Northwest Arkansas Council leader says meeting workforce challenges, state image key to progress

Mike Malone, the outgoing CEO of the Northwest Arkansas Council, said that while regional workforce needs are pivotal to continuing the area’s momentum, he’s also certain that improving the Arkansas’ national image will be critical for future growth across the state.

Malone, who appeared on this week’s edition of Talk Business & Politics, announced last week that he will be stepping down from the influential Northwest Arkansas Council after nearly 10 years at the helm. The powerful and influential business group has been a driving force in infrastructure development, regional amenities, and a coordinated vision for growing Northwest Arkansas. Malone will leave the group to work with Tom and Steuart Walton, grandsons of Wal-Mart founders Sam and Helen Walton, who have a variety of entrepreneurial and quality of life projects underway in the state.

With Northwest Arkansas experiencing low unemployment, Malone contends that employers are not satisfied with the region’s strong position and are eager to capitalize on the momentum.

“The unemployment rate is at 3.1%. That sounds good, but I’ve got employers saying, ‘Where are the next wave of workers coming from? We want to expand. Give us some workforce.'” said Malone.

With Wal-Mart, Tyson Foods, J.B. Hunt and the University of Arkansas driving much of the economic engine of Northwest Arkansas, Malone said that diversification has been a big part of the conversation on how to continue the region’s growth, which has seen an average of 30 new residents on daily.

“The economy has really been built on retail, food and logistics and then industries and services that have built up around that. That’s been a great run. Those will continue to be our growth sectors, but we think we can diversify around that,” he said. “So, IT and the startup community has certainly been a point of emphasis over the last five years… we think we’re already starting to see some diversification because of some of the startups that are starting to scale.”

With recent investments and announcements from Northwest Health System, Washington Regional, Arkansas Children’s Hospital and Mercy Health, Malone sees another big regional challenge in the health care sector.

“There’s a half a billion dollars worth of health care construction underway in the region right now. $500 million. There’s a massive investment in health care if we can find the workforce. That becomes the next challenge,” said Malone.

While Northwest Arkansas has been a driver for the state’s overall economy, Malone said he and others recognize that the rest of the state is needed to help the region sustain growth, especially when it comes to outsiders’ perceptions of Arkansas.

“These are 100 years, or maybe 200 years of folks elsewhere making fun of us or having these myths and misperceptions about Arkansas. We need – because we’re trying to attract talent and businesses – and the rest of the state needs – because we’re all trying to attract talent and business – an enhancement in our reputation. Some of that’s on us. We can do a better job of selling ourselves,” he said.

Malone added: “I’m real encouraged by what this [Hutchinson] administration is doing with more money for marketing economic development, partnerships between economic development and parks and tourism marketing. I think we all own a piece of that. We’re all humble and shy and kind of play along with the jokes they make about Arkansas. It’s time to change that. Let’s stand up and show how dynamic and what a great place it is in which to live.”

You can watch his full interview in the video below.