Kansas Regional Center

Economy

The Kansas economy has expanded from its original base in agribusiness into an economy with a diverse mix of professions. Kansas remains the Aviation Capital of the World, producing more than 70 percent of the world’s embedded aviation fleet. Kansas is one of the nation’s fastest-growing bioscience hubs and part of the Kansas City Animal Health Corridor, a region that houses the world’s largest concentration of animal health interests. Kansas has also emerged as a leader in renewable energy especially wind energy and alternative fuels, thanks largely to a Renewable Energy Standard requiring that 20 percent of the state’s energy come from renewable sources by 2020.

KEY INDUSTRIES

Advanced manufacturing: Advanced manufacturing--especially aviation and aerospace manufacturing -- is an important driver in the Kansas economy. The city of Wichita, Kan., produces more than 40 percent of the world’s general aviation aircraft, earning the city the title of “Aviation Capital of the World.” Approximately 58 percent of Wichita’s manufacturing employment is related to the aviation/aerospace industry. Kansas is home to many key aviation companies, including Cessna, Hawker Beechcraft, Bombardier Learjet and Spirit AeroSystems.

In addition, General Motors and its suppliers have a significant automotive presence in Kansas City, Kan., where GM manufactures Chevrolet and Buick products. Kansas is also a leader in the fast-growing area of composites and advanced materials, a sector in which we are already seeing cluster development in the Wichita and Kansas City areas.

Bioscience: Kansas has made bioscience one of its top target industries. The state currently has more than 16,000 people employed in the biosciences and has initiated a comprehensive strategy to build on our established and emerging strengths. Animal health is one of our leading bioscience sectors, with the Kansas City Animal Health Corridor running through the heart of Kansas. This corridor has the world’s largest concentration of animal health interests and accounts for nearly 32 percent of total sales in the $19 billion global animal health market.

To support our bioscience efforts, Kansas is investing $580 million via the Kansas Bioscience Authority to make Kansas a national leader in the biosciences by funding research, development and commercialization. Kansas is investing in our future to help build a dynamic bioscience industry to stimulate job growth, attract private venture capital and increase research and business investment.

Professional services: Kansas has emerged as a leader for professional service companies, including those involved in finance, accounting, information technology and architectural design. In fact, the past two years have seen unprecedented success for Kansas in terms of recruiting new service-related companies to Kansas, with corporate leaders such as J.P. Morgan, U.S. Bank, Cerner Healthcare and Regent Asset Management all establishing new facilities here.

Renewable fuels and bioenergy: As a traditional agricultural leader and a state blessed with tremendous natural resources, Kansas is positioned to be a forerunner in renewable energy production. Kansas ranks fourth in total biomass production, with companies benefiting from economical access to feedstock for bio-based fuels, as well as proximity to feedlots that serve as a market for the animal feed resulting from biofuel byproducts. With three million head of cattle on feed in southwest Kansas, biofuel plants can enjoy the cost savings of sending wet grains to nearby feedlots.

Wind energy: Located in the heart of the nation’s Wind Corridor, Kansas offers an ideal location for wind turbine manufacturing. Our central location and outstanding transportation infrastructure provide convenient and economical access to the regions with the greatest wind energy activity. Ranked second in the nation for wind energy potential, Kansas has more than 1,000 megawatts of wind generating capacity, with plenty of room for more. In fact, projections indicate that by 2030, the state’s power system could provide 7,000 megawatts for export from wind energy each year. Kansas is committed to the growth of this industry through the development of additional wind farms and a strong supply chain.

MEDIA ACCOLADES AND RANKINGS:

According to the Business Facilities rankings for 2012, Kansas is ranked:

• 8th as an Aerospace/Defense Industry Leader
• 10th as an Alternative Energy Industry Leader
• 5th for Biotechnology Strength Emerging Biotech Hub
• 1st for Wind Projects Under Construction

Wichita, Kan. No. 1 for concentration of manufacturing jobs and No.3 for high-tech manufacturing. (full article)

Overland Park Kan. slected as one of 10 Best Cities for Jobs in Financial Services by AdvisorsOne.

Kansas is ranked as the 6th most business-friendly state in the 2011 Pollina Corporate “Top 10 Pro-Business States” report. The No. 6 finish also marked the state’s fifth time in the Top 10 rank in the report. The annual Pollina report analyzes all 50 states by examining 31 site location factors controlled by state governments, including taxation, human resources, economic incentive programs, economic development efforts and infrastructure. States that score well in these categories typically are successful in attracting and retaining businesses.

Kansas ranks No. 15 in CNBC’s annual Top States for Business report. The survey ranks Kansas among Top 25 in transportation, economy and cost of living. The CNBC report analyzes all 50 states by examining 51 different measures of competitiveness, which are then grouped into 10 broad categories: cost of doing business, workforce, quality of life, economy, transportation, technology and innovation, education, business friendliness, access to capital and cost of living. Of those 10 categories, Kansas ranked among the Top 10 in two - transportation and cost of living - en route to its No. 15 overall rank. Kansas finished one spot behind Indiana and one spot ahead of Tennessee. (Read the full report)

For the fifth time in six years, Area Development magazine has named Kansas a winner of the “Silver Shovel Award” for excellence in job creation and capital investment. The award is part of the magazine’s 2011 “Golden & Silver Shovel Awards,” which recognize states that drive significant job creation through innovative policies, infrastructure improvements, processes and promotions that attract new employers and investments in expanded facilities. Silver Shovels are awarded to 10 states in three population categories: “Over 10 Million,” “5-10 Million” and “Under Five Million.” This year, Texas, North Carolina and Georgia will receive Silver Shovels in the 9+ million population group; Alabama, Kentucky, Louisiana and Tennessee are being awarded Silver Shovels in the 4 to 9 million population category; and Kansas and Mississippi are being honored in the fewer than 4 million population group.

Kansas has been named the 6th most competitive state for capital investment and new facility development by Site Selection magazine, a leading publication for site location consultants. The announcement was part of Site Selection’s annual “Competitiveness Awards,” which were unveiled in the magazine’s May edition. The awards evaluate states on criteria such as capital investment, new facilities created, existing facilities expanded, jobs created and jobs retained. This is the third consecutive year Kansas has made the Top 10.

Kansas has been ranked No. 3 in Southern Business & Development magazine’s annual “Top Deals and Hot Markets” report, the state’s highest finish ever in the survey, officials announced this week. The annual ranking examines 17 southern states on their business recruitment and retention projects that create and/or retain jobs and capital investment and then ranks them by points per million residents. Kansas finished third overall, behind co-top-finishers Louisiana and Tennessee.

Kansas has been ranked the No. 5 state in the nation in Biotechnology Strength by Business Facilities magazine in its annual Rankings Report. The 2010 ranking is a major leap forward for the Sunflower State, which ranked ninth in the biotech category last year and tied for 10th in 2008. According to Business Facilities Editor-in-Chief Jack Rogers, the upward movement by Kansas was one of the most significant improvements measured in the national publication’s annual rankings this year. 

Kansas ranked 12th on Forbes' new "Best States for Business" list. The state scored particularly well for its regulatory environment and economic climate, finishing 14th and 12th, respectively, in those categories. Kansas also ranked 17th for labor supply, 25th for business costs (such as labor and energy), 23th for quality of life and 38th for growth prospects. Utah was No. 1 on the list this year, knocking Virginia, a long-time leader, down to second place. The Forbes list compiles data from 10 sources, including Moody's Economy.com, Pollina Corporate Real Estate and the U.S. Census Bureau.

Kansas City, Kan. is selected as the first Google Fiber Community. Last year, Google launched an initiative called Google Fiber, which will provide communities with Internet access more than 100 times faster than what most Americans have today. Nearly 1,100 communities submitted applications for Google Fiber. Kansas City is the first community where Google intends to provide its fiber-to-the-home (FTTH) service. Google intends to offer the service beginning in 2012, pending approval by local officials.

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