By Kansas Department of Commerce
When the U.S. Department of Commerce Bureau of Economic Analysis recently reported that Kansas was leading the nation in real Gross Domestic Product (GDP) growth, nobody in the Sunflower State was surprised. It was simple affirmation all the concentrated economic development efforts of the previous five years were paying off.
The 9.7 percent increase in GDP for 2023’s third quarter was two perceent higher than No. 2 Texas and double the national average of 4.9 percent.
“This data shows that our efforts to support businesses, create a stable economy, and grow our workforce are paying off,” Governor Laura Kelly said. “Now, Kansas is outstripping the entire nation in economic growth and attracting business investment.”
The numbers back her up. Since 2019 when Governor Kelly took office, the state has attracted more than $18.6 billion private sector investment and created or retained more than 66,000 jobs. Almost 1,100 economic development project successes have been recorded along the way.
It Began with a Plan
Upon being elected, Governor Kelly made it clear she wanted a new approach to economic development. Rather than waiting for companies to discover on their own Kansas’ central location, efficient transportation networks and low cost of living, she directed an overhaul of the Kansas Department of Commerce’s efforts.
The most tangible result was mapping out a new strategic plan, the Kansas Framework for Growth, which built on the strong foundation of talented people, inviting communities and an outstanding educational system. The plan set a course of intentional action and investment by targeting five key sectors, from which 90 percent of those 1,100 successes have come:
- Advanced Manufacturing
- Aerospace
- Distribution, Logistics and Transportation
- Food and Agriculture
- Professional and Technical Services
Governor Kelly’s stated vision is to make Kansas the best place in the nation to raise a family, so the Commerce Department has led with the human aspects of doing business—quality of life issues such as having great schools, strong infrastructure, childcare, housing, healthcare and broadband. These are what make Kansans healthy and productive workers, and they also help maintain a strong, stable environment for business investment.
Kansas has become a model among states for sensible, effective efforts to drive pragmatic, long-lasting economic growth. The efforts have delivered multiple record-setting years of private capital investment, consecutive Governor’s Cup Awards and three straight Gold Shovel Awards. And now, the fastest growing economy in the nation.
The Momentum is Real
The Kansas Framework for Growth continues guiding the Department of Commerce as it seeks new opportunities around the globe via trade missions and overseas representatives, across the country by working with site selectors and developers, and in every Kansas community by partnering with local businesses and leaders. Projects have landed in 85 of the state’s 105 counties thus far.
Some of the larger companies driving growth include national and global A-list brands such as: Amazon, Chick-fil-A, Dot’s Pretzels, FedEx, Garmin, Goodyear, Heartland Coca-Cola, Hill’s Pet Nutrition, Hilmar Cheese, Hostess, Honeywell, Keebler, Kubota, Merck, Michelin, Newell Rubbermaid, Old Dominion, Panasonic, Russell Stover, Schwan’s, Textron Aviation, Tyson Meats, Urban Outfitters and Walmart.
But there are also a large number of smaller companies making significant contributions in their communities. A sampling from that extensive list of projects in 2023 includes:
- A $350 million investment by Building Materials Manufacturing Corporation is creating 137 jobs in Newton
- A $168 million investment by High Plains Ponderosa Dairy is creating 95 jobs in Plains
- Summit Truck Bodies is making a $50 million investment that will net 80 jobs in Wathena
- A $43 million commitment from Orizon Aerostructures will bring 200 new jobs to Chanute
“It isn’t just large companies that recognizes all of the natural attributes Kansas possesses,” Lieutenant Governor and Secretary of Commerce David Toland said. “Small businesses also benefit from the ideal location, transportation networks, quality of life, and highly trained workforce. The Kelly Administration continues pursuing – and landing – companies of all sizes in order to deliver high-quality jobs that keep our young people in Kansas and attract new workers to the state.”
Innovation Leading the Way
In the past 12 months, advanced manufacturing companies creating tomorrow’s generation of high-tech products have been grabbing the headlines in Kansas.
Wichita, Kansas-based Integra Technologies plans to invest $1.8 billion in a large-scale semiconductor facility in Sedgwick County. This is the second-largest private investment in Kansas history (the $4 billion Panasonic electric vehicle battery manufacturing plant currently under construction in DeSoto is the largest). The Integra project, which has applied for funding through the federal bipartisan CHIPS Act, will create nearly 2,000 jobs and be part of the national effort to reshore semiconductor manufacturing capacity and strengthen national security.
EMP Shield, an industry leader in protecting electronic devices from destructive magnetic pulses, plans to invest $1.9 billion in a computer chip manufacturing facility in Burlington that will create more than 1,200 jobs. The Coffey County company also is leveraging state support to apply for CHIPS Act funding.
In Olathe, Honeywell Aerospace Technologies announced it will invest $84 million to expand its Johnson County aerospace manufacturing facility, creating 156 new jobs. Hill’s Pet Nutrition, a division of Colgate-Palmolive, estimates it will invest more than $450 million to construct a new, fully designed smart facility and bring more than 100 new jobs to Leavenworth County. DSM announced plans to build a next-generation nutritional premix plant in Tonganoxie, creating 28 jobs. And in Saline County, Hollywood-based Pure Imagination Studios has state and local partners to build an advanced spatial computing studio and learning center. The $41 million investment will create 101 new jobs.
Targeted Investments
To support the numerous companies expanding or locating in Kansas, the Office of Registered Apprenticeship is keeping pace. In 2023, Governor Kelly signed bipartisan legislation that promotes and expands apprenticeships with businesses, healthcare organizations, educational institutions, and nonprofit groups through the use of tax credits and grants.
The Delivering Residents and Workforce program awarded nearly $10 million to 26 recipients for training and workforce development initiatives in high-demand and high-wage industries, such as healthcare, education and technology-based businesses. And nearly $20 million was awarded through the Aviation Learning Opportunities & Funded Training program to help pay for training and workforce initiatives in the aviation and aerospace industry.
Twenty companies have been accepted into the Department of Commerce’s Made in Kansas program, which helps promote Kansas manufacturers to customers across Kansas and around the globe by showcasing Kansas-made products. Participation is free.
Companies looking at Kansas for relocation or expansion potential should know a Kansas Certified Site designation has been issued to 13 properties across the state, with other properties actively engaged in the application process.
The purpose of the Kansas Certified Sites Program is to reduce the risk associated with development by providing detailed information based on the following five categories: ownership, property information, environmental and cultural, access and community. The comprehensive application process aims to demonstrate due diligence by requiring communities to gather and substantiate pertinent property and community details.
In order to support broadband infrastructure construction to connect all Kansans, ensuring access to high-speed internet across the state, Kansas will receive $451.7 million through the Broadband Equity, Access and Deployment (BEAD) Program as part of the bipartisan Infrastructure Investment and Jobs Act. Every resident of the state soon will have access to fast and reliable internet connectivity, that will bring additional economic growth, educational opportunities and telehealth services.
Kansas’ innovative approaches are paying off, as the GDP figures show. And as companies invest in Kansas, Kansas continues investing in its people and communities. It is a winning combination.
We are flying high – and there is plenty of room on our plains.
For more information on doing business in Kansas, please visit kansascommerce.gov.
