Oct 6, 2026 - Business

Report: Variety needed as NWA's economy grows

Alex Golden

Illustration of a dollar sign with a one of its lines falling at an angle — Illustration: Sarah Grillo/Axios

Economic diversification will be critical to Northwest Arkansas retaining its success, according to a new report from economics-focused organizations.

Why it matters: While growth at large employers like Walmart, Tyson Foods and J.B. Hunt has contributed significantly to NWA's economy, the region shouldn't rely too heavily on a few major employers, Ross DeVol, founder of consulting firm Encore Economics, told Axios.

Context: The Milken Institute named the Northwest Arkansas area as among its best-performing U.S. cities earlier this year, noting its strong labor market.

Increasing business services like accounting, legal and engineering in addition to already-growing sectors like health care and education will be key to maintaining that, DeVol said.

Zoom in: The report by Encore Economics and Emeraude, released Tuesday, notes that demand for housing will increase the need for construction.

"A key consideration for quality of life in Northwest Arkansas will be avoiding urban sprawl by building higher density along transportation corridors and downtowns," the report reads.

What's next: Bolstering the region's startup ecosystem through founder support and more early-stage investment will be critical for diversification, according to the report.

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Report: Variety needed as NWA's economy grows

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