Logistics and Distribution in Kansas

Department of Commerce

MOVE

IT IN THE

Logisitics and Distribution in Kansas

You may think we’re self centered, and you’d be right!

Located smack dab in the heart of the United States, Kansas offers companies a truly unique and outstanding logistical advantage to help reach customers faster and more efficiently.

With more than 140,000 miles of roads and top-ranked interstates bisecting our great state, you can get to the Pacific or Atlantic in four days or less from Kansas. If the open road doesn’t suit your needs, we have plenty of modern-day iron horses ready to whisk your goods to the port of your choosing.

Kansas is served by four Class I and 11 Class III railroads on the sixth-largest rail network in the nation. We also have an intermodal that holds its own when compared to any major market.

Join our strong lineup of logistics and distribution companies, and you will see why it is good to be self centered in Kansas.

KANSAS IS HOME TO A CONNECTED NETWORK OF OVER

7,000 COMPANIES RELATED TO LOGISTICS AND DISTRIBUTION IN THE STATE

2 � Kansas Department of Labor 2020, � Labor Market Information Services, � Kansas Wage Survey 2019, � US Census Bureau 2019, � U.S. Census Bureau, Foreign Trade Division

Amazon Fulfillment Center - Kansas City, KS

Cromwell Solar - Lawrence, KS - Topeka, KS Walmart Distribution Facility

Logistics Park Kansas City - Edgerton, KS

KANSAS IS STRATEGICALLY LOCATED AT THE INTERSECTION OF

3 OF THE NATION’S LARGEST INTERSTATES (I-70, I-135 AND I-29)

IN 2019, KANSAS TRADED

$6.5 B WORTH OF GOODS WITH CANADA AND MEXICO 5

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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

K A N S A S LOGISTICS A N D D I S T R I B U T I O N C O M P A N I E S Sabetha

Elwood

Beloit

Fort Leavenworth Leavenworth

Manhattan Topeka

Kansas City Overland Park

Edwardsville

Lawrence

Junction City

Hays

Shawnee Misson

Bonner Springs

Fort Riley

Leawood Lenexa Olathe

Salina

Spring Hill

McPherson

Hutchinson

Garden City Dodge City

Newton

Emporia

Wichita Chanute

Pratt

Pittsburg

Liberal

1 Company

2-4 Companies

Baxter Springs

Wellington

5-8 Companies

20+ Companies

Cold Storage Facility

Interstate System

Represents 100 ldistribution and transportation company locations across the state of Kansas. All locations and companies not shown. Source: Kansas Department of Commerce, Kansas Manufacturing Solutions and Dun & Bradstreet, 2020

A variety of nationally recognized logistics and distribution companies employing more than 100,000 people operate in Kansas. Companies can leverage our world-class multimodal infrastructure and available real estate to achieve every business goal. Kansas is proud to be the home to a multitude of brands like:

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Notable Kansas Logistics and Distribution Companies Company Amazon

Location Shawnee /Edgerton / Kansas City, Kansas Lenexa / New Century / Wichita

Employment

Description

4,934

eCommerce distributor

Jet.com

Edgerton

1,200

eCommerce distributor

Walmart

Ottawa / Topeka

1,100

eCommerce distributor

Associated Wholesale Grocers*

Kansas City, Kansas

1,100

Logistics / distributor of food products

American Eagle Outfitters

Ottawa

800

Apparel distributor

Coleman Company

Wichita plus additional worksites

700

Distributor of recreational gear

JCPenney

Lenexa

700

Apparel distributor

Target

Topeka

635

Retail goods distributor

Urban Outfitters, Inc.

Kansas City, Kansas

604

eCommerce distributor - apparel and home goods

TVH Americas*

Olathe

545

Construction equipment distributor

Home Depot

Topeka

500

Hardware/home improvement goods distributor

Spectrum Brands

Edgerton

425

Hardware/home improvement goods distributor

Dillon’s Distribution Center

Goddard / Hutchinson

375

Distribution center for dry goods grocery items

Hostess*

Edgerton

300

Distributor of snack cakes and pastry

TGW (the Golf Warehouse)

Wichita

250

eCommerce facility for golf equipment/apparel

Boot Barn/ Sheplers Distribution Center

Wichita

250

Distribution center for western footwear

Aldi Inc.*

Olathe

250

Food product distributor

MWI Animal Health

Kansas City, Kansas

250

Veterinary supply distributor

Heartland Bottling

Wichita

230

Coca-Cola distributor

Air Capital Delivery & Warehouse

Park City

225

Shared warehouse provider, reverse Logistics

Kubota Tractor Corporation

Edgerton

200

North American parts distribution center

Excel Industries*

Edgerton

200

Mower distributor

Flexsteel Industries

Edgerton

141

Home and office furniture distributor

Overstock.com

Kansas City, Kansas

130

eCommerce distributor

Epic Sports

Bel Air

120

eCommerce facility for sports gear

Horizon Global

Edgerton

120

Towing and trailer distributor

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

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Educational Assets and Talent Resources There are various certificates and degree programs geared toward individuals interested in the logistics and distribution industry. Over the last five years, Kansas post-secondary schools issued more than 1,500 degrees and certificates in the transportation and material-moving specializations.

JOHNSON COUNTY COMMUNITY COLLEGE (JCCC) has more than 44,000 students enrolled annually. Johnson County Community College is the state’s largest higher education institution and offers a full range of undergraduate credit courses that form the first two years of most college curricula. > The Business-Logistics Management program at JCCC focuses not only on those who currently work in a logistics career, but also on those who wish to further their knowledge in the field. Students receive information and training that can lead to hundreds of career opportunities tied to logistics. > National Academy of Railroad Sciences (NARS) is a program for individuals seeking railroad industry jobs.

The program offers learning-laboratory conditions and simulated situations. The NARS training facility spans 130,000 square feet of office, classroom, laboratory and multimedia-studio space.

KANSAS STATE UNIVERSITY (KSTATE) is a major comprehensive public research university with a faculty of more than 1,300 and an enrollment of over 24,000 students. The university was ranked as the No. 12 university in the nation for improving students critical thinking skills and is on the path to becoming a Top 50 public research university by 2025.

UNIVERSITY OF KANSAS (KU) is a top research university of more than 31,000 students and offers over 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 logistics and distribution workforce:

> The Supply Chain Management Program at KU focuses on the skills needed to improve customer service, reduce overall supply chain costs, identify inefficiencies and find suppliers and distributors for their companies accordingly.

WICHITA STATE UNIVERSITY (WSU) is an urban research university of more than 18,500 students.

WSU’s location enhances the traditional classroom experience by providing students both on and off campus applied learning and career opportunities, and offering internationally recognized research programs. > The Management Science and Supply Chain degree at WSU gives graduates the skills to compete for diverse opportunities in supply chain management, including operations, logistics, distribution, purchasing, warehouse management, transportation, production and analytics. The program offers two different tracks for the students – management and analytics.

BUTLER COMMUNITY COLLEGE (BCC) touches the lives of 13,000 students every year. BCC offers a variety of solutions through the Business Education and Training Analysis Division. APICS CLTD, APIS CPIM and APICS CSCP certifications are available.

FORT HAYS STATE UNIVERSITY has more than18,000 students enrolled annually and has the unique mission to integrate computer and telecommunications technology with the educational environment and the workplace. The U.S. government has designated the university a National Center of Academic Excellence in Information Assurance.

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Amazon Fulfillment Center - Lenexa, KS

KANSAS CITY IS ONE OF THE NATION’S LEADING FREIGHT RAIL HUBS, RANKING NO. 1 IN ANNUAL RAIL TONNAGE AND NO. 2 IN ANNUAL RAIL VOLUME.

Kubota Tractor Corp. Distribution Center - Gardener, KS

Industry Overview Logistics and Distribution have a unique advantage when choosing Kansas as a place to operate:

Rail - Kansas is served by a comprehensive rail network comprised of 4,257 miles (6,851 km) of total track, the sixth largest network in the nation. Kansas is served by four Class I railroads (BNSF, KC Southern, Norfolk Southern and Union Pacific), 11 Class III (short line) railroads and three switching/terminal railroads. These operators administer more than105 freight transfer facilities and terminals in our state, connecting Kansas communities and businesses to local, national and global markets.

Intermodal and Rail-Served Industrial Parks Kansas is home to a strategically located intermodal and a variety of rail-served industrial parks allowing for easy access to infrastructure assets within the state.

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> Logistics Park Kansas City – Edgerton, Kansas •3,000-acre inland distribution hub intermodal development •Served by BNSF Railway •300 acres of rail-served land •30 million square feet of existing facilities •14.4 million square feet of new distribution facilities •Speculative and build-to-suit opportunities available •Located a few miles from I-435 •Designated as Foreign Trade Zone

Rail-Served Industrial Parks > Kansas Logistics Park – Newton, Kansas •400-acre shovel-ready certified site > Kansas Enterprise Industrial Park – Hutchinson, Kansas •117-acre shovel-ready site > El Dorado West Industrial Park – El Dorado, Kansas •Two 100 +/- acres in western El Dorado > Harlan Industrial – Topeka, Kansas •107-acre shovel-ready site > Central Crossing – Topeka, Kansas •150-acre shovel-ready site > Great Plains Industrial Park – Parsons, Kansas •6,800 acres > New Century AirCenter – New Century, Kansas •650+ acre BNSF certified site Kansas Transload Facilities - Transloading provides customers the best of both worlds, combining economical rail transport with the flexibility of over-the-road trucking. The state hosts more than 15 world-class facilities across the state; from Kansas City to Garden City and from Great Bend to Pittsburg.

Shipments move seamlessly between modes, allowing companies to ship affordably throughout North America and significantly expand market reach.

Two of the Top 5 global refrigerated warehousing companies have locations in Kansas, with over 52 million cubic square ofcold storage facilities located across the state TransAm Trucking - Olathe, KS

Approximately 8,000 people work in the “Transportation and Logistics” cluster in South-Central Kansas, one of the fastest-growing industry segments in the Wichita region.

ColdPoint Logisitcs - Edgerton, Kansas

BNSF Logistics Solutions - Pawnee Rock, KS

Highways - Kansas’ centralized location and world-class network of urban and rural interstate highways offer a tremendous competitive advantage in shipping to major North American markets. Our 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. > I-35/I-70 USMCA Corridor - Running straight through Kansas, the north-south direction Interstate 35 corridor connects the United States with two of its largest trading partners, Canada and Mexico. Additionally, the east-west direction Interstate 70 and Interstate 35 converge in the Kansas City area, creating a literal crossroads of America.

Air Service - Kansas is home to seven commercial service facilities, 132 public-use airports and more than 200 private airports. Many of our airports are located adjacent to industrial parks, offering attractive, low-cost, foreign trade zone-eligible locations to businesses seeking independent air services for cargo and company personnel. > Air Cargo - Wichita’s Dwight D. Eisenhower National Airport (ICT) airport handles substantial freight movements from two dedicated all cargo buildings for freight processing.

Many air-cargo carriers service Kansas, while most commercial airlines also offer small-package delivery services to businesses. Kansas City International Airport (MCI) offers state-of-the-art cargo handling facilities, enabling the easy transit of goods from Kansas businesses to global markets.

Foreign Trade Zones - (FTZ) Foreign tradezone users 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, allowing for a quicker turnaround time and lower costs.

Inland Waterway Transit - Kansas has access to 122 miles of the Missouri River along the northeast corner of the state. Kansas has eight commercial terminals located near Atchison, Leavenworth, Lansing, White Cloud and Kansas City. > The Port of Kansas City – Woodswether Terminal is located within one mile of downtown Kansas City and the interstate highway loop at River mile marker 367.1 on the south bank of the Missouri River. > The Port of Catoosa – An inland seaport located approximately 50 miles from the Kansas border near Tulsa, Oklahoma. The South Kansas and Oklahoma Railroad and BNSF Railway provide direct rail access to the Port.

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Available Incentives Kansas has various valuable incentive programs tailored to logistics and distribution companies to assist in reducing their cost of locating or expanding business operations in Kansas.

•Withholding Tax Incentives

•No Inventory Tax

•Training and Retraining Assistance

•No State or Local Earnings Tax

•Corporate Income Tax Credits

•Funding Dedicated to Transportation Improvements

•Property Tax Exemption on Machinery and Equipment

•Utility Incentives to Offset Rate Costs

by State Statute

•77 Designated Opportunity Zones

•Sales Tax Exemption for Construction, Build Out, Remodel, Furnish and Equip Worksite •Sales Tax Exemption on Material Handling Equipment, Racking Systems and Other Related Machinery and Equipment

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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 of $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 systems; 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

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

HIGHER

3%

King of Freight, headquartered in downtown Wichita with 500-plus employees, is one of the fastest growing brokerages in the U.S. (ranked No. 107 in 2019 by Transport Topics).

THAN THE REST OF THE UNITED STATES.

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. 3.28.2021