Civic, business leaders reflect on Northeast Arkansas’ potential economic outlook in 2017

The Great Recession devastated many parts of Arkansas when the economy began to flounder in 2008. Unemployment rates spiked, jobs withered, real estate sales halted, and median incomes stagnated.

One part of the state fared better than the rest. Northeast Arkansas and its hub city, Jonesboro, continued modest economic growth against those difficult headwinds. By the end of 2016, the city had an unemployment rate of 3.3% and its median income rate had risen to almost $42,000.

GoBanking.com recently predicted Jonesboro will be the number one city for success in Arkansas in 2017. Talk Business & Politics asked civic and business leaders to give us their thoughts about how to grow the economy in the coming year. ASU Delta Center for Economic Development’s Andrea Allen, St. Bernards CEO Chris Barber, former Arkansas House Speaker and current Centennial Bank Regional President Davy Carter, Jonesboro Mayor Harold Perrin, Walnut Ridge Mayor Charles Snapp, and Jonesboro Regional Chamber of Commerce CEO Mark Young opted to take part.

TB&P: The jobs market has improved, but wage growth remains an issue. What can be done to improve wages in NEA?

Allen: Arkansas voters increased the minimum wage in 2014, and it will rise to $8.50 per hour in January 2017. Looking into the future, I believe if Northeast Arkansas makes further investments in workforce education, we can attract more high tech, higher paying jobs particularly in the agriculture, technology and steel industries. Another way to improve wages, or take home pay, in relation to gross wages without tampering with market prices or driving up the cost of goods or services is to lower the tax burden and cost of benefits such as skyrocketing healthcare premiums.

Barber: The successful execution and implementation of the Jonesboro Unlimited Strategic Plan (completed in 2015) will address some of these issues. The plan is focused on targeted industries that pay above the average wage rate. In addition, the recent opening of the NYIT Medical School on the Arkansas State campus will provide tremendous economic benefit throughout the region.

Perrin: It appears to me a lot of job growth in Northeast Arkansas is fast food and retail. Dr. Maria Markham met with the governor to increase funding for two-year colleges for higher paying jobs. So what that says is we must do a better job in economic development to recruit companies that pay better.

TB&P: What specific tools do public and private officials need to provide to cultivate a better business environment?

Carter: There are countless theories and opinions on this topic and I don’t want to get into a tax and regulatory policy debate here but to say that it is not just political speak to say that those things matter. Locally, the community needs to continue to partner and support ASU as it educates the next generation of our workforce. The economic impact and importance of ASU to this region is immeasurable.

Snapp: The outlying smaller communities need to focus on quality of life issues and first class education for those who don’t mind a 20 to 30 mile commute to work each day.

Young: Jonesboro has a great workforce. We must continue to invest in education at all levels to ensure that our companies have success in the future. In addition, we must continue to provide industrial property with all infrastructure in place to meet and exceed the needs of our expanding companies as well as those that we recruit. The recent passage of Issue 3 also provides an important improvement to the bonding capacity of the state.

TB&P: Name the most pressing infrastructure improvements that need to be made in the region.

Allen: The most pressing infrastructure improvements needed in our region are the expansion of broadband access, future I-57, and investments in our workforce education infrastructure. In today’s global economy, the expansion of broadband access to underserved areas in NEA is as crucial for economic development as highways. We must build the broadband infrastructure where every community can connect quickly and reliably.

Barber: We are pleased to see the development of I-555 and the continued enhancement of Highway 226 and U.S. 67. These improvements will benefit the entire region. In addition, it’s important to have industrial property available and ready when the opportunities arise.

Carter: I strongly believe that one of Jonesboro’s greatest infrastructure weaknesses is the lack of a commercial airport. Companies in NEA are doing business across the country and the globe and access to commercial flights is important not only to businesses, but also its employees who have to travel as part of their job. An airport in Jonesboro with commercial flights to Dallas, Chicago, and Atlanta, for example, would greatly expand connectivity and ultimately generate economic growth in NEA.

TB&P: Explain a potential or looming problem that could negatively impact the regional economy if it’s not addressed.

Allen: NEA continues to have an aging population particularly outside of Jonesboro, and as a result, higher rates of dependency. The baby boomers have started retiring, and in rural areas, this will eventually place an even greater strain on healthcare, assisted living facilities, and nursing homes. Sharp County already has 10% of its population over 65 years of age. The numbers of people living with dementia, and dementia-related diseases such as Alzheimer’s, is increasing at a high rate, and people can live for many years with these diseases while requiring around the clock care. If not addressed, this will place an enormous burden on Medicare and Medicaid, rural healthcare services, and of course, family members who must spend time away from work caring for a loved one. It also presents an opportunity for entrepreneurs and private investors interested in eldercare and retrofitting society for the coming increase in the elderly population.

Barber: A concern would be the depopulation of various markets throughout Northeast Arkansas. We need to continue to create quality jobs and provide adequately trained talent throughout the area.

Perrin: It is a time to wait and see what happens on the federal level. I’m assuming that other cities, like ours, are waiting to see how the new administration approaches federal funding.

TB&P: What direction does the region need to take in terms of recruiting new businesses? As an example, in the early 2000s local leaders decided to recruit food processing companies to Jonesboro which is part of the economic boon NEA now enjoys. What are your ideas?

Allen: NEA is a prime location for entrepreneurs interested in agricultural technologies. A recent article in Forbes makes an argument that there is a coming agriculture technology bubble. Investments in new technologies are exceeding demand. I believe this is due to tech companies not understanding farmers’ needs, and if Ag Tech companies moved out of Silicon Valley and into Northeast Arkansas, we could provide a bridge to better understanding.

Northeast Arkansas is also home to the largest steel-producing county in the United States. We should be pursuing entrepreneurs and innovators in the steel industry as well as providing more and better educational opportunities in this field.

Perrin: I was involved in that in the banking business. We chased food processing. Currently Jonesboro is working on an assessment of assets and liabilities, just like we did in the early 2000s. It was highly successful because it absolutely tied industries to our major assets.

Snapp: When I took office, Harold Perrin offered help with the purchase of a used police car, in the event we needed it. Likewise, Paragould Mayor Mike Gaskill offered us a deal on used ball field lights, which we purchased. The common factor was that both mayors understood how many tax dollars our residents spend in their communities. Thus they have an interest in the success of the smaller areas, even though local government is a different mindset.

Young: Food Processing was identified as a target industry for our community through a strategic plan that was completed in 1986. Jonesboro Unlimited recently completed a similar plan that has identified five key business sectors in which to focus our recruitment efforts. They include agri-business, advanced manufacturing, logistics, healthcare and professional services. Within each of those targeted industries there are more narrowly detailed businesses. Through an aggressive and proactive approach to business recruitment and expansion, Jonesboro will continue the momentum that is needed for economic growth.