Business Weekly

August 17 – 21, 2009

• Arkansas Key to U.S. Trade with China, Ambassador Says
• State Chamber “Door to Door” Regional Meetings to Resume
• Small Business Council Sets Two Final Meetings for 2009
• State Chamber/AIA Annual Meeting Planned for October 19
• Business Development Workshop Planned for September 16
• NAM-ACCF Study Concludes Bill Will Cost 2.4 Million Jobs
• Study: Arkansas Economic Outlook 12^th Nationally
• UCSIS to Accept New H-2B Fiscal Year 2009 Petitions
• Welcome to Our New Members
• Thanks to Our Pinnacle Members
• Calendar of Events

Arkansas Key to U.S. Trade with China , Ambassador Says
By Mark Carter 

Arkansas Business

Arkansas is an important component to China 's overall trade interests with America ,  the Chinese ambassador to the U.S. told Arkansas State Chamber of Commerce officials Tuesday. August 11^th.

The Hon. Zhou Wenzhong and U.S. Sen. Blanche Lincoln, D-Ark., were the featured speakers at the State Chamber's "China Business 2009: Expanding Opportunities for U.S. Companies" seminar from the Capital Hotel in downtown Little Rock .

Wenzhong said China stands ready to work with the U.S. on trade, and that Arkansas was an important part of that effort.

Lincoln told the group of business leaders, which included state Sen. Shane Broadway, D-Bryant, and state Rep. Keith Ingram, D-West Memphis, that expanding trade with China will help turn around the U.S. economy.

Arkansas exports to China total $321 million, up from $29 million in 2000. China is the state's third-largest export market, behind Canada ($1.2 billion) and Mexico ($796 million). According to the state chamber, Arkansas ' top exports to China are processed foods ($96 million), chemicals ($65 million), crop production ($56 million), transportation equipment ($31 million), and electrical equipment ($18 million).

Arkansas is far-and-away the leading producer of rice in the U.S. , but Wenzhong said China was largely self sufficient in production of rice and didn't need to import the product. China produces about 38 percent of the world's rice.

China doesn't import rice from the U.S. , but different strains of rice from other southeast Asian countries were available in Chinese markets, Wenzhong said.

American rice, and Arkansas rice in particular, is generally considered to be of higher quality. Rice growers in Arkansas believe there is an untapped market for their product in China .

"Keep trying, and you'll be able to sell Arkansas rice in China ," he said. "I wish you success."

Wenzhong said China continues to polish its image, noting the next round of human-rights dialogue planned for later this year.

"More Americans now perceive China as a positive opportunity rather than as a threat," he said.

American exports to China have grown from $5 billion in 1980 to $408 billion currently, making China the country's second-largest trading partner. Lincoln said U.S. firms have invested $28 billion in China .

"We have to allow U.S. companies to be able to operate competitively in the global marketplace where they operate," she said. "Our government must create an environment where these industries can be successful."

That entails revising the tax code to make sure American companies operating abroad don't receive "unfavorable" tax scenarios, she said.

"Increasing trade with China is a fabulous deal for Arkansas , for America , and for the Chinese people," Lincoln said.

Wenzhong noted China 's efforts to make further improvements in the areas of energy efficiency, emissions reduction, sustainable development, climate change, as well as working with the U.S. and others toward the peaceful denuclearization of North Korea .

He said China stands ready to work with the U.S. to expand trade opportunities, and looks forward to President Obama's forthcoming trip to China later this year.

In addition, he complimented the city of Little Rock and the state of Arkansas on their efforts to promote trade with China , and praised the Confucius Institute at the University of Central Arkansas in Conway .

About 60 business leaders, including Arkansas Economic Development Commission director Maria Haley, were in attendance. Lincoln provided the morning keynote address before leaving to embark on a speaking-engagement tour of south Arkansas .

(Also providing remarks or presentations were: Leslie Schweitzer, Senior Trade Advisor for the U.S. Chamber of Commerce; Steve Ganster, Managing Partner, Technomic Asia; Neil Bagchi, Director, Business Development, SE, Nair & Co.; John Burkhalter, President, Burkhalter & Stevens, Inc.; Joe Bailey, Director of Business Development, AEDC; Becky Thompson, Deputy Director, AEDC; Brian Strebel, Vice President, Smart Sourcing; Dan Hendrix, President, Arkansas World Trade Center; and Randy Zook, President & CEO, Arkansas State Chamber of Commerce/Associated Industries of Arkansas).  

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Chamber “Door to Door” Regional Meetings to Resume

The State Chamber/AIA will resume its series of “Door to Door” Regional Meetings on Wednesday, August 26^th in Rogers .

The meetings, which have drawn local business representatives and state legislators, feature presentations on state and federal governmental affairs issues by State Chamber/AIA President and CEO Randy Zook and Executive Vice President Kenny Hall.

Additional “Door to Door” meetings are planned for September 1 in Russellville, September 3 in Hope, September 15 in Mountain Home, September 16 in Jonesboro , September 22 in Hot Springs and September 28 in Arkadelphia. We are also working on scheduling additional cities in October. Additional details can be found in the Calendar of Events at the end of this newsletter.

For further information, contact Deb Mathis at 501-210-4212 or dmathis@arkansasstatechamber.com.

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 Small Business Council Sets Two Final Meetings for 2009

The State Chamber/AIA Small Business Council has scheduled two final meetings for 2009 on Thursday, September 3^rd and Thursday, November 5^th. Both meetings will be held from 11:30 a.m. to 1 p.m. in the Bob Lamb Conference Room.

The topic for the September 3^rd meeting will be “Employer Support of the Guard and Reserve.” The topic for the November 5^th meeting will be “Disaster Preparedness.” Lunch will be provided at both meetings as well as a legislative update.

Small Business Council meetings are open to all State Chamber/AIA members. For further information, contact Jeff Thatcher at 501-210-4205 or jthatcher@arkansasstatechamber.com.

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State Chamber/AIA Annual Meeting Planned for October 19

The State Chamber/AIA will hold our 81^st Annual Meeting on Monday, October 19^th at the Doubletree Hotel in Little Rock .

U.S. Senator Blanche Lincoln will be the keynote speaker. Also providing remarks will be Arkansas Gov. Mike Beebe.

A Congressional Briefing with members or top staff from the Arkansas Congressional Delegation will also be held, as well as a Board Meeting and a Networking Lunch.

For sponsorship information, contact Jeff Thatcher at (501) 210-4205 or jthatcher@arkansasstatechamber.com.

For information on the Annual Meeting, contact Deb Mathis at 501-210-4212 or dmathis@arkansasstatechamber.com.

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Business Development Workshop Planned for September 16  

The State Chamber/AIA, the U.S. Small Business Administration and O’Neal Technologies will provide a free business development workshop entitled “Business Development-Strategic Marketing” in Little Rock on Wednesday, September 16, 2009.   This workshop is part of a series of workshops being given across the country.

WHO:              Eligible firms include: 8(a)-certified firms, businesses operating in areas of high unemployment or low income, firms owned by low-income individuals, firms that have been in business for not more than four years, and SBA HUBZone-certified firms. 

WHAT:          Strategic Marketing is a critical piece in the area of business development and business growth. This workshop will break down all facets of strategic marketing from A to Z, i.e.; how to choose the type of strategic plan that is right for your business, how to focus on the processes, the structures and how to lead and manage your plan once you have learned how to develop one. At the conclusion of this workshop, the small business owner will be able to integrate all aspects of the business's activities into a mutually supportive marketing strategy. You will learn the differences between how to develop internal strategies and external strategies and how to become proactive in achieving your business goals through strategic marketing.

Workshop highlights:

§         What is Strategic Thinking?

§         What is Analytical Thinking?

§         What is Strategic Positioning?

WHEN:           Wednesday, September 16, 2009

                         8:00 a.m. – 5:00 p.m.

WHERE:        Arkansas State Chamber of Commerce

                        1200 West Capitol

                         Little Rock , Arkansas 72201

HOW:             Those wishing to participate in this course should click here  to register. Select Arkansas and then advance the calendar to September to view and choose the course. 

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NAM-ACCF Study Concludes Bill Will Cost 2.4 Million Jobs

 The National Association of Manufacturers (NAM) and the American Council for Capital Formation (ACCF) last week unveiled a comprehensive study on the impact of The American Clean Energy and Security Act of 2009, also known as the Waxman-Markey Bill (HR 2454).

The bill aims to reduce greenhouse gas emissions and to cap the amount of carbon that is emitted by U.S. industry. The legislation does so by mandating a cap and trade program and other provisions governing fuel choices available to businesses and consumers. This bill passed the House of Representatives by a slim margin (219-212) earlier this summer. The Senate is expected to release its version of climate legislation in September.

The study, which was commissioned by the NAM and ACCF and conducted by Science Applications International Corporation (SAIC) using NAM and ACCF input assumptions, assesses the impact of the Waxman-Markey Bill on manufacturing, jobs, energy prices and our overall economy. The NAM and ACCF released national data as well as the analysis for 15 industrial states that would be impacted greatly if this or similar legislation is signed into law. The full report, including the data covering the remaining 35 states will be released in the coming weeks.

Jay Timmons, executive vice president of the NAM said, “Climate change is a very complex issue and I hope Senators will look closely at this study as they consider climate change legislation this fall. At a time when our country is struggling to come out of our longest and deepest economic downturn since the Great Depression, lawmakers should be focused on policies that provide incentives for businesses so they can create jobs and grow. Unfortunately, this study confirms that the Waxman-Markey Bill is an ‘anti-jobs, anti-growth’ piece of legislation. Further, leaders of countries such as China and India have made it clear they have no intention of reducing their own emissions. Waxman-Markey would give an edge to overseas competitors, discouraging domestic investment and the creation of American jobs.”

The NAM/ACCF study accounts for all federal energy laws and regulations currently in effect. It accounts for increased access to oil and natural gas supplies, new and extended tax credits for renewable generation technologies, increased World Oil Price (WOP) profile, as well as permit allocations for industry and international offsets. Additionally, the provisions of the stimulus package passed in February are included in this study.

Key findings include:

Cumulative Loss in Gross Domestic Product (GDP) up to $3.1 trillion (2012-2030)

 Employment losses of up to 2.4 million jobs by 2030

 Residential electricity price increases up to 50 percent by 2030

Gasoline price increases (per gallon) up 26 percent by 2030

Dr. Margo Thorning, senior vice president and chief economist for ACCF, highlighted the importance of reviewing economic findings while debating the climate change legislation. “This data shows that we cannot divorce the environmental impacts from potential economic damages. Policymakers may have the best of intentions when it comes to the environment, but it’s crucial that we compare the economic cost to the legislation’s actual impact on global GHG reductions. Considering that developing countries such as China and India have publicly stated that they will not undertake similar emissions policies, there would be almost no global environmental benefits from the bill.

Ultimately, this study shows that Waxman-Markey, would significantly decrease employment and increase energy prices at a time when we can least afford it.”

Further, this study shows industrial states would be disproportionately impacted by high energy prices, loss of jobs and income. The 15 states analyzed in the initial study include:

SAIC used a modified version of the National Energy Modeling System, NEMS/ACCF-NAM 2, and the NAM and ACCF input assumptions, to quantify the impact of the Waxman-Markey bill.

“Policymakers and the public must have a clear understanding of the potential impact of climate change legislation to assess whether it will cause more economic harm than environmental good,” concluded Timmons.

The national and 15 state-by-state economic impacts can be found by clicking here 

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Study: Arkansas Economic Outlook 12th Nationally

Arkansas News Bureau

 A new study ranks Arkansas 12th among the states in economic outlook.

Results of the study released last week by the Washington-based American Legislative Exchange Council, entitled “Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index,” offers a road map for economic recovery based on state policies it says have a proven impact on growth.

The study praises Arkansas for its low level of debt and below-average property taxes, and for what the study refers to as “good labor policy” — Arkansas is a right-to-work state.

On the downside, the study says above-average income taxes and high sales taxes hurt Arkansas ’ economic outlook.

Among states bordering Arkansas , Tennessee ranks ninth, Texas 10th, Oklahoma 15th, Louisiana 18th, Mississippi 19th and Missouri 23rd in economic outlook.

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USCIS to Accept New H-2B Fiscal Year 2009 Petitions

 U.S. Citizenship and Immigration Services (USCIS) recently reopened the fiscal year 2009 H-2B petition filing period and will immediately accept new H-2B petitions.

Although on January 7, 2009, USCIS announced it accepted and approved a sufficient number of H-2B petitions to meet the congressionally mandated annual cap of 66,000, the Department of State received far fewer than expected requests for H-2B visas and as a result, has issued only 40,640 H-2B visas for fiscal year 2009 to date. This means that there are approximately 25,000 visas that may go unused, as they have not been granted. Because of the low visa issuance rate, USCIS is reopening the filing period to allow employers to file additional petitions for qualified H-2B temporary foreign nonagricultural workers.

The normal (non-premium processing) adjudication time frame for H-2B petitions is 60 days.  USCIS will make visa numbers available to petitions in the order in which the petitions are filed.  However, because H-2B petitions (Form I-129) for fiscal year 2009 visas must be received, evaluated, and adjudicated on or before the fiscal year 2009 deadline of Sept. 30, 2009, USCIS cannot guarantee approval of any H-2B petition on or before the Sept. 30, 2009 deadline.  Employers therefore are encouraged to file as soon as possible and to request premium processing by filing a Form I-907 and submitting the $1000 premium processing fee, which will allow for expedited adjudication. For further information, click here.

To qualify for a fiscal year 2009 H-2B cap number, employers must:

• Submit the Form I-129 Petition for a Nonimmigrant Worker to USCIS with all required documents, including an approved Alien Employment Certification from the U.S. Department of Labor that is valid for the entire employment period stated on the petition. 

The petitioner must also indicate an employment start date before Oct. 1, 2009.

Petitions received on or after Oct. 1, 2009, and/or requesting a starting date on or after Oct. 1, 2009, will be considered towards the fiscal year 2010 H-2B cap and are subject to all eligibility requirements for fiscal year 2010 H-2B filings, including 8 CFR 214.2(h)(6)(iv)(D), which requires that the start date listed on the petition be the same as the starting date authorized on the temporary labor certification.

The H-2B program allows U.S. employers to bring foreign nationals to the United States to fill temporary nonagricultural jobs for which there is a shortage of available U.S. workers. Typically, H-2B workers fill labor needs in occupational areas such as education, construction, health care, landscaping,  manufacturing, food service/processing, and resort/hospitality services.

More information about the H-2B visa program is available in the USCIS guide, “How Do I Hire a Foreign National for Short-Term Employment in the United States ,” by clicking here or by calling USCIS’ National Customer Service Center at 1-800-375-5283. 

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Welcome to Our New Members

Thanks to the following companies and organizations that have recently joined the State Chamber/AIA:

Alcoa-Kawneer

ArCom Systems, Inc.

Bowman Insurance Agency

Goldstar Couriers

Kawneer Company, Inc.

Odom Peckham Architecture Inc.

Sugar Creek Foods International Inc.

Web Solutions

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Thanks to Our Pinnacle Members

We would like to express thanks to all of our Pinnacle investors, the respected companies that support the State Chamber/AIA at the highest annual investment levels. We appreciate all that they do for us.

APEX

Entergy Arkansas, Inc.

Wal-Mart Stores, Inc.

SUMMIT

Chesapeake Energy, Inc.

Cox Communications

Tyson Foods, Inc.

XTO Energy, Inc.

PEAK

Arkansas Blue Cross and Blue Shield

Arvest Bank

AT&T Arkansas

CenterPoint Energy Southern Gas

Electric Cooperatives of Arkansas

FedEx Freight - East

Georgia-Pacific Corporation

Kraft Foods

Nucor/Nucor-Yamato

Oaklawn Jockey Club

Southern Bancorp, Inc.

Southland Park Gaming & Racing

Southwestern Energy Company

State Farm Insurance

Verizon Wireless

Windstream Corporation

CROWN

Acxiom Corporation

AEP Southwestern Electric Power

Albemarle Corporation

American Greetings Corporation

America 's Car-Mart, Inc.

Arkansas Employees Federal Credit Union

Arkansas Farm Bureau Federation

Arkansas Oklahoma Gas Corporation

Bank of the Ozarks

BP America, Inc.

CardinalHealth

CenterPoint Energy Gas Transmission Company

Crossland Construction

Deltic Timber Corporation

Evergreen Packaging Company

Experian

Farm Bureau Mutual Insurance Company of Arkansas, Inc.

Forest Oil Corporation

Glad Manufacturing/A Clorox Company

International Paper Company

Kimberly-Clark Corporation

Lion Oil Company

LS Power

McKee Foods Corporation

Metropolitan National Bank

Nabholz Construction Corporation

National Center for Toxicological Research (NCTR)

OG+E

Petrohawk

Philander Smith College

RebeccaRice & Associates

Riceland Foods, Inc.

Russellville Steel Co. Inc.

Signature Bank of Arkansas

Stephens, Inc.

Suez Energy North America

The Clorox Company

The Trane Company

Transplace Texas , LP

US Bank

Waste Management

Weyerhaeuser Company

Wright Lindsey & Jennings

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Calendar of Events

August 26                    State Chamber/AIA “Door-to-Door” Meeting

                                    11:30 a.m.

                                    Embassy Suites

                                    Rogers

September 1               State Chamber/AIA “Door-to-Door” Meeting

                                    11:30 a.m.

                                    ATU - Lake Point Conference Center

                                    Russellville

September 3               State Chamber/AIA “Door-to-Door” Meeting

                                    11:30 a.m.

                                    UACC Student Center

                                    Hope               

 

September 3               Small Business Council Meeting

                                    11:30 a.m. – 1 p.m.

                                    State Chamber Conference Room

                                    Little Rock

September 15             State Chamber/AIA “Door-to-Door” Meeting

                                    11:30 a.m.

                                    ASU-Mountain Home

September 16             State Chamber/AIA “Door-to-Door” Meeting

                                    11:30 a.m.

                                    Jonesboro Regional Chamber of Commerce

September 22             State Chamber/AIA “Door-to-Door” Meeting

                                    11:30 a.m.

                                    Embassy Suites Hotel

                                    Hot Springs

September 28             State Chamber/AIA “Door-to-Door” Meeting

                                    11:30 a.m.

                                    Arkadelphia

October 19                  State Chamber/AIA Annual Meeting

                                    State Chamber/AIA Board Meeting

                                    Doubletree Hotel

                                    Little Rock

November 5                Small Business Council Meeting

                                    11:30 a.m. – 1 p.m.

                                    State Chamber Conference Room

                                    Little Rock

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