Across the state of Arkansas, companies are thriving, supported by the state’s low costs, an experienced workforce and growing talent pool, and an industry-friendly regulatory environment. From expansions of existing facilities to companies locating new operations, there is significant economic growth in the Natural State.
Arkansas is home to a diverse range of industries – from aerospace and defense to food and beverage to technology. Cutting edge startups rub shoulders with legacy manufacturing companies in Arkansas. What these companies have in common, though, is that they are all finding success in Arkansas.
In recent months, Arkansas has experienced significant momentum, winning numerous economic development projects that are brining new jobs and investment across the state.
One of the state’s leading industries, the aerospace and defense industry has steadily grown in Arkansas, supported by a strong military installation presence, an established industry base at the Highland Industrial Park in Camden, and an experienced workforce. Recent announcements include Dassault Falcon Jet’s expansion of their Little Rock operations – the company’s largest facility in the world – with a $100 million investment that will create 800 new jobs, as well as the new R2S facility in East Camden that will produce the Tamir missile for the Iron Dome Weapon System.
During the 2024 Farnborough International Airshow, Governor Sarah Sanders joined Taber Extrusions executives to announce a new $60 million expansion at the company’s facility in Russellville, Arkansas. This project, which will create 70 new jobs, will bring the largest direct extrusion press in North America to the Natural State.
Arkansas has also seen growth in the firearms and ammunition sector with multiple projects announced over the past year. SIG SAUER revealed in October 2023 that it would be expanding its facility in Jacksonville, Arkansas, investing $150 million to develop a new 250,000-square-foot building to house parts of its manufacturing processes. Over the course of five years, this project will create 625 new jobs in Jacksonville. Another firearms and ammunition manufacturer, Walther Arms, also announced plans to expand in Arkansas with a new $30 million investment in its Fort Smith operations. This expansion will add more than 40,000-square-feet of space to its existing facility and will create 76 new jobs. Most recently, in September 2024, White River Energetics announced that it would be investing $70 million to expand its campus in Des Arc, creating 100 new jobs. The ammunition primer and energetics manufacturing company will be expanding its existing facility and building a new single base smokeless propellant factory as part of this project, adding 90,000-square-feet to its operations.
The White River Energetics announcement is representative of a trend of rural economic development wins in Arkansas. Companies can find the real estate and workforce they need to succeed in rural communities in addition to the metro areas of Arkansas. Tech company Provalus is expanding to Walnut Ridge with plans to create 200 new jobs. Also in northeast Arkansas, Tate is building a new manufacturing facility in Pocahontas, which will fabricate steel frames for data centers; this manufacturing facility will create 148 new jobs over the next five years.
All of these wins did not happen by accident – they were the result of hard work from local communities, sound public policy, and the development of workforce and infrastructure to support growing industries.
During Governor Sarah Huckabee Sanders’ administration, the Arkansas General Assembly has cut taxes three times. The American Legislative Exchange Council (ALEC) ranked Arkansas as the #4 state in the nation for its recently legislated tax changes in the 17th edition of its “Rich States, Poor States” round-up. Since 2015, the State of Arkansas has lowered personal and corporate income tax rates, lowering the top personal income tax rate from 7% to 3.9% and the top corporate income tax rate from 6.5% to 4.3%.
In addition to lower taxes, companies benefit from overall lower costs in Arkansas – both for costs of doing business and for costs of living. Area Development magazine ranked Arkansas as the no. 8 state for overall costs of doing business in its 2024, in addition to being in the top ten for business incentives programs and favorable regulatory environment. Arkansas was also ranked no. 2 for lowest costs of living by C2er: The Council for Community and Economic Research. Companies’ dollars go further in Arkansas, enabling them to grow faster and more profitably.
Arkansas is not content to rest on its laurels. The Arkansas Economic Development Commission launched the state’s first site development program to enhance industrial site readiness and increase the state’s competitiveness for job-creating projects. This program will lay the groundwork for helping local communities prepare industrial sites and build a larger inventory of sites throughout the state.
Today, Arkansas is known as the “Natural State” – but it is still the “Land of Opportunity” for companies that are looking for a state that provides all the elements they need for success. Over the past year, Arkansas has won many major economic development projects with more on the horizon, as a result of its strategic location, excellent workforce, and common-sense public policy. With this momentum, Arkansas looks forward to continued success by helping companies achieve their growth goals and build a brighter future for businesses and Arkansans alike.
