AEDC Reports Increased Economic Development

Last year was a banner year for economic development in the state, according the Arkansas Economic Development Commission's annual activity report for 2007.

The report, created by Act 1282 of 2001, gives the Arkansas Legislative Council and the House and Senate Committees on Revenue & Taxation a good look at the state's economic health – both good and bad.

Among its findings:

• The AEDC signed 104 incentive agreements in 2007 out of 150 agreements that were offered. Twenty-five were new businesses and 79 were expansions. In 2006, the AEDC signed only 85 agreements out of 153 offered.

• Upon completion, there will be a net gain of 6,616 new and expanded jobs – the most since 2001. The number of new jobs, 3,266, was the most since 1998.

• Total new capital investment in the projects rose to $1.58 billion – an AEDC record in infrastructure investments. About $1.06 billion of that is from expansions of existing businesses, which the report said indicates a commitment to remain and expand in Arkansas.

• The average hourly wage among the incentive agreements in 2007 was $15.74 or $32,739 a year, substantially above the state per capita personal income average of $14.45 or $30,060 a year.

On the flip side, out of those 150 agreements offered, 14 will not locate in the state, three projects have been put on hold, 11 are still active but no decision has been made, and 18 are projects that have been or are expected to be announced this year.

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