Heartland Forward Report Shows STEM Education Can Add $3.9 Billion And 19,000 Jobs To Arkansas Economy

(MENAFN- PR Newswire)

Increasing engineers and computer scientists can boost Arkansas's GDP
by 1.6 percentage points and improve the state's long-term economic outlook

LITTLE ROCK, Ark., Nov. 19, 2024 /PRNewswire/ -- Today, Heartland Forward , a policy think-and-do tank dedicated to serving states and local communities in the middle of the country, released a report in collaboration with the University of Arkansas College of Engineering that shows doubling graduates and increasing research productivity could add an estimated $3.9 billion to the state's Economy and create 19,000 new jobs by 2038.

The report, "Engineers, Computer Scientists and Data Scientists As Drivers of Economic Growth," announced during a press conference at the Capital Hotel in Little Rock on Tuesday, found increasing the share of engineering and computer science professionals by just 1.1 percentage points could raise the state's gross domestic product (GDP) by 1.6 percentage points within 15 years.

Science, technology, engineering and math (STEM) fields are vital to the U.S. economy, supporting 67% of all jobs, contributing 69% of the GDP and generating $2.3 trillion in annual federal tax revenue. However, Arkansas faces a critical shortage of STEM graduates, with nearly 58,000 open jobs projected by 2038, threatening the state's ability to compete in future-focused industries.

Key Findings:

• The report found even a small increase in the share of engineers and computer scientists in Arkansas's labor force-from 2.3% to 3.4%-could boost GDP by 1.6 percentage points in 2038.
• Each additional job in this sector would contribute approximately $203,000, to the state's economy. Moreover, a 50% increase in graduates and research output would generate an impressive $2.4 billion and 12,000 jobs.
• Doubling the number of students graduating from the University of Arkansas College of Engineering creates a $3.9 billion economic impact, which is 15 times greater than the operational costs required to serve the increased number of students.
• The implied rate of return on investment supports increasing STEM higher education in Arkansas through the doubling of graduates and research productivity because the ratio of annual GDP per job added to the cost per student is 2:9.
• Arkansas' GDP per worker rose from $86,500, in 2012 to $111,600, in 2021, with activities attributable to engineering colleges contributing 27.7% of this increase.
• The rate of new Ph.D.s in engineering and computer science rose from one per 36,000 workers to one per 21,300, which is associated with an additional $300 in GDP per worker.
• The engineering share of the workforce rose from 1.6% to 2.5%, contributing an additional $3,200, in GDP per worker.

During the press conference, Ross DeVol, president and CEO of Heartland Forward, joined by Kim Needy, Ph.D., dean of the University of Arkansas College of Engineering, and Hugh McDonald, secretary of commerce for Arkansas, underscored the importance of this report to meet the demand for skilled STEM professionals in Arkansas and drive economic growth in the region.

"Engineering and computer science education are keys to unlocking Arkansas' economic potential," said Ross DeVol , president and CEO of Heartland Forward. "By investing in education and research today, we can create thousands of high-paying jobs and ensure Arkansas thrives in tomorrow's economy. The time to act is now, and this report shows us exactly where we need to focus."

"Arkansas engineering and computer science graduates are essential not only to the workforce, but also in fueling entrepreneurship and translating research into commercial success," said Dr. Kim Needy, dean of the University of Arkansas College of Engineering. "With strategic investments in these fields, Arkansas has a unique opportunity to strengthen its economy, attract top talent and build a thriving ecosystem and future-ready workforce that promotes innovation and supports sustained growth across a range of industries."

"Economic growth and education go hand in hand," said Hugh McDonald, Arkansas Secretary of Commerce. "Our workforce development efforts are maximized when we connect the needs of employers with our educational institutions, and STEM education will continue to be in high demand across a wide range of industries in Arkansas for the foreseeable future."

"Strengthening Arkansas's STEM pipeline is essential for industries like construction, technology, and advanced manufacturing-sectors critical to our state's growth," said Randy Zook, president and chief executive officer of the Arkansas State Chamber of Commerce and the Associated Industries of Arkansas. "The State Chamber/AIA has long championed efforts to catalyze Arkansas' economy, and Heartland Forward and the University of Arkansas College of Engineering's new report reinforces the importance of STEM education to our shared mission. Their work is a valuable step toward advancing Arkansas's economic future and empowering businesses statewide."

As a leader in championing STEM education across the region, Heartland Forward is driving efforts to enhance Arkansas' workforce, boost economic growth and position the state as a hub for technological advancement. Heartland Forward recently launched rootEd Arkansas , a public-private partnership aimed at ensuring every rural student in Arkansas graduates high school prepared for successful careers and economic stability. Additionally, Heartland Forward released the Connecting the Heartland Broadband Jobs Board helps job seekers discover local employers and access information on benefits, resources and training opportunities to build a resilient broadband workforce.

For more information on Heartland Forward's work to build thriving, resilient communities across the American heartland and to read the full report, please visit:

About Heartland Forward
Heartland Forward is a policy think-and-do-tank dedicated to being a resource for states and local communities in the middle of the country. We do this by studying broad economic trends and building data-driven and community-tested partnerships, programs and policies to address the needs of the heartland – all while helping to change the narrative about the middle of the country and kick-starting economic growth.

About the University of Arkansas College of Engineering
The University of Arkansas
College of Engineering is the state's largest engineering school, offering graduate and undergraduate degrees, online studies and interdisciplinary programs. It enrolls nearly 4,500 students and employs more than 150 faculty and researchers. Its research enterprise generated $46 million in new research awards and $48 million in research expenditures in Fiscal 2024. The college's strategic plan, Vision 2035, seeks to build the premier STEM workforce in accordance with three key objectives: Initiating lifelong student success, generating transformational and relevant knowledge, and becoming the destination of choice among educators, students, staff, industry, alumni and the community. As part of this, the college is increasing graduates and research productivity to expand its footprint as an entrepreneurial engineering platform serving Arkansas and the world. The college embraces its pivotal role in driving economic growth, fueling innovation and educating the next generation of engineers, computer scientists and data scientists to address current and future societal challenges.

View the full report, the executive summary and photos
from the press conference.

SOURCE Heartland Forward

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