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Bentonville Remains Atop Arkansas Tech Business Index

9 min read

Once again, Bentonville remains atop the Arkansas Tech Business Index’s ranking of 16 municipalities in Arkansas, according to data compiled for February.

The index, known as ATBI, ranks 16 cities in Arkansas based on economic activity. The index is based on 100. A city above that rating shows the city is doing better than the state average from 2009 to present. 

In February, 10 cities saw economic activity better than the state average, and eight cities improved their index value from results of January’s data.

While Bentonville remained atop the index, its rating fell 1.02 points from 107.26 to 106.24.

Rogers, at 105.16; Fayetteville, 104.99; Springdale, 104.47; Fort Smith, 102.35; Conway, 101.62; Hot Springs, 101.41; North Little Rock, 101.29; Jonesboro, 101.20; and Russellville, 100.04, were the other cities with a rating above the state average.

Of the top-performing cities, Jonesboro, at 1.04 points, saw the largest jump from January to February. Fort Smith, 0.89 points; Russellville, 0.57 points; and Springdale, 0.18 points, were the only other cities above the state average to see an improvement from January to February.

North Little Rock at 1.11 points saw the sharpest decline of the top-performing cities in the February numbers. Elsewhere, Bentonville, 1.02 points, Conway, 0.87 points, Hot Springs, 0.85 points, Rogers, 0.62 points, and Fayetteville, 0.22 points, saw decreases as well.

Overall, Texarkana at 1.21 points had the biggest jump between January and February. However, it remained below the state average at 96.47. Searcy remained the lowest rated city at 87.38, although it improved 0.09 points from January. It was also the only city with a rating below 90.

Little Rock was the first city outside of the top-performers at 98.86. It’s index rating fell 0.34 points from 99.20 in January.

January-February ATBI Ratings
City       January          February          Change
Bentonville       107.26         106.24         -1.02
Rogers       105.78         105.16         -0.62
Fayetteville       105.21         104.99         -0.22
Springdale       104.29         104.47         0.18
Fort Smith       101.46         102.35         0.89
Conway       102.49         101.62         -0.87
Hot Springs       102.26         101.41         -0.85
North Little Rock       102.40         101.29         -1.11
Jonesboro       100.16         101.20         1.04
Russellville       99.47         100.04         0.57
Little Rock       99.20         98.86         -0.34
El Dorado       96.65         96.55         -0.10
West Memphis       95.97         96.48         0.51
Texarkana       95.26         96.47         1.21
Pine Bluff       93.67         93.88         0.21
Searcy       87.29         87.38         0.09

Labor Market

Springdale led the ratings in labor market with a 111.04 rating. According to February numbers, the northwest Arkansas city employed 33,117 and had an unemployment rate of 5 percent, which was considerably lower than the state unemployment rate in February, 7.5 percent, and the national average, 7.7 percent. Overall, 1,761 of the 34,878-member, Springdale labor force were unemployed.

Of the top five labor markets, Springdale was the largest employer by nearly 15,000 workers. Bentonville, which was second, employed the second-most employees with 18,399.

El Dorado had the highest unemployment rate, 9.5 percent, of the top five markets. The south Arkansas city had 6.702 employed workers and 1,253 unemployed.

Top 5 Labor Markets
City       Feb. ’14     Feb. ’13     Change     Unemployment Rate*
Springdale       111.04     105.65     5.39     5.0
Bentonville       104.86     106.46     -1.6     5.1
Texarkana       102.54     103.88     -1.34     9.2
Russellville       102.52     102.58     -0.06     7.2
El Dorado       102.36     104.23     -1.87     9.5

*According to Arkansas Department of Workforce Services, February 2014

Of the 16 municipalities in the ATBI, Searcy had the lowest labor market rating by more than 25 points. The largest city in White County had a February rating of 71.47. The next lowest rating was West Memphis at 96.65.

Of the lowest-rated markets, Conway saw the most significant drop between numbers from a year ago. In February 2013, the suburb of Little Rock had a rating of 101.19. It’s rating fell 2.66 points over the year to 98.53. 

Since the beginning of the ATBI numbers, January 2009, Conway has enjoyed a labor market index above the state average. It fell below for the first time in January 2013. It returned to above the state average the next month and remained there through April 2013. Since May 2013, the city has a labor market index rating below the state average.

In July of last year, Hewlett-Packard announced it was cutting 500 jobs from its Conway location. Since, HP has vowed to return 200 jobs to the location throughout the 2014 calendar year.

West Memphis, 13.5 percent, and Pine Bluff, 11.9 percent, had the highest unemployment ratings of the lowest-rated labor markets.

Little Rock had the lowest unemployment rate at 6.6 percent. The capital city also boasted the largest employment with 86,860 workers. According to February numbers, 6,106 were unemployed.

Bottom 5 Labor Markets
City       Feb. ’14     Feb. ’13     Change*     Unemployment Rate*
Searcy       71.47     72.25     -0.78     9.1**
West Memphis       96.65     99.18     -2.53     13.5
Little Rock       95.76     95.83     -0.07     6.6
Pine Bluff       97.96     97.97     -0.01     11.9
Conway       98.53     101.19     -2.66     7.1

*According to Arkansas Department of Workforce Services, February 2014

**White County unemployment rate (Searcy was unavailable)

Housing & Real Estate

Bentonville came in at the top of the ratings in the housing and real estate market with a rating of 116.31. That number was up 2.32 points from a year ago, 113.99. The northwest Arkansas city is located in Benton County where 292 homes were sold in February. The average home price was $173,917.

North Little Rock was second with a rating of 110.9. That was up 2.5 points from a year ago, 108.4.

Fayetteville, 107.26, Hot Springs, 107.2, and Springdale, 104.28, rounded out the top five. 

Springdale, located in Benton and Washington counties, saw the biggest drop, 3.08 points, from a year ago.

Top 5 Housing/Real Estate Markets
City       Feb. ’14     Feb. ’13     Change     Homes Sold*     Average Home Price*
Bentonville       116.31     113.99     2.32     292     $173,917
North Little Rock       110.9     108.4     2.5     274     $179,795
Fayetteville       107.26     107.65     -0.39     159     $180,107
Hot Springs       107.2     106.39     0.81     82     $187,277
Springdale       104.28     107.36     -3.08     159<     $173,917-$180,107**

*According to Arkansas Realtors Association, February 2014 (County numbers)

**Averages for Benton and Washington counties

El Dorado saw the lowest housing and real estate index rating in February at 88.88. That rating was down 7.72 points from a year ago, 96.6.

Rogers, which had the highest rating of the lowest five markets at 96.73, saw the biggest drop-off from a year ago, falling 15.62 points from 112.35.

Texarkana, 90.38, Russellville, 93.93, and Fort Smith, 96.08, were second-, third- and fourth-lowest, respectively. All three also saw decreases of 2.94, 3.66 and 3.92 points from a year ago.

Little Rock was below the state average at 98.41. It was the first time since November 2013 the capital city fell below the state average. Over the four-month period, its highest rating was 102.15 in December. 

Even though it is below the state average, Little Rock improved from its position a year ago, 95.53. In that year-period, Little Rock saw its lowest ratings in May, 88.55, and June, 85.26.

Bottom 5 Housing/Real Estate Markets
City       Feb. ’14     Feb. ’13     Change     Homes Sold*     Average Home Price*
El Dorado       88.88     96.6     -7.72     22     $101,259
Texarkana       90.38     93.32     -2.94     14     $124,169
Russellville       93.93     97.59     -3.66     59     $108,029
Fort Smith       96.08     100     -3.92     77     $129,620
Rogers       96.73     112.35     -15.62     292     $173,917

*According to Arkansas Realtors Association, February 2014 (County numbers)

Construction

Bentonville was also top-rated in the construction market with a rating of 119.26. It was nearly 11 points higher than the second highest-rated city, Jonesboro, at 108.41. 

Bentonville improved 13.23 points from a year ago, 106.03, while Jonesboro bumped up 5.03 points.

Fayetteville, which came in at No. 5, was the only of the top five markets to see a decrease, 1.77, from February 2013. The Washington County city dropped to 101.9 from 103.67. 

Little Rock, 107.97, and West Memphis, 102.34, were third- and fourth-highest. Little Rock saw the most improvement over the year with a 20.45-point increase from February 2013, 87.52. The capital city was also up more than 10 points from its January rating, 96.89.

Top 5 Construction Markets
City       Feb. ’14     Feb. ’13     Change
Bentonville       119.26     106.03     13.23
Jonesboro       108.41     103.38     5.03
Little Rock       107.97     87.52     20.45
West Memphis       102.34     101.41     0.93
Fayetteville       101.9     103.67     -1.77

Springdale was the lowest-rated city in the construction market at 87.69. In addition, the city saw the sharpest decline, 15.59, of the under-performers from a year ago.

Conway, the fourth-lowest at 95.14, also saw a double-digit drop, 13.72 points, from February 2013.

Rogers, the fifth-lowest at 96.73, was the third city on the list to have a rating above the state average a year ago. The Benton County city dropped 6.16 points from 102.89 in February 2013.

North Little Rock, 89.22, and Searcy, 91.4, were the second- and third-lowest rated cities, but saw marginal improvements of 0.78 and 0.59 points from a year ago.

Bottom 5 Construction Markets
City       Feb. ’14     Feb. ’13     Change
Springdale       87.69     103.28     -15.59
North Little Rock       89.22     88.44     0.78
Searcy       91.4     90.81     0.59
Conway       95.14     108.86     -13.72
Rogers       96.73     102.89     -6.16

Retail Sales

Although it was the lowest-rated city overall, Searcy led the pack during February in retail sales with an index rating of 116.94. The White County city paced the larger metropolitan areas of Little Rock, 114, Fort Smith, 111.05, Fayetteville, 111.04, and Rogers, 107.94.

Searcy’s rating was down 0.47 points from a year ago. 

Fayetteville, 0.58 points, and Rogers, 1.03 points, were the only cities to see an increase from February 2013.

Little Rock saw the sharpest decline of the top five markets, dropping 3.43 points from 117.43 a year ago. 

Top 5 Retail Sales
City       Feb. ’14     Feb. ’13     Change
Searcy       116.94     117.41     -0.47
Little Rock       114     117.43     -3.43
Fort Smith       111.05     111.31     -0.26
Fayetteville       111.04     110.46     0.58
Rogers       107.94     106.91     1.03

While the capital city was one of the top retail markets, the city across the Arkansas River, North Little Rock, was the worst-performing city in the retail market during February. 

North Little Rock’s rating of 89.22 was down 2.71 points from a year ago.

Texarkana, 89.39, Pine Bluff, 90.25, West Memphis, 91.01, and El Dorado, 92.88, followed closely behind.

El Dorado, 1.7 points, and Texarkana, 0.39 points, were the only cities to see an improvement from February 2013. Pine Bluff and West Memphis saw marginal decreases of 0.28 and 0.18 points, respectively.

Bottom 5 Retail Sales Markets
City       Feb. ’14     Feb. ’13     Change
North Little Rock       89.22     91.93     -2.71
Texarkana       89.39     89     0.39
Pine Bluff       90.25     90.53     -0.28
West Memphis       91.01     91.19     -0.18
El Dorado       92.88     91.18     1.7
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