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

Response Demographics – by Industry

Response Demographics – by Title 27% Plant Managers 23% General Managers CEO Other CxO Director President Vice President 41% 10% 11% 21% 10% 8%

Expected Sales Revenue for Next 6 Months 64% expect Sales Revenues to increase (slightly or significantly) the first half of Wages follow suit. Expected Wage Change for Next 6 Months

Excluding Health Care Health Care and Pharmaceutical Industry is negatively weighing down the results. Health Care Only Expected Sales Revenue - 1 st Half of 2014

Expected Employee Change for Next 6 Months Although revenues are expected to increase, headcount and capital investments will change little. Expected AR CapEx for Next 6 Months

Overall Economic Condition as Compared to 6 Months Ago Change in Economic Condition in Next 6 Months 35% expect Economic Conditions to improve in the next 6 months vs. only 25% felt the last 6 months had improved

Most Arkansas leaders cite Consumer Confidence (79%) as the strongest impact to economic conditions.

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

Take-a-ways 1. AR business leaders in all major industries responded 2. Majority expect revenues to increase 1st Half of 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

Mike Stafford