The Ebb and Flow of Global Competition: Morrilton, Arkansas 'The Phoenix of Small Town America'.

Introduction

As the world continues to grow smaller in terms of socioeconomic development, the grim reality of economic development has come home to roost in many communities throughout America. The global competition for a better quality of life, or at least to maintain the standard of living extant in a community, is becoming more and more difficult to obtain. The post-industrial society has encouraged many labor intensive operations related to exploitative forms of employment to move offshore or to close permanently. To take some liberty with W.W.Rostow's classic notion "The Stages of Growth," in the last three decades the United States has seen the out migration of industrial operations to less expensive locales in foreign countries. America has largely retooled, downsized, and reinvented itself economically to become more competitive in the worldwide marketplace, resulting in an unprecedented era of national economic expansion and prosperity evidenced by the growth in the GDP of seven percent in 1999.

However, the unprecedented growth of the American economy has not been evenly spread across the landscape. Many communities are still dependent on labor intensive forms of industrial and manufacturing employment that are rapidly becoming extinct. Morrilton, Arkansas is just one example of this national restructuring that has impacted, not only this state, but many communities across the nation. Can a community rebuild as the industrial base crumbles around it? Can small town America be saved from extinction? Are subnational, governmental authorities prepared to compete in the international marketplace without substantial national government leadership?

Industrial Location Decisions

Historically, traditional economic factors have been considered to be the most important variable with regard to where a firm decides to locate, expand, or move. These traditional factors tend to be defined as: geographical location, labor availability, access to markets, availability of transportation arterials, access to raw materials, and labor cost and training. Non-traditional, or quality of life factors are generally defined as: education levels, unionization or right to work climate, business climate, secondary supply industries, energy cost and availability, familiarity with local conditions, and personal choices of the CEO and Board of Directors. [1] Locational decision factors, regardless of traditional or nontraditional status, should be taken seriously by any community that seeks to retain, expand, or recruit industry because any or all of the factors may prove critical in the decision making process.

Morrilton, Arkansas- "Phoenix Crashing"

The City of Morrilton is the County Seat of Conway County located at the foothills of the Ozark Mountains. Approximately 7,000 residents live in the city which is about fifty miles northwest from Little Rock. Major employers in the community in 1999 were Levi Strauss (600 jobs), Arrow Automotive (460 jobs), Green Bay Packaging (approximately 500 jobs), Compton Management-medical services/nursing home (200 jobs), South Conway County School District (approximately 700 jobs), and a variety of smaller employers, such as Winrock International, and Petit Jean College. The community had all the appearances of a stable and inviting city, although Morrilton was at almost zero growth/stagnant with reference to job creation and economic diversification.