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Northwest Arkansas Council4100 Corporate Center Drive, Suite 205, Springdale, Arkansas 72762www.nwacouncil.org2012-2013 Annual Report
MembersJay Allen, Jay Allen CommunicationsRick Allen, Allen Canning CompanyDon Bacigalupi, Crystal Bridges Museum of American ArtDick Barclay, Beall BarclaySusan Barrett, ConsultantRick Barrows, Multi-Craft Contractors, Inc.Neff Basore, Cooper Communities, Inc.Fadil Bayyari, Bayyari Construction and PropertiesRob Boaz, Carroll Electric Cooperative Corp.Ed Bradberry, B & B ResourcesBill Bradley, Washington Regional Medical CenterRosalind Brewer, Sam’s ClubMary Beth Brooks, Bank of FayettevilleTim Broughton, McKee FoodsJohn Brown III, Windgate FoundationFrank Broyles, University of ArkansasRaymond Burns, Rogers-Lowell Area Chamber of CommerceWayne Callahan, H.J. Heinz CompanySteve Clark, Fayetteville Chamber of CommerceEd Clifford, The Jones TrustJohn Cooper III, Cooper Communities Inc.Dana Davis, Bentonville/Bella Vista Chamber of CommerceRich Davis, SourceGas ArkansasTommy Deweese, AEP SWEPCO (retired)Lee DuChanois, APAC-Central, Inc.Eric Edelstein, Rich Baseball OperationsJohn Elrod, Conner & WintersDanny Ferguson, Southwestern EnergyGreg Fogle, Nabholz Construction ServicesCathy Foraker, AT&TAlan Fortenberry, Beaver Water DistrictWallace Fowler, Liberty Bank of ArkansasEd Fryar, Ozark Mountain PoultryG. David Gearhart, University of ArkansasStan Green, Lindsey Green PropertiesMary Ann Greenwood, Greenwood Gearhart Inc.Scott Grigsby, Arvest Bank GroupJohn Paul Hammerschmidt, former U.S. CongressmanHoward Hamilton, Liberty Bank of ArkansasGary Head, Signature Bank of ArkansasDan Hendrix, Arkansas World Trade CenterTom Hopper, Crafton Tull & AssociatesDina Howell, Saatchi & Saatchi XDennis Hunt, StephensWalter Hussman, WEHCO Media Inc.Mitchell Johnson, Ozark Electric Cooperative Corp.Eli Jones, University of ArkansasRobert Jones III, Conner & WintersJames Keenan, The Raven FoundationJeff Koenig, Upchurch Electrical Supply CompanyPeter Kohler, UAMS NorthwestBob Lamb, Consultant2NORTHWEST ARKANSAS COUNCIL ANNUAL REPORTPeter Lane, Walton Arts CenterRandy Laney, Empire District Electric Co.Randy Lawson, Lawco ExplorationGreg Lee, Tyson Foods (retired)Jim Lindsey, Lindsey Management Co., Inc.Jeff Long, University of ArkansasBill Mathews, McDonalds of Northwest ArkansasDavid Matthews, Matthews, Campbell, Rhoads, McClure & ThompsonWayne Mays, Siloam Springs Chamber of CommerceTim McFarland, ElevateDan McKay, Northwest Health SystemJeff Milford, AEP SWEPCOElise Mitchell, Mitchell Communications GroupMike Moss, Moss Financial GroupBecky Paneitz, NorthWest Arkansas Community CollegeNeal Pendergraft, Donald W. Reynolds FoundationGene Pharr, Arkansas Farm BureauBuddy Philpot, Walton Family FoundationChip Pollard, John Brown UniversityKen Reeves, FedEx FreightJohn Roberts, J. B. Hunt Transport Services, Inc.Reynie Rutledge, First Security BankMaggie Sans, Walmart StoresNick Santoleri, Rockline IndustriesArchie Schaffer, Tyson FoodsCharles Scharlau, Southwestern EnergyJeff Schomburger, Procter & GambleAnita Scism, Endeavor FoundationLee Scott, Walmart StoresMark Simmons, Simmons FoodsSteve Stafford, 1st National Bank of Green ForestCameron Smith, Cameron Smith AssociatesScott Street, Mercy Health Systems of Northwest ArkansasPhilip Taldo, Weichert Realtors, The Griffin CompanyJim Taylor, First Security BankKirk Thompson, J. B. Hunt Transport Services.Kenny Tomlin, Rockfish InteractiveWalter Turnbow, Beaver Water District (retired)John Tyson, Tyson FoodsScott Van Laningham, Northwest Arkansas Regional AirportEddie Vega, EZ Spanish MediaJerry Vest, Regions Bank of NWAFred Vorsanger, UAMS AHEC BoardAlice Walton, Crystal Bridges Museum of American ArtJim Walton, Arvest Bank GroupRob Walton, Walmart StoresPerry Webb, Springdale Chamber of CommerceJohn White, University of ArkansasWayne Woods, Cranford Johnson Robinson WoodsDean Worley, Dillard’s Department StoresCharles Zimmerman, Walmart StoresRandy Zook, Arkansas State Chamber of CommerceNORTHWEST ARKANSAS COUNCIL ANNUAL REPORT19
John Tyson, the 2012-2013 presiding co-chair of theNorthwest Arkansas Council, is chairman of the boardat Tyson Foods. He was chairman and CEO of thecompany from 1999-2006. Mr. Tyson also served asthe Council's presiding co-chair in 2007-2008.Mark Simmons, the 2013-2014 presiding co-chair of the NorthwestArkansas Council, is chairman of the board at Simmons Foods. Hehas served as chairman and CEO of the company since 1987. Mr.Simmons serves as Chairman of the steering committee for theGreater Northwest Arkansas Development Strategy.Officers of the CouncilPosition HeldOfficerPresiding Co-Chair (2012-2013)John TysonPresiding Co-Chair (2013-2014)Mark SimmonsPast Presiding Co-Chair (2011-2012)G. David GearhartVice ChairScott Van LaninghamSecretary / TreasurerMark SimmonsChair EmeritusAlice WaltonChair EmeritusJohn Paul HammerschmidtThe World Trade Center Arkansas is located in a thriving retail area west of Interstate 540 in Rogers. Opened in 2007, the center helps Arkansascompanies do business around the globe.Table of ContentsEntrepreneurs4Northwest Arkansas creates excellent environment for new, rising companiesEnergizeNWA6EnergizeNWA sets out to make healthy choice into easy choiceMembers of the Executive CommitteeType of Appointment(term of appointment)Presiding Co-Chair(1-year term)Vice Chair(indefinite term)Secretary / Treasurer(indefinite term)President of NWAChambers of CommerceCo-Chair’s Appointees(1-year term)Nominating CommitteeRepresentative #1 (3-year term)Nominating CommitteeRepresentative #2 (3-year term)Nominating CommitteeRepresentative #3 (3-year term)182012-2013Executive CommitteeJohn TysonBRE Update8Companies expect to provide 965 jobs, increase payrollMid-Point Review10Council on course toward 55 actions; mid-point review on the agendaScott Van LaninghamGraduate NWA12New program sets out to increase college degreesMark SimmonsPerry Webb(through January 2014)Rick BarrowsCathy ForakerBecky Paneitz(term expires in 2014)Cameron Smith(term expires in 2013)Chip Pollard(term expires in 2015)NORTHWEST ARKANSAS COUNCIL ANNUAL REPORTRazorCOACH13Team helps 323 students in first year; two years to goInfrastructure14Council plays key role in sharing Issue No. 1 facts with votersHonorary Lifetime Members17Clinton, Walton, and Hammerschmidt honored by Northwest Arkansas CouncilLeadership18Transition puts one of region’s top businessmen in charge for 2013-2014Members19Council’s members include region’s top business, civic leadersNORTHWEST ARKANSAS COUNCIL ANNUAL REPORT3
EntrepreneursLife MembersNorthwest Arkansas Creates ExcellentEnvironment for New, Rising CompaniesNorthwest Arkansas is on a good course for startups, andmentoring and expertise to help entrepreneurs with newoutsiders are starting to notice the region’s fast developingtechnology companies that support retail, logistics, and foodentrepreneurial support system.processing become successful long-term businesses.Evidence of that arrived in a single week this spring when“When we looked at our two-year proposal, part of ourthree out-of-state venture capital firms invested nearly 100proposal was to create 60 jobs,” said Balleza Collins, who said Themillion in three Northwest Arkansas companies.ARK Challenge is on course to meet the 60-job goal. “We’reThe region is also successfully building on the regional,continuing to create these jobs. We count that as a win. Peoplenational, and international success achieved by startup companies have options to come here from other places, and they arementored by Carol Reeves in the University of Arkansas graduatestaying here because they see opportunities.”entrepreneurship program. Reeves’ program is one of the mostMembers of the second ARK Challenge class were announcedsuccessful graduate launchpads for scalable ventures in thethis month. The 10 teams selected will present at Demo Day onnation. This year, four of her teams received numerous businessSept. 5 where they’ll describe what they accomplished, show offplan competition wins, and two — HomeDX and Picasolar —their work to potential investors, and try to win one of the tworeceived early-stage 150,000 top prizes, Ballezainvestments.Collins said.The region as a whole isIn addition to The ARKbuilding the kind ofChallenge, there’s alsoeconomic assistance andbusiness expansion andmentorship that smallgrowth assistance comingcompany founders didn’t findfrom Innovate Arkansas, anin Northwest Arkansas just aArkansas Economicfew years ago.Development CommissionJeff Amerine, thesupported effort to assistUniversity of Arkansasearly-stage, technologytechnology venture directorbased companies. Sinceand an Innovate Arkansasstarting five years ago,adviser, said the region isInnovate Arkansas hasThe ARK Challenge Demo Day at Crystal Bridges Museum of Americanestablishing programs, placeassisted about 100 clients,Art in December 2012 provided potential investors and communitymaking, events, and networkssupporting 193 million inleaders their first chance to see the work of the teams that participatedthat young companies need to in the 14-week program.private and public investment.grow. “They all address a keyThose clients includeobjective in the Greater Northwest Arkansas DevelopmentNorthwest Arkansas companies such as TTAGG, CrossFleet,Strategy that includes enhancing ‘Northwest Arkansas’ culture ofAcumen Brands, Field Agent, BlueInGreen, NextGen Illumination,entrepreneurship by expanding the scale and scope of smallRed Clay Design, Silicon Solar Solutions, BiologicsMD, Bostonbusiness support services in the region,’” Amerine said.Mountain Biotech and all of The ARK Challenge participants.The Northwest Arkansas Council and its members are playingThe initial place-making goal was achieved by the Northwestimportant roles in all four critical areas that must be supportedArkansas Entrepreneurship Alliance with the 2011 opening of Thefor new companies to develop successfully in the region,.Iceberg, a low-cost, co-working facility near Dickson Street inAcumen Brands, NanoMech, Collective Bias, Field Agent, andFayetteville where The ARK Challenge is based. There is presentlyTTAGG are examples of innovative companies gaining solidan effort to create a similar facility in Bentonville.footholds in the region, and they are being joined by at least 10 ofThe Natural State Angel Association was the first formal angelthe 15 companies that completed The ARK Challenge last year.network in Northwest Arkansas when it formed in 2011. It hasMineWhat, Truckily and Btiques, participants in the first ofgrown to 150 members, and those members are invited to attendtwo, 14-week entrepreneurial boot camps and competitions, arebi-monthly meetings where they see presentations and considerexcellent examples of new companies establishing operations inlocal companies as investment possibilities. During this year’s firstNorthwest Arkansas after participating in The ARK Challengefour months, members invested 1 million in projects.boot camp, said ARK Challenge Director Jeannette Balleza Collins.“The members are passionate about supporting early-stageThe business accelerator’s primary purpose is to providecompanies,” Amerine said.4NORTHWEST ARKANSAS COUNCIL ANNUAL REPORTHonorary Lifetime MembersThe NorthwestArkansas Councilhas three peoplewho wereselected ashonorary lifetimemembers of theorganization.Bill ClintonAlice WaltonJohn Paul HammerschmidtThe Arkansas governor waselected U.S. president in 1992and served two terms. In 2010,former President Clinton wasnamed the Council’s firsthonorary lifetime member.The first chair of the NorthwestArkansas Council’s ExecutiveCommittee when theorganization started in 1990,Walton founded Crystal BridgesMuseum of American Art in 2011.She was named an honorarylifetime member in January 2012.Hammerschmidt served in theU.S. House of Representativesfrom 1967-1993 and become theCouncil’s chairman soon afterleaving Congress. He served asthe Council’s chair for 13 years.He became an honorary lifetimemember in January 2013.THANKS TO OUR PARTNERSA Dollar Invested is Worth 298 to RegionThe mission of the Northwest Arkansas Council expanded in 2011, but the annual goal of giving Council members a high returnon their investments didn’t change at all.The rate of return on the membership’s investments from July 1, 1990 through May 31, 2013 is more than 29,800 percent. For everydollar invested in the Council by members, the region has received at least 298.This year’s math looks especially good, largely due to the November 2012 passage of Issue No. 1, a half-cent sales tax approvedby voters that will lead to major highway and transportation improvements.The Council often looks at member investment in the organization compared to the money the region receives to improvehighways, water systems, universities and other key parts of the Northwest Arkansas community as a way to evaluate impact.NORTHWEST ARKANSAS COUNCIL ANNUAL REPORT17
Notable InitiativesRAZORBACK GREENWAYAccomplishment: Construction on theNorthwest Arkansas Razorback Greenwaystarted in June 2012 and now major sectionsof the trail are complete in Benton County.The trail, funded by a federal grant andWalton Family Foundation gift, will be a 36mile cycling and pedestrian path from LakeBella Vista to Fayetteville.How it helps: One of the strategic actionsunder Objective 4 of the Greater NorthwestArkansas Development Strategy is to “buildthe trails system detailed in the NorthwestArkansas Heritage Trail Plan, including theregional Razorback Greenway and projects inlocal communities.”What’s next: Guided by the staff of theNorthwest Arkansas Regional PlanningCommission, the entire path remains onschedule to be complete by the end of 2013.Cities, particularly Fayetteville, continue tomake expansions to their own trail systems toconnect to the greenway’s spine.NW ARKANSAS REPORT CARDAccomplishment: An education report cardpublished by the Office for Education Policyat the University of Arkansas, in partnershipwith the Northwest Arkansas Council, showsstudents in Northwest Arkansas outperformtheir peers elsewhere in Arkansas. The 2012Northwest Arkansas Report Card showspublic schools in Benton and Washingtoncounties are outstanding in several areaswhen compared to other districts statewide.Among the report’s findings is that 13 of 17school districts had a higher NationalPercentile Ranking (NPR) on the Iowa Tests ofBasic Skills (ITBS), which helps to comparestudents and districts across state lines, thanthe state as a whole.How it helps: The report, which includesinformation about secondary and highereducation, provides a single place for peopleto learn about the region’s outstandingschools.What’s next: The report, which was publishedin December, is due to come out later New York 842918San FranciscoWashington D.C.Northwest3ArkansasAtlanta15Dallas 1924HoustonDespite having far fewer Fortune 500 companies than larger metros, Northwest Arkansas isone of just 11 regions in the U.S. where the revenue of Fortune 500 companies exceeds 300billion annually. The number of Fortune 500 companies in each region is indicated.NW Arkansas Shines in All Sortsof Fortune 500 WaysThe business community in Northwest Arkansas looks at the Fortune 500 listclosely each year because there’s often a question as to whether Bentonville-basedWalmart or Irving, Texas-based Exxon Mobil will hold the No. 1 position.Walmart Stores came out on top this year. Exxon Mobil held the top spot lastyear.However, “Who’s No. 1?” is the easy, quick way to evaluate the Fortune 500 list.A deeper look at the Fortune 500 shows Northwest Arkansas’ economic strengthand just how important the largest companies are to the regions’ amazing success.Northwest Arkansas has No. 1 Walmart, No. 93 Tyson Foods and No. 486 J.B.Hunt Transport Services, the region’s new member of the Fortune 500. But considerthese unique ways to look at Northwest Arkansas’ Fortune 500 companies: With three Fortune 500 companies, Northwest Arkansas has as many on thelist as regions with far more people, including Kansas City, Indianapolis, Tampa,Louisville and Memphis. Bigger metropolitan areas, including Oklahoma City,Austin, Orlando, Tulsa, San Diego and Portland, have just two Fortune 500companies. The annual revenue of the three Fortune 500 companies in NorthwestArkansas ( 507 billion last year) was 25 percent of the 2.06 trillion in revenuefor New York’s 84 companies on the Fortune 500 list. Just five regions — New York, San Francisco, Chicago, Houston and Dallas —have more revenue produced by their Fortune 500 companies. All five regionshave at least 6 million residents, meaning they are all at least 12 times largerthan Northwest Arkansas. Tyson Foods would be the largest Fortune 500 company if it were located inlarger metropolitan areas, including Denver, Pittsburgh, Cleveland andPhoenix. The revenue of Walmart, Tyson Foods and J.B. Hunt exceeds the revenue ofthe 21 Fortune 500 companies in Los Angeles, the 18 in Washington, D.C., the17 in Minneapolis and the 15 in Atlanta.NORTHWEST ARKANSAS COUNCIL ANNUAL REPORTRick West, co-founder and CEO of Field Agent inFayetteville, said Northwest Arkansas provided theperfect setting for his company that launched in 2010.The mobile research and retail data collection company,which has 25 full-time equivalent employees, has added10 workers in the past six months. The company’scustomers include Walmart, Target, Walgreens, Sam’sClub, Johnson & Johnson, and Procter & Gamble.“We knew the supplier community was going tobring great people to Northwest Arkansas,” West said.“We think those companies bring the best and thebrightest, and Northwest Arkansas is a great feedingspot for us. You have tremendous access toentrepreneurs and great thinkers. I can pick up thephone and talk to the people I need to reach.”Meanwhile, those interested in assistingentrepreneurs and aspiring entrepreneurs are able totake part in business-idea events that include “Gone in60 Seconds,” an elevator pitch contest launched in 2011.While the first contest was in Fayetteville, “Gone in 60Seconds” events have occurred in Rogers, El Dorado,Pine Bluff, Little Rock, Conway, Jonesboro and even inCanada under the Pitch101 banner. The event hasconnected startup founders, creative, techies, investors,and service providers and serves as a feeder to TheARK, Innovate Arkansas, Natural State Angel Associationand the other funds around the state.Other events are bringing business people togetherso they can build their knowledge. Groups hostingregular events include Creatives United, Tech Drinks andthe Northwest Arkansas Entrepreneurial Alliance.The availability of local talent creating exciting newcompanies has bred interest in generating fundingsources beyond the angel level of investing. Discussionsare underway for the creation of a regional venturecapital (VC) fund to take advantage of the deal flow inthis area. The hurdles to creating VC funds may be high,but the advantages of a local fund to deploy significantlevels of risk capital are strong motivators to investorsin Northwest Arkansas. The entrepreneurial eco-systemhas developed to the point that the time is right for aregional VC fund.“There has never been a more dynamic, excitingtime in Northwest Arkansas for new business creationas evidenced by over 100 million in out-of-stateventure finance for Arkansas startups in the past year,”Amerine said. “Through the will and belief of thestartup founders, the support of the NorthwestArkansas Council, local business leaders, the Universityof Arkansas, Innovate Arkansas and the state, this regionis poised for a startup-led renaissance that will continueto make Northwest Arkansas one of the best places tolive and work in the country.”DCI, Council Work to MoveRegion from ‘Blank Slate’Ensuring that site selectors and business decision makers know aboutNorth
4100 Corporate Center Drive, Suite 205, Springdale, Arkansas 72762 www.nwacouncil.org. Northwest
