AEDC director discusses economy, job recruitment

Editor’s note: Roby Brock, with our content partner Talk Business, wrote this report. He can be reached at [email protected]

73 is the new 60.

AEDC Director Maria Haley told a group of nearly 200 local economic development directors that there are 73 open projects for new business, expansions, and retentions in the state. That’s 13 more than Gov. Mike Beebe (D) had communicated in public forums during the past two weeks.

Despite the large portfolio of potential projects, Haley, who has headed the Arkansas Economic Development Commission during Beebe’s term as governor, didn’t sugarcoat economic conditions.

"It’s been really tough. It continues to be a challenge for us. The economy is not doing very well," Haley told Talk Business after her presentation to the group.

Borrowing public comments made by Beebe in recent weeks, she said the stalled projects in state were largely a by-product of Washington, D.C. gridlock. Beebe has complained that federal leaders in Congress and the White House need to find common ground on issues ranging from taxes to debt to regulations.

"We would like to get some decisions out of Washington so that decisions can be made by companies that are looking at Arkansas," Haley said.

When asked for the type of decisions she wanted to see in the nation’s capitol, Haley said, "Stability in our economy… about what our policies are going to be." She added that there is "no confidence" in Washington right now.

BY THE NUMBERS
Haley’s talk to the Arkansas Economic Developers included details from the second quarter of 2011 about job prospects in state.

The number of potential new businesses looking at Arkansas is up 53% over last year, rising from 45 projects to 69. Expansion projects are also on the increase as that project count has risen 27% from 51 in 2010 to 65 as of June 30 this year. Business retention projects have declined from 3 in 2010 to 1 in 2011.

An industry analysis of current projects shows that manufacturing makes up the bulk of interest in locating in Arkansas. There is also sizable interest in information technology and bio-tech projects and even 2 corporate headquarters.

The breakdown provided by AEDC is as follows:
Manufacturing – 30 projects
Call centers – 1 project
Distribution – 2 projects
Information technology – 8 projects
Corporate headquarters – 2 projects
Tourism – 4 projects
Bio-Tech/Health Care/Bio-Science – 10 projects
Non-profits – 0 projects
Unknown – 12 projects

Average wages for these industry projects range from a low of $9.00 per hour for call centers to $35.95 in the bio-tech field.