Every 37 minutes, one person moves to Northwest Arkansas, attracted by the region's vibrant job market, natural beauty and quality of life. Our family was excited to leave Fort Worth and move to what we believe is one of the most unique and vibrant regions in the United States seven months ago.
As this region grows and attracts working parents, we must consider their greatest needs. Of course, investment in infrastructure, housing and quality-of-life amenities will continue to make this region attractive. But there is another vital area that our business community must be eager to invest in and grow: child care.
Ensuring the availability of high-quality, affordable child care is a workforce recruitment and retention challenge. When parents can safely enter and remain in the workforce, the overall health of Northwest Arkansas' economy improves and makes the state a more attractive destination for working parents.
With that in mind, the Greater Bentonville Area Chamber of Commerce is one of more than 60 businesses, nonprofits and other organizations that have joined the Excel by Eight Business Coalition.
The Coalition recognizes that the connection between quality child care and a thriving economy cannot be overemphasized. When quality child care options are too expensive or unavailable and force parents to stay home, our efforts to build a vibrant and competitive business environment are undermined.
The statistics are alarming. A 2023 ReadyNation study estimates the annual cost of the U.S. child care crisis at $122 billion in lost income, productivity and revenue, more than double the amount in 2018. In Arkansas alone, the economic impact is $865 million. A lack of reliable child care options has caused many parents, especially women, to drop out of the workforce. These issues are costing Arkansas an estimated $200 million in lost tax revenue annually, and employers are losing an additional $665 million annually due to absenteeism and employee turnover.
The ripple effects of inadequate child care options are enormous. Reduced income for parents translates into reduced tax revenues, placing a burden on all taxpayers. Businesses face increased employment costs and reduced productivity due to high employee turnover. These challenges are long-lasting, as reduced income for parents impacts their economic stability and the economy as a whole.
Quality early education programs provide a strong return on investment, improving parents' employment prospects and equipping children with essential skills. For example, consistent implementation of preschool programs in the United States can reduce achievement gaps by 30% to 50%.
These numbers highlight the need for a business-friendly approach to child care. Business owners need to realize that offering child care solutions is not just a perk, but a strategic investment. A prime example is Walmart. Their new corporate campus includes a child enrichment center that can accommodate nearly 500 children. Quality child care was a top request for many employees considering new campuses.
Small businesses and entrepreneurs like Level 5 Architecture in Springdale can contribute by offering benefits such as flexible work options to their employees. These measures support working parents and increase employee satisfaction and loyalty. As they consider policy recommendations, business leaders should advocate for and support efforts to increase access to affordable, quality child care.
Northwest Arkansas’ growth and economic prosperity depend on addressing the child care crisis, and employers must recognize the strategic importance of supporting working parents.
Investing in these solutions helps create an environment where working parents can thrive, businesses can succeed, and communities can continue to attract and retain top talent.
Brandon Gengelbach is president and CEO of the Greater Bentonville Area Chamber of Commerce. He previously served as president and CEO of the Fort Worth Chamber of Commerce. Opinions expressed here are those of the author.
