Weekly business news includes chamber search, jobless report

The City Wire economic review for the week of Mar. 23 – March 27:

REGIONAL/STATE
• The executive committee of the Fort Smith Regional Chamber of Commerce interviewed five candidates for the open chamber president position and has forwarded two of those to a “community advisors” panel. The six-member community panel will probably review the two candidates within the next three weeks. Barring any problems with schedules or other issues, chamber officials are hopeful a new president could be announced in late April or early May.

• Arkansas’ February unemployment rate increased to 6.6%, up over the 6.4% rate in January, and up significantly over the 4.8% rate in February 2009. The striking figure is that Arkansas’ nonfarm payroll employment fell 30,600 between February 2008 and February 2009. Manufacturing experienced a loss of 16,700 jobs between February 2008 and February 2009.

• The largest shareholder of the company that owns the KHBS-KHOG 40/29 television station operating in the Fort Smith and Northwest Arkansas markets announced Wednesday it will seek to acquire 100% ownership. Hearst Corp., a New York-based media company, now owns about 67% of the “A” shares of Hearst-Argyle Corp., and 100% of the company’s “B” shares. Hearst-Argyle is the owner of 40/29. Following a successful transaction, Hearst-Argyle would become a wholly-owned subsidiary of Hearst.

• Tyson Foods is closing a plant in Ponca City, Okla. as part of a move to improve its operations, company officials announced Friday. The August closure of the plant open since 1995 will result in 580 job losses. Springdale-based Tyson Foods will shift production to other facilities. The company is seeking a buyer for the plant. The Ponca City plant produces a variety of deli-style luncheon meats and ham products. Tyson Foods has approximately 107,000 employees at more than 300 facilities and offices in the United States and around the world.

• Little Rock-based world hunger relief organization Heifer International is planning a workforce reduction in the wake of the global economic crisis, but the extent of the cuts is not yet known, according to this report at Talk Business. A memo shared with employees of the organization from CEO Jo Luck outlines cost-cutting measures being taken as the non-profit struggles with a downturn in revenues. Heifer employs about 240 workers in central Arkansas and 1,150 worldwide.

“While we have reserve funds available to offset a portion of this deficit, our budget plans for FY10 must include specific action steps, including reduction in force, to ensure the effectiveness of Heifer’s sustainable community development work in the coming years. The reality of a reduction in force, which will occur by the end of this fiscal year, is painful but unavoidable. These layoffs are a direct result of the continuing global economic crisis,” the memo noted.

NATIONAL
• The Dow Jones Industrial Average had a good week, moving from 7,445 Monday opening to a 7,776 Friday close. The index is up 17.3% in the last three weeks, its best gain since September 1982 and its longest string of advances since May last year.

• Seven states have unemployment rates that topped 10 percent last month, up from four states in January, according to a U.S. Labor Department report. The U.S. unemployment rate rose to 8.1% in February, the highest in more than 25 years. Economists predict an 8.5% national unemployment rate in March, and predict a 10% rate by the end of 2009.

• Consumer spending increased for a second month in February after six-months of declines. Consumer spending rose by 0.2% in February and up 1% in January, which was the largest one-month gain in 3 1/2 years, the Commerce Department reported Friday.

• The Commerce Department reported Friday that U.S. average incomes dropped 0.2% in February, the fourth drop in the past five months. Also, the personal savings rate was 4.2% in February. It was near zero about a year ago.