This document summarizes the results of a survey of Arkansas business leaders on their economic confidence. It finds that a majority expect sales revenues and wages to increase slightly in the next six months. While revenues are projected to rise, headcounts and capital expenditures are expected to remain steady. Overall economic conditions are seen as slightly improving compared to six months ago and anticipated to continue doing so. However, the healthcare and pharmaceutical industry is viewed more negatively. Consumer confidence is cited as having the strongest impact on economic growth but remains flat nationally. Regulation and compliance costs were also noted as a significant burden for companies.

1. Business Leaders Economic
Confidence Survey
Arkansas Edition
Final results
Opened on 11/17/13 & Closed 11/26/13
(12/13/13)

2. Response Demographics – by Industry
Manufacturing,
19%
Healthcare
16%
Technology
13%
Finance
11%
Other
11%
Utilities
10%
Marketing
Construction
6%
5%
%OF TOTAL
Food
4%
Government Education
4%
3%

3. Response Demographics – by Title
Vice
President
Total
President
CEO
8%
10%
Other
41%
21%
CEO
CFO, COO, CAO, etc.
27% Plant Managers
23% General Managers
Director
11%
Other, please specify yo
10%
President
Vice President
Director
CxO

5. Increase Slightly
56%
Expected Sales
Revenue for
Next 6 Months
No Change
16%
Increase Significantly
8%
Decrease Slightly
15%
Decrease Significantly
5%
Increase Slightly
55%
Expected Wage
Change for
Next 6 Months
No Change
37%
Increase Significantly
3%
Decrease Slightly
3%
Decrease Significantly
2%
64% expect Sales Revenues to increase (slightly or
significantly) the first half of 2014. Wages follow suit.

6. Expected Sales Revenue - 1st Half of 2014
Excluding
Health Care
Increase Slightly
63%
No Change
17%
Increase Significantly
10%
Decrease Slightly
35%
Health Care
Only
Increase Slightly
24%
Increase Significantly
0%
Decrease Slightly
11%
Decrease Significantly
0%
Decrease Significantly
29%
No Change
12%
Health Care and Pharmaceutical Industry is negatively
weighing down the results.

7. Expected
Employee
Change for
Next 6 Months
Increase Slightly
33%
No Change
35%
Decrease Slightly
24%
Increase Significantly
7%
Decrease Significantly
1%
Expected AR
CapEx for Next
6 Months
Increase Slightly
41%
No Change
31%
Increase Significantly
11%
Decrease Slightly
12%
Decrease Significantly
5%
Although revenues are expected to increase, headcount
and capital investments will change little.

8. Overall
Economic
Condition as
Compared to
6 Months Ago
About the same
54%
Somewhat better
24%
Somewhat worse
15%
Much better
1%
About the same
37%
Somewhat better
31%
Somewhat worse
22%
Much better
4%
Much worse
6%
Change in
Economic
Condition in
Next 6 Months
Much worse
5%
35% expect Economic Conditions to improve in the next 6
months vs. only 25% felt the last 6 months had improved

9. Very High Impact
High Impact
Moderate Impact
Low Impact
No Impact
Grand Total
%of
Total
7%
26%
30%
28%
10%
100%
Consumer Confidence
Impact
Very High Impact
High Impact
Moderate Impact
Low Impact
No Impact
Grand Total
%of
Total
8%
31%
40%
14%
7%
100%
Interest Rates Impact
Very High Impact
High Impact
Moderate Impact
Low Impact
No Impact
Grand Total
%of
Total
8%
21%
26%
29%
16%
100%
2014 Congressional Budget
Impact
Very High Impact
High Impact
Moderate Impact
Low Impact
No Impact
Grand Total
%of
Total
9%
21%
32%
27%
11%
100%
Debt Ceiling Impact
High Impact
26%
Moderate Impact
30%
Low Impact
28%
Very High Impact
7%
No Impact
10%
High Impact
31%
Moderate Impact
40%
Low Impact
14%
Very High Impact
8%
High Impact
21%
Moderate Impact
26%
No Impact
7%
Low Impact
29%
No Impact
16%
Very High Impact
8%
Moderate Impact
32%
High Impact
21%
Very High Impact
9%
Low Impact
27%
No Impact
11%
Most Arkansas leaders cite Consumer Confidence (79%)
as the strongest impact to economic conditions.

10. What Else Impacts Your Company’s
Economic Growth?
“Regulation and Compliance is the fastest growing area
of our business.”

11. Take-a-ways
1.
AR business leaders in all major industries responded
2.
Majority expect revenues to increase 1st Half of 2014
3.
However, headcount and capital investments will not trend
closely
4.
Overall economic conditions slightly improving for most
industries
5.
From a revenue projection standpoint, the Healthcare and
Pharmaceutical industry is sick
6.
While Consumer Confidence is cited as the most influential to
economic growth, the National CCI remains flat to slightly down
7.
Regulation and Compliance are big (and growing bigger) cost
drivers for companies

12. Mike Stafford
501-255-7751
www.CEGpartners.com