The regional economy continued to stumble along in the first quarter, according to the 20-page report released June 14 by the Center for Business Research and Economic Development (CBRED) at the University of Arkansas - Fort Smith.

 

In addition to summary analysis of the regional economy and consumer sentiment for the first quarter, the Fort Smith Regional Economic Outlook Report also reported findings from a cluster analysis conducted on the five-county Fort Smith Metropolitan Statistical Area economy, according to center director Dr. Kermit Kuehn.

 

“Clusters are industry groups with a similar supply chain profile,” Kuehn explained. “Once you identify these clusters, you can then assess their performance relative to other regions or against national performance. From this assessment, regional initiatives can then target those clusters with the greatest potential for sustainable growth. This is powerful stuff, exciting stuff.”

 

The cluster analysis was conducted by UAFS College of Business student Shayna Gatzke of Greenwood, under the supervision of Dr. Latisha Settlage of Fort Smith, associate professor of economics at UAFS and research associate in CBRED, according to the report.

 

Settlage stated, “This is clear example of how academic research can have very practical value to a community. This kind of research can help regional leaders, both public- and private-sector, identify economic development priorities, develop strategic initiatives to promote investment in these areas, and assess progress toward goals. And to get this quality of research from one of our own students is even more gratifying.”

 

Kuehn stated that future research will take a closer look at each of the key clusters identified by the study in order to specify key drivers underlying the cluster and to then assess future prospects of the cluster. This can result in an economic development plan that is more targeted in approach and less ‘shotgun’-oriented.

 

As for the economy in the first quarter, the report revealed a mixed picture for the regional economy to start 2013 with year-over-year retail and home sales down, as were airport traffic numbers.  Residential construction permits, auto sales, and non-farm employment numbers were stronger than a year ago. Consumer sentiment improved considerably over 2012 fourth quarter results.

 

The quarterly report is sponsored by Arvest Bank.  Kuehn noted that highlights of this report will be discussed in the upcoming Fort Smith Regional Economic Forum to be held on July 10 on the UAFS campus. Copies of the report will be available to forum participants.

 

For more information on the center and upcoming events, go to www.uafs.edu/cob/cbred, call 479- 788-7938 or email CBRED@uafs.edu.