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A R K A N S A S :
Providing Solutions
for Business Problems

Responding to everything from recruiting and retaining a work force to site development and planning, Arkansas has made a name for itself as the 'Solution State' according to state officials. And with recent legislative votes, the business envoronment in Arkansas is growing ever brighter.

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Little Rock, Arkansas

Above: Information technology businesses are finding fertile ground on which to grow in Little Rock. Both Alltel and Acxiom announced major expansions in the market last year.
Like many companies in today's tough labor market, Dassault Falcon Jet, Raytheon Aircrafts and Midcoast, three aircraft manufacturers located in Little Rock, faced the challenge of recruiting and retaining qualified employees to build their aircraft. And with Dasso and Raytheon expanding rapidly -- Raytheon just added 300 new jobs in 1998 -- labor turnover and recruitment became critical issues for their success. After discussions between the two and nearby Midcoast, the three manufacturers found that a common skill level was needed among their employees, although the three manufacture different kinds of aircraft. So the question changed from what do we need to fill these positions to what do we do to fill these positions?

Enter the Arkansas economic development team. According to Barbara I. Pardue, executive director of the state's department of economic development, Arkansas provided the three companies with a solution by creating a training program that would not only train employees for the three plants, but would recruit, screen and interview potential workers as well. "This was the first time we had ever done that, where we took similar skills and created a customized training program," adds Pardue. "For both Dassault and Raytheon to expand, they needed to recruit and retain all of those trained people. It was interesting, because the state had never approached such a problem by pulling together three companies in the same segment of the economy that may build different things but are obviously related. We provided a workable solution to the challenge."

After traveling around the state to discuss the challenges Arkansas companies face, Pardue found that recruitment and retention of a qualified work force was cited quite often by established companies, communities, local officials, educational leaders and local economic developers. To relieve this problem, the Arkansas Economic Development Commission launched a new web site called whatajob.com (www.whatajob.com), a continuously updated job opportunities site that is available to every business in the state free of charge.

"This effort directly responds to the consensus that recruiting high-quality employees is an integral part of successful economic development," she adds. "Using this approach, we are broadening the horizons of in-state employment opportunities and giving school counselors and students real-time information on jobs and what skills and education are needed."

On the first day of operation, 350 jobs from 44 companies statewide were listed. Within three months, the site featured job listings from aerospace engineering to administrative assistants from more than 200 Arkansas companies and government agencies, with more than 2,800 job opportunities listed. As of March 11, the site had logged 650,855 hits from across the United States and more than 30 other countries, a total that is growing at a rate of about 6,000 to 7,000 hits daily. It also won such national Internet acclaim as the "Best of the Planet" People's Choice Award, the Magical Web Award and the Webmaster Award.

Pro-Business Climate Gets Even Brighter

Arkansas Cost of Living In addition to its "magical" job web site, the state has further increased its appeal to business by recently extending its incentives package to other segments of the economy far beyond its traditional manufacturing industries. This legislative vote put Arkansas in the running for several new industries, including information technology, energy technologies, biotech/bio-medical and information management. "When the legislature approves across the board our economic development package, that says Arkansas is ready to move into those areas," explains Pardue, "and that we have actually ventured out in some of those segments of the economy where other states have not ventured yet."

The state has also stepped up its education efforts with Smart Start K to 4, an education program to ensure that students aren't just passed along from the fourth grade without being able to read. At the high-school level, that state has expanded its network of EAST labs (Environmental and Spacial Technology computer labs), a partnership between the state and Intergraph Corp. These labs allow high school students to use the latest in hardware and software and apply it to community service projects such as redesigning gymnasiums that may have otherwise been torn down, designing response systems for fire and police departments, and making animated safety videos for elementary school children.

"When you see that we are introducing hands-on, training with real-world problem solving to high school students in Arkansas with the very latest in technology, that is obviously meeting the challenge of how to inspire young people for jobs of the future," says Pardue.

A New Emphasis On Familiar Industries

The new extended incentives program and the hands-on high-tech training of high school students emphasize the fact that Arkansas is now focusing much of its efforts on attracting high-tech business. What's not so obvious is that Arkansas already has a solid foundation in the information technology and high-tech manufacturing industries. "People have a tendency to think of Arkansas as primarily an agricultural, low-tech manufacturing state," says Pardue. "But when you look at us, we have a solid foundation in information and data management with home-grown companies like Alltel and Acxiom. We also have Wal-Mart's corporate headquarters, which is a global leader in information technology in the retail area -- most people overlook the fact that 20 percent of Wal-Mart's work force is directly in the information technology management field."

Pardue touts the talent of the state's work force as the primary reason why these companies have done so well in the state and why Arkansas will continue to attract information technology jobs. She adds that Arkansas has put into place the education infrastructure to ensure that talent pool continues to grow.

In the last year, both Alltel and Acxiom announced plans to expand in Arkansas. Alltel will invest $23 million and create 925 jobs, while Acxiom will invest $20 million and create 1,850 jobs over the next 10 years. Acxiom's recent expansions have included two new buildings in Little Rock and one new facility in Fayetteville near the University of Arkansas.

"We are very pleased that Arkansas's economic development agency has developed a program to help foster the growth of Arkansas businesses," says Acxiom's Charles Morgan. "With over 1,700 Acxiom associates in three locations in Arkansas, information technology is our business. And with more than 3,000 additional employees in 25 states and five other countries, nowhere are we more successful than right here in Arkansas."

He adds that Acxiom's success in recruiting talent from the state is a key driver in its success. "Clearly, it is our associates who drive the business to new levels," he says.

In the financial data management and customer service arena, NuVell Financial Services Corp., a wholly owned subsidiary of GMAC, will hire 1,000 new employees over the next five years. Again, Arkansas's work force was crucial to the company's decision to expand in the state.

"We felt like Arkansas was the best choice for this expansion because of the quality work force and thriving business environment in the state," says Tom Pritchard, CEO of NuVell. "The cooperation we received from the state and city has also proven to us that Arkansas is a state that we are proud to call home." SS

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