Ingram's March 2023

DESTINATION KANSAS BUSINESS CULTURE

Business Climate and Economic Conditions

WHEN IT COMES TO A NOTABLY BUSINESS-FRIENDLY ENVIRONMENT, KANSAS STANDS OUT, FOR MANY REASONS.

But consider this when you ponder business conditions here: Kansans work. According to various federal statistical measures, 66.1 percent of the Kansas population is employed—an impressive 3.76 percentage points more than the national average of 62.4 percent. It’s part and parcel of a work ethic that pervades the state. But throw in oth er economic indicators, and you begin to get the full picture of the Kansas Differ ence and what it means to business opera tions in the state. Here are just a few:  The state’s unemployment rate, even during the prolonged jobless down turn that began in earnest in 2009, gen erally runs between 2 and 2.5 points be low the national rate.  The cost of living index for the state is roughly 91 on a 100-point scale, is lower than most adjoining states and far lower than states like California and New York. With lower operational costs, businesses in the state have a competitive advantage compared to peer organizations around the country.  The median household income of $64,521—roughly $3,000 more each year than in neighboring Missouri and $7,500 more than southern neighbor Okla homa—provides a higher standard of living for residents than in higher-earn ing states like New York and California. That adds up to more satisfied—and loy al—workers. Another key element of the Kansas business climate is that, as a right-to-work state, only 8.9 percent of the work force has members of a labor union. That’s well below the 10.8 national average and just a fraction of the rates in states like California and New York. Energy costs? Again, Kansas beats the averages. Under the vast expanse of farms and ranchlands in southwest Kan sas sits the Hugoton fields, a massive geological formation that holds immense

Spirited Effort | Fuselages for Boeing’s commercial passenger jets are fabricated by Spirit AeroSystems in Wichita, the state’s largest manufacturing employer. They are shipped by rail to Seattle, where assembly is completed. The company also produces propulsion and wing systems.

reserves of natural gas. Because it is easily extracted and need not be shipped long distances, it can be delivered to com- panies in the state at substantial sav ings—more than 40 percent less than customers pay in Missouri, Oklahoma, and Illinois. And electricity costs yield comparable savings relative to busines- ses in other states. When you add in a targeted and fo cused set of state economic incentive programs—the Department of Commerce lists fewer than a dozen, while neigh- boring Missouri is struggling to stream line more than 60 separate initiatives— you have a built-in platform for business success. The legislative and regulatory environment combines with lower over all tax structures to draw innovation and investment to the region. That continues to pay off with growth in the life sciences sector—for

DISTRICT 1: NORTHEAST

At A Glance: Counties: Atchison, Brown, Doniphan, Jackson, Jefferson, Nemaha, Osage, Shawnee District Population: 270,202 Biggest City: Topeka Other Population Centers: Atchison, Oskaloosa Major Employers: State of Kansas, Goodyear Tire & Rubber, Hill’s Pet Nutrition, Mars, MGP Ingredients 2021 GDP: $12,698,942,000 GDP State Rank: 5 GDP Growth 2017–2021: 1.82%

GDP Growth State Rank: 4 Per-Capita GDP: $43,730.44

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DestinationKansas.com

Kansas’ Business Media

2023