Kansas Department of Commerce Annual Report 2023

THE GOLD STANDARD 2023 ANNUAL REPORT

K ANSAS DEPARTMENT OF COMMERCE | 1000 SW JACKSON, SUITE 100 | TOPEK A, KS 66612 | (785) 296-3481

TABLE OF CONTENTS 5

Business Development

7

International

9

Community Development

11

Kansas Creative Arts & Industries Commission

13

Workforce Development

15

Off ice of Rural Prosperity

17

Off ice of Broadband Development

19

Kansas Tourism

21

Operations

23

Off ice of Innovation

25

Marketing and Communications

27

Legislative Highlights

28

Awards and Accolades

29

2023 Successes

1

LETTER FROM THE SECRETARY We’re charting a new course — and forging a new gold standard of excellence here in Kansas.

By collaborating with local partners in every region of Kansas — and working closely with the Kansas Legislature — we’re transforming communities and building a more resilient economy statewide.

Since the start of 2019, we’ve been on an absolutely dominant trajectory of growth — with a larger pipeline of deals than ever before — and 1,070 successful economic development projects that have garnered more than $18 billion in private sector investment and created and retained nearly 66,000 jobs.

And, as businesses invest in our communities, we’re investing in our people.

Under Governor Kelly’s leadership, we’ve seen renewed focus on the human parts of doing business. Her aim is to make Kansas the best place in the nation to raise a family — a goal that creates huge “win-win” opportunities for Kansas businesses of all sizes.

With this goal in mind, we’re making historic investments in infrastructure, broadband, housing, childcare, tourism, community vibrancy, recreation, workforce training programs, apprenticeships and other initiatives that will prepare our people and our state to build a better tomorrow.

These targeted investments produce additional revenue and generate a strong return on investment for our communities and our state.

As you read our Annual Report, you will see significant accomplishments in all divisions of Commerce — a showcase of our new gold standard.

We have future-defining opportunities before us — and our state will continue to lead.

In Kansas, we’re at the center of increased global demands to feed the world, build more computer chips, tackle new diseases and threats to public health, transform our energy systems, revolutionize transportation and much more. Disruption is changing the face of the world, and the opportunities are knocking.

This is Kansas’ time.

Anchored by our exceptional economic strengths, strong partnerships and commitment to innovation, we will continue our historic rise to new heights all across our state.

Ad Astra Per Aspera,

David C. Toland Lt. Governor and Secretary of Commerce

2

2023 ECONOMIC DEVELOPMENT IMPACT

3

LEGEND Business Development

Recruitment and In-State Team

In-State Offices Successes in 2023

Community Development Community Development Block Grants Community Service Tax Credit Program Main Street Communities Rural Opportunity Zones

International Division Kansas International Trade Show Assistance Program Kansas International Trade and Marketing Assistance Program Exporter of the Year Finalists

Kansas Creative Arts and Industries Commission Grants

Office of Rural Prosperity Historic Economic Asset Lifeline Strategic Economic Expansion and Development Rural Murals

Workforce Development Workforce Centers

Tourism Tourism Marketing Grants Tourism Attraction Development Grants

Kansas Office of Broadband Development Grants

4

BY THE NUMBERS

LEADERSHIP NOTE As the global computer chip shortage continues, Kansas has

232

once again stepped up to meet a pressing challenge headon. Specifically, our work in this critical sector has led to the second and third largest economic development projects in

TOTAL PROJECTS IN THE PIPELINE

state history — EMP Shield and Integra Technologies.

In February, not only did we once again make history in

255

ECONOMIC DEVELOPMENT SUCCESSES

economic development in Kansas, but we also named our second Attracting Powerful Economic Expansion (APEX) NADIRA HAZIM-PATRICK Assistant Secretary

project with Integra Technologies. Integra Technologies plans to create 1,994 net new jobs and invest $1.8 billion in a stateof-the-art facility in the Wichita area. Additionally, EMP Shield

plans to create 1,200 jobs and invest in a $1.9 billion facility in Coffey County. These projects are dependent on CHIPS Act funding and the impact they will have across the state and

11,952

NEW AND RETAINED JOBS

the country cannot be overstated.

On the heels of a historic year of successes in 2022, we continue to see growth and retention projects flourish across the state. We are landing one next-generation investment after another, like Orange EV in Kansas City or Novacoast in Wichita. We remain on a dominant trajectory of growth, adding more than $3 billion of capital investment projects and nearly 12,000 new and retained jobs. In addition, average statewide wages are at a record high,

$3B

IN CAPITAL INVESTMENTS

meaning better opportunities for Kansans.

Kansas continues to be one of the best states in the country for economic development. In 2023, we not only received Area Development Magazine’s coveted Gold Shovel for a third year in a row, but also were awarded the Governor’s Cup from Site Selection Magazine for the most private investment per capita in the nation for a second straight year.

56

COUNTIES WITH ECONOMIC DEVELOPMENT SUCCESSES

5

In-State Business Development Regions

Business Recruitment Regions

BUSINESS DEVELOPMENT TOP 10 DOMESTIC WINS • Building Materials Manufacturng Corporation Capital Investment: $350 million Jobs: 137

“Recruiting quality employers and meaningful jobs to the state of Kansas”

1

TOP 3 ACCOMPLISHMENTS Second APEX Project Selected The second APEX project was named in February with Kansas-based Integra Technologies, a company

• Walmart (Beef Packaging Facility) Capital Investment: $257 million Jobs: 667

• High Plains Ponderosa Dairy, LLC Capital Investment: $168 million

that provides outsourced testing and packaging services to the semiconductor industry. Integra plans to build and expand into a 1 million sq. ft. advanced semiconductor manufacturing facility, a $1.8B investment that will create 1,994 new jobs.

Jobs: 95

• Kiewit Corporation Capital Investment: $120 million Jobs: 723

• Camso Manufacturing Capital Investment: $114 million Jobs: 181

• H&T Battery Components Capital Investment: $110 million Jobs: 180

• Koch Fertilizer Dodge City, LLC

2

Second Largest Investment in Kansas History EMP Shield, an industry leader in protecting electronic devices from destructive electromagnetic pulses, will invest $1.9B in a computer chip manufacturing facility. EMP Shield will create 1,200 jobs in Burlington to support the semiconductor industry. This project is expected to attract several suppliers to the region.

Capital Investment: $94 million

• Infinity Windows Capital Investment: $76 million Jobs: 585

3

Sunflower State Sees Win After Win

• Oppidan Capital Investment: $71 million Jobs: 6

• Biomune Company Capital Investment: $55 million Jobs: 40

Two consecutive Governor’s Cup Awards from Site Selection Magazine and back-to-back-to-back Gold Shovel Awards from Area Development Magazine have no precedent in state history and reflect three consecutive years of record-setting private-sector investment.

* List does not include Integra Technologies and EMP Shield, as those projects are awaiting funding from CHIPS Act.

6

BY THE NUMBERS

LEADERSHIP NOTE Prior to starting as the Director of the International Division

TOP 5

in September, I was impressed by the volume and value of the export and foreign direct investment in Kansas and the support this division provides. The momentum of the

EXPORTS

1.

2.

3.

4.

5.

AIRCRAFT MEAT PRODUCTS ELECTRICAL MACHINERY INDUSTRIAL MACHINERY CEREALS

state’s international growth was recognized by the Kansas Legislature this year with a $1.2 million increase to the International Division’s budget in FY24. This investment will allow our state to attract more foreign direct investment (FDI) to Kansas and increase exports of Kansas goods for LAURA LOMBARD

years to come.

International Division Director

The Governor and Lt. Governor were on the move this year

$11.7B EXPORTS

as they represented Kansas in strategic locations to bring in new business opportunities.

Governor Laura Kelly attended the Paris Airshow in June to highlight the state’s largest industry — aerospace — and seek new opportunities for this vital sector. She also traveled to South Korea and Japan this fall to expand our foreign direct investment from East Asia and promote the state to suppliers for Panasonic’s new megaproject in northeast Kansas.

8

TRADE MISSIONS

In November, she traveled with the Kansas City Chamber of Commerce to Germany and participated in a Kansas business promotion event through the Kansas City Area Development Council. Lt. Governor Toland also traveled to South Korea and Japan in the spring, and to the Czech Republic in December, to promote foreign direct investment opportunities.

15

DELEGATIONS HOSTED

The Kansas International Trade Marketing Assistance Program (KITMAP) assists companies by making access to new export markets more affordable. The program reimburses 50% of a company’s direct expenses (up to $5,000 per eligible activity) each fiscal year for marketing and sales activities. In 2023, the program provided 31 companies with financial assistance. The Kansas International Trade Show Assistance Program (KITSAP)

TOP 10

TRADING PARTNERS 1. MEXICO 2. CANADA 3. JAPAN 4. CHINA 5. REPUBLIC OF KOREA 6. GERMANY 7. SINGAPORE 8. AUSTRALIA 9. BRAZIL 10. UNITED KINGDOM 7

also supports Kansas companies with participating in international trade shows. In 2023, $27,000 was provided to 12 companies through the KITSAP program.

This year’s investment into our division will create exponential growth opportunities for our state over the coming years. With additional staff, programs and resources, we look forward to further helping Kansas companies succeed and grow overseas, bring in new revenue and expanding employment opportunities for our great state.

INTERNATIONAL “Fostering export growth and foreign direct investment through greater engagement across the state.”

1

TOP 3 ACCOMPLISHMENTS

New International Division Leadership In June, we said goodbye to International Division Director Jeff Willis and wished him well on his retirement. Lieutenant Governor and Secretary of Commerce David Toland announced in September that Laura Lombard had been named the agency’s new International Director. Lombard brings 15 years of experience in international relations and business development to the position, most recently serving as President and CEO of Kansas Global Trade Services in Wichita.

2

Re-established Japan and Europe Representatives This year, we contracted two new overseas representatives in strategic areas for foreign direct

2023 Governor’s Exporter of the Year

investment: one in Japan and one in Germany. Both representatives will assist Kansas in identifying

Tank Connections, LLC, based in Parsons, is an

potential foreign direct investment opportunities

employee-owned company building the highest

in their respective regions. Kansas has an existing

quality storage containment products worldwide.

Mexico representative as well.

Chosen for the award from a group of three finalists, Tank Connections underwent a demanding selection process that included a site visit to their Parsons facility and a thorough review of export performance indicators.

.

3

Foreign Direct Investment Mission to Japan And South Korea Governor Laura Kelly traveled to Japan and South Korea to participate in the Midwest U.S.-Japan Association Conference. While there, she met with business leaders to continue building on the historic economic development success in Kansas and create new job opportunities for Kansas workers.

8

BY THE NUMBERS

LEADERSHIP NOTE

KANSAS MAIN STREET

36 48

The Community Development Division actively partners with communities to create vibrant, quality places that both

MAIN STREET COMMUNITIES

residents and businesses across the state can call home. Our programs offer communities dynamic funding opportunities

MAIN STREET AFFILIATES

to address their unique needs and amplify their assets. Our dedicated team delivers swift and expert assistance across various community development domains, encompassing

COMMUNITY DEVELOPMENT BLOCK GRANTS

36

GRANTS

OVER $11M AWARDED

placemaking, childcare, housing, downtown revitalization and beyond, leaving a lasting and positive impact.

KAYLA SAVAGE Community Development Director

This year, Kansas Main Street added WaKeeney as the newest designated community. Since the return of the program in

2019, it has grown to 36 designated communities from the original 25 communities. Kansas Main Street provided four in-person training sessions in Independence, Newton, Salina and Dodge City, with an average of 60 people attending each event. They also provided extensive training and technical assistance to dozens of communities in the areas of

COMMUNITY SERVICE TAX CREDIT PROGRAM

36

PROJECTS

OVER $4M AWARDED

organization, promotion, economic vitality and design. Additionally, a new service began offering detailed market data to communities to assist them in the creation of targeted transformational strategies.

New programs were added to Community Development Block Grants (CDBG) for projects in communities of all sizes. To support communities navigating the program opportunities, a new website was developed to simplify the requirements for each program and included a useful tool to quickly determine how to meet eligibility for the program. The team completed a series of seven regional road shows to promote the programs and encourage

HOUSING ASSESSMENT TOOL (HAT)

21

new communities to apply. Over 200 people participated, generating multiple project leads across the state. Non-profit childcare, youth job training, community centers, libraries, sidewalks, parks and trails were of particular interest. Outreach resulted in 11 new communities applying for CDBG funding that had not applied in the past.

COMPLETED Housing continues to be one of the greatest needs across Kansas. We overhauled the Housing Assessment Tool (HAT) to arm communities with information and data about their specific housing needs. This year, 21 communities completed the HAT and used the information to pursue funding and developers to address their housing needs.

9

COMMUNITY DEVELOPMENT “Empowering Kansas communities through programs, partnerships, and support.”

1

TOP 3 ACCOMPLISHMENTS CDBG Road Shows and New Website CDBG provided seven regional workshops across the state in early 2023, reaching over 200 people and generating 95 project leads. The team promoted funding opportunities for non-profit childcare, youth job training, community facilities, housing rehabilitation and more. CDBG also launched a new website, simplifying the programs for potential applicants. A new tool on each program page makes it simple to understand how a community is eligible.

The site has been visited more than 23,000 times since early 2023.

2

Kansas Main Street In Pilot Program Kansas Main Street was one of 10 state programs selected by Main Street America (MSA) to participate in a two-year pilot program to help communities better learn how to create inclusive and diverse entrepreneurial ecosystems and help grow new businesses. This partnership with MSA and Forward Cities is a result of a grant from the Kauffman Foundation.

3

Community Service Tax Credits The Community Service Tax Credit program saw a record number of applications in 2023 and awarded a record number of projects. CSP is a powerful tool for non-profits and community foundations across Kansas to elevate donor-supported community development projects that benefit childcare, youth, healthcare and education.

10

BY THE NUMBERS

LEADERSHIP NOTE

108

The Kansas Creative Arts & Industries Commission (KCAIC)

GRANTS

vital role in enriching education, nurturing community well-

$752,467

being and stimulating local economies. According to the U.S.

provides support for the creative arts, recognizing the arts’

Bureau of Economic Analysis, arts and cultural production

AWARDED

contribute a significant 2.3% to Kansas’ economy, supporting

35

41,637 jobs.

I’m honored to have recently joined Commerce as director of

COUNTIES

19

EVENTS HOSTED

CURTIS YOUNG

the KCAIC. I assumed this role in August, succeeding Interim

Kansas Creative Arts & Industries

Director Kate Van Steenhuyse, who now serves as Assistant

Commission Director

Director. I am excited to work alongside our talented team

and partners to continue advancing the arts industry in Kansas.

Our field representatives’ outreach efforts have yielded remarkable results. 2023 saw

SOCIAL MEDIA ACTIVITY

1,047

FACEBOOK FOLLOWERS

994

INSTAGRAM FOLLOWERS

13

ARTS PROGRAMS ADMINISTERED

445 ARTISTS SERVED

67

ARTISTS IN THE KANSAS TOURING ARTISTS ROSTER

11

a substantial increase in grant applications, and nearly 25% of those came from new applicants. Additionally, 87% of applications received funding, reflecting our commitment to an industry that sustains jobs, contributes to government revenues, and plays a large part in tourism.

KCAIC’s Ethnic Markets Initiative celebrated the unveiling of four murals in Lawrence, with a fifth coming soon. In collaboration with the Lawrence Douglas County Sustainability Office, Kansas Healthy Food Initiative, KU Small Business Development Center, the Director of Equity and Inclusion for the City of Lawrence, and Commerce’s Office of Minority and Women Business Development, this initiative brings together culture-specific food markets and artists to create public artwork. The success of this pilot program will soon be replicated in Garden City in 2024.

KANSAS CREATIVE ARTS & “Empowering Kansas communities through INDUSTRIES COMMISSION programs, partnerships, and support.”

1 2

TOP 3 ACCOMPLISHMENTS Grant Applications A record 121 grant applications were received in 2023 with just over $900,000 in requests. This represents a 40% increase from 2022 with first-time applicants accounting for 24% of the overall submissions.

Engaging Placemaking for Innovative Communities (EPIC) KCAIC and the Patterson Family Foundation launched the Engaging Placemaking for Innovative Communities (EPIC) pilot program. With a focus on arts-driven community development projects that enhance rural communities and enable additional partnership and connection, EPIC launched in southcentral Kansas with participants from Hutchinson, Kingman, Lindsborg, Little River, Lyons, St. John, Stafford and Sterling.

3

Poetry in Kansas Poetry took a front seat at KCAIC in 2023. Traci Brimhall, the new Poet Laureate of Kansas, kicked off her tenure by composing and presenting a new poem for Governor Laura Kelly’s inauguration in January. In May, Victoria Jelks, the Kansas State Champion in the Poetry Out Loud recitation contest for high school students, was a finalist at the national competition in Washington, D.C. Kansas’ Poetry Out Loud program is a partnership between KCAIC, the National Endowment for the Arts and the Poetry Foundation. The state finals were filmed and broadcast by program partner, KTWU, who received their first Public Media award for its Poetry Out Loud: Kansas Competition 2023.

12

BY THE NUMBERS

LEADERSHIP NOTE Each year brings new challenges and needs for jobseekers

KANSASWORKS.COM ACTIVITY

across Kansas. Over the last few years, we have pivoted to provide the best virtual services available to those in need.

122,123

But 2023 brought a new challenge - an eagerness to return

INDIVIDUALS ENGAGED

to in-person events and receive in-person services. Our

67,918

and attendance of in-person hiring events this year. While

JOBSEEKERS SERVED

523,047

WORKFORCE SERVICES PROVIDED

38,414 EMPLOYERS SERVED

Workforce Centers have seen a major increase in foot traffic we have seen a decrease in the number of individuals served online, we saw an increase in the total number of jobseekers MIKE BEENE

Assistant Secretary

served and customer services provided. The number of employers served this year has increased by 13%, meaning more job listings available to our jobseekers.

Our in-person staff continues to see success providing support for not only traditional jobseekers, but also providing targeted information to groups such as those interested in a registered apprenticeship, assistance for veterans and their spouses, services for those recently released from a correctional facility, and assistance for employers to retain employees after an injury or illness.

Kansas Workforce Centers provide a wide range of free services for workers and employers

KANSASWORKS.COM MOBILE APP

9,713

PAGE VIEWS

7,071 VISITS

LIVE CHAT

6,218 CHATS

13 MIN 37 SEC AVERAGE CHAT DURATION

91%

SATISFACTION RATE

13

across the state, both virtually and in-person. Workforce Specialists work to help connect workers and jobseekers to employment, training and educational opportunities, and available funding. Kansas’ two Mobile Workforce Centers have focused on providing services to areas that lack a permanent workforce center or face unusually high demand for workforce center assistance. Employers have been able to utilize the Mobile Workforce Centers for hiring events, helping to connect them to skilled talent.

WORKFORCE DEVELOPMENT “Connecting businesses, job seekers, schools and training providers to ensure the state’s workforce meets industry needs and helps create economic success for residents and businesses throughout the state.”

TOP 3 ACCOMPLISHMENTS

1

Growth of Kansas Office of Registered Apprenticeship The Kansas Office of Registered Apprenticeship celebrated the one-year anniversary of the establishment of the office in September.

Registered Apprenticeship has continued to grow in Kansas, with 12 new programs created this year, 49 new occupations added and a 37% increase of the

2

number of apprentices in the state of Kansas.

Work Based Learning (WBL) Intermediaries The Kansas Work Based Learning project is a comprehensive approach that ensures Kansas students have equitable access to high-quality, workbased learning experiences designed to prepare each student for postsecondary, workforce success in high-demand and critical-need occupations across the state. There are five regional work-based learning intermediaries to connect education, business and industry, and economic development in each of the five workforce regions. Additionally, intermediaries coordinate career exploration experiences for students that may include job shadowing, mock interviews, field trips, internships and career

3

mentoring.

ReSpECTWORKS - Expanded Relationship with the Kansas Department of Corrections The Re-entry Specialized Employment Counseling and Training (ReSpECT) WORKS program provides “inside-outside” services to eligible incarcerated individuals from every state adult correctional facility. During this year, ReSpECTWORKS tripled its enrollment from 87 participants to 263. This increase in participants led to adding three new program Career Navigators employed by Local Workforce Development Boards to meet demand. To date, 79% of participants released to the community have obtained employment.

14

BY THE NUMBERS

LEADERSHIP NOTE

SOCIAL MEDIA ACTIVITY

Since its founding in 2019, the Office of Rural Prosperity (ORP) has provided a vital connection to residents, communities

2,741

and businesses in rural parts of the state. Dedicated to improving life in rural Kansas, the office has orchestrated an

FACEBOOK FOLLOWERS

unprecedented level of community engagement through

3,868

challenges present has led to Commerce implementing

TWITTER FOLLOWERS

OVER 22,000 MILES TRAVELED ACROSS KANSAS

12

RURAL CHAMPIONS

direct involvement. A deeper understanding of the unique impactful programs that enhance the capacity of rural communities and the well-being of rural Kansans. Through TRISHA PURDON

a collaboration with the Patterson Family Foundation, we’ve

Off ice of Rural Prosperity Director

successfully allocated more than $7 million in grant funds to bring life to the places that many Kansans call home.

In October, a total of $300,000 was awarded to 12 communities involved in ORP’s #RuralbyChoice Champions program. The funding will allow the Rural Champions named in those communities to move into the implementation stage of their identified projects to address key challenges in their respective communities. These Rural Champions have made remarkable progress in areas such as childcare, housing, mental health, trails, entrepreneurship, and community and economic development throughout the state.

38

Significant progress was made through other ORP initiatives that are helping rural

NEW MURALS IN RURAL COMMUNITIES

Lifeline (HEAL) program helped revitalize rural downtowns, saving 32 historic buildings

129

NEW ROZ APPLICANTS

242

CURRENT ROZ PARTICIPANTS

HISTORIC ECONOMIC ASSET LIFELINE GRANTS

32

BUILDINGS SAVED

$3,530,376 TOTAL GRANT AWARDS 15

Kansas communities become stronger and more resilient. The Historic Economic Asset in the past year and fostering entrepreneurship statewide. Through the SEED Grant program, resources have been provided to numerous small communities to enhance arts, beautification, grocery store access, libraries, childcare services and senior centers.

Additionally, the Rural Opportunity Zone program attracted 129 new participants to rural communities this year, bringing fresh opportunities and families to these areas.

1

OFFICE OF RURAL PROSPERITY

“Advocating for and promoting rural Kansas and focusing on ways to guide

2

TOP 3 ACCOMPLISHMENTS rural improvements toward prosperity.”

Historic Economic Asset Lifeline (HEAL) The Historic Economic Asset Lifeline (HEAL) program has saved 63 buildings to date, with plans to add 30 more by early 2024. Each saved building unlocks new opportunities for businesses or organizations in rural downtowns. By collaborating with Community

Rural Champions In partnership with the Patterson Family Foundation, we launched the #RuralByChoice Champion program to empower communities lacking capacity to address local challenges. Over the past year, 12 Rural Champions have actively engaged with local, regional and state resources

Development, Kansas Main Street and others such as

to develop strategies for success. With implementation

the Patterson Family Foundation, we’re expanding

grant funds in hand, Rural Champions can carry out

funding to reach more Kansas communities and

initiatives, support community incentives, leverage

stimulate additional investments in rural downtowns.

additional grants, and develop programs in housing, mental health, wellness, childcare, entrepreneurship, community development and placemaking. They also

3

created digital resources to assist others in similar projects in their communities.

Rural Opportunity Zone (ROZ) The Rural Opportunity Zone program has undergone a robust branding and marketing transformation, strategically aimed at attracting young professionals to our rural areas through the allure of an enhanced quality of life and vibrant tourism attractions. Moreover, we will introduce targeted employer sponsorship materials designed to facilitate the recruitment and placement of talent in ROZ counties, addressing critical job vacancies within these communities. We are committed to revitalizing our rural areas and ensuring a prosperous future for both the residents and businesses that call them home.

OFFICE OF RURAL PROSPERITY PROJECTS AND INITIATIVES

HEAL

Champion

SEED

Rural Murals

County, City, Employer, & Foundation Sponsors

Eligible ROZ County; has not sent in 2023 Resolution

City, Employer, & Foundation Sponsors Only

Not ROZ

16

BY THE NUMBERS

LEADERSHIP NOTE The Kansas Office of Broadband Development (KOBD) made

34

12

enormous strides in 2023 in three crucial areas: statewide

ROADSHOW LISTENING SESSIONS

strategic planning, infrastructure deployment and digital inclusion.

GRANT CATEGORIES

LASTING INFRASTRUCTURE AND NETWORK CONNECTIVITY GRANTS

2,927 12

SMALL BUSINESS PROJECTS AWARDED WORKING CAPITAL GRANTS

In January, we hosted the inaugural Kansas Broadband Summit. This event set the stage for a series of 34 community listening sessions that we called the Kansas Broadband Roadshow, which allowed us to better understand broadband JADE PIROS DE CARVALHO

needs across our state. Feedback gathered from Kansans

Off ice of Broadband Development Director

during the Roadshow informed the drafting of Kansas’ first strategic plans for broadband access and digital equity. The

$28.5M

Five Year Action Plan was released in July, followed by the Kansas Digital Equity plan,

AWARDED

The National Telecommunications and Information Administration (NTIA) announced in

TOTAL INVESTMENTS

will be awarded in 2024 to projects that will bring high-speed internet to Kansans who

(INCLUDING MATCH)

lack it. KOBD was one of the first states in the nation to submit the NTIA-required Initial

$56,941,741 TOTAL GRANT AWARDS

$33.9M

66 2,868

CONNECTIVITY EMERGENCY RESPONSE GRANTS

PREMISES CONNECTED

BROADBAND ACCELERATION GRANT 3.0

June an allocation of $451.7 million to Kansas through the BEAD program. This allocation

Proposal document that will unlock these funds.

Also noteworthy is KOBD’s $42.5 million middle mile award. One of only 35 awards nationally, the project in collaboration with KDOT, KanREN and private organizations includes the deployment of a 682-mile open-access middle-mile fiber network. KOBD awarded nearly $35 million in infrastructure grants through two programs: LINC and Broadband BAG 3.0.

Both programs bring 100/20 Mbps service to underserved homes and businesses.

11

Our office also prepared two programs to be launched in 2024 to address digital

25 $5M

Technology funds from the U.S. Treasury Department. This $15.5 million program will

PROJECTS AWARDED

BROADBAND TOTAL GRANT AWARDS PARTNERSHIP ADOPTION GRANTS

$11.6M

$8,196,894 TOTAL INVESTMENTS (INCLUDING MATCH)

AWARDED

2,294

PREMISES CONNECTED

17

released in October.

inclusion needs. Firstly, Kansas is the only state to date to be awarded Direct Connectivity bring free Wi-Fi and devices to select low-income locations. Secondly, KOBD will launch a $5 million program that focuses on digital skills training to underserved communities.

The KOBD team’s dedication is at the heart of these achievements and our mission to connect, empower and transform communities across Kansas.

OFFICE OF BROADBAND DEVELOPMENT

1

TOP 3 ACCOMPLISHMENTS Historic Funding Allocation of $451.7 million In June, it was announced that Kansas would receive $451.7 million in funding to support broadband infrastructure to connect all Kansans through the Infrastructure Investment and Jobs Act. In anticipation of this funding and through months of

2

“Connecting Kansas to the World”

Lasting Infrastructure and Network Connectivity (LINC) Kansas will invest more than $30 million in American Rescue Plan Act funds to support broadband infrastructure and digital equity projects. This year, the LINC program awarded $28.5 million for broadband infrastructure, while a digital equity program will award $5 million in early 2024

data collection, KOBD developed a Five-Year Action

to projects supporting access to high-speed internet,

Plan and Digital Equity Plan which will guide how

provide devices to underserved Kansans and expand digital

the state will utilize these funds to make Kansas a

skills training. KOBD received 67 proposed infrastructure

top 10 state for broadband.

projects totaling more than $184 million in requested

3

funds.

Broadband Acceleration Grant (BAG) 2.0 closeouts and 3.0 allocation In 2023, KOBD closed out five BAG 2.0 projects, bringing high speed internet to rural communities that lack broadband speeds of 25/3 Mbps. The third year of BAG launched this summer, with 11 awards announced in mid-November. Started in 2020, BAG is a 10-year, $85 million program funded via the Kansas Department of Transportation’s Eisenhower Legacy Transportation (IKE) Program.

Broadband Acceleration Grants (BAG) 1.0, 2.0 and 3.0 BAG 1.0 project location BAG 2.0 project location BAG 3.0 project location

Lasting Infrastructure and Network Connectivity (LINC) Project locations

18

BY THE NUMBERS

LEADERSHIP NOTE The mission of Kansas Tourism is to inspire travel to and

OVER 124.4M

throughout Kansas. Everything we do is focused on increasing out-of-state visitors and encouraging Kansans to explore their home state. We are dedicated to promoting

WEBSITE GRANT PAGE CATEGORIES VIEWS

350,000 2,927

SMALL TRAVEL BUSINESS GUIDES WORKING PRODUCED CAPITAL GRANTS

$1,039,600 $56,941,741 AWARDED IN TOURISM

tourism as a powerful tool of boosting the state’s economy, creating jobs, generating tax revenue and improving the overall quality of life. In 2022, the most recent year for which we have a full year’s data, 36.4 million people visited Kansas, an 8% increase year over year (YOY). Visitor spending BRIDGETTE JOBE

reached $7.7 billion, growing by 10% YOY and surpassing

Kansas Tourism

pre-pandemic levels by 5%. This visitor spending, including

Director

indirect and induced impacts, generated a total economic

impact of $12.5 billion, supported 88,509 jobs and generated $777 million in state and local tax revenue.

AWARDED GRANTS TO 46 COMMUNITIES

Our enhanced marketing and advertising campaigns have been pivotal in achieving

66

travel guide requests. These are two important indicators on the success of tourism-

441

CONNECTIVITY EMERGENCY REGISTERED RESPONSE GRANTS AGRITOURISM BUSINESSES

several milestones this year. In the third quarter, we broke all annual records with TravelKS.com for number of users, sessions and page views, which led to increased related marketing effectiveness and the subsequent increased visitation. In addition, we hosted over 40 members of the media through familiarization tours, content creator collaborations, and a two-day media event, resulting in 30 articles and over 300 social interactions to date. This is an effective way to reach new audiences and will continue to yield content for years to come. KANSAS!, the Kansas Tourism lifestyle magazine, added over 2,300 new subscribers through targeted subscription campaigns. In addition to receiving two Gold Medal Awards, KANSAS! was also named as a finalist

2,300

25

NEW KANSAS! MAGAZINE SUBSCRIBERS

BROADBAND PARTNERSHIP ADOPTION GRANTS

6 $8,196,894 ORIGINAL KANSAS DAY “HOME ON THE AWARDED RANGE” MUSIC VIDEOS

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for Magazine of the Year from the International Regional Magazine Association.

But our mission goes beyond numbers. Tourism is the welcoming committee of Kansas, recognizing that a visit is often a traveler’s first impression of our state. Tourism isn’t only about attracting tourists; it’s also about sparking economic development and growth.

Kansas Tourism is all about making the state a more welcoming and economically vibrant place to live and visit, one that residents can be proud to call home.

KANSAS TOURISM “Tourism offers a better quality of life for all Kansans by way of a strong travel industry and economic prosperity.”

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TOP 3 ACCOMPLISHMENTS To The Stars Marketing Kansas Tourism’s marketing campaign To The Stars continues to boldly invite travelers to vacation in Kansas by changing perceptions of our state. Our spring campaign generated more than 144 million broadcast impressions and 6.9 million digital impressions with a 96% audio or viewability rate.

All marketing throughout the year contributed to 4,454,736 website page views, 1,808,168 website

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users, and 15,801 travel guide requests.

Grants Awarded A key objective of Kansas Tourism is to bolster local communities or businesses by providing financial support for projects aimed at growing the travel industry. In 2023, Tourism provided $921,820 to 24 communities to assist with the development of new attractions or to enhance existing ones. We also provided $117,780 to 22 local communities to assist in their new tourism-related marketing initiatives.

Both of these grant programs are vital for increasing tourism and contributing to the economic growth of these communities. This year also marked a notable 50% rise in grant applications, demonstrating both greater outreach and the growing awareness and importance of tourism-related projects in Kansas

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communities.

Media Events This past year, Kansas Tourism executed an effective media strategy by hosting over 40 different members of the media from around the country. This strategy of working directly with media and content creators for genuine endorsements and testimonials is an effective way to reach beyond traditional media and connect with new demographics. To date, these media events have generated over 30 articles or blogs and over 300 social posts, each promoting traveling to Kansas. The effects of this type of strategy will be seen for years to come.

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BY THE NUMBERS

LEADERSHIP NOTE Each unit representing operations has grown tremendously

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over the last year. Legal took leadership of the implementation of a new software document management system to more effectively process, route and store contracts and agreements.

NEW EMPLOYEE ORIENTATIONS

We have drafted and processed over 800 contracts and agreements to date. We have been successfully involved in

13

the resolution of three litigation cases in the past six months involving either the clawing back of incentive awards or

NEW INTERNS

1,517

CANDIDATE APPLICATIONS PROCESSED

defending the agency from meritless lawsuits.

ROBERT NORTH Chief Legal Counsel

The IT department at Commerce increased its focus on cybersecurity this year by implementing a comprehensive

set of security measures to safeguard the organization’s digital assets and ensure the confidentiality, integrity and availability of information. These efforts encompass a multilayered approach to address potential threats and vulnerabilities. Key security initiatives this year included implementing a new, more robust VPN solution for remote

1,921

SERVICE DESK TICKETS RESOLVED

users to access their data in a more secure and reliable fashion. In addition, a new inventory system was developed to better manage, track and organize all hardware, software and network assets used by the agency. Several monitoring tools were deployed in conjunction with OITS to prevent any possible malicious attacks. By integrating these security efforts, the IT team has established a resilient and proactive posture that evolves to meet emerging threats and industry best practices. Salesforce, the agency’s CRM (Customer Relationship Management) software, also was transformed this year.

5,671 FISCAL PAYMENTS PROCESSED

The addition of a new developer/administrator to the team has allowed IT to make great strides in making the software more operative for users. All of this was completed while closing a record number of customer service tickets during the 2023 calendar year.

The America’s JobLink Alliance (AJLA) team has been hard at work this year. AJLA is a consortium of publicly funded workforce agencies, and the technology component of AJLA is a division within Commerce. The major accomplishment of this team has been

LIVE CHAT

807

CONVERSATIONS

10:58

AVERAGE CHAT DURATION

95%

POSITIVE RATING 21

making improvements in America’s JobLink (AJL), the all-in-one web-based labor exchange and case management system. Not only is there an integrated calendar in AJL, but jobseekers can now electronically sign virtually all forms with DocuSign in the application.

OPERATIONS “Providing exceptional Legal, Fiscal, IT and HR services to support Commerce and our state in achieving maximum economic prosperity.”

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TOP 3 ACCOMPLISHMENTS Reduced Vacancies The agency has implemented several strategies to reduce vacancies this year, such as an improved recruitment process, investment in employee development and retention, and the establishment of effective communication channels. These initiatives helped reduce turnover and foster a more

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stable and productive workforce and environment.

STAR Bonds The past year was productive for the STAR Bond program. There are currently nine active projects spread across the state. All are having positive impacts on the quality of life and economic success in those communities and surrounding areas. A webinar was presented this fall to highlight the opportunities now available within the STAR Bond Act for rural communities. Since then, four different rural communities with identified projects have

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reached out to express interest in the program.

America’s Job Link Alliance (AJLA) The AJLA team achieved many initiatives this year, most significant being the successful design and implementation of an integrated calendar and notification system in America’s JobLink. Along with improved user functionality, it allows jobseekers to view and register for appointments, and for staff to create and manage appointments.

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BY THE NUMBERS

LEADERSHIP NOTE

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The Office of Innovation continues to provide Kansas entrepreneurs a competitive edge through the KITE Proof

FOR-PROFIT PROOF OF CONCEPT GRANTS

of Concept program, Angel Investor Tax Credit (AITC) program and the Small Business Research and Development

$194,760

Acceleration grants.

FUNDED

2023 marked newfound growth for Innovation with the hiring of the Director of Advanced Technology, who will

2 FACULTY-LED PROOF OF CONCEPT GRANTS

focus on advising Commerce leadership on emerging ABBY WORKS Chief of Staff

technologies, as well as connecting with businesses and universities regarding the cutting-edge work that is taking place within the state.

$48,500 FUNDED

Highlighting our Angel Investor Tax Credit program, the Office of Innovation has raised nearly $30 million worth of capital in 2023 with 206 investors supporting 27 different companies. These businesses utilize these funding opportunities to develop new

$243,260

TOTAL PROOF OF CONCEPT GRANTS AWARDED

technologies and products, which lead to job creation and add to the overall well-being of the state’s economy.

Moving forward, the Office of Innovation will continue evaluating its legacy programs to ensure that Kansas entrepreneurs are supported through accessible funding opportunities and technical resources. Outreach, education and program adjustments will be a top

$7,224,202

KANSAS ANGEL INVESTOR TAX CREDIT IMPACT

206

INVESTORS

priority for the Office of Innovation in 2024, ensuring that Kansas businesses know what programs are available to them, how to access these resources, and are able to provide constructive feedback.

With the addition of the Director of Advanced Technology, the Office of Innovation will continue to provide the agency with information about emerging trends in the targeted sectors identified in the Kansas Framework for Growth and maintain the momentum of success seen in the Sunflower State.

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COMPANIES

$29,769,013 CAPITAL RAISED

PROOF OF CONCEPT SUCCESS STORY Love Lifesciences is a former Proof of Concept awardee turned Angel Investor Tax Credit program participant. The mission of this Overland Park startup is to revolutionize the patient experience by allowing patients complete injection control when administering medications. They have already raised $1 million in pre-seed funding for this project.

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OFFICE OF INNOVATION

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TOP 3 ACCOMPLISHMENTS Angel Investor Tax Credits The Office of Innovation has been instrumental in creating 125 new jobs and preserving 71 existing jobs across Kansas through the Angel Investor Tax Credit program. This remarkable achievement not only reflects the dedication and innovation of the

ANGEL INVESTOR TAX CREDIT SUCCESS STORY HitchPin, based out of Leonardville, utilized their tax credits to grow their user account base to nearly 65,000 and have listed $146 million in products in 49 states.

office but also underscores its commitment to fueling economic development and empowering local entrepreneurs. By incentivizing angel investors to support emerging businesses, the program has not only boosted job opportunities but has also stimulated the growth of innovative startups.

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Kansas Framework for Growth Update In 2023, the agency worked to update the Kansas Framework for Growth, our economic development strategic plan, ensuring its alignment with recent trends and incorporating post-COVID information about the state’s trajectory with employment rates, state migration and targeted sectors. The addition of “Thriving Places” to the Kansas Framework for Growth reinforces Commerce’s mission of empowering communities to achieve prosperity in Kansas. Commerce fully understands that to achieve economic growth, communities need the resources to grow in tandem.

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Emerging Technology The Office of Innovation continues identifying emerging technologies and trends that impact Kansas businesses and communities. The office ensures that Commerce leadership is knowledgeable and prepared for changes in the landscape that will be integral in providing the world-class economic development experience that businesses expect from the department.

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BY THE NUMBERS

LEADERSHIP NOTE Commerce has dramatically stepped up communications across all available platforms during the past year. Whether considering metrics such as number of press releases, social

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media posts, website updates, audience development, remarks or presentations, there are increases across the board. Conveying the Commerce story and helping Kansans

PRESS RELEASES

understand what we do is a vital component of the division’s mission. Increasing the frequency of our messaging has

1,351

SOCIAL MEDIA POSTS

been coupled with improving the quality of those messages.

PATRICK LOWRY Marketing and Communications Director

As the repository of virtually everything Commerce produces, the website garners daily attention. We work with all divisions

across the agency to gather necessary updates, create new pages and refine the content to make it as user-friendly and readily accessible as possible. As we work to empower

27K AVERAGE MONTHLY WEBSITE USERS

28,336 FOLLOWERS ACROSS SOCIAL MEDIA PLATFORMS

45.6% AUDIENCE GROWTH FROM 2022

487,205 WEBSITE SESSIONS IN 2023

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individuals, businesses and communities to prosper, it is imperative they have the correct information needed to make good decisions as they pursue partnerships with us. Upto-date, actionable content allows Commerce not only to work effectively with in-state partners, but presents a great image of our state for potential investors from across the nation and around the world.

We also work with outside partners to help market the agency in a proactive manner as well as respond to media requests. A premium is placed on organic content that we can help shape, such as pitching story ideas to in-state media outlets, prepping the Lieutenant Governor and others for live interviews, and guiding coverage of features in national trade magazines. We also place paid advertising to boost social media content and create fullpage ads for print and online sites. Keeping a consistent message is vital for our success.

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MARKETING AND COMMUNICATIONS

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TOP 3 ACCOMPLISHMENTS Reinvigoration of Social Media Channels The Marketing and Communications team concentrated its efforts on maximizing the impact of our social media channels. The result was more robust and frequent posts – and a larger audience that engages more than ever.

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Expanded Visual Communications We more than doubled the amount of visual content (videos, graphics and photographs) used to document Commerce activity and convey our message. The result? More time spent on our website, better email open rates and increased online engagement.

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Multilingual Website As global relations with business partners continue to result in project successes for the Kansas economy, it became more apparent kansascommerce.gov needed to be more welcoming. The site now offers Japanese and Spanish translations.

LEGISLATIVE HIGHLIGHTS

HB 2292 KANSAS APPRENTICESHIP ACT SIGNED INTO LAW

RACHEL WILLIS Director of Legislative Affairs

Throughout the year, building and maintaining relationships

•

Establishes a tax credit and grant programs

with our federal, state and local elected off icials was of utmost

for apprenticeships with the goal to expand

importance at Commerce. Transparency, accessibility

apprenticeships with businesses, healthcare

and

responsiveness are both the values of our agency, as well

organizations and nonprofit organizations

as our approach for engagement and partnership with stakeholders and elected off icials. As we embark on a new year, we will continue to advocate for similar policies passed in recent years that further develop our workforce, provide support and offer resources for housing and childcare, and ensure that Kansas is the number one place in the country to do business.

HB STAR BONDS BUDGET PROVISIONS SIGNED INTO LAW (BUDGET BILL)

SB 17 EXPANDING THE KANSAS RURAL HOUSING INCENTIVE DISTRICT AND CHANGING THE NAME TO THE KANSAS REINVESTMENT HOUSING INCENTIVE DISTRICT ACT SIGNED INTO LAW •

Creates certain housing projects criteria in designated cities with a population of 60,000 or more

•

Expands the list of costs that could be paid for by

•

Replaces lost food sales tax revenue

•

Expands to include vertical construction costs for

the Kansas Housing Investor Tax Credit Act (HITCA) to

historic theaters

expand the transferability of tax credits issued under

•

Expands to include amusement park rides

the act

•

Increases the rural financing gap to $25M from $10M

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proceeds of the special obligation bonds and amends

AWARDS AND ACCOLADES

GOVERNOR’S CUP WINNER #1 IN THE NATION FOR ECONOMIC DEVELOPMENT PROJECTS PER CAPITA SITE SELECTION MAGAZINE This annual award recognizes the state with the most private-sector capital investment per capita in the nation.

This is the second time in a row that Kansas has been chosen as a state winner of the Governor’s Cup.

GOLD SHOVEL WINNER 1 OF 6 STATES NATIONWIDE AREA DEVELOPMENT MAGAZINE This annual award recognizes states for attracting high-value investment projects that create a significant number of new jobs in their communities.

After winning a Gold Shovel award in 2021 and 2022, Kansas three-repeated its success by collecting a third one in a row in 2023. Since Governor Kelly took office in January 2019, over $18 billion in new business investment has been announced in Kansas, with nearly 66,000 jobs created or retained.

DEAL OF THE YEAR BUSINESS FACILITIES MAGAZINE Panasonic Energy and the Department of Commerce were nationally recognized with a Business Facilities 2022 Deal of the Year Impact Award. The award was for the Innovation Megaproject category for Panasonic’s $4 billion electric vehicle (EV) battery manufacturing plant in De Soto that will create 4,000 jobs, another 4,000 indirect jobs and 16,500 construction jobs during the two-year construction phase.

TOP 10 AWARDS BUSINESS FACILITIES MAGAZINE #4 Leader in Installed Wind Power Capacity #6 in Aerospace/Defense Leaders #10 in Manufacturing Jobs #10 in EV Industry Investment #10 in FDI Capital Investment

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2023 SUCCESSES

Integra Technologies to invest $1.8 billion in Wichita area

Schwan’s pizza plant expansion in Salina

Kansas businesses honored at Commerce’s “To The Stars” ceremony in Wichita

Kansas awarded third consecutive Gold Shovel

Kansas Off ice of Broadband Development receives $451.7 million for high speed broadband inf rastructure Hill’s Grand Opening in Tonganoxie

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Off ice of Rural Prosperity Rural Champions

Governor Kelly Announces WaKeeney Selected as Newest Kansas Main Street Community

Pure Imagination Studios to invest $41 million in Salina Governor Kelly signs Kansas Apprenticeship Act

38th Annual Minority and Women Business Awards Luncheon in Topeka

Kansas ranked #1 in the nation for attracting Private Investment Per Capita for second straight year in 2022

EMP SHIELD to invest $1.9 billion in Coffey County

Governor Kelly’s latest trade mission to Japan

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