Made In America: Regional Business Index Shows Economic Growth Slowing in Arkansas

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REGIONAL BUSINESS INDEX SHOWS ECONOMIC GROWTH SLOWING IN ARKANSAS
The Mid-America Business Conditions Index for April, one of the leading economic indicators for Arkansas, fell to 53.6 from March’s regional high of 54.9. Components of the index from the monthly survey of supply managers in Arkansas were new orders at 55.2, production or sales at 58.2, delivery lead time at 55.6, inventories at 49.3, and employment at 50.0.

“The state’s exports have declined for 2013 and again for 2014 to $6.9 billion. The strong U.S. dollar will push 2015 exports even lower. Durable goods manufacturers have been experiencing much stronger economic conditions than nondurable goods producers in the state,” said Economist Ernie Goss, director of Creighton University’s Economic Forecasting Group.

Overall, the nine-state regional business index, which ranges between 0 and 100, rose to 52.7 from March’s 51.4. The regional index that stretches from Arkansas to North Dakota reads much like the national factory activity from the Institute for Supply Management, and is pointing to positive, but slow growth through the third quarter of 2015, Goss said.

“Firms linked to energy and agriculture are experiencing pullbacks in economic activity. Growth in Oklahoma and North Dakota, two energy-producing states, is approximately one-third to one-half of what it was one year ago. That growth is likely to move even lower in the months ahead as the strong U.S. dollar slows growth even more,” said the Creighton University economic forecaster.

To view the full report, click here.

GOV. HUTCHINSON CALLS STRONG U.S. MANUFACTURING BASE A ‘NATIONAL SECURITY’ ISSUE
Arkansas Gov. Asa Hutchinson kicked off the first Arkansas Manufacturing Innovation Summit on Wednesday by saying that strengthening the nation’s manufacturing was a “national security” issue, and strongly advocating that former felons should be given an opportunity to re-enter the workforce after leaving prison. The state’s 46th governor made his remarks after being introduced by Dr. Tim Atkinson, president of the Arkansas Science & Technology Authority, as “the jobs governor.” Read more of his remarks at this link.

INNOVATION GURU TELLS MANUFACTURING EXECS TO DISRUPT BUSINESS CULTURE WITH NEW IDEAS
Robert Tucker, keynote speaker at the Arkansas Innovation Manufacturing Summit on Wednesday, shared his part-pep talk, part-lecture with an audience of nearly 150 manufacturing executives. Tucker said in his years of consulting with some of the top Fortune 500 and international companies across the globe, he has found three major challenges that cause companies of all sizes to fail – growth, differentiation and disruption. Read what he had to say about all three in this report.

BALDOR MANAGER SAYS COMPANY USES ROBOTS TO IMPROVE EFFICIENCIES, NOT REPLACE PEOPLE
A Baldor marketing official told a roomful of manufacturing executives and leaders that although the use of robots is growing rapidly as part of the industrial giant’s operations, not one has ever replaced a human worker.

“Everybody thinks we use them to replace people,” said Chris Doyle, general product manager at Fort Smith-based Baldor Electric Co. “But we have not laid off one person because of a robot.” Read more of his comments on this emerging workforce activity at this link.