Arkansas. His e-mail address is roby@talkbusiness.net; his Web site address is www.talkbusiness.net. |
