Arkansas Economic Development Commission hopes to facilitate international outreach

Cuba needs rice and chicken. German companies have a keen interest in conducting business in the southern U.S., and Henan Province in China is known for food processing and rice production. Economic leaders in Arkansas hope to facilitate a stronger relationship between the state and these potential international economic partners.

Arkansas Economic Development Commission’s international team met with economic developers in Northeast Arkansas on Wednesday in Jonesboro to discuss how local businesses might find new international markets, and how cities and towns in the state could possibly attract out-of-country businesses to locate here. AEDC slated four meetings across the state to develop these communication lines, AEDC Business Development Director Bentley Story told Talk Business & Politics.

“This is a good opportunity for our international team to meet with local developers and leaders,” Story said. “It’s critical that we develop these relationships.”

Many economic developers and business leaders throughout the state are unaware what resources AEDC has in international industrial recruitment, and conversely there are entities that have much to offer international clients that AEDC needs to familiarize itself with, Story said. Economic development leaders from around NEA attended the meeting with AEDC officials and gave presentations touting strengths.

Cuba remains the looming giant on the state’s economic horizon, World Trade Center Arkansas Senior Director of Global Trade Boon Tan told the group. The Caribbean Island nation consumes about 240,000 metric tons of chicken each year, and the country raises almost no poultry. Tyson Foods and Peco Foods, two large poultry producers with deep Arkansas’ ties could benefit from Cuba’s poultry market, he said.

Another dietary staple in Cuba is rice. Cubans consume about 1 million metric tons of rice each year, and more than 70% of it is imported, according to estimates. Arkansas and especially Northeast Arkansas, is one of the prime rice producing states in the country, he said. It also has the advantage of being relatively close with ports along the Mississippi River that lead into the Gulf of Mexico.

During his career, Tan said he’s worked with numerous companies across the state including Murphy Oil Corporation’s expansion into Southeast Asia, and Arkansas Farm Bureau. He aided Hytrol Conveyor Company when it expanded into the Taiwanese market, he said.

AEDC’s China Office Director Lindsay Liu thinks NEA businesses and developers could forge strong ties with counterparts in Henan Province in China. Food processing and rice drive the economy there, she said. Chinese companies don’t always just follow the numbers. Some follow their “gut instincts,” meaning an ability to develop personal bonds could be a useful tool, she said. Those wishing to do business in China need to remember one thing, she cautioned.

“It takes time for Chinese companies to make a decision … patience is the key to dealing with Chinese companies,” she said.

German companies are different, AEDC Europe Office Director Cornelius Schnitzler said. German companies rely heavily on data, and think in terms of generational growth, not year to year or even several years down the road. Livability is a secondary consideration, and most companies don’t like to be surprised with unforeseen problems down the road, he said.

Germany remains one of Arkansas’ prime international economic partners. The state is also making in-roads in the United Kingdom and France, he said.

AEDC’s representatives listened as different cities and counties pitched incentives programs and other advantages companies might benefit from if they decide to move into the region.

Greene County is in the top 2% of all counties in terms of per capita industrial jobs. The county has a 1/4-cent sales tax dedicated to economic development garnering more than $1 million per year, according to figures released.

Jonesboro Regional Chamber of Commerce Executive Director Mark Young touted his city’s educated workforce, the improved highway system, and Jonesboro’s central location in relation to Little Rock, Memphis, and other major cities in the region. Companies are attracted to Jonesboro’s low electricity, clean water, and waste water rates, he said. Those factors alone can equate to huge savings for a business over the long haul, he said.

Newport officials pitched a myriad of industrial parks, few permitting requirements, and its location. Newport is the midway point between Memphis and Little Rock, and has highways and an airport. The city has recently decided to add a port authority along the White River and has $2 million in business incentives it can offer. Those incentives are funded by a ½-cent sales tax.

Story hopes these meetings will facilitate a broadened international market in the Natural State. His organization’s ultimate goal is to create a business friendly atmosphere in the state that promotes job creation, wage growth, and aids business owners.

“We want to help our communities sell their products in the international markets,” he said.