A recent Reuters blog series on the economic recovery showcased the role Walmart and its suppliers have played in the economic development of Northwest Arkansas. Journalist Nick Carey visited with Kathy Deck, Director of the Center for Business and Economic Research at the Sam M. Walton College of Business at the University of Arkansas, and Cameron Smith of Cameron Smith & Associates.
Recapping the enormous growth in the area, Kathy Deck acknowledged that despite the success of Walmart, Northwest Arkansas is challenged to diversify its economy. Local leaders are considering options including attracting "green technology" companies to the area.
Quoting from the Reuters blog post:
“The problem there is that other communities around the country are looking at doing the same, so there’s no clear winner at the moment,” she said. “But whatever it is will be driven by research and a change of focus at the University of Arkansas.”
According to Cameron Smith, more suppliers are likely to relocate here, but with so many retail experts focused in one area he thinks the area has become very attractive to medium-sized retailers.
“I wouldn’t be surprised if we see a retailer move their headquarters here within the next five years,” he said. “And if we get one, I think we’ll get five of them. After all, all of their suppliers are here anyway.”
“Major retailers like Target or Home Depot don’t have to move because suppliers come to them,” he added. “But for the medium-sized ones, moving here would make perfect sense.”
Read Nick Carey's piece about Northwest Arkansas and find more articles on how other areas are facing the road to economic recovery: http://blogs.reuters.com/route-to-recovery/2009/11/10/what-does-future-hold-for-walmart%e2%80%99s-backyard/