Kansas City: Economy

Kansas City: Economy

Major Industries and Commercial Activity

Wyandotte County, which once could claim the second largest meat packing industry in the world, has diversified into a transportation, medical, and manufacturing center. Principal industrial activity involves automobile manufacturing, food production and distribution, railroads, bakery products, and meat processing. Agriculture continues to be important in the rural area west of the city.

Items and goods produced: fiberglass, cement, creamery products, soap, fiber box, brick, tile, automobiles

Incentive Programs—New and Existing Businesses

Local programs

The mission of Wyandotte Development Inc. is to foster, encourage, and assist new and existing businesses in Wyandotte County. Its Economic Development Team consists of the State of Kansas, municipal governments and utilities, and other entities as needed. Its goal is for each member to develop a proposal within 10 days of meeting with a potential business prospect. The Kansas City Kansas Area Chamber of Commerce offers networking opportunities, legislative efforts, community development and business/education partnerships to its 780 member companies.

State programs

The Kansas Department of Commerce is the state's leading economic development agency. It provides incentive programs in the form of tax credits, loans, grants, and services. Its Business Development Division is comprised of five different sections: Business Assistance, Business Finance, National Marketing, Workforce Training, and the Office of Minority and Women-Owned Business Development. The Kansas 1st program links qualified job seekers at post-secondary institutions with employers.

Job training programs

The state of Kansas helps fund the training needs of Kansas businesses through three major workforce training programs: Investments in Major Projects and Comprehensive Training (IMPACT); Kansas Industrial Training (KIT); and Kansas Industrial Retraining (KIR). Qualified businesses include those new to Kansas or existing businesses which are expanding or restructuring. Programs are custom designed to meet a company's specific training needs and can involve pre-employment or on-the-job training.

Development Projects

Adjacent to the Kansas Speedway, the 400-acre Village West project is still under construction. The Legends Shopping Center is scheduled to open in Village West in summer 2005. Kansas City International Airport will finish $218 million worth of terminal renovations in 2005. The University of Kansas Hospital has broken ground for a new state-of-the-art cardiac health facility with completion expected in June 2006. Federal Express has selected the Kansas City area for a new $76 million regional distribution center.

Economic Development Information: Wyandotte Development Inc., 727 Minnesota Avenue, PO Box 171337, Kansas City, Kansas 66117; telephone (913)371-3198; fax (913)371-3732. Kansas Department of Commerce, 1000 S.W. Jackson Street, Suite 100, Topeka Kansas 66612-1354; telephone (785)296-3339; fax (785)296-3490

Commercial Shipping

Kansas City is one of the largest transportation hubs in the nation. Local firms provide a complete range of intermodal services, including rail, air, truck, and water, for the receiving and shipping of goods. The Greater Kansas City area is served by four Class I rail carriers, three regional lines and a local switching carrier.

The Kansas City business community profits from commercial freight activity at Downtown Airport, a general aviation facility in neighboring Kansas City, Missouri. A trans-shipment point for 225 motor freight carriers, Kansas City is part of the Kansas City Commercial Zone, where exemption from Interstate Commerce Commission tariff supervision is granted to shipments originating from and received within this region. Shippers and motor carriers independently negotiate rates. A number of warehouses are maintained in the area.

Seven barge lines offer shipping from the Kansas City area of the Missouri River. There are 41 docks and terminals in the city. The shipping season runs from March through November.

Labor Force and Employment Outlook

The following is a summary of data regarding the Kansas City, Kansas—Kansas City, Missouri metropolitan area labor force, 2004 annual averages.

Size of nonagricultural labor force: 965,900

Number of workers employed in . . .

construction and mining: 50,800

manufacturing: 83,700

trade, transportation and utilities: 202,200

information: 45,300

financial activities: 70,900

professional and business services: 127,700

educational and health services: 108,900

leisure and hospitality: 92,300

other services: 40,400

government: 143,900

Average hourly earnings of production workers employed in manufacturing: $16.57 (Kansas State)

Unemployment rate: 5.6% (February 2005)

Largest employers	Number of employees
University of Kansas Medical Center	4,900
Kansas City, Kansas Public Schools, USD #500	3,500
General Motors	3,350
Unified Government of Wyandotte County	2,300
Associated Wholesale Grocers	1,300
Burlington Northern-Santa Fe Railroad	1,200
United Parcel Service	907
Teletech	825
Kansas City Kansas Community College	750
U.S. Bulk Mail Center	600
Swift Transportation	600
Keebler Foods	550

Cost of Living

The following is a summary of data regarding several key cost of living factors in the Kansas City area.

2004 (3rd Quarter) ACCRA Average House Price: $228,375 (MSA)

2004 (3rd Quarter) ACCRA Cost of Living Index: 95.5 (MSA) (U.S. average = 100.0)

State income tax rate: Ranges from 3.5% to 6.45%

State sales tax rate: 5.3%

Local income tax rate: None

Local sales tax rate: city, 1.25%; county, 1.0%

Property tax rate: 1.83% per $1,000 assessed value

Economic Information: Kansas City Area Development Council, 2600 Commerce Tower, 911 Main Street, Kansas City, MO 64105-2049; telephone (816)221-2121; fax (816)842-2865; email kcadc@thinkKC.com