Overview and Outlook
Metro Little Rock region’s central location, excellent transportation infrastructure, low land cost and cost of doing business make it an ideal location for distribution facilities. Other growth businesses in the cluster include those providing supply-chain management and inventory-control systems.
Strong and developing niches in the region include: International or Multi-State Distribution Centers, and E-commerce Distribution Centers.
Two major trucking companies are based in Arkansas along with a large rail facility. These and other businesses in the logistics and distribution cluster have created a demand for skilled and high-tech workers. Regional education and training centers are in-place to respond to the demands of these two sides of the industry.
The region’s low cost structure allows businesses in this cluster to better manage their operations during downturns in the business cycle and improve performance during recovery.
Site Selection Considerations
Sites and Infrastructure: The Metro Little Rock region has affordable and available sites that will accommodate facilities up to several hundred thousand or millions of square feet.
The region features an excellent interstate highway, rail, port and air transportation infrastructure.
Workforce: Workers with the varied skill sets required by the industry cluster are available. These workers range from entry-level laborers and material handlers to truck drivers and information technology professionals.
A sizeable and available workforce helps companies manage the industry’s high employee turnover. The presence of a large and dispersed college student population in the region results in a pool of part-time workers.
Research and Development: Supply chain research is conducted by regional universities in support of companies like Wal-Mart. University students are available as interns to complete primary research for this industry cluster.
Incentives: Available special incentives include tax abatements, tax credits, infrastructure improvements and industrial revenue bonds.
Valuable Regional Resources
The Metro Little Rock region enjoys significant logistical advantages. These include transportation, air quality, primary interstate corridors, river and port systems, interstate pipelines and intermodal cargo facilities. These advantages offer easy access to U.S. and global markets.
According to Southern Business and Development Magazine, Arkansas has the number one business climate in the south. The Metro Little Rock region’s resources include:
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Abundance of qualified labor in prime age categories growing faster than the U.S. average
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Favorable labor costs at 10-20% below the U.S. average
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Low unemployment insurance and worker’s comp costs
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Low cost of doing business, inexpensive electricity and other utilities, and low taxation