Lawmakers hear about impact of steel industry on Northeast Arkansas

Burgeoning expansion means jobs, tax revenue for entire region

By Michael Wilkey

Paxton News Bureau

JONESBORO — The items made at steel mills in Mississippi County not only have a local economic reach, but a reach literally around the world, half of the state’s congressional delegation were told Tuesday in Jonesboro.

The state’s senior senator, Sen. John Boozman (R-Ark.), Sen. Tom Cotton (R-Ark.) and Rep. Rick Crawford (R-Jonesboro) met Tuesday with steel industry leaders and state lawmakers during a lunchtime gathering at the ASU Delta Center for Economic Development.

The steel industry has had a focus in Northeast Arkansas since the late 1980s, when Nucor built a mill in Mississippi County. Now, several major mills are open in the county, employing several thousand people.

Crawford said his district is the largest steel-producing congressional district in the country, with the work being done in the county serving as a driver for the nation’s economy.

Boozman said he believes there are a lot of good things going on in Northeast Arkansas right now, with the steel mills providing a key focus. While Mississippi County and nearby Poinsett County have seen some of the benefit from having the mills, other area towns have benefited from the economic impact as well.

In the past, Greene County officials have said a good portion of their residents will drive south into Mississippi County to work at the mills.

When they return, they often bring their paychecks back into Paragould and other towns along the way like Lake City, Monette, Leachville, Manila and Brookland.

Boozman said a key part of the situation is that most employees will travel to work at the mills and that they “love their hometown.” The senator said many of the people are already commuting for other aspects of their lives, including healthcare and shopping, making it a part of daily life.

Mississippi County Economic Development President Clif Chitwood also attended the event Tuesday. He said he believes the meeting was productive, bringing together many business and political leaders in the same room for the first time.

Chitwood said an overarching idea expressed at the meeting was not to let other countries take American jobs, especially in the steel industry, and that tariffs were successful for over 130 years in helping to guide trade. He said the industry, like others, have helped to build a middle class in the United States and that a lack of a middle class can create political instability.

As for the area steel industry, Chitwood said it has benefited from having strong workforce training programs as well as catering programs for specific needs for employees.

He credited Arkansas Northeastern College in Blytheville for its work on the issue and noted a program, being implemented by ANC and Arkansas State University, will help create more mechanical engi-

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neers.

The steel industry has also created a residual economic effect, Chitwood said. In the past couple of years, Mississippi County has seen at least 150 housing starts due to the growth in the industry.

NEA Issues

While there has been a major economic push in the region, officials at the meeting also said there were major issues that need to be addressed.

Some of the issues included trade, regulatory concerns, education, logistics, infrastructure and the importance of energy.

Rep. Crawford said the close access to the Mississippi River helped to create a “superhighway” of sorts for ships that bring goods to and from the area. He said the area also needs Class 1 Railroad access as well as constant work on roads and bridges in the area.

In the recent ArDOT STIP book, state highway officials announced that several road and bridge projects in Poinsett and Mississippi counties would receive work over the next few years.

Rep. Crawford said a proposal to build a new bridge across the Mississippi River between Memphis and West Memphis will help immensely with travel and trade.

Right now, Rep. Crawford said the area is “vastly underserved” with the two bridges in the Memphis area when compared to the number of people in the area as well as those who travel in the area. By contrast, Little Rock, which has a smaller population, has five Arkansas River bridges in the area.

Sen. Cotton said he wanted to thank everyone for attending the meetings Tuesday and that it was informative. The senator plans to take the information back to the nation’s capital and work on policy in regards to both the agricultural and steel meetings. On Wednesday, Sen. Cotton said he believes the steel industry has helped the state and nation.

“Steel production in Arkansas is vital to both our state and country’s economy, and it’s critical we protect our workers. I appreciated hearing from industry leaders about how we can continue to move forward,” Sen. Cotton said on social media.

The lawmakers listened to concerns while attending the agricultural meeting earlier on Tuesday.

As for the Farm Bill, Sen.

Boozman, who serves as ranking member on the Senate Agriculture, Nutrition and Forestry Committee, said he is working with the committee’s chairman, Sen. Debbie Stabenow (D-Mich.) on the bill. The bill is set to expire later this year.

As for energy, state Rep.

Jack Ladyman (R-Jonesboro), who also attended the meeting, said he believes it is a supply issue that the state must address.

Rep. Ladyman said steel officials have made it a point to say that one of the reasons that the industry came to Arkansas was low energy rates.

While the rates are low, Rep. Ladyman said he believes there must be work to maintain the infrastructure. Right now, coal power plants are closing, leading to some supply concerns, with a strong push toward nuclear, Rep.

Ladyman said.

The state lawmaker said he plans to attend a meeting on power Aug. 13 in Toronto, with a focus on the first modern nuclear reactor in the country. A Canadian company owns the facility, while GE is building it.

Another concern, Rep. Ladyman said, is a report from the Arkansas Rural Electric Co-Op that 300 mW of power must be created in the next 10 to 15 years. He said it was enough power to supply six natural gas plants and that the supply was needed, in part due to electric vehicles and crypto mining.

In addition to meeting with steel officials, the delegation also visited the ASU Meat Market Tuesday morning and learned about the market’s ties to agriculture in the state.