Kansas Department of Commerce Annual Report - 2020

Department of Commerce

2020 ANNUAL REPORT

TABLE OF CONTENTS 5

Business Development

7

International

9

Community Development

11

Workforce Development

13

Rural Prosperity

15

SPARK

19

Marketing and Communications

21

Framework for Growth

1

LETTER FROM THE SECRETARY The year 2020 was like no other in our history. Due to the many unprecedented challenges in Kansas, our nation and world, we knew business as usual wouldn’t work. Our team at the Department of Commerce responded with exceptional creativity and collaboration needed to help Kansas businesses and communities move forward during such a difficult time.

As the COVID-19 pandemic shifted the landscape of economic development and the global economy as a whole, the Department of Commerce seized emerging opportunities to succeed and grow in the new normal. Under Governor Kelly’s direction we’ve embraced a new way of doing business, and it’s working.

Our restored Business Recruitment team and reestablished International Division have fostered economic success stories that drove historic results. We were proud to share that 2020 was the best year ever for capital investment in Kansas, with more than $2.5 billion of private investment announced. Without a doubt, we’re well on our way to recovery and a new era of growth in Kansas.

Along with business development successes across our state, Commerce also elevated support for our state’s workforce through a website Live Chat function, a new KANSASWORKS mobile app, statewide Virtual Jobs Fairs and other strategies designed to help Kansans and businesses alike.

Our support for Kansas communities statewide also flourished in 2020. Through the rebuilt Community Development Division, quality-of-life improvements became even more of a priority.

From the return of the Kansas Main Street program to establishment of the Office of Broadband Development and support disbursed across the state by way of Governor Kelly’s Strengthening People and Revitalizing Kansas (SPARK) Taskforce, our team focused on keeping Kansas communities strong and vibrant. This critical work is helping us bring new jobs, investment and residents to our great Kansas communities.

But we need to do more. The goal is to supercharge the Kansas economy. Average growth is NOT acceptable. None of this happens without all of us pulling in the same direction. Through support from the Kansas Legislature and a hardworking leadership team, we made remarkable progress in 2020 — and look forward to even more Kansas successes on the horizon.

Ad Astra Per Aspera,

Lt. Governor and Secretary David Toland Kansas Department of Commerce

2

ECONOMIC DEVELOPMENT IMPACT MAP

3

LEGEND Business Development

Recruitment and In-State Team

In-State Offices Successes

International Division KITSAP Applications Webinars Export Successes

Exporter of the Year Finalists, etc.

Community Development Arts Commission CDBG CSP Kansas Main Street Communities Rural Opportunity Zones

Workforce Development Workforce Centers

SPARK Grant Awards in All Categories

4

BY THE NUMBERS

LEADERSHIP NOTE This has truly been a year like no other. In the face of

423

enormous challenges, our Business Development team innovated in many ways to elevate the service we provide to the Kansas business community and to bring more jobs

TOTAL PROJECTS OPENED

and capital investment to Kansas.

Despite a global pandemic and difficult economic

131

SUCCESSES

circumstances, we’re proud to announce that 2020 was the largest year for capital investment in the state’s history.

BILL MURPHY

We have a new way of doing business in Kansas, and it’s

Deputy Secretary for Business Development

resulted in more than $2.5 billion in capital investment by businesses across our state. Each of these projects has

9,481 NEW JOBS

4,390

RETAINED JOBS

helped plant the seeds of a successful economic recovery, with tomorrow’s jobs and opportunities already beginning to take root in Kansas. With a strong focus on the emerging opportunities we’re seeing across our economy, Kansas will continue to grow and succeed throughout 2021 and beyond.

In addition to a successful year of business recruitment and expansion, our In-State Business Team has found new ways to serve the business community here in Kansas.

Through Live Chats and other virtual engagement, our team has provided individualized support to hundreds of Kansas businesses navigating the complex landscape of economic recovery loans and grants to help sustain their operations through this

$2.5 B

IN CAPITAL INVESTMENTS

difficult time. This is especially true for small businesses, who are the pillars of their various communities and help keep our state strong and vibrant. This work will continue into the coming year, as we look forward to a new normal on the horizon.

2,700

PEOPLE SERVED THROUGH THE WEBSITE LIVE CHAT

96%

“POSITIVE” SATISFACTION RATING FROM LIVE CHATS

In-State Business Development Regions

Business Recruitment Regions

BUSINESS DEVELOPMENT TOP DOMESTIC WINS • Urban Outfitters Capital Investment: $403 million Jobs: 1,970

• Amazon Successful Projects: 4 Capital Investment: $210 million Jobs: 1,675

• Pretzels, LLC Capital Investment: $88 million Jobs: 281

• Nor-Am Logistics Capital Investment: $44 million Jobs: 50

• Merck Capital Investment: $100 million Jobs: 10

TOP INTERNATIONAL WINS • Schwan’s Capital Investment: $600 million New Jobs: 225 Retained Jobs: 1,125

• Great Plains Manufacturing/Kubota Capital Investment: $43 million Jobs: 130

• Russell Stover Chocolates, LLC Successful Projects: 2 Capital Investment: $10.5 million Jobs: 200

• Modern Manufacturing Capital Investment: $7.45 million Jobs: 78

TOP 3 ACCOMPLISHMENTS

1

Rebuilding of Domestic Recruitment Team: In 2020 the domestic recruitment team completed the hiring and backfilling of previously vacant key positions. The team now stands strong with eight team members focused on business recruitment efforts on behalf of Kansas. These positions located across the U.S. provide us access to top company decision-makers and site location consultants.

In addition, two team members were hired who specifically focus on marketing and research support for the recruitment team.

2

Marketing the State Through Team Kansas Efforts: Team Kansas is a membership organization whose focus is marketing and promoting Kansas as a great place to do business. Due to the challenges related to travel and in-person meetings, Commerce leadership and staff in partnership with Team Kansas members held seven virtual marketing events, hosting over 35 site location consultants whose clients represent a wide range of industry. The events have already proven fruitful as new projects considering Kansas for a new location were identified.

3

Bringing It All Together for Big Wins in Kansas: Through relationship building and engagement both here and abroad, our revamped team at the Department of Commerce has helped steward some huge successes here in Kansas. One example that demonstrates the value of this sustained effort was the 2020 expansion of Great Plains Manufacturing in Salina, a division of Japan-based Kubota.

In August 2019, Governor Kelly and Secretary Toland attended the grand opening of Kubota’s new 2-million-square-foot distribution center in Edgerton.

Later that year, on a trade mission to Japan, Secretary Toland and members of the Commerce International Division visited Kubota’s headquarters in Osaka, to thank the company’s leadership for their presence and partnership in Kansas and to make the case for additional investment in the state.

In August 2020, Kubota announced their plans to invest $43 million to acquire and renovate a new manufacturing facility in Salina, including plans to create 130 full-time jobs, with the potential for additional jobs and investment in the future.

Along with local support and state partnership on workforce training efforts, this project demonstrates how—with all of us pulling in the same direction—we can continue to make great things happen here in Kansas.

6

LEADERSHIP NOTE With a clear vision for the role of Kansas business on the international stage, Governor Kelly took decisive action in 2020 to expand support for Kansas company exports and international business recruitment by re-establishing the International Division. Now fully staffed, the Division quickly addressed pandemic-related challenges in 2020 by providing more flexible program support to Kansas exporters dealing with international travel restrictions and trade show cancellations. This included overhauling our existing Kansas International Trade Show Assistance Program and Kansas International Trade Marketing Assistance Program export promotion programs as well as ramping up our trade education and business JEFF WILLIS

outreach work with regular monthly webinars and improved website content.

International Division Director

The International Division also stepped up its work with the various federal, state and local partner organizations around the state. Significantly, the new status as a separate division along with our export program design and staff expertise helped us to secure the latest round of SBA State Trade Expansion Program (STEP) funding. We also engaged Kansas Global Trade Services to help us roll out our newest Virtual International Marketing (VIM) program. Responding to the pandemic’s impact on the traditional ways of conducting business to business sales and marketing, this program helps Kansas companies better understand and deploy the newest “virtual” best practices.

At the same time, our strengthened international business recruitment staff has also secured significant amounts of foreign direct investment. During this time of supply chain uncertainty, they have been able to clearly demonstrate why the Kansas business environment and central location make us the best choice for international prospects to establish or expand operations.

7

INTERNATIONAL TOP 3 ACCOMPLISHMENTS

1

Rebuilding the Division: The choice to recreate the stand-alone International Division could not have come at a more appropriate time. The arrival of the pandemic brought about significant challenges to Kansas exporters, making robust and innovative state leadership more important than ever. Importantly, the pandemic also prompted more international businesses to seek greener pastures and higher profitability by relocating or expanding their operations. The newly strengthened and focused International Division business recruitment team has already demonstrated success in pursuing these opportunities.

2

Foreign Direct Investment: In 2020, the International Division’s business recruitment team facilitated investment projects resulting in over $750 million in projected capital investment and 1,771 new/retained jobs. Division staff also continued to work on renewable energy development initiatives in support of both domestic and international project activity. Wind farms that came online in 2020 represent over $500 million in investment by international affiliates.

2020 Governor’s Exporter of the Year: On November 18, Governor Laura Kelly announced that Creekstone Farms Premium Beef from Arkansas City had successfully competed against four other well-qualified finalists to be named the 2020 Exporter of the Year. Exporting to over 70 countries, Creekstone Premium black angus beef is served in many of the best restaurants in major cities all around the world. This marks the 32nd year of the program and the first time the award announcement has been made virtually.

3

Export Community Resilience: Prior to the onset of the pandemic, Kansas exports were on an upward trend. When comparing 2020 October YTD data with 2019 October YTD data, exports increased by 12.9% in January and 9.4% in February. As soon as the pandemic set in, however, Kansas exporters faced significant headwinds and exports began to decline. In response, many have shown great resilience. For some that meant selling into new markets. For others, that meant modifying their production to include PPE and hand sanitizer.

For everyone, however, it has meant a much greater use of virtual media in order to overcome their loss of in-person marketing and sales opportunities.

8

BY THE NUMBERS

LEADERSHIP NOTE In

KANSAS MAIN STREET

25 10

a

typical

year,

the

Community

Development

Division programs enhance quality of life, strengthen

MAIN STREET COMMUNITIES

Kansas communities through investment in critical infrastructure, assist in the recruitment of individuals

MAIN STREET AFFILIATES

to

rural

communities,

and

support

entrepreneurs,

small businesses and communities through downtown development. This year, our team did that and much more,

COMMUNITY DEVELOPMENT BLOCK GRANTS

34

as the Community Development Division pivoted this year to expand programming and assistance in response to the KAYLA SAVAGE Community Development Division Director

pandemic and additional resources were made available to Kansas communities.

GRANTS

$18,536,178

Community Development Block Grant (CDBG) staff created a comprehensive a program

AWARDED

to support small businesses with working capital expenses and meal programs in

122

Kansas communities through the CDBG-CV funding from HUD. These funds were one

CBDG CV GRANTS

$16,210,500 AWARDED

of the initial relief grants made available to Kansas communities focused on retaining jobs of low-to-moderate income people in small business and supporting the critical food needs for school-age children and their families.

The Office of Broadband Development was officially established by Governor Kelly to serve as the lead state agency improve connectivity across the state. Working the

COMMUNITY SERVICE TAX CREDIT PROGRAM

SPARK Taskforce in response to the pandemic, we administered the Connectivity Emergency Response Grant program to bring reliable internet to Kansans and the

25

Broadband Partnership Adoption Grant program to provide access support for low-

PROJECTS

state funded Broadband Acceleration grant program. The Acceleration grant program

$4,097,883

will build on the investments made in broadband through the Connectivity Emergency

AWARDED

income families. The Office of Broadband Development also launched the inaugural

Response Grant for the next 10 years.

Kansas Main Street was renewed and provided vital support and technical assistance to

KANSAS CREATIVE ARTS INDUSTRIES COMMISSION

communities, as businesses pivoted during the pandemic. The year was notable, as the

10

pivoted to virtual trainings and webinars, reaching our fellow Kansans through a safe

GRANTS

$1,587,520 AWARDED

63 11

COMMUNITIES ENGAGED PROGRAMS AND EVENTS SUPPORTED

team responded to communities with resources, support, and assistance. We quickly and responsive mechanism.

Kansas Creative Arts Industries Commission (KCAIC) expanded to assist Kansas arts and culture through multiple grant opportunities, including pandemic relief support for organizations, professional development programs and the addition of program staff. Through a small network of arts program managers throughout the state, Kansas artists and organizations have access to more resources than ever before.

The Community Development Division team works tirelessly to assist our Kansas communities and will continue this vital work and effort in 2021 and beyond.

COMMUNITY DEVELOPMENT RURAL OPPORTUNITY ZONES

436 63

STUDENT LOAN REPAYMENT PARTICIPANTS

KANSAS COUNTIES WITH ROZ PARTICIPANTS

TOP 3 ACCOMPLISHMENTS

1

Office of Broadband Development: Governor Kelly’s Executive Order officially established the Office of Broadband Development to expand broadband access across Kansas. In addition, the Broadband Acceleration Grant Program was created

OFFICE OF BROADBAND DEVELOPMENT

91

GRANTS

$57,399,385

to expand broadband access to communities across Kansas that are unserved, vulnerable or with compelling need that will invest $85 million over the next decade. Through SPARK funding, 66 broadband infrastructure projects were awarded, totaling nearly $50 million.

AWARDED

2

Kansas Main Street Returns: The renewal of the Kansas Main Street program within the Community Development Division provides training, resources and technical assistance to designated Main Street communities. In addition, 10 communities joined the program as Main Street Affiliates, which was a new program launched to include communities of all sizes—particularly very small communities.

3

Supporting Local Development: The Community Development Block Grant (CDBG) program deployed more than $18.5 million to 34 communities across Kansas to revitalize essential infrastructure, maximize economic opportunities and enhance quality of life. In addition, 122 counties and cities across Kansas received $16.9 million in CDBG-CV funds to support small business working capital expenses and meal programs during this challenging year.

10

BY THE NUMBERS

LEADERSHIP NOTE The effects of the pandemic were felt statewide for job

KANSASWORKS.COM ACTIVITY

seekers and employers in 2020. KANSASWORKS remained dedicated to assisting Kansans by continuing to provide

992,551

services for job seekers and employers from the onset of the pandemic and throughout the remainder of 2020. By

INDIVIDUALS ENGAGED

shifting to a combination of in-person and virtual services, staff and workforce centers were able to continue helping

70,762 CUSTOMERS SERVED

98,620

CUSTOMER SERVICES PROVIDED

9,510

EMPLOYEES SERVED

customers statewide by transitioning staff,

employers

and job seekers to a system that not only helped counter MIKE BEENE

challenges of physical distancing, but also created

Director of Workforce Services

opportunities in providing easy-to-use resources for job seekers and employers alike.

Over the past year, KANSASWORKS was able to provide access to virtual job fairs , which eliminated geographical barriers and enabled more accessibility to these events for job seekers and employers. In addition, this approach provided an additional layer of protection to our clients and helped reduce costs to the department.

Kansas Workforce Centers continued to provide the same wide range of services at no cost for job seekers and employers across the state. Workforce specialists continued

KANSASWORKS.COM MOBILE APP

2,976

DOWNLOADS

15,061 VISITS

LIVE CHAT

9,949 CHATS

11MIN 55SEC AVERAGE CHAT DURATION

90%

OF CHAT CUSTOMERS WERE SATISFIED WITH THE OUTCOME OF THEIR SESSION

to connect job seekers to employment, training and educational opportunities and available funding, while employers benefited from being connected to skilled talent.

Overall, an emphasis was placed on the importance of providing virtual services, which included a live chat function on KANSASWORKS.com, the KANSASWORKS Mobile App and hosting virtual job fairs and offering virtual services for job seekers and employers with workforce specialists.

WORKFORCE DEVELOPMENT TOP 3 ACCOMPLISHMENTS

1

Expanding Virtual Services: The pandemic shifted services to virtual platforms, without interruption for job seekers or employers.

These innovations included the Live Chat function on KANSASWORKS.com, the Job Search Mobile App, Statewide Virtual Job Fairs and a relaunched KanVet.org to better serve veterans in Kansas.

Statewide Virtual Job Fairs

• • • •

Five Job Fairs 403 employers set up booths on the virtual fair platform Average of 185 employers participating in the last five virtual monthly events of 2020 4,063 job seekers registered since May 2020

2

New Mobile Workforce Center Launched: In January 2020, Governor Kelly unveiled the newest member of the KANSASWORKS Mobile Workforce Center fleet. The Mobile Workforce Center allows KANSASWORKS to provide workforce services in regions of the state that lack permanent Workforce Centers or face unusually high demand for workforce assistance. It includes six internet-ready computer stations to assist job seekers and employers, as well as well appropriate staff for event volume and ADA compliant access.

3

New Registered Apprenticeships Launched:

•

•

•

Peaslee Tech in Lawrence started its registered program with one occupation, working with one business. As of today, Peaslee Tech has nine registered occupations serving several employers with a total of 89 registered apprentices.

Crossland Construction in Columbus has used Registered Apprenticeship in Kansas, and as a result has lowered its turnover rate and increased the caliber of new, qualified employees.

USD 457 in Garden City has a Registered Elementary Teacher Apprenticeship, which helped paras obtain teaching certificates when they otherwise may not have had that opportunity. As of the end of 2020, 24 apprentices were enrolled in USD 457’s Elementary Teacher Apprenticeship.

12

LEADERSHIP NOTE As one of her first priorities, Governor Laura Kelly established the Office of Rural Prosperity (ORP) to advocate for and promote rural Kansas, focus on efforts designed to aid rural improvements and to ensure that all Kansas voices are heard in the Statehouse.

Along with other state agencies, a large part of ORP’s focus in 2020 turned to helping with COVID-19 response and recovery efforts. This included making communication with rural communities a priority and ensuring that rural stakeholders and interests were considered during the Strengthening People and JILLIAN FISHER

Revitalizing Kansas (SPARK) process to allocate CARES Act funding. Since the first

Deputy Executive Director, Off ice of Rural Prosperity

case in March, the economic and health effects of COVID-19 affected the entire state. While much of the planned outreach was disrupted and reevaluated for

the health and safety of communities, one thing was clear: every area that was identified as a need from the 2019 Listening Tour continued to be a priority for rural communities in 2020. In fact, the concerns underlying many ORP priorities became even more urgent due to the pandemic. Despite delays and an altered gathering format, it was important for then-Lieutenant Governor Lynn Rogers and ORP to continue to connect with rural stakeholders.

The 2020 ORP Virtual Tour featured a public meeting focusing on each of the six regions and one statewide meeting. Building off the discussions from the 2019 Listening Tour, the theme of the 2020 tour was Listening → Action. State Agency leaders joined ORP to dive deeper into each priority and provide regional examples across the state. ORP also convened 18 smaller stakeholder meetings focused on various topics affecting rural Kansas.

13

RURAL PROSPERITY

PRIORITY AREAS FOR THE OFFICE OF RURAL PROSPERITY 1. Broadband and Infrastructure 2. Childcare and Early Education 3. Housing 4. Healthcare 5. Workforce 6. Community Development

These discussions were critical for ORP to hear directly from Kansans working on challenges and finding solutions that could help others across the state experiencing similar issues.

Details about the 2020 ORP Virtual tour and ORP’s work with state partners to address rural priority areas that impact rural Kansas can be found in ORP’s 2020 Annual Report and on their website: www.ruralkanprosper.ks.gov.

Examples of this work include:

•

Directly supporting the programs and operations of KDC’s Community Development Division to provide local partners with technical assistance and advocate for broadband funding, infrastructure programs, housing and Main Street.

•

Partnering with the Kansas Sampler Foundation to identify how to recruit, retain, engage and empower young professionals in rural areas.

•

Establishing an interagency workgroup to address housing needs across the state and launching a statewide comprehensive housing study for the first time in almost 30 years.

In January 2021, Lieutenant Governor Rogers was appointed by Governor Kelly as the 41st Kansas State Treasurer in recognition of his 40 years of leadership in the banking and ag lending industry. Secretary David Toland was selected by Governor Kelly to expand his role as Lieutenant Governor and lead the Office of Rural Prosperity.

ORP is poised to accelerate its work under Lieutenant Governor Toland’s leadership and looks forward to continuing to work with the Department of Commerce to help rural Kansas tackle some of the state’s most important issues.

14

BY THE NUMBERS

12

GRANT CATEGORIES

GRANT CATEGORIES “The health and economic challenges COVID-19 inflicted on our state truly are unprecedented – and we must use our collective talents to develop strategies to not only regain what we lost, but build a better, more inclusive and resilient economy.”

- Governor Laura Kelly In the face of unprecedented challenges, the team at the Department of Commerce

2,927

pivoted to create an entirely new operation to assist Kansas businesses and mitigate the economic impacts brought by the COVID-19 pandemic. As an agency, Commerce

SMALL BUSINESS WORKING CAPITAL GRANTS

innovated in dramatic ways to mount an aggressive response to serve Kansans in this

$56,941,741

than $170 million in relief funding for economic development and connectivity in the

difficult time.

The Strengthening People and Revitalizing Kansas (SPARK) Task Force approved more state. These dollars were awarded in the form of grants to eligible businesses.

AWARDED

SMALL BUSINESS WORKING CAPITAL GRANTS

66

CONNECTIVITY EMERGENCY RESPONSE GRANTS

Kansas businesses with fewer than 500 employees were eligible to apply for Small Business Working Capital grants. Funds could be used to pay working capital expenses such as payroll, rent, mortgage insurance, utilities, inventory and more. In addition, special rounds of funding were available for entertainment venues and businesses like movie theaters across Kansas that experienced significant revenue declines as a result of the pandemic.

$49,202,491 AWARDED

SECURING LOCAL FOOD SYSTEMS GRANTS The Kansas Securing Local Food Systems grant program was created to support

25

BROADBAND PARTNERSHIP ADOPTION GRANTS

Kansas meat processing facilities, food processors, food banks, local direct-to-consumer producers and retail outlets to address food for human consumption supply chain disruptions as a result of the COVID-19 public health emergency.

The grant was based on the need to increase capacity of Kansas’ local food systems.

Increased capacity will add resilience to the food for human consumption supply chain and will ultimately benefit consumers.

$8,196,894 AWARDED

SPARK

PPE PROCUREMENT GRANTS PPE Procurement grants use federal CARES Act funds as part of Kansas’ response to the coronavirus pandemic.

This program includes grants for businesses’ COVID-19 response that consists of the purchase of personal protective equipment (PPE), implementation of workplace redesigns, additional signage, new technology solutions for distance working and other items to comply with COVID-19 public health guidelines on safely returning employees to work.

PPE MANUFACTURING GRANTS PPE Manufacturing grants provided grant funding to manufacturers to reimburse certain costs to manufacture critically needed PPE. The grant funding is assisting entities with creating new business while contributing to the fight against the current COVID-19 public health emergency.

COVID-19 BIOSCIENCE PRODUCT DEVELOPMENT ACCELERATION GRANT Kansas has a strong pipeline of bioscience-related companies developing SARS-CoV-2 diagnostic, therapeutic and medical countermeasures. This grant program was established to accelerate commercialization and goto-market strategies, allowing these Kansas companies to quickly deploy novel technology by optimizing value and reducing risk through informed decision making.

Through this effort, Kansas will rapidly improve COVID-19 preparedness and mitigation efforts, while supporting innovative bioscience companies.

16

GRANT CATEGORIES CONTINUED CONNECTIVITY EMERGENCY RESPONSE GRANT The Connectivity Emergency Response Grant (CERG) was created to address the increased need for internet connectivity in Kansas in response to the COVID-19 pandemic. Projects were funded to improve connectivity to unserved and underserved areas of Kansas to address the needs of telework, telehealth, distance learning and other remote business services.

BROADBAND PARTNERSHIP ADOPTION GRANT The Broadband Partnership Adoption grant was established to provide support for low-income households by partnering with ISPs to leverage their existing adoption infrastructure and assure connectivity to as many Kansans as possible. Expanded connectivity has resulted in improved opportunities for remote learning, remote work and accessing telehealth/telemedicine services.

IT, CYBERSECURITY AND IT PROJECT MANAGEMENT CERTIFICATION TRAINING GRANT To mitigate job losses in Kansas as a result of the COVID-19 public health emergency, the Kansas Department of Commerce sought out an education provider to deliver a rapid-response program that provides training, certificate testing and job placement assistance in the areas of IT, cybersecurity and IT project management.

HIGHER EDUCATION ADVANCED MANUFACTURING AND IT EQUIPMENT GRANTS The objective of this program was to support the needs of the advanced manufacturing industry in Kansas. The program focused on reskilling/upskilling individuals affected by COVID-19 to meet economic sector needs in high-demand, high-wage occupations. Kansas technical colleges were eligible to apply for a one-time grant of up to $500,000 to purchase equipment to upgrade or expand instructional offerings related to IT and advanced manufacturing / Industry 4.0.

17

SPARK

DOMESTIC SUPPLY CHAIN FORTIFICATION GRANT The Domestic Supply Chain Fortification grant is helping to offset the business disruptions to Kansas companies’ supply chains caused by COVID-19 and assist with relocating jobs to Kansas from outside of the U.S. Where appropriate, this grant program was offered in addition to existing incentive programs (PEAK, KIT, HPIP, etc.) to improve the state’s competitiveness.

COVID exposed many Kansas businesses to international supply chain uncertainties that could easily halt production or unexpectedly increase costs. This has caused some to seek closer, more reliable sources of supply. Importantly, it has also caused some internationally based suppliers to consider moving closer to the businesses they supply. As a result, opportunities exist to both attract suppliers to locate production in Kansas as well as to help existing Kansas companies diversify their own product lines to reduce their supply chain vulnerabilities. This grant was established to support Kansas businesses engaged in shoring up their supply chains.

UNIVERSITY SARS-COV-2/COVID RESEARCH AND DIAGNOSTIC CAPACITY SUPPORT GRANT Kansas public universities applied for maximum grant awards of $600,000 to build research and diagnostic capacity related to SARS-CoV-2/COVID through the investment in equipment and related facility upgrades.

KANSAS CYBERSECURITY GRANTS This Request for Proposals sought organizations to create and deliver a roadmap for a statewide cybersecurity ecosystem for the State of Kansas to support connectivity and economic opportunities that address the impacts of COVID-19, including the increased need for remote access and job opportunities for displaced workers.

18

BY THE NUMBERS

COMMUNICATIONS GAINS The Kansas Department of Commerce stepped up communications

across

all

platforms

in

2020,

with

significant gains in the volume of news releases, social

67

media interaction and online resources at kansascommerce. gov, all with enhanced transparency and efforts to keep

PRESS RELEASES

Kansans informed in mind. The unprecedented challenges of 2020 created an even greater sense of urgency to provide information and resources Kansans need in a useful and

2,585

SOCIAL MEDIA POSTS

timely way.

DENA SATTLER Senior Director of Public Affairs

WEBSITE The new Kansas Department of Commerce website

launched in November 2020 with more robust content and user-friendly features. The website, kansascommerce.gov, is a storytelling base that invites Kansas communities to learn about available opportunities, and businesses and other employers to learn about

249,625

Kansas and why they should invest in a future in our state.

ENGAGEMENTS

LIVE CHAT FEATURE We innovated in order to provide virtual support to thousands of Kansans through a

4,470,326

new Live Chat Feature on our website. Out of the 2,700 people served, our team achieved a 96% satisfaction rate with the information and resources they received.

IMPRESSIONS

TRANSPARENCY DATABASE

62.5% GROWTH OVER 2019

The Transparency Database was launched in late 2019 and provides transparency on Kansas Commerce incentive programs. Anyone from the public can find information on incentives managed by Commerce, and the database will continue to grow with projects and departments over time.

MARKETING AND COMMUNICATIONS

OUR VISION FOR THE FUTURE A NEW “NORTH STAR” FOR KANSAS ECONOMIC DEVELOPMENT For the first time in more than 30 years, Kansas has embarked on a comprehensive strategic plan for economic development. The 1986 Redwood-Krider Report provided a blueprint for growth across Kansas for decades, but the economic landscape has changed dramatically since then, and it’s time that Kansas brings its approach into the 21st Century.

The Kansas Framework for Growth is an aggressive strategy to align our state’s strengths with the emerging opportunities across the global economy—and guide economic development at the state and local levels well into the future.

TRENT ARMBRUST Director of Strategy for Technology and Bioscience

With the new realities brought about by the Covid-19 pandemic, the timing of this effort could not be more important. Kansas will be one of the first states to take a deep look at these new

headwinds and build a forward-thinking plan to address challenges and embrace emerging areas for rapid growth.

The Kansas Department of Commerce worked with McKinsey and Brookings to provide a clear-eyed analysis of where we stand. With this data, we engaged hundreds of business and community leaders statewide to evaluate this information and determine a set of shared priorities for the Kansas economy. Through a virtual survey and town hall meetings all across the state, thousands of Kansans came

5 YEARS STABILIZE AND REPOSITION (2021 – 2025) Reverse negative trends and set a clear growth trajectory by building a foundation through initiation of new programs, policies, and investments.

together to help us chart this new path forward.

10 YEARS

The Framework establishes a structure to help develop and

PUNCH ABOVE OUR WEIGHT (2026 – 2030)

unleash our state’s number one asset—our people. Through strategic activities in the areas of talent and innovation,

As investments begin to yield substantive

we can help build resiliency in our state’s workforce and

gains, they drive our competitive position in key

unlock the potential for new ideas to cultivate and become

economic outcomes to the top half of all states.

tomorrow’s prosperous businesses.

15 YEARS

In addition, the Framework establishes mechanisms to

REALIZE A “FUTURE PROOF” ECONOMY (2031 – 2035)

leverage community assets and help direct strategic investment in a way that supports economic growth. With all of us pulling in the same direction, we can usher in a new era and a bright future for Kansas.

Modernized approaches will have become ingrained, effects will be compounded, and the return on investment will be evident as our state has emerged in an elite tier, positioning itself for long-term competitiveness, and gaining a national reputation as a disruptor rather than the disrupted.

21

FRAMEWORK FOR GROWTH Target Sectors

Advanced Manufacturing

Aerospace

Distribution, Logistics and Transportation

Food and Agriculture

Professional and Technical Services

POLICY

COMMUNITY ASSETS

TALENT

INNOVATION

Strategic Pillars

Economic Regions

IMPLEMENTATION PLAN The Kansas Framework for Growth is intended to be a flexible and responsive model to guide our state’s investments in a manner that supports its long-term growth and competitiveness.

Capacity Supporting the Framework: Kansas Competitiveness Project – An aggressive new program to focus and direct State resources toward the development of new skills and technologies that can drive our performance in the state’s target sectors.

Regional Excellence Initiative (REI) – The Regional Excellence Initiative (REI) is a new effort to direct state resources and technical assistance in support of regional planning efforts that align with the Framework for Growth.

Chief Strategy Officer – A new position within the Department of Commerce which serves as the organizational backbone to the Framework and a resource to various state agencies, regional partners and private industry to help accelerate and align the state’s investments around the Framework for Growth.

Measuring Progress: Measure our relative competitiveness and its change over time.

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Department of Commerce 1000 SW Jackson St., Suite 100 Topeka, Kansas 66612-1354 785.296.3481 | kansascommerce.gov