2013 State of the NWA Region Report.indd

Transcription

2013 State of the Northwest Arkansas
Region Report
Ce n te r fo r B u s i n es s
and Economic Research
Cen ter for B u s in ess
and Economic Research
The Center for Business and Economic Research at the Sam M. Walton
College of Business provides excellence in applied economic and business
research to federal, state, and local government, as well as to businesses
currently opera ng or those that desire to operate in the state of Arkansas.
The Center further works to improve the economic opportuni es of all
Arkansans by conduc ng policy research in the public interest.
The Northwest Arkansas Council is a nonproﬁt organiza on that has
worked since 1990 to solve regional issues. It focuses on economic
development, infrastructure, educa on, and community vitality.
Visit www.nwacouncil.org for more informa on.
Willard J. Walker Hall 538 • (479) 575-4151 • cber.uark.edu
Table of Contents
Executive Summary • 4-6
The Northwest Arkansas Region: Snapshot of Key Economic Indicators • 7-11
Population
Population Growth
Unemployment
Metropolitan GDP
Income
Employment by Sector
Brief Overview of Peer Regions Highlighted in
this Report • 12-13
Great for Business: Northwest Arkansas Economic Indicators from 2007-2013 • 14-20
Unemployment
Employment
Establishment Growth
Personal Income
Metropolitan GDP
Bankruptcies
Building Permits
The Knowledge-Based Economy • 21-23
Academic Research and Development
Small Business Innovation Research and Small Business Technology Transfer Grant
Adult Educational Attainment in the Region
Great for Life: Quality of Life in
Northwest Arkansas • 24-31
Cost of Home Ownership
Cost of Living
Crime Indicators
Poverty Indicators
Commuting Statistics
Health Insurance Coverage
Healthy Lifestyles
2013 State of the Northwest Arkansas Region Report
Executive Summary
The State of the Northwest Arkansas Region Report is an annual publication that serves as a tool for evaluating
the economic performance of the region in comparison with those peers that are most likely to compete with
Northwest Arkansas by virtue of a similar industry mix or geographic proximity. As a player in the global economy,
Northwest Arkansas has more to offer than superior performance in traditional economic development categories
such as employment, unemployment, establishment growth, and income. This region showcases strengths in
newer categories of economic development like the knowledge-based sectors, and quality of life indicators such
as cost of living, crime, and health. This report highlights and presents these diverse indicators mentioned above
and compares them to peer regions.
4
The Northwest Arkansas Region: Key Economic Indicators
The Northwest Arkansas region is defined as the Fayetteville-Springdale-Rogers Metropolitan Statistical Area,
which is comprised of Benton, Madison, and Washington counties in Arkansas and McDonald County in Missouri.
The region includes 50 incorporated cities and 15 unincorporated communities. According to 2012 U.S. Census
Bureau estimates, the population of the Northwest Arkansas region was 482,200 and grew at a rate of 1.7 percent
between 2011 and 2012. The most recent data available from 2013 show that the Northwest Arkansas region has an
employed workforce of 218,700 people. The trade, transportation and utilities, professional and business services,
government, and manufacturing sectors account for 67 percent of the region’s employment. The total economic
activity in the region, as measured by the metropolitan gross domestic product, was $17.2 billion in 2011.
Return to Long-Term Growth
Even though the Northwest Arkansas region was impacted by the nationwide recession in 2008 and 2009, the
region has, for the most part, recovered from the downturn. While the extent of the harm from the recession in
Northwest Arkansas was not as harsh as in the rest of the country, the region’s economic performance generally
has returned to its pre-recession trend.
Employment
During the period from 2011 to 2012, employment in Northwest Arkansas grew 3.0 percent, a rate that outstripped
competitor regions, the state of Arkansas and the nation as a whole. Between 2007 and 2012, Northwest Arkansas
total employment grew 1.0 percent, which was also faster than any peer region. The region added an additional
8,800 jobs between June 2012 and June 2013. Employment in the region reached a new peak level of 219,300 in April
2013 before seasonally dropping to 218,700 in June 2013.
From 2007 to 2012, the number of business establishments declined by 1.9 percent in Northwest Arkansas.
This decline was more pronounced than those in the peer regions, the state, and the nation. The number of
establishments in Northwest Arkansas declined 2.6 percent in 2009 and 1.2 percent in 2010 before increasing 0.1
percent in 2011 and 0.5 percent in 2012. The Northwest Arkansas establishment growth rate in 2012 was in the
middle of the pack when compared to peer regions, the state and the nation.
Personal Income
Between 2007 and 2011, the Northwest Arkansas region’s per capita personal income grew 5.0 percent, a rate that
was slower than all the peer regions and the state. In 2011, the per capita personal income stood at $34,130, which
was 3.7 percent higher than in 2010.
Nearly $114 million of research and development expenditures were made by the University of Arkansas in 2010, up
8.0 percent from the previous year. The university’s research expenditures placed at the 135th rank among research
universities in that year.
Adult Education Attainment
27.8 percent of adults in Northwest Arkansas have attained a bachelor’s degree or higher, ranking the region second
to last among competitor regions, but better than the Arkansas average.
5
Cost of Home Ownership and Cost of Living
In 2007, home ownership costs accounted for 18.6 percent of household income in Northwest Arkansas. The
measure dropped to 17.9 percent in 2011. Home ownership costs in Northwest Arkansas are in the middle of the
pack when compared to costs in peer regions.
Poverty Indicators
The poverty rate in Northwest Arkansas was 17.2 percent in 2011. This rate increased 2.2 percent from 2010 and 3.1
percent from the rate in 2007. The Northwest Arkansas poverty rate in 2011 was the highest among peer regions.
In 2011, 75.1 percent of Northwest Arkansas workers spent fewer
than 30 minutes commuting to work, while 3.5 percent of the
region’s workers used alternative modes of transportation to
get to work, including biking, walking, and mass transit.
Health Indicators
In 2011, 82.6 percent of the residents of Northwest Arkansas
had health insurance coverage. This percentage was lower than
the health insurance coverage rate in peer regions with one
exception. Compared to the rest of the state of Arkansas, the
two major counties in the Northwest Arkansas region (Benton
and Washington) had better health trends in some fields such
as a lower rate of adult smoking and a lower rate of adult
obesity.
Conclusion
The third annual State of the Northwest Arkansas Region
Report presents the Northwest Arkansas region through the
lens of economic and quality of life indicators. While not
comprehensive, the report provides insights into the region’s
superior performance in several indicators while highlighting
areas that need improvement and lag behind peer regions. The
region’s high levels of employment growth and population
growth are tempered by the slow progress in indicators such
as adult educational attainment and poverty. The Northwest
Arkansas region has made improvements in these indicators
when compared to past years but still has significant ground
to make up against peers. Building on strengths in population and employment growth, the Northwest Arkansas
region will need to continue efforts to maintain the growth while addressing the challenges presented by lower
educational attainment, higher poverty rate, and modest income growth. Ongoing strategic initiatives to address
these challeneges will ensure that Northwest Arkansas remains on the path towards sustaining a vibrant area for
business and living.
6
THE NORTHWEST ARKANSAS REGION:
Snapshot of Key Economic Indicators
Northwest Arkansas is comprised of Benton, Washington, and Madison counties in Arkansas and McDonald County
in Missouri. The region is centered around the four large cities along the Interstate 540 corridor: Bentonville,
Rogers, Springdale, and Fayetteville. Along with the headquarters of Walmart, Tyson Foods, and JB Hunt Transport
Services, the University of Arkansas helps provide a strong economic center for the region.
2012 Population: 482,200
2012 Unemployment Rate: 5.6%
2011-2012 Population Growth: 1.7%
2011 Gross Metro Product: $17.2 billion
2011-2012 Population Change Rank: 38/381
2011 Per Capita Personal Income: $34,130
2012 Employed Workforce: 210,200
County Populations 2012
Source: U.S. Census Bureau estimate
Benton County
232,268
Washington County
211,411
McDonald
Benton
Washington
Madison
McDonald County
22,876
Madison County
15,645
7
The Northwest Arkansas Region’s Economy:
Employment by Sector
Northwest Arkansas has a well-diversified employment portfolio with employment of more than 210,000.
Employment in the Northwest Arkansas economy is led by the trade, transportation and utilities sector and
also is relatively concentrated in the professional and business services sector, the government sector, and the
manufacturing sector. Education and health services and the leisure and hospitality sectors are growth sectors in
Northwest Arkansas.
Employment by Sector (June 2013)
Source: U.S. Bureau of Labor Statistics
June 2013 Snapshot of Regional Employment:
Government
Trade, Transportation and Utilities: 50,200
13%
Professional and Business Services: 41,500
Government: 28,900
Other Services
Manufacturing: 26,900
3%
Education and Health Services: 24,800
Leisure and Hospitality: 22,100
Mining, Logging and Construction: 8,800
Other Services: 7,000
Leisure and
Financial Activities: 6,500
Hospitality
10%
Information: 2,000
Trade,
Transportation,
and Utilities
23%
Education and
Health Services
12%
Professional and
Business Services
19%
8
Mining, Logging and
Construction
4%
Manufacturing
12%
Information
1%
Financial Activities
3%
The Northwest Arkansas Region
Employment by Sector: 2007-2013
45
Growth Sectors
40
Employment in Thousands
35
Professional and Business Services
30
25
20
15
10
5
Jan-13
Jan-12
Jan-11
Jan-10
Jan-09
Jan-08
Jan-07
0
The sector includes employment in establishments that
perform professional, scientific and technical activities
for others. These services range from legal work,
accounting, bookkeeping and payroll to architectural
and engineering services. This sector added 8,300
jobs to the Northwest Arkansas economy since 2007.
Between June 2012 and June 2013, this sector added 2,100
of those jobs.
30
25
Education and Health Services
The education sector includes employment in public
and private schools, colleges, universities and training
centers. The health care sector is composed of
employment in establishments that provide healthcare
and social assistance for individuals. Employment in this
sector grew from 18,700 in 2007 to 24,800 in 2013. The
sector added 1,500 of those jobs from June 2012 to June
2013.
20
15
10
5
Jan-13
Jan-12
Jan-11
Jan-10
Jan-09
Jan-08
Jan-07
0
25
Leisure and Hospitality
This sector includes employment in a wide range of
businesses that operate facilities and provide services
to meet cultural, entertainment, restaurant, hotel
and recreational interests. The leisure and hospitality
sector accounts for 10 percent of employment in the
Northwest Arkansas economy and added 4,300 jobs
since 2007. This sector grew by 900 jobs between June
2012 and June 2013.
15
10
5
Jan-13
Jan-12
Jan-11
Jan-10
Jan-09
Jan-08
0
Jan-07
20
9
55
Stable Sectors
50
45
Trade, Transportation and Utilities
40
35
30
25
20
15
10
5
Jan-13
Jan-12
Jan-11
Jan-10
Jan-09
Jan-08
Jan-07
0
In this sector, employment from the wholesale trade,
retail trade, transportation, warehousing and utilities
sectors is included. This sector represents the largest
share of employment in the Northwest Arkansas
economy at 23.0 percent. Since 2007, this sector
increased by only 800 jobs. However, from June 2012
to June 2013, the sector added 2,600 jobs in Northwest
Arkansas.
35
30
Government
This sector includes employment in various federal, state
and local agencies. This sector accounts for more than
13 percent of the area’s employment but has remained
fairly flat since 2007. Between June 2012 and June 2013,
the sector added 400 jobs.
25
20
15
10
5
Declining Sectors
Jan-13
Jan-12
Jan-11
Jan-10
Jan-09
Jan-08
Jan-07
0
14
10
8
6
4
2
10
Jan-13
Jan-12
Jan-11
Jan-10
Jan-09
Jan-08
0
Jan-07
12
Mining, Logging and Construction
The mining sector is comprised of establishments that
extract naturally occurring mineral solids, such as coal
and ores; liquid minerals, such as crude petroleum; and
gases, such as natural gas. The agriculture, forestry, fishing
and hunting sector contains establishments primarily
engaged in growing crops, raising animals, harvesting
timber, and harvesting fish and other animals from a
farm, ranch, or their natural habitats. The construction
sector is made of establishments primarily engaged in the
construction of buildings or engineering projects (e.g.,
highways and utility systems). Since 2007, employment
in this sector declined by 3,100 jobs. However, between
June 2012 and June 2013, the sector added 600 jobs.
10
9
Financial Activities
8
The sector includes employment related to financial
transactions, insurance and real estate activities. While
this sector experienced substantial job growth prior to
2007, the sector has lost 2,400 jobs since then. From June
2012 to June 2013, 100 jobs were added in the financial
activities sector in Northwest Arkansas.
7
6
5
4
3
2
1
Jan-13
Jan-12
Jan-11
Jan-10
Jan-09
Jan-08
Jan-07
0
35
Manufacturing
30
The manufacturing sector contains establishments
engaged in the mechanical, physical, or chemical
transformation of materials, substances, or components
into new products. In a situation similar to many
communities around the country, employment in the
manufacturing industry has declined since 2007, losing
some 5,100 jobs in the Northwest Arkansas region. From
June 2012 to June 2013, 200 jobs were added in this sector.
25
20
15
10
5
Jan-13
Jan-12
Jan-11
Jan-10
Jan-09
Jan-08
Jan-07
0
5
Information
3
2
1
Jan-13
Jan-12
Jan-11
Jan-10
Jan-09
Jan-08
0
Jan-07
4
The information sector is comprised of establishments
engaged in producing and distributing information
and cultural products, providing the means to transmit
or distribute these products as well as data or
communications, and processing data. This sector, which
currently represents 1.0 percent of the employment in
Northwest Arkansas, has declined since 2007. In June
2013, this sector gained 100 jobs when compared to June
2012.
11
A brief overview of the peer regions highlighted in
this report:
In this report, we compare the Northwest Arkansas region (the Fayetteville-Springdale-Rogers MSA) to five peer
regions. These regions were chosen since they are often cited by site selectors as the regional and employment mix
based competitors for the Northwest Arkansas region in terms of attracting economic prospects. The peer MSA
regions are Tulsa, Oklahoma; Knoxville, Tennessee; Huntsville, Alabama; Omaha-Council Bluffs, Iowa-Nebraska; and
Kansas City, Missouri-Kansas.
12
Omaha-Council Bluffs MSA
Nebraska-Iowa
Kansas City MSA
Missouri-Kansas
Knoxville, MSA
Tennessee
Growth 2011-2012: 1.0%
MSA Growth Rank: 119/381
2012 Population: 2,038,724
2011 Population: 2,024,937
Growth 2011-2012: 0.7%
Growth 2011-2012: 0.6%
Tulsa MSA
Oklahoma
Fayetteville-Springdale-Rogers MSA
Arkansas-Missouri
Huntsville MSA
Alabama
Growth 2011-2012: 0.7%
Growth 2011-2012: 1.7%
Growth 2011-2012: 1.3%
13
GREAT FOR BUSINESS: Northwest Arkansas Economic
Indicators from 2007-2012
Even though the Northwest Arkansas region was impacted by the nationwide recession in 2008 and 2009, the
region’s economic strengths allowed it to weather the downturn and fare better than the state of Arkansas and
the nation as a whole. Since the recession, the region has made significant progress recovering from the economic
slump and, in most instances, has surpassed pre-recession peaks. Employment in the Northwest Arkansas region
dropped from 208,200 in 2007 to 200,300 in 2010, but gained 10,000 jobs during the recovery between 2010 and
2012. This section of the report provides detailed statistics on the Northwest Arkansas economy and compares it
to peer regions, the state, and the nation.
14
Unemployment
When compared to competitor regions, Northwest Arkansas was tied with the Tulsa region for the second
lowest unemployment rate in 2012. The unemployment rate in 2012 dropped 0.6 percent from the rate in 2011 but
remained 1.7 percent higher than the unemployment rate in 2007. The 2012 unemployment rate of 5.6 percent in
Northwest Arkansas was lower than the peer region average of 5.9 percent and significantly lower than the state
unemployment rate of 7.3 percent and the national unemployment rate of 8.1 percent.
Unemployment Rate, Annual Average
US
Arkansas
Peer Average
5.3%
5.9%
3.7%
Kansas City MSA
6.9%
6.2%
Huntsville MSA
2.7%
Knoxville MSA
6.6%
3.7%
Tulsa MSA
4.0%
Fayetteville-Springdale-Rogers
MSA
5.6%
5.6%
3.8%
1.0%
2012
2011
3.0%
2007
9.0%
7.3%
7.9%
6.7%
5.0%
4.4%
5.0%
3.4%
-1.0%
8.1%
4.6%
8.0%
7.4%
7.4%
6.6%
6.2%
5.0%
7.0%
9.0%
Northwest Arkansas Region
County Unemployment Rates
9.0%
7.8%
8.0%
While the unemployment rates were low in 2007,
the recession caused significant surges in the county 7.0%
level unemployment rates in Northwest Arkansas. 6.0%
McDonald County in Missouri has significantly higher 5.0%
unemployment than the Northwest Arkansas counties
in the region over the past five years. As the region 4.0%
returned to regular growth, the unemployment rate 3.0%
decreased in all four counties between 2011 and 2012.
6.2%
6.2%
5.7%
3.8%
6.2%
6.0%
5.4%
5.3%
4.1%
3.9%
4.1%
2.0%
1.0%
0.0%
Benton County
Madison County
2007
Washingon County
2011
McDonald County
2012
15
Employment
From 2007 to 2012, a time period that included the Great Recession, employment in Northwest Arkansas grew
1.0 percent, which was faster than peer regions, the state of Arkansas, and the nation as a whole. The pace of
employment growth picked up to 3.0 percent between 2011 and 2012, a rate that outstripped peer regions, the
state and the nation. The region added 8,800 jobs between June 2012 and June 2013. Employment in the region
reached a new peak level of 219,300 in April 2013 before seasonally dropping to 218,700 in June 2013.
Employment Growth Rate
Northwest Arkansas Employment Levels
4.0%
230
220
3.0%
210
2.0%
200
1.0%
190
0.0%
180
3.0%
1.8%
1.7%
1.3%
1.0%
0.5%
0.5%
-0.3%
1.7%
1.4%
0.8%
0.6%
-1.0%
170
-2.0%
160
-3.0%
150
-4.0%
16
Jan-13
May-13
Sep-12
May-12
Jan-12
Sep-11
Jan-11
May-11
Sep-10
May-10
Jan-10
Sep-09
Jan-09
May-09
Sep-08
May-08
Jan-08
Sep-07
Jan-07
140
May-07
Thousands
-1.4%
-1.7%
-1.9%
-2.3%
-2.8%
-2.8%
Fayetteville- Tulsa MSA Knoxville
SpringdaleMSA
Rogers MSA
Huntsville
MSA
2007-2012
Omaha- Kansas City
Council
MSA
Bluffs MSA
2011-2012
Peer
Average
Arkansas
US
From 2007 to 2012, the number of business establishments in Northwest Arkansas declined 1.9 percent. This decline
was more pronounced than those in peer regions, the state, and the nation. After increasing at an annual rate of
4.9 percent from 2001 to 2008, the number of establishments in Northwest Arkansas declined 2.6 percent in
2009 and 1.2 percent in 2010 before increasing 0.1 percent in 2011 and 0.5 percent in 2012. The Northwest Arkansas
establishment growth rate in 2012 was in the middle of the pack when compared to peer regions, the state and
the nation.
12.0%
10.8%
10.0%
8.3%
8.0%
6.0%
5.3%
4.0%
2.6%
2.0%
0.0%
-1.9%
0.5%
1.3%
1.7%
-1.6%
1.4%
1.3%
-0.2%
-0.2%
2.2%
1.1%
-0.2%
-2.0%
-4.0%
Fayetteville- Tulsa MSA
SpringdaleRogers MSA
Knoxville
MSA
Huntsville
OmahaKansas City
MSA
Coucil Bluffs
MSA
MSA
2007-2012
Arkansas
US
2011-2012
17
Income
The median household income in the
Northwest Arkansas region was $45,138 in
2011, the most recent year available. This
income level was 0.1 percent higher than
in 2010, and 1.3 percent higher than the
median income in 2007.
Per Capita Personal Income
$40,762
$41,443
$43,062
$42,231
$42,606
$44,470
$39,506
$39,937
$41,663
$31,353
$32,805
$34,014
$35,000
$38,697
$39,572
$41,370
$40,000
$36,645
$38,814
$40,126
$45,000
$34,383
$35,468
$36,958
$50,000
$39,466
$39,529
$42,236
Source: U.S. Bureau of Economic Analysis
$32,511
$32,928
$34,130
Per capita personal incomes in Northwest
Arkansas have tended to be higher than
those in Arkansas, but below peers and
the nation as a whole. The peer regions
had on average a per capita personal
income that was 21.1 percent higher than
Northwest Arkansas in 2011. Between
2007 and 2011, the Northwest Arkansas
region’s per capita personal income grew
5.0 percent, a rate that was slower than
all the peer regions and the state. In 2011,
per capita personal income in Northwest
Arkansas stood at $34,130, which was 3.7
percent higher than the previous year.
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$-
Knoxville
MSA
Huntsville
MSA
2007
Omaha- Kansas City
Council
MSA
Bluffs MSA
2010
Peer
Average
Arkansas
US
2011
Median Household Income in the
Source: U.S. Census Bureau
$45,400
$45,200
$45,101
$45,138
$45,000
$44,800
$44,600
$44,552
$44,400
$44,243
$44,200
$44,000
$43,994
$43,800
$43,600
$43,400
2007
18
2008
2009
2010
2011
Metropolitan GDP
2007-2011 Change in Real GDP
Source: U.S. Bureau of Economic Analysis
US
From 2007 to 2011, the real metropolitan
gross domestic product (GDP) in the
Northwest Arkansas region grew 7.0
percent. The region’s growth rate was
slower than competitor regions such
as Huntsville, Alabama and Knoxville,
Tennessee but significantly faster than the
peer average growth rate of 1.9 percent.
The growth rate of the region’s economic
output was strong between 2009 and
2010, increasing 7.3 percent, but remained
unchanged between 2010 and 2011.
0.0%
Arkansas
1.5%
Peer Average
Kansas City MSA
1.9%
0.1%
0.8%
Huntsville MSA
9.3%
Knoxville MSA
Tulsa MSA
7.9%
0.0%
-2.0%
Source: American Bankruptcy Institute
42.7%
40.0%
32.0%
30.0%
20.0%
10.0%
0.0%
-3.9%
-10.0%
-14.1%
-13.0%
2010-2011
2011-2012
-20.0%
2007-2008
2008-2009
2009-2010
2.0%
4.0%
6.0%
8.0%
10.0%
Bankruptcies
Annual Change in Number of Bankruptcies
in the Northwest Arkansas Region
50.0%
0.0%
7.0%
The rate and occurrence of bankruptcies
provide a good indicator of the general
health of the economy of a region. As the
recession began, the number of bankruptcies
filed in Fayetteville in the Western District
Bankruptcy Court of Arkansas rose by 42.7
percent in 2008 and 32.0 percent in 2009.
As the economic situation in Northwest
Arkansas improved, the number of
bankruptcies declined 3.9 percent in 2010, 14.1
percent in 2011 and a further 13.0 percent in
2012. The percent of statewide filings made
in Fayetteville rose from 11.8 percent in 2007
to 15.9 percent in 2009 and then decreased to
14.9 percent in 2011 and 2012.
19
Building Permits
Average Annual Building Permit Growth Rate
The number of building permits issued
shows the relative strength of a region’s
economy, as boom times are marked by
increased demands for new construction
and, subsequently, a greater number of
building permits. Since the real estate
crash and recession of 2007 to 2009, the
number of building permits issued in
Northwest Arkansas declined 43.0 percent
between 2007 and 2012. The most recent
data between 2011 and 2012 show that new
building permits in Northwest Arkansas are
increasing again at 59.5 percent on a yearover-year basis. The growth rate between
2011 and 2012 was second only to the
Huntsville MSA among peer regions.
80.0%
60.0%
61.4%
59.5%
51.5%
40.0%
21.0%
16.2%
20.0%
10.5%
0.0%
-20.0%
-3.6%
-40.0%
-43.0%
-60.0%
-38.7%
-47.4%
-31.4%
-60.7%
-80.0%
FayettevilleSpringdaleRogers MSA
Tulsa MSA Knoxville MSA
Huntsville
MSA
2007-2012
20
-25.4%
-33.4%
OmahaKansas City
Council Bluffs
MSA
MSA
2011-2012
Arkansas
THE KNOWLEDGE-BASED ECONOMY
Effective economic development efforts in today’s globalized economy place a premium on the development of
local, regional and national knowledge based economies. Knowledge enhances the traditional factors of economic
production like land, labor and capital to be more productive through new processes and products. Advancements
in the knowledge creation are also sustained by strategic collaboration between key actors in research, business,
education, and public policy making. The State of the Northwest Arkansas Region Report examines the following
metrics to determine how well the region is positioning itself for the future: academic research and development,
small business innovation research, small business technology transfer funds, and adult educational attainment.
21
Research expenditures at the University of Arkansas increased 12.7 percent from 2007 to 2010. Nearly $114 million
of research and development expenditures were made by the University of Arkansas in 2010, up 8.0 percent from
the previous year. The university ranked 135th in expenditures among research universities in 2010, a drop from the
128th rank in 2009. Higher federal funding represents recognition of the value of university-performed activities
at the federal level and shows the actual capacity of the state’s academic institutions to perform research at a
competitive level.
At the University of Arkansas, the advancement of intellectual property is supported by two entities: The
University of Arkansas System-Division of Agriculture Technology Commercialization Office (TCO) and Technology
Ventures for the University of Arkansas-Fayetteville. Both offices assist faculty and research scientists to identify,
protect, and commercialize intellectual property developed from their research or other university supported
activities. The TCO and TechVentures also engage inventors, faculty start-up/spin-out companies, and businesses
in transferring inventions into the marketplace. The staff of both entities facilitate the granting of patents and
licenses to university faculty and research scientists. From 1987 through August 2013, the University of Arkansas
System-Division of Agriculture and the University of Arkansas-Fayetteville received 717 invention disclosures.
Forty-five of these disclosures were received in fiscal year 2013 - the highest number of disclosures processed in
any fiscal year. In addition, since 1987, 200 US patents issued from 643 US patent applications, selected from these
disclosures. In fiscal year 2012, $484,164 in royalties were distributed to inventors living in Arkansas and $1,146,246 in
revenues resulting from licensing or options for inventions were collected.
R&D Expenditures 2010
Source: National Science Foundation
$350,000
$300,000
$291,787
Thousands
$250,000
$200,000
$150,000
$147,170
$113,909
$100,000
$50,000
$75,683
$30,163
$23,387
$University of University of University of University of University of University of
Tennessee, Nebraska,
Arkansas,
Alabama,
Missouri,
Tulsa, Rank
Rank 72
Rank 122
Rank 135
Huntsville, Kansas City,
254
Rank 160
Rank 234
22
Small Business Innovation Research and Small Business
Technology Transfer Grants
The Small Business Innovation Research (SBIR) and
Small Business Technology Transfer (STTR) grants $10,000,000
provide federal recognition of the region’s industrial $9,000,000
innovative capabilities. These grants encourage small
businesses to engage in research and development $8,000,000
processes and thereby promote knowledge-based $7,000,000
economic development. The Northwest Arkansas
region averaged nearly 21 grants a year and a total $6,000,000
grant amount of $34,207,387 between 2007 and 2012.
$5,000,000
Northwest Arkansas SBIR/STTR Total Amount Awarded
Source: Arkansas Small Business and Technology Development Center
$9,180,442
$6,266,575
$5,396,303
$4,761,956
$4,000,000
$4,381,973
$4,220,138
$3,000,000
$2,000,000
$1,000,000
$2007
Adult Educational
Attainment
Nearly 28 percent of adults in Northwest Arkansas
have attained a bachelor’s degree or higher, a significant
improvement from previous years. However, the adult
educational attainment in the region continues to
rank second to last among competitor regions. On
average, 30.1 percent of the adult population of the
peer regions had at least a bachelor’s degree. The
Northwest Arkansas region’s educational attainment
remained ahead of the state’s 20.3 percent. Between
2007 and 2011, the number of adults age 25 or over in
Northwest Arkansas with a bachelor’s degree or higher
climbed from 25.6 percent in 2007 to 27.8 percent in
2011.
2008
2009
2010
2011
2012
Bachelor's Degree or Higher in Adult Population
40.0%
33.8%
35.0%
30.0%
25.0%
27.8%
25.6%
28.5%
26.3% 27.5%
24.5%
32.9%
32.8%
32.0%
31.6%
31.3%
30.1%
29.1%
28.5%
27.5%
19.3%
20.0%
20.3%
15.0%
10.0%
5.0%
0.0%
Faytteville- Tulsa MSA Knoxville Huntsville Omaha- Kansas City Peer
SpringdaleMSA
MSA
Council
MSA
Average
Rogers
Bluffs MSA
MSA
2007
Arkansas
2011
23
US
GREAT FOR LIFE: Quality of Life in Northwest
Arkansas
Northwest Arkansas offers amenities that rival many of the major metropolitan areas between the two coasts,
including world-class museums, expansive and diverse shopping, a minor league baseball team, a world-class
performance theatre, and a nationally competitive college football team. The attractive quality of life of the
Northwest Arkansas region is both a result of the fruits of economic development in the region and smart
investments in the community vitality of the region. On-going efforts by key community partners ensures that
Northwest Arkansas maintains its preeminence in amenities offered. In this section of the report, we examine
various quality of life indicators such as cost of living, crime, poverty, commuting time, modes of transportation,
and health.
24
Cost of Homeownership
The measure of homeownership costs as a
percentage of monthly household income
provides an excellent tool for comparing housing
affordability. In 2007, homeownership costs
accounted for 18.6 percent of household income
in Northwest Arkansas, rising to 18.9 percent in
2008 before dropping to 17.9 percent in 2011. Home
ownership costs in Northwest Arkansas are in the
middle of the pack when compared to costs in
peer regions.
Median Cost of Homeownership as Percent of Income
25.0%
20.7%
20.0%
18.6%
17.9%
18.5% 18.9% 18.4% 18.9%
19.7%
21.5% 21.1%
20.7% 20.3%
17.2% 17.3%
17.0% 17.2%
15.0%
10.0%
5.0%
0.0%
Faytteville- Tulsa MSA
Knoxville
MSA
Huntsville
MSA
2007
Omaha- Kansas City
Council
MSA
Bluffs MSA
Arkansas
US
2011
25
2013 Cost of Living Index
Source: Sperling's Best Places
Cost of Living
The Sperling cost of living index is calculated
based on the spending categories of housing costs,
food and groceries costs, transportation costs,
healthcare costs and other costs such as clothing,
and entertainment. Based on these factors, the
Northwest Arkansas cost of living index is 87, which
is compared against the national average of 100.
The Northwest Arkansas index was better when
compared to peer regions.
105
100
100
98
98
95
91
90
90
90
87
86
85
80
75
26
Knoxville
MSA
Huntsville
MSA
Omaha- Kansas City
Council
MSA
Bluffs MSA
Arkansas
US
Crime Indicators
2010 Crime Rates per 100,000
Source: Federal Bureau of Investigation
4,000
3,774
According to data gathered by the Federal Bureau
of Investigation, violent crime rates per 1,000
persons were lower in Northwest Arkansas than
any of the peer regions, the state, or nation. In
2010, Northwest Arkansas had 324 violent crimes
per 100,000 inhabitants. Property crimes data were
unavailable for the Northwest Arkansas region in
2010. Violent crimes were 29.8 percent lower than
the peer average.
3,532
3,449
3,500
3,476
3,559
3,087
2,942
3,000
2,500
2,000
1,500
1,000
598
500
324
466
398
387
461
505
404
0
Knoxville
MSA
Huntsville
MSA
Violent Crime
Omaha- Kansas City
Council
MSA
Bluffs MSA
Arkansas
US
Property Crime
27
Poverty Indicators
The poverty rate in Northwest Arkansas was 17.2 percent in 2011. This rate increased 2.2 percent from 2010 and was
3.1 percent higher than the rate in 2007. The Northwest Arkansas poverty rate in 2011 was the highest among peer
regions. The change in the Northwest Arkansas poverty rate from 2007 to 2011 was also tied with Kansas City as
the highest among the peers. The 2011 poverty rate in Northwest Arkansas was lower than the rate for the state of
Arkansas but higher than the national rate of 15.3 percent.
Poverty Rates: All Ages
25.0%
20.0%
18.8%
17.9%
17.2%
15.0%
15.0%
14.1%
15.5% 15.3%
13.8%
14.2%
14.0%
14.2%
13.2%
13.0%
11.7%
19.5%
15.3%
12.4% 12.6%
10.7%
13.4%
12.4%
15.9%
13.0%
10.3%
10.0%
5.0%
0.0%
Knoxville
MSA
Huntsville
MSA
2007
OmahaKansas City
Council
MSA
Bluffs MSA
2010
Arkansas
US
2011
Poverty Rate: All Ages Percent Increase from 2007 to 2011
US
2.9%
Arkansas
1.6%
Kansas City MSA
3.1%
1.9%
Huntsville MSA
2.3%
Knoxville MSA
1.0%
Tulsa MSA
1.1%
0.0%
28
3.1%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
According to data from 2011, 75.1 percent of workers spent 30 minutes or less commuting to work in the Northwest
Arkansas region, slightly more than the 72.2 percent in 2007. Workers who commuted fewer than 30 minutes in the
peer regions ranged from 69.4 percent in the Kansas City MSA to 78.8 percent in the Omaha MSA.
Commuting: Percent of Workers Traveling Fewer than 30 Minutes
69.4%
69.0%
Kansas City MSA
78.8%
81.1%
73.4%
72.7%
Huntsville MSA
71.4%
71.8%
Knoxville MSA
74.9%
75.5%
Tulsa MSA
75.1%
72.2%
Arkansas
73.9%
United States
0.0%
64.6%
10.0%
20.0%
30.0%
2011
2007
40.0%
50.0%
60.0%
70.0%
82.5%
79.0%
80.0% 90.0%
29
In 2011, the percentage of the working
population that biked or walked to
work was 3.0 percent, a figure that
was higher than every peer region
and the state, but lower than the 3.4
percent rate for the nation as a whole.
In 2007, 2.1 percent biked or walked
to work while in 2010, 2.7 percent
biked or walked to work in Northwest
Arkansas. A total of 0.5 percent of
workers in Northwest Arkansas used
public transit to get to work in 2011,
a decrease from 0.7 percent in 2010.
The percent of workers who used
public transportation to get to work in
Northwest Arkansas was in the middle
of the pack when compared to peers.
Commuting: Percent Bike or Walk to Work
4.0%
3.3% 3.4%
3.5%
3.0%
3.0%
2.5%
2.1%
2.0%
1.8%
1.7%
1.7%
1.6%
1.5%
1.5%
2.0%
2.0% 2.0%
2.0%
1.4%
1.1%
0.9%
1.0%
0.5%
0.0%
Knoxville
MSA
Huntsville
MSA
2007
OmahaKansas City
Council
MSA
Bluffs MSA
Arkansas
United
States
2011
Commuting: Use of Public Transit
6.0%
4.9%
5.0%
5.0%
4.0%
3.0%
2.0%
1.3%
1.0%
0.5%
0.3%
0.4% 0.5%
0.5% 0.4%
0.5%
0.3%
0.7%
0.9%
1.2%
0.5% 0.4%
0.0%
Knoxville
MSA
Huntsville
MSA
2007
30
OmahaKansas City
Council
MSA
Bluffs MSA
2011
Arkansas
United
States
Health Insurance
Coverage
Health Insurance Coverage 2008-2011
90.0%
89.3%
88.5%
89.1%
87.6%
88.0%
87.7%
87.0%
86.6%
86.5%
86.0%
84.9% 84.9%
84.0%
82.6%
82.0%
82.9%
82.2%
81.9%
82.0%
80.8%
80.0%
78.0%
76.0%
Knoxville
MSA
Huntsville
MSA
2008
Kansas City
OmahaMSA
Council
Bluffs MSA
2011
AR
US
In 2011, 82.6 percent of the residents of
Northwest Arkansas had health insurance
coverage. This percentage was lower than
the health insurance coverage rate in other
peer regions with the exception of Tulsa.
Health insurance coverage data from the
Census Bureau are only available from 2008
and the Northwest Arkansas coverage rate
increased 1.8 percent during that time. The
2011 coverage rate in Northwest Arkansas
was lower than the statewide rate at
82.9 percent and the national rate at 84.6
percent.
Healthy Lifestyles
Compared to the rest of the state of
Arkansas, the two major counties in the
Northwest Arkansas region (Benton and
Washington) have better health trends
in some categories such as lower adult
smoking and lower rate of adult obesity.
A total of 18.0 percent of adults in Benton
County and 20.0 percent of adults in
Washington County smoke, compared
to 23.0 percent statewide. Adult obesity
is at 28.0 percent in Benton County and
30.0 percent in Washington County, while
statewide the obesity rate is 32.0 percent.
The rate of excessive drinking is higher in
Washington County (15.0 percent) than
the state (13.0 percent), likely due to the
presence of the public university student
community. 8.0 percent of the low-income
population statewide has limited access to
grocery stores, compared to 6.0 percent
in Benton County and 7.0 percent in
Washington County.
31
Information for this report was gathered from the following sources: American Bankruptcy Institute, Arkansas Small
Business and Technology Development Center, County Health Rankings, Federal Bureau of Investigation, National
Science Foundation, Sperling’s Best Places, U.S. Bureau of Economic Analysis, U.S. Bureau of Labor Statistics, and
U.S. Census Bureau.
Thanks to Cranford Johnson Robinson Woods, Paula Lawrence, and Erica Kenney for providing the photographs.
The Center for Business and Economic Research would also like to credit Thrive, an economic development
enterprise in the Madison, Wisconsin region for providing an excellent model for a State of the Region Report.
For questions about this report, contact:
Kathy Deck
Director, CBER
[email protected]
Mervin Jebaraj
Research Assistant
[email protected]
University of Arkansas
Sam M. Walton College of Business
Center for Business & Economic Research
Willard J. Walker Hall 538
1 University of Arkansas
Fayetteville, AR 72701-1201
(479) 575-4151

2013 State of the NWA Region Report.indd

Transcription

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