Landing Nestl? Sweet for Arkansas

Nestlé’s decision to build a major food processing plant in Jonesboro was refreshing news on an oppressive summer day in Arkansas.

The triple whammy of heat, layoffs forced by the economic slowdown and lackluster stock market performance has made for a long summer. We deserved a break.

On paper, landing the Nestlé plant has the potential to be the most significant manufacturing news that Arkansas has had in years. Cynics remind me that some industry announcements don’t always live up to the hype, but I think we have plenty of reason to feel good about this one and its long-term potential.

First, it’s not just any company. Based in Switzerland, it’s the world’s largest food processor with $48 billion in annual sales of a diversified group of products.

The capital investment is significant — more than $200 million between the main plant and a refrigerated warehouse facility. It will be a modern facility that doesn’t risk shutdown resulting from antiquated equipment — an issue that has resulted in several closings in Arkansas.

And finally, food processing doesn’t have the cyclical ups and downs that so many other industries face. People are going to eat in good times and bad.

The Nestlé decision is a victory for Arkansas — not just Jonesboro and northeast Arkansas. Tupelo and Mississippi put up a formidable fight, but state and local economic developers clearly outdid themselves in selling the benefits of Jonesboro and Arkansas and putting themselves in a competitive position.

I was asked the other day why Northwest Arkansas didn’t lure the plant, and Little Rock leaders might ask the same thing. My response is that we all should celebrate any city in Arkansas landing a plant like this because we all benefit — there’s absolutely no room for jealously.

Jim Pickens, director of the state Department of Economic Development, says industry site locators will take note of Nestlé’s choice of Arkansas for only its fourth facility in the United States. Jonesboro and northeast Arkansas’ success this time around could lead to good news for another area down the road.

Jonesboro was victorious because of critical planning and focus that centered on specific recruitment of food processors, building adequate infrastructure and maintaining very competitive utility rates. Strong health care facilities, fine school systems and an available work force were also major contributors.

It’s a sweet win indeed that really has only one downside: Nestlé will produce Lean Cuisine products instead of chocolate.