Advanced Manufacturing in Kansas

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Department of Commerce

BUILD IT IN THE

Advanced Manufacturing in Kansas


If there is a place that knows how to make it, it’s Kansas! Ranging from fuselages to food and chemicals to computer electronics, there is a common thread among Kansas' manufacturing pursuits – the use of the most advanced techniques and innovative materials and support from in-state centers of national prominence. We are home to a vast network of diverse, quality and precision manufacturing activities from our catalog of companies. The exploration of innovative ideas is critical to businesses being able to improve processes, bring

new products to market, increase efficiencies and – above all – improve profitability. The Kansas workforce and many university partner resources can help your operations reach new heights. Add in effective business incentives, competitive utility rates, a high standard of living and an excellent business environment, and you have the winning formula for your manufacturing operation.

EVERY YEAR IN KANSAS

81% OF THE TOTAL EXPORTS ARE MANUFACTURED GOODS 2 Garmin - Olathe, KS

2 � Kansas Department of Labor 2020, � Labor Market Information Services, � Kansas Wage Survey 2019, � US Census Bureau 2019, � Kansas Department of Agriculture


GM Plant - Kansas City, KS

Siemens Gamesa Renewable Energy Plant - Hutchinson, KS

Goodyear Plant - Topeka, KS

MANUFACTURING IN KANSAS MAKES UP

16.3% OF THE STATES TOTAL GDP 1

KANSAS MANUFACTURING COMPANIES EXPORTED

$9.4 BILLION DOLLARS WORTH OF GOODS IN 2019 2

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Distance to Market from Kansas

Kansas is served by a comprehensive rail network comprised of 4,257 miles (6,851 km) of total track, which is the sixth largest network in the nation.6

Whether by highway, rail or air, Kansas offers excellent transportation and marketing advantages for your business. Centrally located and focused on building and maintaining an outstanding multimodal infrastructure, it is easier and less expensive to ship to and from Kansas.

Kansas’ central location and extensive network provides Kansas-based companies a safe and reliable route to major interstate highways that can connect them to 85 percent of the nation’s population in less than a two-day drive.

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AVERAGE TIME FOR A GROUND PACKAGE TO REACH DESTINATION

KM I | 80 5

500 M

| 1,2 07

KM

7 5 0 MI

1,200 MI | 1,931 KM

K A N S A S

OVER THE ROAD

LOGISTICS / SHIPPING

RAIL TRANSPORT

AIR TRANSPORT

4 6

Association of American Railroads


CONCENTRATION OF MANUFACTURING COMPANIES IN KANSAS

Bern

Marysville Prairie View

Atchison Wamego Belvue

Manhattan

Hays

Soloman

70

Salina

Junction City

Pleasanton

35

Hesston

Hutchinson

Newton

Iola

Frontenac

Neodesha

Wichita

Independence Winfield

1 Company

Fort Scott

Humbolt

El Dorado

Dodge City

Lenexa Olathe

Emporia

Moundridge

Sterling

Liberal

Kansas City Edwardsville Misson Shawnee Leawood De Soto Overland Park

Lawrence New Century

Abilene

McPherson

Holcomb

Topeka

Parsons

Pittsburg

Coffeyville

Arkansas City

2-4 Companies

5-8 Companies

20+ Companies

Interstate System

*Represents 150 hot spot locations of Kansas food, beverage, pet food, aviation and chemical manufacturers located in cities around the state. Not all locations, industries or companies shown. Source: Kansas Department of Commerce, Kansas Manufacturing Solutions and Dun & Bradstreet, 2020

Kansas is home to more than 2,500 manufacturers employing approximately 166,000 people across the state, including but not limited to: food and beverage, aviation, machinery and computer and electronic companies. Companies can leverage the multiple benefits of access to agricultural resources, a skilled workforce and our outstanding transportation infrastructure. Kansas is proud to be the home to a multitude of brands like:

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Notable Kansas Manufacturers Company

Location

Employment

Spirit AeroSystems, Inc*

Wichita

13,300

Textron Aviation*

Wichita

9,500

Aircraft manufacturer

National Beef Packing Co., LLC

Liberal / Dodge City / Kansas City, Kansas

6,400

Fresh and frozen meat processor

Cargill / Cargill Protein North America*

Wichita

5,000

Food manufacturer

Tyson Fresh Meats

Holcomb / Emporia / Hutchinson / Kansas City, Kansas

4,513

Fresh and frozen meat processor

Garmin International, Inc*

Olathe / Lawrence / New Century

4,000

Communication and navigation manufacturer

General Motors

Kansas City, Kansas

2,300

Automotive manufacturer

Johnson Controls

Wichita / Lenexa

1,900

HVAC building automation and controls

Bombardier Learjet*

Wichita

1,500

Aircraft manufacturer

Reser’s Fine Foods, Inc.

Topeka

1,400

Food manufacturer

Pfizer, Inc.

McPherson

1,400

Manufacturer of sterile injectable medicines

AGCO Corporation

Hesston

1,200

Agricultural equipment manufacturer

Simmons Pet Food

Emporia

1,164

Manufacturer of wet/dry pet food and treats

Hill’s Pet Nutrition*

Topeka / Emporia

1,031

Pet food manufacturer

Landoll Corporation*

Marysville

900

Description Aerostructures manufacturer

Agriculture equipment manufacturer

*Indicates headquarters or regional headquarters presence in Kansas. Source: Kansas Department of Commerce, Kansas Department of Labor, Kansas Manufacturing Solutions

Manufacturing Industry GDP by Sector

Aviation Equipment Chemical Machinery Food and Beverage Computer and Electronic 6

4% 5%

9% 34%

5%

Fabricated and Primary Metal Products Plastics and Rubber Products

6%

Automobile and Other Transportation Equipment

10%

Other

12%

15% Source: Kansas Department of Labor, Labor Market Information Services, Kansas Wage Survey


Educational Assets and Talent Resources KANSAS STATE UNIVERSITY (KSTATE) is a major comprehensive public research university with an enrollment of more than 24,000 students, and was ranked as the No. 12 university in the nation for improving students' critical thinking skills. K State is on the path to becoming a Top 50 public research university by 2025. WICHITA STATE UNIVERSITY (WSU) is a comprehensive urban research university with more than 18,500 students. WSU’s location enhances the traditional classroom experience by providing students on and off campus applied learning and career opportunities, and offers internationally recognized research programs in aviation and advanced materials. UNIVERSITY OF KANSAS (KU) is a top research university with more than 31,000 students and offers more than 400 areas of academic studies. Ranking among the nation’s top 50 public universities, KU is one of just 36 public schools in the prestigious Association of American Universities.

Kansas offers a variety of specialized training programs for the manufacturing workforce:

UNIVERSITY ENGINEERING INITIATIVE was created to meet the needs of businesses and industry by the Kansas Legislature. In partnership with Kansas State University, University of Kansas and Wichita State University; more than $200 million was committed to funding dedicated to increasing engineering talent. Through increased enrollment, better connections for students with Kansas companies at critical stages and increased opportunities for scholarships and internships, the program has increased total enrollment to more then 8,200 students and undergraduate engineering degrees to 1,500 annually.

CAREER AND TECHNICAL EDUCATION (CTE) INITIATIVE enhances career technical education by providing state-financed college tuition for high school students in post-secondary technical education courses, including a number of traditional vocational and STEM careers. Since its beginning in early 2010, this program has grown to more than 13,600 participants.

Manufacturing employs 165,000 people spanning all its industry sectors, which is 11.2% of total employment in Kansas.3

31,437

19,579

18,676

11,496

10,341

39,287

Food and Beverage

35,074

Aviation

Machinery

Fabricated & Primary

Household &

Plastics and

Automobile,

Manufacturing

Equipment

Manufacturing

Metal Products

Store Product

Rubber Products

Chemical,

Manufacturing

Manufacturing

Manufacturing

Computer and

Manufacturing

All Other 1

Kansas Statistical Abstract 2018, 2 USA Trade 2020, 3 US Census Bureau 2019


MCPHERSON HAS EXPERIENCED A 37% EXPANSION IN INDUSTRIAL JOB GROWTH OVER THE PAST DECADE DRIVEN BY PLASTICS, ENERGY AND EQUIPMENT MANUFACTURING. 1

Rubbermaid Plant - Winfield, KS

AGCO - Hesston, KS

Industry Resources Manufacturing industry resources and workforce programs and resources offered by the state to help companies:

The National Center for Aviation Training (NCAT) at WSU is a world-class aviation manufacturing training center with capacity to accommodate more than 1,500 students. The National Institute for Aviation Research (NIAR) at WSU focuses on the development of new materials and techniques in the lab and expedites the transition of these technologies into the manufacturing process and production. The Smart Factory at Wichita is part of the Deloitte Catalyst network, an immersive center focused on bringing together advanced manufacturing methods and technologies for companies to experience firsthand. Located at Wichita State University, the global immersive experience is designed to accelerate digital transformation. Kansas State (K-STATE) Polytechnic offers degrees focused in the areas of aviation, business, computers, engineering services and technology education. K-State Polytechnic was named the No. 2 Unmanned Aerial Systems College in the United States and boasts a 98 percent job placement rate. 8

The Technology Development Institute (TDI) provides services and resources to private industry to advance the commercial readiness of new products and technologies. TDI employs experienced engineers and business professionals to work with clients through every step from design to commercialization. TechAccel, LLC is a development company focused on advancing innovation in the agriculture, animal health and food technology sectors. Partner companies use TechAccel to collaboratively advance and de-risk technologies while reducing time to market. TechAccel partners with global industry leaders and relevant venture capital firms to assist innovative industry startups. Kansas Manufacturing Solutions helps manufacturers resolve their workforce needs through such tactics as proper hiring practices, creating exceptional employee experiences and career development training.


Merck Animal Health - De Soto, KS

Kempler Industries ranks Wichita No. 1 for manufacturing workers in the nation.3

Wichita is the third biggest manufacturing hub in the nation. 4

Harper Industries Inc.(Deweze) - Harper, KS

Heroes MAKE America connects the military community with career opportunities in the manufacturing sector. The program provides integrated training, certification and career readiness in partnership with local community colleges to prepare participants for rewarding careers in manufacturing. LocationOne is a searchable database of available sites and buildings. Real estate can be found by searching square footage, acreage, geographic location and other important variables. Its integrated GIS component uses customizable layers with market information, demographics, workforce, infrastructure, housing, business and industry to help locate relevant real estate for projects.

Garmin - Kansas City, KS

Foreign Trade Zones - (FTZ) are exempt from paying duty or federal tax while goods remain in the zone or are exported. The Kansas City, Kansas FTZ (Zone 17) currently includes nine counties: Atchison, Jefferson, Franklin, Wyandotte, Johnson, Douglas, Shawnee, Leavenworth and Miami. The Wichita, Kansas FTZ (Zone 161) currently includes seven counties: Sedgwick, Sumner, Butler, Saline, Reno, McPherson and Harvey. The grantee of the zone is the Board of County Commissioners of Sedgwick County. Kansas’ FTZs are Alternative Site Framework designated. Companies in the designated region are not restricted to a site-specific FTZ, as the entire county is eligible for FTZ benefits. This streamlined approach offers companies the ability to choose a site within the region that fits their needs.

Kansas is home to approximately 2,500 manufacturing firms operating from 2,800 physical locations throughout the state.

Spirit AeroSystems has one of the largest contiguous manufacturing/industrial campuses in the U.S. with over 8 million square feet under its roof.

.

9

3 Kempler Industry 2019, 4 Engineering Daily 2017


Available Incentives Kansas has various valuable incentive programs tailored to manufacturing companies to assist in reducing their cost of locating or expanding business operations in Kansas. •Withholding Tax Incentives

•Sales Tax Exemption on Ingredients or Component Parts

•Training and Retraining Assistance

•Sales Tax Exemption on Items Consumed in Production

•Corporate Income Tax Credits

•Sales Tax Exemption on Production Machinery

•Property Tax Exemption on Machinery and Equipment by State Statute

and Equipment •No Inventory Tax

•Sales Tax Exemption for Construction, Build Out, Remodel, Furnish and Equip Worksite •Sales Tax Exemption on Utilities Consumed in Production

•No State or Local Earnings Tax •Funding Dedicated to Transportation Improvements •Utility Incentives to Offset Rate Costs •77 Designated Opportunity Zones

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The population of Kansas is more than 2.9 million.

Median Age 37.1 21% Generation Z and 20% are Millennials.

91% of Kansas adults have a high school diploma.

Kansas’ median housing cost is $145,400.

Top States for Business

Kansas Achieves High Rankings

2020 AreaDevelopment

Kansas Ranks 6th

Kansas recognized as the most improved state in the country.

U.S. News & World Report Best States 2019

Kansas recognized as the most improved state in the country.

2019 Reason Foundation’s Annual Highway Report


« Kansans, on average, experience a 19-minute commute... the sixth quickest commute in the country. « The most common non-English languages spoken in Kansas are Spanish, Vietnamese, German and Chinese.2 « Ranking No. 10 in the nation for affordable healthcare costs and No. 15 for overall healthcare system, Kansas offers quality healthcare at an affordable price.6

Council for Community and Economic Research 2020, 2 US Census Bureau 2019, 3 Big 7 Travel 2019, 4 NOAA Climate Comparison 2019, 5 Kansas Wildlife, Park and Tourism, 6 Wallethub 2020

Empire Candle Co. - Kansas City, KS

3%

HIGHER

66% OF KANSANS ARE IN THE LABOR FORCE, WHICH IS

Exclusive production of Kubota’s smallest compact track loader, the SVL65, was

THAN THE REST OF THE UNITED STATES.

recently announced to onshore from Japan to Salina, KS. Tuttle Creek Lake - Manhattan, KS

KANSAS RANKS NATIONALLY IN THE

Top 5 FOR COST OF LIVING AT 12.1% BELOW THE U.S. AVERAGE

Fresh Farmers’ Market - Lawrence, KS


Department of Commerce

1000 SW Jackson St., Suite 100 Topeka, Kansas 66612-1354 785-296-5298 | kansascommerce.gov

rev. 3.17.2021