Ingram's March 2023

DESTINATION KANSAS BUSINESS CULTURE

showroom, Kansas producers are the key to a vibrant economy. And there’s much more of it on the way. Most people would be surprised to learn that airplanes, not wheat stalks, form the backbone of the Kansas econo my. In fact, the entire manufacturing sec tor has for decades been the biggest com ponent of economic output in Kansas. As big as manufacturing has been in the Sunflower State, it’s about to get big ger. In just the past year, officials in To peka have assembled incentive pack- ages worth more than $1.5 billion to lure advanced manufacturing that will support the production of electric-ve hicle batteries, computer chips to help protect electronics from electromag netic pulse, and the testing and produc tion of semiconductors. Those projects combined will gen erate nearly $7 billion in development costs and, when completed, will yield more than 7,200 jobs. With two main manufacturing cen ters in Kansas City and Wichita, the state produces all manner of transpor tation equipment, whether it runs on highways or railways or takes to the skies. Kansas City manufactures pas senger vehicles, while Wichita churns At a Glance: Counties: Chase, Clay, Cloud, Dickin son, Ellsworth, Geary, Jewell, Lincoln, Lyon, Marshall, Mitchell, Morris, Ot tawa, Pottawatomie, Republic, Riley, Saline, Wabaunsee, Washington District Population: 315,606 Biggest City: Manhattan DISTRICT 4: NORTH CENTRAL

human health, animal health, plant re search, and product development—as well as energy technology, aviation, ad- vanced manufacturing, and agriculture, state officials say. The life sciences com ponent is particularly significant in a changing economy; the manufacturing

Each was working with a Republican legislative majority—and frequently a super-majority. Most significantly, though, the state has entered the first phase of a tiered plan to completely eliminate the sales tax on food. It’ll take time to see if that change

Since 2022, state officials have assembled incentive packages to lure advanced manufacturers in electric vehicle batteries, computer chips and the testing and production of semiconductors.

sector ceded its long-held position at the top of the state’s economic totem pole, and the biotech growth opportunities are unlimited, given that animal health and veterinary science interests pre- sent in the region account for two-thirds of a percent of global revenue in that sector. The state’s tax structure has under gone multiple transformations over the past decade, first under the tax-cutting banner of Republican Gov. Sam Brown back, followed by significant increases un- der his successor, Laura Kelly, a Demo crat. At a Glance: Counties: Allen, Anderson, Bourbon, Cherokee, Coffey, Crawford, Labette, Linn, Montgomery, Neosho, Wilson, Woodson District Population: 191,022 Biggest City: Pittsburg Other Population Centers: Coffeyville, Independence, Ft. Scott Major Employers: Pittsburg State DISTRICT 2: SOUTHEAST

moves Kansas off dead-center in the Tax Foundation’s rankings of state-by-state business conditions; as of this year, it again came in at No. 25. The foundation noted Kansas for its graduated individual income tax, with rates from 3.10 percent to 5.70 percent and corporate rates from 4 percent to 7 percent. The state has a 6.50 percent state sales tax rate, a base upon which local taxing authorities often apply a levy of their own.

Market Overview From farm to table, from factory to

DISTRICT 3: KANSAS CITY

At a Glance: Counties: Douglas, Franklin, Johnson, Leavenworth, Miami, Wyandotte District Population: 1,033,699

Biggest City: Overland Park Other Population Centers: Kansas City, Kan.; Lawrence,

Shawnee, Lenexa Major Employers:

Other Population Centers: Salina, Emporia, Junction City, Marysville Major Employers: Great Plains Manufacturing, Landoll Corp. 2021 GDP: $13,801,590,000 GDP State Rank: 3 GDP Growth 2017–2021: 2.14%

The University of Kansas Health System, University of Kansas, Gen eral Motors, T-Mobile 2021 GDP: $67,938,098,000 GDP State Rank: 6 GDP Growth 2017–2021: 1.92%

University, Medicalodges 2021 GDP: $8,101,077,000 GDP State Rank: 1 GDP Growth 2017–2021: 1.95 GDP Growth State Rank: 3 Per Capita GDP: $42,409.13

GDP Growth State Rank: 5 Per Capita GDP: $43,730.44

GDP Growth State Rank: 1 Per Capita GDP: $65,723.29

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