JULY 2012

Conway-based US Compounding is preparing to move into a larger, newly renovated space for its pharmaceutical compounding operation. FULL STORY, PAGE 4.

Crain BuiCk GMC, LoG CaBin DEMoCraT To HosT BusinEss afTEr Hours EvEnTs

Employees of Chamber member businesses have the opportunity to attend two Busi-ness After Hours events this quarter.

The first networking event will take place at Crain Buick GMC on Monday, July 16, from

5-6:30 p.m. The auto dealer-ship is located at 1003 North Museum Road in Conway. Door prizes will be available and include free service at Crain Automotive, a golf bag, a duffle bag and more.

The Log Cabin Democrat will

host the quarter’s second Busi-ness After Hours on Thursday, August 9, from 5-6:30 p.m. at its new location in the Federal Plaza. The 25,000-square-foot, two-story building is located at 1111 Main Street. The Federal Plaza also houses the U.S.

Post Office and Privacy Star. Attendees are welcome to tour the newly renovated facility.

Business After Hours allows representatives from member businesses to strengthen pro-fessional relationships and de-velop new opportunities to work

with fellow Chamber members. The events are free to employ-ees of Chamber member busi-nesses. Complimentary hors d’oeuvres will be provided.

For more information about Business After Hours, call the Chamber 501-327-7788.

2 | FAULKNER COUNTY BUSINESS JOURNAL

LunCH & LEarn TarGETs TaxEs for sMaLL BusinEssEs

Bo Conner of Conner & Sartain, CPA, P.A. will discuss taxes for small busi-nesses at the Conway Area Chamber of Commerce’s upcoming Small Business Lunch & Learn. The ses-sion is free to employees of Chamber member busi-nesses and will take place Tuesday, July 31, from 11:30 a.m. until 1 p.m.

Conner, a certified public accountant, has 38 years of tax experience. During the Small Business Lunch & Learn, he will discuss in detail the past, present and future of business tax and individual income tax.

The Small Business Lunch & Learn session is spon-sored by Conner & Sartain, CPA, P.A. and will take place at the Conway Chamber building located at 900 Oak Street.

Seating is limited to the first 40 participants. To register for the Small Busi-ness Lunch & Learn, visit ConwayArkCC.org/events. For questions or additional information, contact Whitney Farris, director of communi-cations, at 501-932-5411.

After 30 years on Oak Street, Conway’s Chevrolet dealership is moving. The 30,000 square foot facility will have two customer lounges, a gourmet snack bar and cappuccino machine and first class service area. The dealership has an open floor plan with

glass viewing area of the service area. The service department will feature imported ceramic tile floor. The lot will have approximately 450 new and used vehicles to choose from.

Where is that? On Exchange Avenue next to

Superior Dodge. (south of Acxiom)

When will it open? Jan. 1, 2013

Superior ChevroletWhat’s that gonna be?

FAULKNER COUNTY BUSINESS JOURNAL | 3

DivErsE EConoMy is fauLknEr’s sTrEnGTH

By Roger Lewis

“The great recession,” as recent economic times are labeled, began in 2008 and peaked in 2009, as measured by unemployment and low national gross domestic produc-tion (GDP). While these measures showed improvement in 2011 and 2012, a sluggish economy still remains and economists predict that recovery will continue at a slow pace for several years.

Conway and Faulkner County have been spared much of the devastating effects of this recession when compared to other com-munities throughout the nation. Never-the-less, it has had an effect. Housing construction is languish-ing, natural gas exploration has been waning and unemployment is inching up.

The May 2012 unemployment rate for Faulkner County was 6.5% compared to a national rate of 7.9% and Arkansas rate of 7.3%. This made our rate the 8th low-est among cities and counties in the state. Faulkner County’s rate peaked at 8.3% in February 2010. Conway’s rate is generally lower than Faulkner County’s, but for May 2012, Conway’s rate of 6.6% was slightly higher. Conway’s unemploy-ment rate has increased slightly over the past 12 months from 6.3% in May 2011.

Housing construction in Conway remains flat with 86 permits for single family houses issued this year through June compared to 82 in 2011 and 137 in 2010 for the same period. No permits have been issued for apartment complexes this year and only one permit was issued in all of 2011 and that for a small complex. This is a steep decline compared to the 668 units in 2009 and 846 in 2008. Not surprisingly, the number of construction jobs fell from 3008 in 2007 to 2542 for 2011, a 15% decline.

Natural gas wellhead prices fell to $1.89 per thousand cubic feet (MCF) in April 2012, the lowest since 1999. The all time high was $10.79 per MCF for the month of July 2009. The state severance tax revenue for 2012 is down 29% over the same period last year. The Fayetteville shale gas production has remained flat and companies have curtailed

much of their exploration because of the low market price.

In spite of Faulkner County’s job losses in construction and natural gas industries, the total number of employees in 2011 (40,192) was up slightly from to 2007 (39,200). The average annual wage over these four years increased 11.2% from $33,045 to $36,758.

Fortunately Faulkner County does not have a dominant industry. The economies of communities that have a dominant industry such as forest products or a large manufacturing facility, collapse when these indus-tries shutter or have massive layoffs. Faulkner County’s diverse economy is our strength that insulates us from downturns in one or two business sectors. The pie chart shows our evenly, distributed diversity. In 2011, 2717 firms, classified into twelve business segments, employed 40,192 people. The largest sector, education and government, provided 18% percent of the employment. The 73 entities in this sector include colleges, school systems, munici-palities and state government and they account for 7,301 jobs. The vast majority of these are very stable jobs in the public sector.

The next largest employer is Wholesale-retail trade with 16% of the job market. With 560 firms and 6,306 jobs it is the largest within the private sector. These employers in this sector range from small busi-nesses with one or two employees to very large employers such as Walmart.

The professional and business services sector includes lawyers, accountants, insurance agents and realtors. The 392 firms employed 6,173 people and account for 15% of the employment.

The fourth business segment in order of number employed is Health Services, which employs 13% of the work force. This segment includes clinics, physician offices and nursing homes with 402 entities employing 5,092 people. The largest employer is Conway Regional Health System.

Leisure and Hospitality is a grow-ing segment of Faulkner County’s economy. Its 25 hotels and ap-proximately 200 restaurants employ 4,472 people who make up 11% of the workforce.

The top five business sectors account for 29,344 jobs which amounts to 73% of the employment numbers.

Manufacturing was once a domi-nant business sector in Faulkner County, but now accounts for only 8% of the employment. The decline in manufacturing jobs is a national trend.

Surprisingly, the natural gas industry, reported in the Natural Resource and Mining Segment, accounts for only 4% of the employ-ment. This percentage is misleading, however, because many of the jobs created by that industry are reported in other business segments.

You can obtain more information

by going to the Pulse of Conway website (www.pulseofconway.com).

Information provided by pulseofconway.com

Conway Economyat a Glance

Unemployment RateMay 2012

US ...............................8.2%Arkansas ......................7.3%Faulkner County ........ 6.5%Conway ........................6.6%Sales Tax Collections

Conway*April

2012................... $1,950,0772011................... $1,816,799Percent Change (7.3%)

Year to Date (April)2012................... $7,519,9042011................... $6,894,073Percent Change (9.1%)

Annual*2011................. $22,366,4642010................. $21,868,102Percent Change (2.3%)*Tax Rate 1.75%

Faulkner County*April

2012...................... $734,0632011...................... $673,246Percent Change (9.0%)

Year to Date (April)2012................... $2,839,6982011................... $2,552,409Percent Change (11.3%)

Annual*2011................... $8,279,3012010................... $7,834,226Percent Change (5.7%)*Tax Rate (0.5%)

Restaurant Sales*May

2012................. $13,949,5232011................. $12,947,793Percent Change (7.7%)

Year to Date (May) 2012................. $67,665,5072011................. $61,738,928Percent Change (9.6%)

Annual Sales 2011............... $151,462,7972010............... $139,864,203Percent Change (8.3%)*Includes mixed drink sales

Hotel SalesMay

2012................... $1,978,4192011................... $1,921,058Percent Change (3.0%)

Year to Date (May)2012................... $8,276,5292011................... $7,612,542Percent Change 8.7%

Annual Sales2011................. $18,662,1362010 ............... $17,590,242Percent Change 6.1%

Conway Building

PermitsSingle Family Homes

Permits IssuedJanuary — June

2012.................... 86 permits2011.................... 82 permits2010..................137 PermitsPercent Change 2011-12 (4.9%)

Annual2011..................153 Permits2010 ................ 223 PermitsPercent Change (-31.4%)Average Construction

Cost*Year to Date (June)

2012...................... $205,6832011..................... $206,2042010...................... $169,337Percent Change 2011-12 (-0.3%)*Not including land or lot improvements

Average Square Footage*

Year to Date (June)2012............................ 2,9792011............................ 2,8432010............................ 2,558Percent Change 2011-12 (4.8%)* Total under roof

Lottery SalesFaulkner County

June2012................... $1,363,9202011................... $1,505,821Percent Change (-9.4%)

January — June2012............... $246,594,6842011............... $247,397,6592010............... $240,635,674Percent Change 2011-12 (-0.3%)

Annual2011................. $16,788,6782010................. $17,540,450Percent Change (-4.3%)

Total StateJune

2012................. $34,570,4242011................. $37,935,4822012................. $35,359,397Percent Change 2011-12 (-8.9%)

Annual2011 .............. $474,879,7012010............... $459,916,256Percent Change (3.3%)

Natural GasSeverance Tax

DistributionJune

Faulkner County2012........................ $10,0282011.......................... 16,127Percent Change (-37.8%)

Conway2012........................ $12,3942011........................ $20,064Percent Change (-38.2%)

Year to Date (Jan.-June)

Faulkner County2012........................ $78,8972011........................ $93,228Percent Change (-15.4%)Conway2012........................ $97,5482011...................... $116,951Percent Change (-16.6%)

AnnualFaulkner County

2011...................... $204,0522010...................... $171,543Percent Change (19.0%)

Conway2011...................... $254,8222010...................... $221,225Percent Change (15.2%)

Wellhead Price per MCF*April

2012 ........................... $1.892011 ........................... $4.002010 ........................... $4.102009............................ $3.182008............................ $8.872007............................ $6.26

Yearly Average2011 ......................... $3.95.2010 ......................... $4.48.2009 ......................... $3.672008.......................... $7.972007.......................... $6.252006 ......................... $6.392005 ......................... $7.332004 ......................... $5.462003 ......................... $4.882002 ......................... $2.95*MCF=1000 cubic feet

Number of Active Wells*

Faulkner County ............ 316Total in Field .............. 4,133*As of June 31, 2012

Estimated Life TimeValue of Production*

Total Field . $11,382,327,198*As of November 31, 2011.

The pie chart that illustrates Faulkner County’s business seg-ments represents a near perfect example of a well balanced, diver-sified economy. We are truly blessed.

4 | FAULKNER COUNTY BUSINESS JOURNAL

Conway-based US Com-pounding is preparing to move into a larger, newly renovated space for its pharmaceutical compounding operation. The compounding pharmacy will open for business at its new location in east Conway on Monday, Aug. 20.

The facility encompasses more than 16,000 square feet and is located at 1270 Don’s Lane. Nabholz Construction is the general contractor for the $5 million renovation project.

Sara Parsley, marketing and IT director, said US Compound-ing has outgrown its current space. The new facility will quadruple the total amount of space for the company’s Conway headquarters and will increase the size of the labora-tory significantly.

“We are currently operating in a 3,000- to 4,000-square-foot facility, and our laboratory is only 1,000 square feet. In our new building, the lab alone is 8,000 square feet,” Parsley said. “This expansion gives us plenty of space to accommo-date our growing staff and vari-ety of compounding services.”

CoMPoUNDING SERVICESAs a compounding-only

pharmacy, US Compound-ing specializes in customizing medications to fit the unique needs of individual patients. The pharmacy works closely with physicians and surgery centers to provide customized compounds for a wide variety of needs.

“Compounding is such a rewarding sector of pharmacy,” said pharmacist Kristen Riddle, part-owner and director of clinical services. “We are able to assist a wide spectrum of

patients: from life-saving medi-cations for children to women’s health solutions that dramatical-ly increase their quality of life.”

Individualized, compounded medications also are beneficial for customers who are allergic to gluten, casein, corn, lactose, dyes and other common aller-gens. In addition, compounded medications ensure that pedi-atric patients get the correct dosage by using child-friendly medication applications and better-tasting flavors.

In the compounding lab, spe-cially trained technicians and pharmacists use sophisticated equipment to combine raw drug ingredients into customized prescription compounds. Com-pounded medications range from quick-dissolve pills, topical creams, pediatric chewable tablets, injections, eye drops and more.

While US Compounding does not compound pharmaceutical drugs that are available on the market, it does provide sur-gery centers with commercially available items that are on a national backorder.

“We currently supply thou-

sands of hospitals and surgery centers with critical medications that are temporarily backor-dered by the manufacturers,” said pharmacist Rebecca Mitch-ell, vice president of pharmacy operations. “These compound-ed medications are able to fill in the gaps for patients when off-the-shelf medication isn’t ideal or readily available.”

Patients of the four-legged and winged variety also benefit from customized compounds. US Compounding’s veterinary pharmacy provides medica-tions for large animals, such as thoroughbred racehorses and elephants, and small family pets.

“At US Compounding, our veterinary specialists customize animal medication into pet-preferred flavors and innovative dosage forms that are easier for owners to administer,” Mitchell said. “For example, if an animal has difficulty swallowing a pill, we can compound a cream that can be rubbed into its ear, or we can compound a paste that tastes like apples, beef, alfalfa and other pet-friendly flavors.”

Mitchell likened the com-

pounding process to cooking, except far more complex.

“To put it in the simplest terms, compounding is much like following a recipe,” Mitchell said. “However, the process is highly scientific, precise and is validated by a stringent quality assurance program.”

US Compounding is accred-ited by the Pharmacy Com-pounding Accreditation Board – a voluntary, quality accredita-tion designation for the com-pounding industry. The PCAB designation places the phar-macy among the top 2 percent of compounding pharmacies in the nation.

HISToRY AND GRoWTHPharmacist Eddie Glover,

president and CEO of US Com-pounding, founded the compa-ny in 1995 as College Phar-macy. At the time, the pharmacy had four employees, including a local sales representative for the states of Arkansas and Mississippi. The company dis-pensed commercially available medications until 2003, when it moved exclusively to com-pounding.

US Compounding has grown exponentially in the last 15

years in terms of staff and sales. The company now has more than 50 employees at its Conway location and numerous distributors and sales repre-sentatives in 49 states, Wash-ington, D.C., and Puerto Rico. In the past five years, topline sales have increased an aver-age of 41 percent each year.

In 2011, the National Com-munity Pharmacists Associa-tion named Glover the Willard B. Simmons Independent Pharmacist of the Year. The award recognizes independent pharmacists who demonstrate exemplary leadership and com-mitment to independent phar-macy and to their communities.

Glover predicts a bright future in Conway for US Compound-ing. “So much of our success can be attributed to the atmo-sphere and attitude of this city,” Glover said. “I don’t think there is a better community in the world to do business in than Conway, Arkansas.”

Part-owner and pharmacist Larry Sparks agrees. “US Compounding has thrived in the atmosphere of Conway, and we look forward to prosperous growth in partnership with the city’s leadership.”

EXPANDING STAFF AND SERVICESus CoMpounDinG

World-Class Compounding pharmaCy BEEFs up ConWay hEadquartErs With morE than 16,000 squarE FEEt

The laboratory in US Compounding’s new facility provides eight times more space than the laboratory in the former location.

6 | FAULKNER COUNTY BUSINESS JOURNAL

TOP 5 RESIDENTIAL hOmE SALES

PRICE ADDRESS CITY BED/BA/HB SUBDIVISION SQ. FT. $/SQ. FT. YEAR BUILT$472,500 460 Goode Conway 5/4/0 Club Cove 5,026 $95.50 1996$405,000 5685 Grand Teton Lane Conway 4/3/0 Spencer Mountain 3,200 $140.31 2011$375,000 440 Wellesley Drive Conway 5/3/0 Wellington 3,790 $102.88 2000$363,750 4000 Zachary Trail Conway 3/3/1 Dogwood Estates 3,750 $100.00 2005$310,500 845 Chapel Hill Conway 4/3/1 Chapel Hill 2,985 $108.88 2007

Tupelo Bayou Site One Reservoir

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Dave Ward Dr

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460 Goode Lane

5685 Grand Teton

440 Wellesley Drive

4000 Zachary Trail

845 Chapel Hill

CiTy of Conway insTaLLs nEw siDEwaLks

Conway just became more pedestrian friendly thanks to the installation of new side-walks.

In June, the Conway City Council began accepting bids for this year’s sidewalk improvement projects. The work includes the construc-tion of approximately 3,430 feet of five-foot-wide concrete sidewalks, along with wheel-chair ramps and modular block walls.

One new sidewalk is located along the south side of Siebenmorgen Road and extends from Bob Courtway Drive to Maddox Drive in Con-way. Construction is currently underway on a second side-walk located along the west side of Donaghey Avenue, extending from Tyler Street to Meadowlake Road.

Five contractors bid on the project. The City Council accepted the low bid from

Paladino-Nash in the amount of $89,662.

Jamie Gates, senior vice president of the Conway Area Chamber of Commerce and Conway Development Corpo-ration, said that improvements like these bring the commu-nity another step closer to achieving some of the goals outlined in Conway2025 – the city’s long-range plan and of-ficial strategic vision.

“One of the goals of Conway2025 is to have a comprehensive system of cycling lanes and sidewalks throughout the city,” Gates said. “Well-maintained side-walks, together with cycling lanes, facilitate car-free travel for residents and ensure the safety of pedestrians and cyclists.”

For more information about this and other street projects, contact the City of Conway at 501-450-6165.

Workers construct a new sidewalk on Donaghey Avenue that will extend from Tyler Street to Meadowlake Road. A second sidewalk has been installed on the south side of Siebenmorgen Road.

Re-locators, pre-locators, small business owners and high-income households are the recipe for success for Con-way area businesses. At least Jamie Gates, Sr. Vice President of the Conway Area Chamber of Commerce, thinks so: “By identifying households that are seeking new business relation-ships or households with high incomes, we can help business-es increase their profits.”

The Conway Area Chamber does this through the publica-tion and unique distribution strategy of the “LEXICON,” a resource guide for Conway residents new and old. The “LEXICON” will serve as the Chamber’s membership direc-tory, quality of life publication and local reference guide. The guide will be a high-quality piece that features useful, lo-cally written, information for new residents and advertise-ments from businesses within Conway’s trade area.

The guide will be mailed to every household of a qualifying income level relocating within Conway’s traditional trade area. It is mailed to new residents quarterly. Gates said that contacting recently relocated families as quickly as possible should be a priority for any busi-ness.

“Research tells us that relo-cating families’ spending may increase seven fold their first six months in a home. They will also establish dozens of per-manent business relationships such as health care and finance professionals. It is a critical time to gain their attention.”

Gates said that an equally im-portant, but difficult to find, de-mographic is the “pre-locator.” “We call a pre-locator someone who contacts the Chamber before they ever come to Ar-kansas. It may be a move they make or their own, or we may

be working with a local busi-ness to help with transition.”

Gates says that what makes these valuable households difficult to discover is that they haven’t officially made a move that would show up in any traditional marketing lists. “Pre-locators would be impos-sible for small businesses to identify on their own. These are names that we get by taking the

phone calls at the Chamber or by partnering with local industry. We fulfill hundreds of requests each year from prospective residents.”

Finally, the LEXICON will be mailed regionally to high-income households, not only in Conway but in areas that rely on Conway for goods and ser-vices. More than 4,000 copies will be sent to the area’s highest

income households, some 30 or more miles away. The guide will also be distributed in local hotels.

Any business is welcome to advertise in the Conway Ex-plorer. To get information about how your business may benefit from advertising, call Aaron Throneberry at the Chamber at 501.327.7788 or email aaron@conwayarkansas.org.

FAULKNER COUNTY BUSINESS JOURNAL | 7

TEaCHEr fair offErs CHanCE To usE MarkET

What business wouldn’t want two hours with 700 well paid, influential, well educated consumers in the midst of their careers?

In Conway, the best chance to do just that might be participating in the Eighth Annual Teacher Breakfast and Education Fair.

The Teacher Breakfast and Education Fair has established itself as the official start to the K-12 school year. On Friday, Aug. 17, hundreds of faculty and staff from Conway Public Schools, St. Joseph School and Conway Christian School will be treated to a breakfast and giveaways from area businesses.

This year’s fair is pre-sented by Conway Corpo-ration. The event will be held in the cafeteria at Ruth Doyle Intermediate School on Padgett Road. Conway Chamber Director of Events Mary Margaret Satterfield said the event gives busi-nesses an opportunity to thank our school employees but also market their goods and services.

The Teacher Fair consists of a catered breakfast and “business expo” of approxi-mately 70 vendors. Sat-terfield said that teachers, as a group, are sometimes overlooked as a business opportunity.

Satterfield says that the event is filling up but that there are still booth spaces available.

Booth space starts at $200. The deadline to regis-ter is Friday, August 3rd. For more information contact Mary Margaret Satterfield at Mary@ConwayArkansas.org.

The Chamber’s “LEXICoN” guide will market local businesses to visitors, high income households, new movers and those considering moving to Conway.

‘LExiCon’ GuiDE wiLL TarGET HiGH-vaLuE HousEHoLDs, nEw MovErs for arEa BusinEssEs