Arkansas-based trucking companies like Lowell-based J.B. Hunt Transport and Fort Smith-based ArcBest are involved with the American Trucking Associations push for the industry to hire 100,000 veterans in the next two years. The program should also help with the industry’s growing driver shortage.

The ATA effort, announced Dec. 2, is part of the U.S. Chamber of Commerce Foundation’s Hiring 500,000 Heroes campaign.

“There’s no higher calling for an American than to serve in our armed forces, and I’d like to think that driving a truck – delivering America’s most essential goods safely and efficiently is also a high calling,” ATA President and CEO Bill Graves said in a statement.

The U.S. Chamber veteran hiring program was launched March 2011, with more than 1,700 companies agreeing to participate. According to the ATA, the chamber program has resulted in 369,000 “confirmed hires” of veterans.

ATA and Hiring Our Heroes will use FASTPORT’s trucking track system as a single portal to help match veterans with fleets with openings.
 
“Trucking has always been a favorite industry for our veterans because they are already trained to succeed in many great career paths," said Bill McLennan, CEO of FASTPORT. “ATA’s leadership and call to action from its members demonstrate the industry's affinity for hiring veterans and we are honored to help our talented veterans find great careers with those great employers in the trucking industry.”

J.B. Hunt signed on to FASTPORT in May.

“By joining forces with Hiring Our Heroes and FASTPORT, J.B. Hunt will be able to showcase our multiple career avenues in a ‘one-stop-shop’ for veterans and their spouses and communicate quickly and directly with those that have already made the transition to civilian life as well as those that are just starting the process out-of-country,” Craig Harper, J.B. Hunt executive vice president-driver personnel and operations, said in the May 30 statement.

Harper also noted that company founder J.B. Hunt transitioned from the U.S. Army to become a truck driver and build what is now a global logistics company.

“We need more service men and women to follow in his footsteps,” Harper said.

TEAMSTERS PROGRAM, ESGR AWARD
Also pushing to find drivers through the program is ABF Freight, a less-than-truckload carrier and the largest subsidiary of Fort Smith-based ArcBest. ABF Freight President Tim Thorne is a veteran, having once served as a captain in the U.S. Army. Not only is ABF working with ATA, but the company has partnered with the International Brotherhood of Teamsters to provide training to active duty military members.

“ABF Freight strongly supports the ongoing initiative to hire vets. ... In fact, we’re proud to say that ABF Freight has recently teamed up with the International Brotherhood of Teamsters and the Army under the Teamster Military Assistance Program (TMAP),” Thorne said. “This program will allow ABF Freight Driver Development Instructors to train soldiers who are still active military personnel to safely operate a combination motor vehicle and obtain their Class A CDL driver’s license. Upon completion, these transitioning soldiers will be offered a driving position with ABF Freight at one of the terminals throughout our system.”

Burton Weis, vice president of human resources for Van Buren-based USA Truck, said almost 25% of the employees with the long-haul carrier and logistics company have served or are serving in the military.

“We consider the hiring of the men and women of our nation’s Armed Forces to be our corporate responsibility for the sacrifices made by them and their families. We make a concerted effort to bring veterans onto our team, both in driving and non-driving capacities, because they embody many of the characteristics we value — among them drive, discipline, pride, motivation, a strong work ethic and high moral fiber,” Weis said.

The USA Truck statement also noted that Robert Powell, one of the company’s founders, was a Naval aviator.

“USA Truck has a long history of military support, established by one of the company’s founders — Robert Powell, a former military aviator — and reflected in its star and bar insignia. USA Truck also shows support through its partnership with the Intrepid Fallen Heroes Fund,” the company noted in a statement to The City Wire.

USA Truck is scheduled to be presented the ESGR Patriot Award on Dec. 9 for its of the Employer Support of the Guard and Reserve, a Department of Defense office dedicated to promoting Reserve Component Service members and their civilian employers for more than 40 years.

DRIVER SHORTAGE
The U.S. trucking industry is in the midst of a driver shortage problem.

“How big the shortage is depends on whom you ask. But there are fewer working truck drivers today than there were before the recession. Driver turnover at large truckload fleets has been above 90 percent for eight straight quarters. And driver pay remains below the U.S. average,” noted a special section by the Journal of Commerce focused on the driver shortage problem. “A growing number of trucking executives say poor — and unpredictable — pay is the primary reason for the shortage of new drivers.”

Schneider National, the nation’s second-largest truckload company, recently announced a 13% pay hike for drivers. In September, Swift Transportation boosted driver pay and the company reported that the number of trucks without drivers fell about 20%.

The JOC section indicates the industry had an estimated 1.585 million drivers in 2013, well below the 1.693 million in 2007. The section also notes that average driver wage in 2013 was $40,960, up 1.4% compared to 2012, but still almost 12% below the national average wage.

Driver turnover is a costly issue for the industry.

“If the cost of hiring a driver averages $5,000, a company with 200 drivers and a 100 percent turnover rate would spend $1 million a year on recruitment alone. High turnover also makes it difficult for fleets to operate efficiently, maximize utilization of tractors and trailers and meet customers’ service expectations,” noted the ATA in a December 2013 report.

The University of Arkansas at Fort Smith will graduate nearly 350 bachelor degreed students next weekend, but Associate Vice Chancellor for Workforce Development at UAFS Dr. Ken Warden said the economic pendulum appears to be swinging back to workforce education.

Warden cited a 2011 Georgetown University study showing a higher proportion of two-year degrees earning larger wages than traditional four-year degreed graduates. He also cited a Bureau of Labor Statistics study that said, "Between now and 2022, of the number of jobs that are going to be created, only 27% are going to require something beyond a high school diploma but maybe less than a bachelors degree."

While such a statistic could be alarming to many universities that thrive on ever-increasing numbers of four-year degree-seeking students and graduate students, Warden said UAFS' background in workforce education prepares it well to adapt to the future economic needs of the region.

"An institution like ours – that grew out of what was Fort Smith Junior College and WestArk Community College, and have a history and reputation of working with people to design degrees and educational programs that are responsible and help people – this is not bad news for us, because we have a history of creating programs related to jobs."

He added that the degrees produced at UAFS fall in that 27% category between a high school diploma and a bachelors degree.

A few factors have driven workforce education to the forefront in recent years within Arkansas, he said, including the election of Gov. Mike Beebe, D-Ark, in 2006, as well as the on-shoring efforts by Wal-Mart and other American companies.

Sure to drive a growth in the number of workforce education programs statewide, he said, is funding secured by Sen. Jane English, R-North Little Rock, who cut a deal with Beebe during the debate over Private Option funding. In return for her vote to fund the Private Option – which will take state money to purchase private health insurance for impoverished Arkansans – English pushed Beebe to find $15 million to support workforce education programs across the state. He delivered, and now Warden said the discussion is happening about what to do with the money gained from the English-Beebe agreement.

"So there's been a little bit of a grab in the last year for this $15 million. Who's going to lay their hand on this money? Where does it go? Who does it belong to? Does it belong in apprenticeships or short term training in universities? But regardless of where it ends up, Sen. English sort of helped drive that conversation in Arkansas."

Dr. Paul Beran, chancellor of UAFS, said the university had been at the table for many of the discussions on workforce education since the money was set aside for workforce education.

"We had her committee here on campus in August, had a very successful meeting with a number (of legislators). … She and many others were here, as well as people from the state Chamber (of Commerce), as well as someone to talk about these issues and look at our campus and see what we do in that arena. So, I agree with what Dr. Warden said, there's been a lot of people wanting to go after these dollars. But the fact of the matter is that the conversation is really more than just how do we put people to work, but the conversation is how do you frame and help people understand what workforce development really is and it is a much bigger issue than simply training people to simply turn a widget."

Warden said training people to do more than turning widgets involves creating programs that are comprehensive and teach critical thinking skills normally developed during a four-year course of study.

In order to stay at the cutting edge of workforce education, Warden said UAFS must be poised and ready to respond to the needs of the community and businesses that make it up and that is why new certificate programs in robotics and professional sales have been launched at the university, as well as the creation of alternative learning centers such as the university's "sustainability house," which teaches students energy efficiency techniques.

The Governor, Chief Justice of the Supreme Court, Senate President and Speaker of the House released the names of their appointees to a citizens committee that will set legislative, executive officeholders and judicial salaries.

As part of Amendment 3, approved by voters in November, an Independent Citizens Commission will now determine salaries for elected state officials.

The new law enacts a ban on gifts, meals, and trips to legislators by lobbyists except in limited circumstances and would also ban corporations from making contributions to Arkansas state candidates. In addition, it would extend term limits to allow legislators to serve up to 16 years and would create a commission to evaluate whether government officials’ salaries should be increased.

Prior to voter approval of the law, gift or expense to a legislator by a lobbyist must be disclosed if the dollar amount exceeds $50. There was no limit on the amount of money that can be spent by a lobbyist, but it must be fully disclosed on reporting forms to the state.

Also prior to the law, Legislators were allowed to serve six years (three terms) in the Arkansas House and two terms (eight years) in the Arkansas State Senate. The new law allows for a maximum of 16 years to be served by a legislator regardless of which chamber.

The seven-member commission is appointed by all three branches of government.
In a joint press release, the appointees were named. They include:
Governor’s Appointees:
Barbara Graves, Little Rock, retired businesswoman.
Larry Ross, Sherwood, President of Ross Consulting, L.L.C.

Senate Appointees:
Stuart Hill, Searcy, Vice President and Treasurer of White County Medical Center.
Brenda James, Little Rock, Math Coach in the Little Rock School District.

House Appointees:
Mitch Berry, Little Rock, Attorney at Dyke & Winzerling, P.L.C.
Stephen Tipton, Cabot, Regional Vice President of Centennial Bank.

Chief Justice’s Appointee:
Chuck Banks, Little Rock, Senior Partner at Banks Law Firm, P.L.L.C.

These appointments will expire Nov. 5, 2018.

The citizens’ commission will meet quickly to begin its work, according to requirements of the new law.

At a press conference late Wednesday morning, Gov. Mike Beebe discussed his expectations – or lack thereof – on the new commission’s charge.

“I have no expectations on that issue,” Beebe said. “I think they go in objectively to look at the situation. Look, I never griped about salaries. I knew what the salary was when I ran. And if I wasn’t happy with that, I shouldn’t have run.”

“Now having said that, looking toward the future to make sure you’ve got good folks to run for all these things [offices], they ought to look at all of that, you ought to be competitive. But salary ought not to be your number one reason for running for public office. If it is, you’ve got the wrong folks running,” Beebe added.

Of the 82 people expected to be hired in coming years to implement various aspects of the programs required under the proposed consent decree between the city of Fort Smith and the United States Department of Justice, some will be in management roles and at least one may handle public relations efforts for the city.

According to Fort Smith Utilities Director Steve Parke, a large number of skilled laborers will be required to get the city in compliance with the Clean Water Act which could have the city exiting the DoJ's oversight in as little as 12 years.

Michelle Cernak, owner of Westark Plumbing in Fort Smith, said hiring such a large number when there is already a plumber shortage in the region would be a challenge.

"There are not enough plumbers in this area to handle what the city is saying is going to happen. And where the hell they'll find those 80 people, I have no idea. And I have no idea if they're clerical or mechanical or what."

Parke said in all likelihood, the utilities department would take extraordinary steps to hire the required number of individuals to fill a variety of positions within the department in coming years.

"We're still going to work through the staffing and recruitment plan," Parke said, adding that discussions with the Justice Department have to this point focused on getting agreeable terms with the consent decree and are just now starting to focus on staffing levels tied to implementation.

"We're just now looking at tasks as for how to complete the (scope of work) within the consent decree. We know it's a challenge, so (we may do) a job fair type concept or (start) developing a recruitment or hiring plan shortly after we make this next presentation to the Board."

In a presentation to the Board on Monday (Dec. 1), Parke outlined a plan to hire 82 individuals from 2015-2018 divided among the following categories:
• Projects & operations management (20);
• Treatment plant and pump O&M (14);
• Line repair & SSO emergency response (13);
• Information management (9);
• FOG (fats, oil and grease) programs (9);
• Line cleaning & assessment (7);
• Private lines (4);
• Comprehensive training (5); and
• Root control (1).

In the area of private lines, Cernak raised the question of detection of damaged private lines and enforcement of mandatory needed repairs.

Parke said smoke testing would allow the city to detect problems, notify property owners of the issues. One of the four hired to deal with private line issues would follow up and report of repairs to private lines as part of the consent decree requirements should the settlement requiring capital investment of more than $200 million and fines of $300,000 be approved by the Board.

At least one staffer in the department will handle public relations activities tied to the private line repairs and possible replacements that would be required, which Parke told the Board Monday could range in price from $1,500 to $3,000 depending upon the level of repair needed to any damaged private pipe.

"This includes the individual who will be managing the public relations portion of that - someone who answers questions, assists homeowners through the process, someone who is tracking notification processes, receiving information for when work is completed, data entry and following up if there is a milestone date if there is a (set time) to complete it."

The staffers in that office will also focus on inspection of private line repairs to make sure it meets codes.

A concern by Mark Chamberlain, owner of May Avenue Plumbing of Fort Smith, was that the city's $400,000 fund to be established to help low income property owners pay for needed repairs to bring the entire system up to standard would not go far enough.

Parke said the amount is set fourth in the consent decree and is not a separate stand alone program, funded by sewer users, whose bills are already projected to double to pay for consent decree projects.

Chamberlain also expressed concern that the program would not be responsive enough to the timeliness of repairs needed, noting that a waiting period to have an application approved for assistance may do nothing to help owners in need of emergency repairs.

But Parke said all of that would be taken into consideration.

"The program hasn't been written yet," he explained. "We proposed it as part of the consent decree to have that program, but we have a period of time to write that program, how it'll function and then submit it to the EPA for their approval. It's concepts (right now), but not written, submitted and approved. We need to do those steps."

Parke said cost estimates for how much it will cost to hire staff are unknown at this point, but said not all staff would be retained for the long term and would instead consist of permanent staff, contracted labor and consultants.

"We don't want to staff up with just city personnel," he said. "Some of this work is resolved during the consent decree and some is ongoing. So we don't want to staff all in house and then let people go. Those types of staffing, we've analyzed. But things with us from now on, operations and those sort sof things, those are in house and can adapt to ever changing needs."

An attempt to settle a class action lawsuit against Whirlpool by residents in and around the toxic plume of trichloroethylene (TCE) the company admits leaking into the groundwater from its now-shuttered south Fort Smith facility was denied Wednesday (Dec. 3) by U.S. District Judge (Western District of Arkansas) P.K. Holmes III.

Following were details of the proposed resolution, according to an email at the time of the settlement announcement in July from Whirlpool Senior Manager of Global Public Relations Kristine Vernier.
• The agreement covers current owners of property devalued in 2013 by the County Tax Assessor for tax assessment purposes as a result of groundwater contamination from trichloroethylene (TCE) released at the former Whirlpool manufacturing facility in Fort Smith, as well as some properties near the facility whose tax value assessment did not change;
• Property owners inside the area bounded by Ingersoll Ave, Brazil Ave., Jenny Lind Rd., and Ferguson St. will receive either an amount equal to the devaluation estimated by the County assessor or the devaluation as determined by an independent property appraiser;
• Class members outside this area will receive $5,000, and possibly more in the future, if TCE is detected above threshold levels in groundwater beneath their property;
• Property owners agree to allow access to their property for testing and remediation activities, record a deed restriction prohibiting new wells on their property, and release Whirlpool from property damage claims. 
• Each class member will receive formal notice of the resolution, as well as an opportunity to opt out of the agreement;
• A federal Court will be required to approve the agreement; and
• Whirlpool has agreed to pay court approved fees and costs incurred by the class members.

An objection to the proposed settlement was filed in September by attorney Sam Ledbetter of the Little Rock law firm of McMath Woods, who said the deal was "great" for Whirlpool and leaves plaintiffs as the "losers in the proposal."

"The proposed settlement is a great deal for defendant in that it eliminates its exposure to additional types of damages, including punitive damages, avoids any expense associated with litigation, including having to engage in discovery, and allows it to encumber and access private property as if it were a government actor in a condemnation action, thereby avoiding significant expense associated with cleaning up the mess it has made," Ledbetter wrote.

He added, "In other words, for little or no effort, putative class counsel stands to reap a handsome fee."

In Holmes written opinion denying the settlement, he quoted attorney Kenneth Shemin when asked during hearings on the settlement whether "discovery had commenced."

Shemin: "No, but I know --…"
Judge Holmes: "You haven't done any discovery at all?"
Shemin: "I haven't. I don't need, Judge --…"

As a result, Holmes appeared to agree with Ledbetter's assertion on reaping "a handsome fee."

"To the Court, the clause appears to put the Plaintiffs at odds with the putative subclasses because it offers the Plaintiffs an award for deciding not to even begin pursuing their representative claims on behalf of the putative subclasses. … To some extent, the record in this case even raises a question about whether it is Plaintiffs or Whirlpool driving the class action."

The judge also noted that plaintiff Scott Day began "this lawsuit with an attorney whose goal from the beginning was to compromise for less than the damages he believes are available, even though that attorney also assumed that liability for the TCE plume would not be hotly contested."

He added that the actions call into question whether the plaintiff and his attorney will "vigorously prosecute the interests of a class."

Holmes also noted that plaintiff Glenda Wilson become part of the lawsuit "at Whirlpool's behest, as a result of extensive settlement discussions and because Whirlpool wanted to ensure settlement could reach the putative well-ban subclass."

"That Wilson became a Plaintiff and putative subclass representative at the eleventh hour at Whirlpool's behest does not in and of itself render her inadequate as a subclass representative. It does, however, raise a significant question about the extent to which she would vigorously prosecute the interests of the subclass."

Holmes left open the possibility of seeking certification at a future time, though Attorney Ross Noland of McMath Woods said Thursday (Dec. 4) that the “proposed class and settlement have serious issues with every legal requirement for certification and settlement, including the nature of the class and the lack of discovery to date. It is questionable if Whirlpool and Mr. Shemin can overcome those issues. It will be interesting to see if they try. In re the two cases filed by our firm: We are litigating the cases pursuant to the deadlines set in the Court’s  Oct. 23, 2014, scheduling order."

Ledbetter, Noland and Rick Woods of Taylor Law Partners in Fayetteville are co-counsel in the cases Noland referenced.

Jeff Noel, Whirlpool's vice president of communications and public affairs, said in a note Thursday to The City Wire that the company is "committed to doing the right thing for the residents of Fort Smith."

"Our efforts to achieve resolution through the class action process were intended to avoid protracted litigation and provide affected residents with an opportunity to make a decision on whether to take advantage of a substantial, transparent offer. The proposed class resolution was very generous, and we will continue to work toward a resolution that is fair, timely and enables both the residents and the company to focus on meeting the goals of the ongoing remediation effort.”

Link here for a copy of Holmes decision.

In January, the 90th General Assembly will convene with large Republican majorities in the Arkansas House and Senate as well as a full slate of GOP constitutional officeholders, including Gov.-elect Asa Hutchinson.

Rep. Jeremy Gillam, R-Judsonia, is the Speaker-elect and will preside over the House of Representatives. The House Speaker is the most powerful leadership position in the chamber and has the authority to appoint chairmen and vice-chairmen to various House committees.

Entering his third term, the 38-year old Gillam represents District 45, which encompasses part of White County, where he manages a large family-owned berry farming operation. He is a graduate of Beebe High School and attended Arkansas State University in Beebe, receiving degrees in criminology and psychology from Arkansas State University. He and his wife, Carissa, have two young sons.

Talk Business & Politics Editor-in-Chief Roby Brock caught up with Speaker-elect Gillam a few days before next week’s new member orientation to discuss his expectations for this large freshmen class, the big issues of the session, and how efficiently the 90th General Assembly could accomplish its business.

Brock: Next week, you have new member orientation in the House, a whole week full of activity. What will be going on?

Speaker-elect Jerry Gillam: Well it’s mainly going to be making sure that they get oriented to the overall process that we go through, sort of the rules and procedures and just kind of the rhythm of the way life will be down here. We try to give them a taste of that for a week at least, and before the holidays and then bring them back in January for showtime. So, its mainly just going to be showing them how bills are filed, how you run them in committees, how they run on the floor. Making sure that they understand that process is what the main focus of the session is going to be.

Brock: You have a really big freshman class coming in, 40 members. Have you had a chance to meet with some of them? What are your initial impressions of this incoming class?

Gillam: Initial impressions have been fantastic. I had a chance to meet with about half of them back in June that were unopposed in the November races and we brought them in for a couple of days and were able to do kind of a little mini-orientation with them. So I already knew about half of them and then have been able to engage with a few of them on the campaign trail as they were finishing up the races in November.

But since then, I have been able to meet and get to know some of the other ones that I hadn’t had a chance to previously, and I’m very impressed. We have a tremendous amount of talent that’s incoming with this freshman class and being able to couple that with the talent that we already had in the returning members, I think is going to make for an impressive House of Representatives.

Brock: Is it going to be a tough challenge for you? I mean dealing with that many new members in one fell swoop, I mean that has to be a management challenge.

Gillam: Well, I think since so many of them have been able to be a part of what we’ve been doing in the summer and in the fall with the different committee here and since they were unopposed, they have already kind of integrated themselves a lot into what we’re doing. So it’s not really trying to necessarily engage with 40 people at one time, as much as it is about, you know, 20.

And actually my incoming freshman class was larger than this freshman class. So, I’ve had some conversations with Speaker Moore, on how he managed it and he’s given me some tips… So, I don’t think it’s going to be a problem. I think it’s going to be a very smooth transition.

Brock: Are you giving some thought to your committee chairmanships and vice chairmanships? That’ll be a big deal. I know you’re not going to tip your hand today, but you have said previously that you’d be representative of the makeup of the body. How will you incorporate Republicans, Democrats and new members into these chair positions?

Gillam: The one good thing about it is because we’ve got that abundance, you know I’ve got a lot of great people to choose from. We’re definitely in that process now of looking at who all wound up on what committees. You know, because that’s one thing, if you wound up with, you know, 12 of your top people all on the same exact committee, that limits your options on some things. So we’re looking into who all wound up on the different committees and which ones have the heavier legislative workloads and have the time. There are constraints that might keep them from taking on those chair or vice-chair roles and we’re just kind of working into the process. But I think we’re going to be able to have a good field when we start the selection of the leadership.

Brock: Do you anticipate appointing some Democrats to a chair or vice-chair position?

Gillam: Yes, we’ve got extremely talented folks from the Democratic caucus and I think with their experience and skill sets, I think there are extremely viable candidates to take some of these committees and take their chairmanships.

Brock: Some folks would say this could be a particularly long legislative session with new members and all the issues you have to tackle. Are you going to get out of here for berry picking season?

Gillam: Yes, my goal is 85 days. That’s what we’re going to organize everything around and try to get in and out in 85 days. Senator Dismang and I have talked about that and the ambitious nature of it possibly, but we feel like you’ve got to set your goals pretty high and reach for them, so we’re going to try to get in and out as quick as we can.

Brock: Top couple of issues that you think you’re going to be dealing with this session?

Gillam: I think truthfully, most of everything is going to be driven from the budget. I mean that’s the main reason we’re here, that’s what we’re charged to do. A lot of that is to set a budget.

The extra stuff is kind of the icing on the cake in reality from what our actual charge is in the constitution. So the budget’s going to be our focus. From that, you’ll have the private option, corrections, we’re going to have to deal with some transportation funding issues. We’ve still got that systemic problem and the funding of the highways and we’re going to have to deal with it. So we’ve got several big issues, but as I said earlier, I feel like with the talent, experience, skills set that the members have, we’re going to meet that challenge.

Tyson Foods’ focus on its prepared food business is coming at the expense of it international presence. The Springdale-based meat giant announced July 28 plans to sell its Brazil and Mexico operations to competitor JBS for $575 million. The company is also delaying expansion in China after a November an Illinois-based company was alleged to have sold out-of-date poultry in China.

CEO Donnie Smith said during the recent earnings call the Brazil operations sale is expected to close by the start of 2015, with the larger Mexico deal closing by March 2015, pending regulatory approval.

Smith said the operations in Brazil were underperforming and there was no easy way for Tyson to take a major market share. The Mexico business (largely commodity-based) also paled in comparison to the potential Smith saw in the $8.5 billion acquisition of Hillshire Brand.

CHINA PROBLEM
Tyson also has put its expansion in China in a holding pattern given the lackluster consumer demand resulting from food safety scares. Tyson routinely gives updates on its China operations and in the longer run expects its investments there will pay off.

“We think our integrated model is further validated because we control and guarantee the food safety quality in this China production. We are watching for any signal that consumer demand is coming back and can ramp up production at any time,” Smith said during a recent meeting with analysts.

Smith recently told Bloomberg News that the company does not plan to ramp up production in China until they see clear signals of demand growth.

WEAK INTERNATIONAL CHICKEN SALES
While chicken has been a profitable venture in the U.S. amid lower grain costs and escalating beef prices pushing demand upward, that has not been the case in its international business.

In Tyson’s recent annual report the company notes its operating margins for U.S. chicken was 7.9% in fiscal 2014. It’s international chicken business posted a negative 8.8% operating margin as its plants were running at just 67% of an 8 million head capacity.

Tyson’s international sales were $1.381 billion in fiscal 2014, a gain of 4.3%, despite the challenges. While international sales grew minimally in 2014, the operating losses continued to widen since 2012. In 2014, the international segment lost $121 million, widening from $37 million lost in 2013. In 2012 the company’s international segment had an operating loss of $70 million, according to Tyson Foods’ annual report.

Tyson said its sales volume increased but its average sales price decreased due to poor export market conditions in Brazil, supply imbalances associated with weak demand in China and a less favorable pricing environment in Mexico.

Operating income decreased due to poor operational execution in Brazil, challenging market conditions in Brazil and China, according to the annual report. Additionally, operating income was reduced by $42 million related to an impairment of Brazil assets and other costs related to the pending sale of Tyson’s Brazil operation. 

STILL BETTING ON INDIA
Tyson invested in India in 2008, but rarely mentions the business there in earnings calls given the smaller scale of this operations. Godrej Tyson serves the food service industry in southern India. It also produces retail fresh chicken under the Real Good Chicken brand, and further processed chicken under the Yummiez brand. 

“We sell fresh chicken in west and south India and frozen chicken and Yummiez products in more than 70 cities across the country. The combined production of the two plants in Mumbai and Bangalore expanded this year from 300,000 chickens per week to 500,000 chickens per week,” said Tyson spokesman Gary Mickelson.

Tyson was eager to invest in India given its billion-plus population and growing economy. One drawback has been that many people are vegetarian. Per-capita chicken consumption is less than five pounds per year.

Mickelson said consumption is growing at a rate of 10% a year, which is among the highest in the world. The country’s poultry industry is fragmented, with more than 90% of chicken sold in live markets. Due to rapid urbanization in India, there is an increasing demand for safe processed chicken as consumption shifts from a grain-based diet to poultry, meat, fish, fresh fruits and vegetables, he said.

Financial security among Americans is another indicator of a stronger economy, but the degree of relief and its sustainability is uncertain. Bankrate’s Financial Security Index rose again in October for its third consecutive month with a reading of 101.

The gain was linked to an improvement in job security, comfort level with debt, net worth and overall financial situation. That said, the survey continues to show concern about deteriorating savings over the past 12 months and stagnant incomes for many U.S. households.

The recent results indicate 66% of respondents said they have reasons to limit their monthly spending. Half of the respondents who said they limit spending, do so because their income hasn’t changed. One in three respondents believe they need to save more money and 16% said they are still worried about the economy.

Greg McBride, chief economist with Bankrate, told The City Wire, that one of the more troubling aspects with this year’s results is that 41% said their top financial priority is staying caught-up or getting caught-up on their bills. 

“This is up from 36% last year and 32% in 2012 which indicates to me that more Americans are having a tougher time bridging the gap between stagnant wages and higher expenses,” McBride said.

GAS PRICE RELIEF
The Census Bureau recently reported that median U.S. household income has been unchanged from 2012, and when adjusting for inflation it’s 8% lower than at the peak in 2007. Median income hasn’t shown a statistically significant increase since the recession ended in 2009.

“The only real raise in income that many families have seen in quite some time is the relief they are feeling from lower gas prices. The average two-car family can see a savings up to $50 per month. This is money that will go a lot further in lower income households and those living paycheck to paycheck,” McBride said.

When asked about job security, one in four respondents said they are more secure this year compared to a year ago. Two-thirds feel the same as a year ago and 13% have reasons to feel less secure about their jobs. Looking at specific demographics, the survey found Millennials are nearly twice as likely to feel secure about their jobs than workers approaching retirement between the ages of 50 and 64.

The survey results also revealed that one-third of respondents are less comfortable about their savings compared to the same period in 2013. Nearly half (49%) said they have saved about the same money as last year and that’s okay with them. The survey also revealed that full-time workers were nearly twice as likely to be comfortable with their savings level than those working part-time jobs.

‘NONEXISTENT’ WEALTH RECOVERY
The U.S. Bureau of Economic Analysis keeps track of personal consumer savings which have risen from 4.5% to 5.6% from October 2013 to October 2014. The savings rates have been above 5.3% since May. 

McBride said he doesn’t expect most families to save the estimated $50 per month realized from lower gas prices. 

“This isn’t a check that comes in the mail, it is gained incrementally each time the family fills up the tank. I suspect most of the savings will be spent on food or insurance costs that continue to rise,” he added.

Slightly more than half (59%) of those surveyed said their net worth is on par with a year ago. About a one-quarter noted their net worths — total assets minus debts — is higher today than last year. About 15% said their net worths have dropped year-over-year.

McBride said only those households with real assets — real estate and stocks/bonds — have seen their net worth’s rise as real estate values rebound and the financial markets set new record highs. 

“For much of the country this wealth recovery has been nonexistent,” he said.

OVERALL FINANCIAL PICTURE
The final question in the survey asked respondents to compare their overall financial situation to a year ago. Half of them noted their overall finances are the same as last year. The other half were split fairly evenly between “better” or “worse”. 

Boomers approaching retirement made up the majority of those who feel their situation is worse year-over-year. Millennials who are college graduates had the brightest financial outlook in the survey. Unemployed respondents made up 17% of the group who said their financial situation is worse than last year.

The Financial Security Index had a reading of 97.5 in October 2013, which was the low mark for the past 13-month period, according to Bankrate. The index, which is a measure of consumer’s sentiment regarding their own household finances peaked in January at 102.5, only to dip sharply in February to a reading of 99 and then rebound to 101.75 in March. Through the spring, sentiment readings slid to 98 but bounced back in June to 102. Readings were flat at the 100 mark in July and August but started to trend slightly higher in September, moving up to 101 in October.

Economists expect sentiment to move a little higher in November and December the amid lower gasoline prices. They expect to see several tenths added to the fourth quarter GDP growth since fuel prices began falling last month.

"Every penny on seasonally adjusted gasoline prices should be worth about $1 billion," economist Stephen Stanley said during a recent interview with CNBC. "Over the course of the year that's probably an extra three- or four-tenths on GDP."

Stanley is the chief economist with Amherst Pierpont Securities in New York.

Economists agree for the fuel savings to carry a real punch, the drop in gasoline prices will have to be prolonged.

Building permits in Fort Smith, Greenwood and Van Buren were a combined $5.599 million in November, a drop of 5.81% from the same month last year when permits totaled $5.944 million.

The cities also showed a decline in values of 68.7% from October to November, with October's building permits boasting values of $17.886 million.

The declines month over month are indicative of a sluggish year overall for permits in the three cities, with the three seeing an overall decline in value of 7% for the first 11 months of 2014 compared to the first 11 months of 2013. During the period, $182.321 million in permits have been issued this year, while the same period in 2013 saw permits totaling $196.046 million.

The city of Fort Smith posted the largest 11 month total, bringing in $157.194 million, while Van Buren had permits totaling $17.768 million and Greenwood posted only $7.359 million in permits for the first 11 months of this year.

FORT SMITH
The city of Fort Smith posted 108 permits last month with a total value of $4.931 million. Compared to October's values of $15.629 million, November's figures are down 68.45%.

Values are also down compared to the same month last year, when Fort Smith issued $5.399 million in permits, resulting in a decline in permit values of 8.66%.

Commercial construction showed the most strength in November, with a total of $3.488 million in permits issued. Of those 19 commercial permits issued, six were for remodels totaling a cumulative $3.067 million.

Residential construction, which had been boasting strong numbers for much of the year, was weaker in November with only 68 permits issued with a value of $1.156 million.

GREENWOOD, VAN BUREN
The city of Greenwood only issued two permits last month totaling $24,260. The permits issued were for a $10,000 commercial repair/remodel and a $14,260 residential repair/remodel.

Compared to November 2013 when $177,990 in permits were issued, November 2014's total represents a decline in values of 86.37%.

The only city to see an increase in building permit values was Van Buren, which saw values increase 75.11% from $367,600 in November 2013 to $643,700 in November 2014.

Driving Van Buren's totals were nine residential building permits totaling $448,800. Additionally, a commercial remodel at the Best Western Motel located at 1903 North 6th Street had a permit totaling $100,000.

2013 RECAP
Combined values in the three cities during 2013 were $203.037 million, compared to $157.32 million during 2012. The 2013 value is above the $201.079 million in 2011.

Fort Smith closed 2013 with the largest share of valuations, logging $177.687 million (a one-year increase of about 30.24% from $136.428 million in 2012), while Van Buren was the next largest with $17.067 million (a one-year increase of 38.96% from $12.282 million in 2012). Greenwood posted an additional $8.283 million, the only city to show a decrease from the previous year's total of $8.609 million (a decrease of 3.79%).

The gains in the Fort Smith market were largely from industrial construction projects at Chaffee Crossing, the construction of Mercy's new orthopedic hospital along Phoenix Avenue and various municipal construction projects across the city.

Consumer sentiment may be lower in Arkansas than other parts of the country, but Director of the Center for Business and Economic Research at the Sam M. Walton College of Business at the University of Arkansas in Fayetteville Kathy Deck told the Fort Smith Regional Chamber of Commerce's First Friday Breakfast attendees that the local Fort Smith economy should expect a turn around in the coming months and years.

Deck's speech to the Chamber crowd comes the same week Arvest Bank, in conjunction with Deck and the Walton College and three other regional universities in Missouri and Oklahoma, released the Fall 2014 Consumer Sentiment Survey showing a slight drop in consumer confidence across the region.

In the Fort Smith region, she said the lowest point economically in recent years was the closure of the Whirlpool manufacturing facility in south Fort Smith, which sent a ripple effect through the supplier community and put Fort Smith's unemployment figure at among the highest in the Arkansas and Oklahoma region.

The Fort Smith area manufacturing sector employed an estimated 18,000 in August 2014, down from 18,200 in July, and down from 18,400 August 2013. Sector employment is down almost 37% from a decade ago when August 2004 manufacturing employment in the metro area stood at 28,400. Also, the annual average monthly employment in manufacturing has fallen from 28,900 in 2005, 19,200 in 2012, and to 18,300 in 2013.

The Northwest Arkansas manufacturing sector employed an estimated 26,200 in August 2014, down from 26,300 July, and down from the 26,500 during August 2013. Sector employment is down 21.3% from more than a decade ago when August 2004 manufacturing employment in the metro area stood at 33,300.

But Deck said with the shock wearing off from the Whirlpool closure and the continued rebound in the local economy, the Fort Smith region could start posting positive employment numbers that match job announcements with jobs data.

"What you see is that Fort Smith was in decline for several years and has basically stabilized in terms of its employment perspective. Like I said, when you combine the (jobs data) with the announcements that are out there, we could begin to see significant improvement over the next year or two in the Fort Smith economy."

Deck's speech not only came the same week as the release of Arvest's consumer sentiment figures, but just minutes after the announcement that the national unemployment rate had held steady at 5.8%, with 321,000 jobs added in November.

The unemployment rate, Deck added, was in line with what is considered solid unemployment figures in years past.

"When I was in school, I was told that 6.5% was the natural rate. So 5.8% is a historically good unemployment rate," she said, though she added that the improvements at the national level will take longer to trickle down to Arkansas and the Fort Smith area as the region lagged fully entering the recession and will lag getting out of it.

What should help continue driving economic growth in the short term, Deck said, is if this winter remains relatively mild and dry. Compared to last year when a quarter of economic data was directly impacted due to winter weather crippling much of the country over multiple storms, she said the data and weather are already pointing to an improved year that should not be disrupted nearly as much by the climate.

For the long term outlook, Deck said moments like these with solid growth in gross domestic product over long periods of time generally get economists a bit on edge about when the hammer will fall and a period of slow growth or recession could begin. But she said with the latest jobs data, the signs just are not there for a sudden course correction.

"When you're at this point of expansion, some of us start to get a little bit nervous … because we do live in a business cycle and this is already longer than most post-war expansions have been in economic history. So sometimes you start to wonder if there are signs on the horizon that we're getting into the next recession just from a business cycle perspective. But I'm here to tell you not really. Those kind of warning signs out there about what might be a future recession just aren't appearing."

The U.S. Marshals Museum, a planned $53 million museum to be located along the shores of the Arkansas River near downtown Fort Smith, will host its first ever U.S. Marshals Stampede: Kickin' Up the Dust fundraiser next year.

The event, set for March 14, 2015, at Kay Rodgers Park in Fort Smith, will feature a variety of entertainers including the Austin, Texas-based headline act Asleep at the Wheel. Other acts set to perform include Nashville, Tenn.-based musical artists Heath Wright and The Hangmen, as well as singing duo Chris and Lolly. Chris Swicegood of Chris and Lolly is a Fort Smith native, as is the group The Crumbs, who will also perform at the gala.

In addition to the musical acts, the museum said it would also recreate an Old West Town with a separate casino and saloon area, which will feature games including blackjack and Texas Hold'em. There will also be casino prizes, open bars, "Kickin' Up the Dust" cocktails, mechanical bull riding, a live auction with exclusive premium items and more, the museum said.

The event will feature a "culinary chef-inspired Old West menu," a press release noted.

A "Stampede" raffle featuring a Bass Reeves Commemorative Rifle and jewelry from Newton's Jewelers may be purchased at Newton's Jewelers and at the gala. The jewelry will be on display at the store in the days and weeks preceding the gala, while the rifle will be on display at the museum offices in downtown Fort Smith.

Tickets go on sale Feb. 1 and will be $200 each, though twilight tickets with entry to the event after 9 p.m. can be purchased for only $100. The museum said full-priced tickets include a meal, entertainment and dessert whereas the twilight tickets will include just entertainment and dessert.

An exclusive seating area in the "Corral" for individuals and corporate sponsors of the event will be available from $3,000 to $50,000. Reserved seats for 10 in the arena outside of the "Corral" may be purchased for $2,500.

A VIP reception will be hosted beginning at 6 p.m. for sponsorships starting at the $3,000 level, with general admission beginning at 7 p.m.

The amount the museum hopes to raise from the event has not yet been determined, though as of the June 30 quarterly museum board meeting, Marshals Museum President and CEO Jim Dunn reported that the museum had $5.5 million cash on hand, with an additional $3.2 million in pledges. The combined $8.7 million reported as of the June 30 report was a decline from March, when Dunn said the museum had between $9 million and $9.5 million "in cash or pledges receivable."

Of the cash on hand and pledges as of the end of the June 30 reporting period, there is "no specific breakdown" of whether the money is to be used for construction, operations, or both according to museum spokesman Denver Peacock, whose company The Peacock Group has been hired to handle public relations for the museum.

Since the June 30 report was released, Peacock said the museum has upped the number of pledged gifts to $19.5 million, including a $5 million pledge announced last week that is payable by the end of 2015.

Dunn told The City Wire in March that the museum would cost more than $50 million to build and would be broken up into three construction segments based on funding. Dunn had previously said the first phase of construction to be kicked off with a September groundbreaking would be self-funded. The first phase largely focuses on site work allowing for the other two phases of construction to begin at later dates.

"We will self-fund the 2014 phase (of construction)," Dunn said in March. "In 2015, we will aggressively fundraise. Plans are in 2015, when we've reached necessary fundraising thresholds, then we can hopefully apply (for the tax credits). ... Ideally, we'd like to have $25 million in cash or pledges next year sometime.”

An expected $10 million in new market tax credits is uncertain, with the museum looking at the possibility of spreading the tax credits out over multiple years. And even though the museum will apply for the credits, which are meant to drive economic development in economically challenged areas, there is no guarantee that the tax credits will be awarded, presenting a possible future funding challenge.

The Marshals Museum is also counting on possibly up to a $5 million windfall from the sale of commemorative U.S. Marshals coins. Dunn has previously said an additional $4 million to $5 million in museum funding could come from sales of the commemorative coin.

Col. Mark Anderson, the officer who oversaw the historic transition of the 188th Fighter Wing in Fort Smith to a unit without a manned flying mission, will soon step down as the commanding officer of the 188th Wing. His replacement will be Col. Bobbi Doorenbos, according to a statement issued Sunday (Dec. 7) by the Arkansas Air National Guard.

Brig. Gen. Dwight Balch, Arkansas Air National Guard commander, made the announcement to 188th Airmen during a Sunday commander's call gathering at Ebbing Air National Guard Base in Fort Smith. The change of command is set for Jan. 11.

Anderson has served as the 188th Wing commander since April 14, 2012. After the command transition Anderson is expected to serve at the Arkansas National Guard Joint Force Headquarters located at Camp Joseph T. Robinson in North Little Rock.

"It has been an honor to serve as commander for the amazing men and women of the 188th over the past two and a half years," Anderson said in the statement. "We've endured some of the most monumental challenges in unit history. We've overcome some arduous obstacles and I continue to be impressed by the hard work, dedication and sacrifice made by our Airmen and their families to ensure our success. The wing is truly a family and it was a privilege to be a member of the Flying Razorbacks.”

Broad cuts in U.S. defense spending – possibly up to $500 billion over 10 years – included the removal of 20 A-10 Thunderbolt fighter planes from the 188th Fighter Wing in Fort Smith. It was announced in 2012 that the A-10 Thunderbolt fighters of the 188th would be lost and the unit’s mission would change to an intelligence, surveillance and reconnaissance (ISR) mission.

The unit transitioned in June to the new mission.

Overall, the 188th ISR Group will have 347 members, and at some point will operate from a planned $12.5 million, 40,000-square-foot facility to be built on the 188th base that Col. Anderson has said could help the 188th become an “ISR Center of Excellence.” Counting operations, security, medical and other groups, the 188th will have more than 900 personnel who will train and operate from the Air National Guard base in Fort Smith.

The incoming 188th commander has experience with the new 188th mission. She now serves as the commander of the 214th Reconnaissance Group, located at Davis-Monthan Air Force Base near Tucson, Ariz. As 214th commander, she is responsible for providing combat-qualified MQ-1 Predator aircrews in support of contingency operations overseas, and domestic incident awareness and assessment capabilities in the United States.

"Col. Doorenbos has impeccable credentials and the experience necessary to excel as the new 188th Wing commander," Balch said in the statement. "We believe her leadership and diverse skillsets will continue to fuel a bright future for the 188th as it works to achieve operational status in its new missions.”

Doorenbos said she looks forward to the new command and continuing “the Flying Razorbacks' legacy of excellence.”

Retired Gen. Wesley Clark, former NATO Supreme Allied Commander and one-time Democratic Presidential candidate, has written a new book that suggests the key to America’s best opportunity to lead the free world involves energy independence to strengthen the economy.

In an interview on Talk Business & Politics, Arkansas native Clark said his book, “Don’t Wait For The Next War,” is not a prelude to another Presidential run, but an effort to instigate a new national dialogue.

“It’s not in my future,” Clark said of his Presidential interest. “You can’t communicate a serious idea in American politics today. I tried it when I ran for office 10 years, 12 years ago.”

He cited a speech he gave during his 2003-04 Presidential campaign that outlined a 25-year and 100-year vision for America. After receiving little to no press coverage, Clark asked a national political reporter why.

“General, your problem is not a 25-year vision, your problem is next week,” the reporter replied.

“There’s a real ‘short term-ism’ in America. It’s a lot about the horse race in politics and that’s important, but I want to get ideas out there because this country is facing some critical, critical junctures,” Clark said.

Citing geopolitical challenges in China, Russia, and the Middle East, Clark said America’s best hope is to build economic strength through energy independence – that’s the premise of his book. He’s been an investor and advisor to a number of energy-related businesses, which translates to the retired general effortlessly rattling off a number of energy statistics.

“It’s the single most important concept in America’s future right now. We have a chance with the shale boom revolution to stop importing foreign oil,” he said.

But with rancor in Congress and the lack of political will to build the Keystone XL pipeline as an example, Clark was asked how to bridge the gulf between energy enthusiasts who adopt an “everything goes” approach and environmentalists who argue for alternative fuels and a shift away from carbon-related energy.

Clark says he’s in search of a political bargain.

“Isn’t politics the art of the compromise?… If everyone believes that his special hobby horse is more important than the good of the country as a whole, isn’t that the road for destruction?” he said.

Clark advocates for a carbon tax that could boost tax coffers for repairing highways and be an incentive to develop alternative fuels.

“You do have to work with the environmental movement. They have to understand that there is something bigger than the environment. There’s the future of America. If this country is not the leading country in the world, then all of our environmental dreams won’t make it anyway,” Clark said.

This year has brought record cattle and prices across the U.S. as the overall herd shrinkage continues. Cattle expert Derrell Peel, extension livestock marketing specialist at Oklahoma State University, warns 2015 will likely see more record prices and imports with fewer exports and reduced packer production.

“For the most part, the same factors we have been watching in 2014 will determine how much higher cattle and beef prices will push in 2015,” Peel said.

While he expects the Jan. 30 Cattle Report to show some slight herd expansion, Peel said the projected 2014 increase ranges between 0.5% to 1%.
 
He said the herd expansion is expected to continue in 2015 and for several more years but it is not guaranteed because severe drought conditions persist in the far west and marginal-to-severe drought areas remain in the southern plains and southwest. The plains of Texas and southwestern Oklahoma and Kansas have the most potential for herd expansion, having been most depleted during the drought, he added.

Peel predicts feeder cattle supplies will continue to tighten into 2015 with a smaller 2014 calf crop, increased heifer retention and likely less cattle imports from Mexico and Canada. He said the 2015 calf crop may grow with limited herd expansion in 2014 but continued heifer retention in 2015 will keep feeder supplies tight.

Tyson Foods CEO Donnie Smith also predicts cattle supplies will be lower for the next several years. He said recently that it could be 2020 before fed cattle supplies return to their 2014 levels. He said Tyson is fortunate to have slaughter facilities in regions where there is more cattle available.

Cargill closed its plant Plainview, Texas, in February 2013 primarily because of the the tight cattle supply brought about by years of drought in Texas and Southern Plains states. The U.S. cattle herd is at its lowest level since 1952. 

Peel said beef processing production is expected to drop between 1%-to-2% in 2015 on the heels of the 6% drop sustained this year behind plant closures and reduced capacity reported by the major packers.

Smith said demand for beef has stayed relatively strong until recently, despite sharp price increases.

“If has just been recently that we have seen consumers trade down to a cheaper protein like chicken. We expected this would happen long before now, but consumers kept buying beef, maybe it was hamburger instead of steak; but now they are buying more chicken,” Smith said during a recent global consumer conference.

Peel agreed, noting that all eyes will continue to be on beef demand in 2015 as further reductions in beef supplies will push wholesale and retail beef values higher. Beef demand in 2014 was stronger than expected but additional meat supplies from increased pork and poultry production in 2015 will add additional pressure to retail beef markets. He said retail beef prices are expected to rise higher but feedlots and packers will struggle to maintain margins as increased feeder and fed cattle prices will outpace the speed of wholesale and retail price adjustments. 

Peel predicts cattle slaughter will decrease another 1.5% to 2.5% in 2015 with fewer cows and yearlings in the slaughter mix. He said steer and heifer carcass weights will trend a little higher in 2015, but are unlikely to increase much above current record levels.

Peel said international beef trade plays a role in supply and demand within the U.S. beef market.
 
“Beef exports are a component of total beef demand, enhancing value by providing markets for beef products, such as offals, which are undervalued in the U.S. and additional demand for muscle cuts,” he said. “In 2014, total beef exports so far are close to year earlier levels including lower exports to Canada; slightly lower to Japan; but up sharply to Mexico, South Korea and Hong Kong.”

He said record high U.S. beef prices are rationing export beef demand but only modest decreases in beef exports are expected in 2015. Beef imports supplement supplies of specific types of beef in the U.S. market; particularly lean beef for ground beef production to support the enormous U.S. appetite for hamburger. 

This year beef imports are up sharply from drought-stricken Australia and up modestly from other major import sources including Canada, Mexico and New Zealand. Peel said additional increases in beef imports are expected in 2015, primarily to partially offset continued reductions in lean beef supplies due to reduced cow slaughter. 

He said the strength in the U.S. dollar is making U.S. beef exports more expense and beef imports cheaper thus tending to decrease beef exports and increase beef imports.

Crawford County residents could have their daily commute detoured for the next year, but the end result will make for an easier commute and could ultimately save lives.

According to Crawford County Director of Emergency Management Dennis Gilstrap, one of two low water bridges on Pevehouse Road on the border between county land and the Van Buren city limits will be replaced using a Federal Emergency Management Agency (FEMA) grant, as well as funding from the county and the city of Van Buren.

Gilstrap said the use of the grant, which will cover 70% of the $1 million cost of the bridge, is unique.

"These grants are normally used to build safe rooms at schools, buy properties back that have flood damage and relocate people out of the flood area. That's normally what these grants have been used for. But in the verbiage of the grant, it says, 'Or other projects to help a flood problem.'"

With the low water crossing at Pevehouse between Mitzi Lane and Sandstone Drive flooding on average 20 times per year and cars occasionally attempting crossings and getting washed off the road despite police closing the crossing during flooding, Gilstrap said it was time to replace the bridge.

"There have been several times the fire department has had to go down there (and rescue motorists)," he said. "For me, it was a matter of time before someone was going to drown on that bridge. For me, $1 million is a lot of money to build the bridge, but you consider what a life is worth. But if that bridge saves one life 10 years from now, it's paid for itself."

Van Buren Mayor Bob Freeman echoed Gilstrap's sentiments on public safety.

"This bridge is a life safety issue that must be addressed and although it will be an inconvenience for the public while under construction, the end results will be well worth it," he said.

Freeman said the county and the city would work to jointly fund the remaining project cost not covered by the FEMA grant and said it showed how governments can work together to accomplish goals for the community at large.

"The County and the City have been working toward this project for a number of years," Freeman wrote in an email. "This is another example of the tremendous cooperation that exists between the two entities for shared capital improvement projects."

Gilstrap said the county is fronting $300,000 and would be reimbursed by the city for up to $100,000 of the cost of the project since the "bridge sits right on the city limit's line."

The bridge, which sits about three feet above the creek that runs below it, will be elevated to 12 feet in height, which Gilstrap said should prevent future flooding across the roadway.

The section of road which contains the bridge is scheduled to close Jan. 5, though Gilstrap said residents may notice construction going on in coming weeks before the official closure.

The detour around the closure will have drivers taking North Hills Boulevard to Sandstone, which will empty on the back end of Pevehouse Road beyond the construction. Construction is scheduled to be completed in September, weather permitting. The grant states construction, even with delays, must be completed no later than Dec. 31, 2015. Lentz Construction Company of Morrilton is the project contractor.

Gilstrap noted that the project should help alleviate safety issues for drivers during heavy rainfall events, but it will not solve all the flooding issues in that part of the county. A low water bridge just a few blocks past the section slated for replacement will still be subject to flooding on occasion.

"For that second bridge, we hope in the future to move on to it," he said. "It'll be a little more complicated because it's right in a curve. We'd like to elevate it some, but it probably will not be a full-fledged bridge. But it's a future project. Nothing is anticipated in this grant to do that second bridge."

During construction of the bridge between Mitzi Lane and Sandstone, Gilstrap is urging patience from the public.

"We want people to be patient and understand why the bridge is closed. We will move along with the project as quick as we can to get it completed."

The state’s banking sector has climbed out of the doldrums in the past few years and through three quarters of 2014 the financial sector is healthier than a year ago, according to the Federal Deposit Insurance Corporation State quarterly profile.

“There has been significant improvement in the banking sector since the financial crisis. We should continue to see improvement in banks both in Arkansas and throughout the nation during the year 2015. The number of banks on the FDIC’s problem list has declined to 354 which is a 63% decrease from the high of 888 during the financial crisis,” said Garland Binns, bank attorney for Little Rock-based Dover, Dixon and Horne.

The FDIC reports the segment grew its employment across the state to 18,930 full-time workers in the third quarter, despite more bank consolidation to 111 financial institutions as of Sept. 30, down from 120 reported at the end of 2013.

Bob Taylor, president of Parkway Bank in Rogers, gives the local banking sector a solid grade of “B” this year. He said home construction and commercial building continue to show signs of strength in Benton and Washington counties.

“We are one of the smallest banks in this region and somewhat constrained by capital but there is growing demand as we see it. We are making sure we’re shepherding our capital the best we can to take advantage of growth opportunities,” Taylor said.

He expects Parkway to experience a 4% to 5% loan growth in 2015, despite the ongoing cost increases of unfolding regulation.

Sam Sicard, president and CEO of First National Bank of Fort Smith, also is optimistic about the sector but said competition and regulation may dampen results.

“The profitability and financial health of the banking industry is closely correlated with the condition of the economy. This past year the national economy has strengthened, which has led to increased loan demand and lower loan losses. I expect the national and local economies to continue to steadily improve next year due to improved consumer confidence, increased employment levels, and the significant decline in energy costs,” Sicard said in a statement. “However, improvement in profitability will be somewhat limited by aggressive competition between numerous financial providers and the financial burdens of dedicating more of our staff to complying with increased government regulations.”

REGULATION POLITICS
“We have yet to feel the complete impact of the Dodd Frank regulations. About 50% of the regs are still being written. We are outsourcing some of our added regulatory work given our small size, but that’s still an added cost to the bottom line,” Taylor said.

He and other bankers remain hopeful that the new Congress will take a hard look at this legislation and its impact on community banks who had little to no responsibility in the overall financial meltdown of 2008.

Dr. John Dominick, banking analyst and professor at the University of Arkansas, said perhaps the Republican Congress will keep the regulations in place but not add any others. He hopes they will reevaluate the mortgage lending requirements under Dodd Frank, which he said are too stringent in some cases.

“Just because something looks good in theory, does not mean it makes sense when it’s applied to a diverse group of borrowers,” Dominick said.

He said the capital requirements and stress tests on larger banks will likely remain problematic as the law attempts to over-manage bank capital.

The FDIC reports Arkansas banks had combined capital equity of $7.867 billion, a gain of $596 million so far this year. Dominick said profitable banks add to their capital holdings each quarter. He said as profits continue to increase amid lower loan loss requirements capital levels should continue to rise.

ASSET, BOTTOM LINE GROWTH
Total assets in Arkansas-based banks grew to $64.941 billion as of Sept. 30, a gain of $2.891 billion or 4.6% this year. Assets rose 5.95% since 2012 and 11% since 2011. Dominick said a decline in the money banks must set aside to account for possible bad loans (loan loss provisions) have and will continue to help bottom lines.

“I expect bank profits around the state to continue to grow. We may have some interest spread margin reduction in the future, but the ongoing reduction in loan loss provisions will be the biggest catalyst for higher bank profits in 2015,” Dominick said.

Net loans among Arkansas banks grew to $39.849 billion through the third quarter, a gain of $2.7 billion from the end of 2013. Loan quality also improved requiring less money be set aside in loan loss provisions. The loan loss allowance in the third quarter was $634.137 million, down from $674.612 million a year ago.

Bank balance sheets are leaner this year as real estate owned by the financial institutions from loans foreclosed continue to shrink. The combined 111 banks held $469.226 million in real estate assets on their books as of Sept. 30, well below the $572.563 million at the end of 2013.

While real estate owned is shrinking, Dominick it remains a problem for some banks in Northwest Arkansas and those who invested in the region. He said it is the biggest problem going forward for smaller banks who have millions tied up in property. He said a $15 million other-real-estate-owned (OREO) position means a bank doesn’t have that money to loan to consumers. It’s a stagnant asset that many times costs the bank in added fees for maintenance and upkeep.

“It’s going to take a few more years to burn off the overhang of real estate on some bank books. Demand for new loans is pretty good but there is a plethora of banks bidding on each loan. Banks constrained by capital or high OREO holdings can have a harder time competing,” Dominick said.

There are still a few banks across the state working through credit quality issues. A benchmark measurement to gauge credit problems at a particular bank is known as a Texas Ratio. It takes the amount of a bank's non-performing assets and loans, as well as loans delinquent for more than 90 days, and divides this number by the bank’s tangible capital equity plus its loan loss reserve. A ratio of more than 100 (or 1:1) is considered a warning sign.

Arkansas banks registering the highest Texas Ratio metrics as of Sept. 30 include Pinnacle Bank, (Rogers) 191.78%,  and Allied Bank (Mulberry) 123.93%.

Between $3.4 billion and $7.8 billion should be invested in the infrastructure needed to help Arkansas take advantage of surface water instead of unsustainably pumping from depleting groundwater sources. The good news: The state has more than enough surface water to take care of its needs.

Those are some of the conclusions of the Arkansas Water Plan 2014 Update, a non-binding strategic plan that guides the regulatory and legislative priorities of the Arkansas Natural Resources Commission. The plan, first published in 1975, was last updated in 1990, and the current update began in 2011. The commission will vote on whether or not to accept the 2,622-page update Tuesday.

According to the plan, Arkansans will use 11 billion gallons of water today. In a year’s time, that’s 12.4 million acre-feet – enough to cover the entire state in 4.2 inches of water.

Ed Swaim, Arkansas Natural Resources Commission water resources division manager, told the American Council of Engineering Companies of Arkansas Friday that, by 2050, that number rises to 14 million acre-feet per year, which raises the water level to 4.9 inches.

About 71 percent of state needs are supplied by pumping groundwater. Demand for groundwater is already 8.7 million acre-feet per year and is expected to grow, while groundwater can supply only 1.9 million acre-feet per year at a sustainable pumping rate. Arkansas County has already bottomed out in places and is using surface water. Mississippi County will lose maybe 40-50 feet of its water table in the coming years, Swaim said.

“The folks with the superabundant groundwater, they don’t like to acknowledge it, but their day is coming. They’re going to see these declines,” Swaim said.

80% of all water use in Arkansas goes to crop irrigation, followed by thermoelectric power, which uses 11%, and public drinking water, which uses 3.5%. Industrial demand is 291 million gallons a day and is decreasing. The state averages 259.2 million gallons a day for flooding fields to hunt ducks – almost as much as it uses for manufacturing, Swaim said.

As a result, rapid depletion is occurring in the Grand Prairie’s alluvial aquifer, the Sparta Aquifer in south Arkansas, and areas east of Crowley’s Ridge where the Mississippi River doesn’t penetrate the clay soil.

Groundwater conservation efforts could reduce the supply gap by 12% to 22% – not nearly enough to solve the problem. But Arkansas has abundant surface water through a network of rivers and lakes along with rainfall totaling four or five feet per year, Swaim said.

Gaged streamflow in the state is 92.5 million acre-feet per year, of which only 57.5 million acre-feet is needed to maintain current needs for transport, fish and wildlife, and maintaining the flow into neighboring states. And that’s not counting the Mississippi River, which was left out of the report because it borders other states. Of the rest, a quarter can be diverted under current state law. That would provide about 8.6 million acre-feet per year – about the same as the current groundwater deficit. More would be available by changing the law.

The cost of diverting enough surface water to meet Arkansas’ needs is between $3.4 billion and $7.8 billion. Pumping surface water horizontally will be cheaper for farmers than pumping groundwater vertically, Swaim said. Arkansas’ annual agricultural production has a $9.7 billion market value, according to the plan.

“This is where we believe that we’ll meet our future needs,” Swaim said. “And if we do it, and it will cost about as much as those improvements to water and sewer projects, to build the infrastructure and move this water primarily in east Arkansas, we will not have a shortage of water to do everything we need to do, and we will not have harmed any other use of water.”

The draft plan recommends that the Arkansas Natural Resources Commission have the authority to force the merger of small water and sewer systems that cannot meet their financial obligations on their own. It also calls on the commission to encourage more voluntary sustainability planning by water system boards.

A potential area of disagreement is a proposal to ask the Legislature to require all farmers applying poultry litter or animal-based fertilizer to have a nutrient management plan. Currently only farmers in Northwest Arkansas are required to have a plan, Swaim said in an interview after his presentation.

Millennials are often characterized as the generation who live in the moment. But a new report from the Nationwide Retirement Institute disputes the image, finding that 64% of millennial investors (aged 18 to 35) report they have a financial plan. 

The survey also discovered that 68% of the younger investors believe they’re only saving half of what is necessary.

Mike Spangler, president of Nationwide’s mutual funds group, also believes this demographic is likely to come up short in retirement. He said more than one-third of this educated generation with access to a plethora of information is merely guessing at how much they will need to fund their retirement. That is on top of the 25% who aren’t sure if they have a 401(k) plan. 

“While 58% of Millennials conduct their own financial research and make their own investment decisions, only half are confident they know how much to save for retirement. For those Millennials without a financial plan, 28% feel that creating a financial plan is overwhelming and 40% said that they haven’t gotten around to it yet,” Spangler noted.

Half of the respondents admit they would be more financially successful if they sought out professional advice, but only 39% of them actually do it.

SEVERAL JOBS, CAREERS
Unlike their Baby Boomer parents who had a relatively easy route to retirement — work for the same company for 30 years and retire with a pension — the Millennials will change jobs more often, which can reduce their retirement funds.

According to the most recent statistics from the Department of Labor, the median job tenure for 55 to 64 year olds was 10.4 years. Among 25 to 34 year olds, it was just three years. Someone retiring today may have worked a maximum of three jobs in their adult life. By the time a Millennial turns 70, they will have worked 10 to 14 jobs on average based on that DOL statistic.

A 2014 report from the Transamerica Center for Retirement Studies found that 81% of Millennials don’t expect Social Security to be a viable source of income when they retire. The report urges Millennials to begin saving for retirement as early as possible — age 22 upon college completion as opposed to age 35 for Baby Boomers.

One of the reasons Millennials need more time for savings is that they are likely to leave money on the table each time they change jobs because of vesting schedules that require an average seven years of tenure to get a 100% company match, according to the report.

Someone who changes jobs four times between the ages of 22 and 34 would feel the loss to the tune of $6,800. That may not seem like much but over the course of a 30- to 40-year career, it could add up to roughly $40,000 to $50,000 in unrealized returns, the study claims.

‘PAY YOURSELF FIRST’
Millennials are also the most educated generation accumulating an average student loan debt of just under $30,000. This debt load fresh out of college is also a hinderance to their funding 401(k) contributions which means they are missing out on free money.

Jacob Gold, a securities broker for Voya Financial, said deciding how much to contribute to a 401(k), if at all, can be difficult, especially for Millennials who are carrying more debt than their parents and grandparents at their age. 

A rule Gold recommends is “pay yourself first.” He said a rule of thumb is to start by contributing what every percent the company plans to match. Otherwise, money is left on the table.

“There are very few times in a person’s life when they are ever handed free money. An employer match is free money. Don’t leave any of it behind,” Gold said. “Remember the employee contribution is pretax which can also provide some tax savings.”

He said Millennials can miss out on the miracle of compound interest if they wait too long to start saving. It’s better to start saving even $25 per month at age 25 than to wait until 35 year and save $50 per month. Factoring in an 8% annual return, there is a $12,500 cost to waiting the 10 years.

NerdWallet estimates that recent college graduates won’t have enough assets to retire until age 73, which is 12 years later than the current early retirement age of 61. With a life expectancy of 83 years, Millennials’ could also see shorter retirement periods.

Holoma Inc., a product development consultant group in Miami, has partnered exclusively with Wal-Mart Stores on a new interactive photo service dubbed U4D-iT for this holiday season.

U4D-iT.com uses advanced image recognition technology that allows consumers to create interactive photo cards and gifts that play a related video.

For example consumers can design a Christmas card featuring a photo of children who then come to life decorating their Christmas tree with the imposed video, according to the company release.

"Seeing a photo come to life like this is magical," said Ken Haffner, CEO of Holoma Inc. "With the readily available video and photo technology on mobile phones, we thought, why not connect the two for an engaging experience. And, without altering the photo in any way we can bridge the gap between still photography and video.”

U4D-iT.com offers consumers the ability to digitize their photos. When a photo and a related video are uploaded on the site, the 4D technology links the two, creating a 4D photo. When the photo is scanned with the free, integrated mobile app, the video plays and can be shared across social media networks to more friends and family members.

Haffner said a unique feature of this interactive technology is that the photo is transformed into a 4D photo without being altered or changed in any way. There are no stickers, QR code or necessary cropping to deface the photo.

The U4D-iT service is performed via a free mobile app which must be downloaded. The cost of the service to generate the video that coordinates with a photo when scanned is a one-time fee of $9.96.

The link to Wal-Mart is that the retailer offers a wide range of photo keepsake items that can used in conjunction with the U4D-iT.com service, according to the Walmart.com photo website and U4D-iT.com.

Haffner said the same digital photo uploaded to U4D-iT.com can also be uploaded in-store at the Walmart Photo kiosk or online at Walmart’s Photo Center to use in creating scannable holiday cards and gifts. The company said it hopes to connect families across the miles this holiday with the new digital photo service.

U4D-iT unveiled this new service in time for holidays in part because Americans are expected to send some 1.6 billion Christmas and holiday greeting cards this year and digital forms of card giving are more popular as smart phone ownership is now roughly 60% of the U.S. adult population, according to Pew Research. Also, 42% of U.S. adults own tablets. The average family still spends roughly $36 per year on Christmas cards and postage.

Christmas Cards appeared in the U.S. in the late 1840s, but were expensive and most people couldn't afford them. That was until 1875, when Louis Prang, a printer from Germany started mass producing cards. In 1915, John Hall and two of his brothers created Hallmark Cards, which is still one of the biggest card makers in the U.S.

U.S. Marshals Museum President and CEO Jim Dunn told museum board members Tuesday (Dec. 9) that the staff is in an “intense period of fundraising” and that eight volunteers also are “deeply involved” in raising money to build the planned $53 million museum in downtown Fort Smith near the Arkansas River.

Dunn said results from the one-on-one fundraising efforts will be known in the “coming weeks and months.”

The planned $53 million museum's construction is a three-phase project, starting first with site work before moving to building construction and finally design and installation of exhibits to be housed at the museum celebrating the United States' oldest law enforcement agency. In January 2007, the U.S. Marshals Service selected Fort Smith as the site for the estimated 20,000-square-foot national museum. The museum is to be built on 15.9 acres along the Arkansas River that is being donated by the Robbie Westphal family.

A ceremonial groundbreaking was held in September, and museum officials hope to have the facility open by late 2017.

The museum board on Tuesday held its final meeting of the year, with other updates including budget numbers, a new marketing budget, easement talks with the U.S. Corps of Engineers, and artifact collections.

Museum books show $19.5 million in cash, pledges and land value. That does not include an estimated $4 million-$5 million from U.S. Marshals Commemorative coin sales that could be provided for exhibit and artifact costs for the museum.

To boost coin sales, the museum board approved a $112,500 budget – up from a previous budget of $35,000 – to support advertising, a coin “rollout event,” design work, printing costs, working with coin vendors, and other marketing-related costs. The coins are expected to available in January for sale to the public.

“We view this as an investment in the bottom line,” Dunn said of the increased budget.

The proposed budget for the rollout event is $10,000. Alice Alt, director of development for the museum, said museum staff and the museum marketing firm “hope to target a celebrity” to help sell the coins.

Revenue from coin sales will also go to the Federal Law Enforcement Officers Association, the National Law Enforcement Museum, and the National Center for Missing and Exploited Children.

Jessica Hougen, curator for the museum, said more than 75 artifacts for museum display have been collected since active solicitation began in June. One of the artifacts is a KKK robe. Several hundred artifacts that were held by the U.S. Marshals Service when the museum was planned for Laramie, Wyo., are in secure storage in Scott, Ark. Hougen said the U.S. Marshals Service still owns the items, and she is hoping to have them moved to Fort Smith by May. She said not all of the artifacts may be accepted by the museum’s collection committee. Those not accepted into the permanent collection may be displayed in temporary exhibits, Hougen said.

Dunn said a March museum board meeting is planned during which new designs for the museum galleries will be revealed.

During the Tuesday meeting the museum board also welcomed Joe Byrd, a member of the Cherokee National Council, to the board.