While accounting for only 5 percent of total state employment, the constuction sector for Arkansas experienced strong growth. The sector posted a strong 6.1 percent rate of growth in the fourth quarter of 2005 compared to a year ago.

Construction and development lending also was strong at insured institutions headquartered in the state. Construction activity is expected to benefit in the near term from several large-scale commercial projects that are underway in downtown Little Rock. In addition, both commercial and residential projects abound throughout the Fayetteville-Springdale-Rogers area.

Rapid growth in residential construction is becoming a concern in the Fayettevills-Springdale-Rogers market. In Benton and Washington Counties alone, an estimated 17,500 residential lots are currently in the pipeline. In the commercial segment, four projects are expected to bring an additional 2.87 million square feed of office or retail space to the area.