INDUSTRY PROFILE OneKC WIRED Region
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- Barbra Reeves
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2 Executive Summary The OneKC WIRED (Workforce Innovation in Regional Economic Development) region is an eighteen-county area, bisecting Kansas and Missouri, which was formed to focus economic and workforce initiatives around targeted industries within the economy. This industry profile is aimed at assisting local leaders with a better understanding of the broader economy and where industry concentrations exist. The term good job for most U.S. workers has traditionally meant manufacturing. Now those good jobs are increasingly tied to knowledge-based industries that have to be highly productive to compete in global markets. The OneKC WIRED region recognizes this trend by highlighting target industries, such as Advanced, Health Care, and Biotechnology, which currently play a large role in the economy and will continue to do so with highly-skilled labor. A number of strengths give the OneKC WIRED region strong prospects for long-term economic growth. Above average income levels and population growth, compared to the surrounding Midwestern states, will continue to attract workers and businesses as consumer demand rises. The large number of higher learning centers, strong transportation infrastructure, and redevelopment in the urban core will also support continued economic progress. The largest industries in this region include Health Care, Retail Trade, and, which together account for 1 out of every 3 jobs. The Educational Services sector follows these top industries and boasts an employment concentration nearly four times the national average. Jobs are evenly spit between the two states with Missouri slightly more concentrated in and Kansas in Information Services. Commuting patterns within this region show relatively small amounts of cross-state travel from home to work. Eighty-four (84) percent of people work in their home state. Where cross-state travel is noticeable is in the larger manufacturing centers that entice workers from all over the region. Downtown Kansas City, MO is also a work destination for many Kansas residents. Advanced in the OneKC region is heavily influenced by Transportation Equipment. Ford, GM, and Harley-Davidson all have assembly plants here. Other sub-sectors of strength include Fabricated Metal Production and Computer and Electronic Product. Average wages of $66,000 in this sector are well above average and the highest of the three targeted industries. Health Care is the largest employer in this region and offers a wide range of high-demand occupations. This industry is likely to increase in employment relative to other sectors due to above-average projected population growth and the large number of medical learning institutions. Biotechnology is the smallest sector yet it has strong ties to the other two targeted industries. Employment within the sector is strong in Medical and Diagnostic Labs which are closely linked to the regional health care industry and larger markets. Animal Health and Pharmaceutical also employs a large number of workers and would fit well within the advanced manufacturing cluster.
3 Regional Overview The OneKC WIRED region is a bi-state area centered on Kansas City and is composed of eight counties in Kansas and ten in Missouri. The goal of the OneKC WIRED initiative is to transform currently independent regional activities into a comprehensive system of economic development, workforce development, education and training. OneKC WIRED has identified three target industry clusters (Advanced, Health Care, and Biotechnology) around which economic and workforce development efforts are being focused. These targeted industries, along with other sectors in the economy, have long benefited from Kansas City s status as a major transshipment center. Three interstate highways (I-29, I- 35 and I-70) intersect at Kansas City and the city forms the nexus of several north-south and east-west rail systems. Population and Income Annual Rate Population WIRED Region 2,412,534 2,544, % Kansas 2,811,114 2,901, % Missouri 5,911,718 6,153, % Median Household Income WIRED Region $56,832 $66, % Kansas $51,343 $60, % Missouri $47,568 $55, % Education Levels 2000 U.S. Census Region U.S. Kansas City boasts the largest rail transshipment center in the nation by tonnage and its airport moves more freight per year than any other air center in a 6 state region. High School Graduate Only Associates Degree Completed Bachelor's Degree or Higher 29.4% 28.6% 5.6% 6.3% 28.0% 24.4% Source: ESRI Business Analyst - Projection Estimates Because of a need for flexibility and innovation, both the biotechnology and the advanced manufacturing target clusters can benefit from the region s strengths in transportation. In addition to these assets of transportation, the region boasts a total of 56 institutions of higher learning to support productivity innovation. In the region there are: 29 four-year colleges 9 community colleges 18 institutions offering less than a two-year degree
4 INDUSTRY PROFILE Industry Overview OneKC WIRED Business Statistics Agriculture, Forestry, Fishing & Hunting Mining Utilities Construction Wholesale Trade Retail Trade Transport & Warehousing Information Finance & Insurance Real Estate & Rental & Leasing Professional, Scientific, & Tech. Services Management of Companies & Enterprises Admin. Support & Waste Mgmt. Services Educational Services Health Care & Social Assistance Arts, Entertainment, & Recreation Accommodation & Food Services Other Services (except Public Admin) Public Administration All Industries Businesses ,457 2,606 5,894 7,779 2,115 1,282 5,014 3,057 8, ,869 1,253 5, ,422 4,332 1,104 65,652 Employment 1,374 1,063 8,662 59, ,260 56, ,768 54,613 48,632 66,440 19,040 76,128 16,653 69, , ,458 19,447 95,531 32,879 65,413 1,173,508 Avg. Wage $29,902 $46,623 $72,437 $44,361 $51,155 $58,216 $23,742 $38,404 $71,873 $71,513 $34,713 $61,791 $83,561 $28,038 $33,185 $38,720 $29,814 $13,712 $27,532 $45,855 $41,710 Economic activity is mainly concentrated in the urban center of Kansas City. However, other concentrations exist in: St. Joseph, Missouri Topeka, Kansas Lawrence, Kansas The largest industries by employment in the OneKC WIRED region are: Health Care Retail Trade Industries with the highest average wages include: Management of Companies Utilities Information OneKC WIRED Total Industry Employment Density MISSOURI ECONOMIC RESEARCH AND INFORMATION CENTER JANUARY 2008
5 Employment Distribution While the distribution of industry employment in the OneKC WIRED region is similar to U.S. patterns, there are some notable differences. The area has significantly higher concentrations in the following industries: Professional, Scientific, and Technical Services Finance and Insurance Information Transportation and Warehousing OneKC WIRED is a logistics hub as the larger than average Transportation and Warehousing sector demonstrates. The concentration in Finance and Information sectors are particularly beneficial to local workers since those industries pay much higher than average wages. OneKC WIRED Percent Employment by Industry Health Care & Social Assistance Retail Trade Educational Services Accommodation & Food Services Professional, Scientific, & Tech. Services Admin. Support & Waste Mgmt. Services Finance & Insurance Public Administration Construction Wholesale Trade Transport & Warehousing Information Other Services 2.4% 6.5% 5.8% 5.9% 6.1% 5.7% 4.5% 5.6% 5.4% 5.1% 5.6% 4.8% 4.4% 4.7% 4.0% 4.1% 2.8% 3.3% 12.2% 12.5% 11.2% 11.5% 9.1% 10.4% 8.6% 9.3% 8.1% 8.3% OneKC WIRED US. Industries with at least 20,000 workers
6 Two States Straddling both Kansas and Missouri, this region encompasses a large, diverse economy. While the area economy is clearly driven by both sides of the border, there are some industry concentration differences that are worth noting: Kansas Employment Concentrations: Information Administrative Support & Waste Mgmt. Professional, Scientific & Tech. Services Public Administration OneKC WIRED - State Business Statistics Businesses Employment Avg. Wage OneKC WIRED 65,652 1,173,508 $41,710 Kansas Side 32, ,688 $42,262 Missouri Side 32, ,820 $41,182 Missouri Employment Concentrations: Accommodation & Food Services Health Care & Social Assistance Construction OneKC WIRED State Employment by Industry Health Care & Social Assistance Retail Trade Accommodation & Food Services Educational Services Prof, Scientific, & Tech. Services Finance & Insurance Construction Public Administration Admin. Support & Waste Mgmt. Services Transport & Warehousing Missouri Side Kansas Side Wholesale Trade Information Other Services 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000. Industries with at least 20,000 workers
7 Commuting Patterns Commuting information from Local Employment Dynamics (LED) data indicates that most employees work and live in the same state. However, eight percent of Missourians commute to Kansas for work, slightly higher than employees going in the opposite direction. OneKC WIRED Home State to Work State Workers that do cross state lines are primarily employed in the Kansas City urban area. Hotspots for Missouri residents include large manufacturing plants on the Kansas side. Kansas residents are concentrated in the historic central business district located in Missouri. Less than two percent of Kansas commuters are drawn to jobs in the suburban counties of Missouri. Just over five percent of Missourians commute to jobs in the suburban counties of Kansas. Where Missouri Residents Work in Kansas Where Kansas Residents Work in Missouri Source: MERIC & U.S. Census Bureau, 2004 Local Employment Dynamics
8 Two Communities The is centered on Kansas City which accounts for the largest urban core. Counties that make up this core and the surrounding suburban communities have different concentrations of target industries. Biotechnology and Advanced are primarily located in the urban core while Health Care is somewhat more dispersed. The Kansas side of the urban core is more concentrated in Biotechnology while the Missouri side has a larger Advanced sector. Outside the Kansas City urban core, concentrations of target industries are mainly located in St. Joseph, MO and Topeka, KS. OneKC WIRED Urban/Suburban Target Industry Employment Jackson Co MO Clay Co MO MO URBAN Platte Co MO Health Care MO SUBURBS Biotechnology Advanced Johnson Co KS KS URBAN Wyandotte Co. KS KS SUBURBS 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000
9 Advanced Profile Advanced manufacturing in both Missouri and Kansas is concentrated around Motor Vehicle and Vehicle Parts. Missouri also specializes in Pharmaceuticals and Fabricated Metals, while Kansas is more concentrated in Medical Equipment and Computer and Electronic Products. Please see Notes section for a complete listing of all industries within this target profile. Advanced Businesses Employment Avg. Wage OneKC WIRED ,961 $66,012 Kansas Side ,395 $66,093 Missouri Side ,566 $65,954 Employment density analysis reveals the linkage between advanced manufacturing and highway transportation as many clusters locate near major road junctions. Since manufacturers increasingly depend on global supply chains for parts and just-in-time logistics, efficient transportation modes will continue to play a major role in this industries long-term productivity. OneKC WIRED Advanced Employment Density
10 Industry Employment within the Advanced Industry Cluster Medical Equipment Transportation Equipment Electrical Equipment, Appliance, and Component Computer and Electronic Product Machinery Fabricated Metal Product Missouri Kansas Chemical 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 Transportation Equipment in both states is concentrated in Motor Vehicle and Vehicle Parts and to a lesser extent in Aeronautical Equipment Manufacture. Missouri s Fabricated Metal Products is dominated by generalized fabricated metal products. Highlighted Occupations in Advanced Title # of Registered Job Seekers OneKC WIRED 2006 US Median Wage Education/Training Typically Required Electrical & Electronic Equipment Assemblers 95 $25,600 Short-term On-the-job Training Biological Technicians 39 $35,700 Associate's Degree Mechanical Engineers 21 $69,800 Bachelor's Degree Mechanical Drafters 18 $43,700 Postsecondary Vocational Training Mechanical Engineering Technicians 10 $45,800 Associate's Degree Source: MERIC, Missouri GreatHires Database, Kansas JobSearch Database Of the highlighted occupations in Advanced, only Electrical & Electronic Equipment Assemblers and Mechanical Engineers are paid higher wages on the Kansas side of the OneKC WIRED region than on the Missouri side. In terms of education and training, four of the five highlighted occupations in this target cluster require less than four years of post-secondary education, a characteristic that is consistent with many of the highest employing occupations in this cluster.
11 Health Care Profile Health Care is the largest employer of the Health Care target industries. Hospitals and Other Businesses Employment Avg. Wage Resident Care Facilities dominate employment in this sector followed by Doctor and Dentist OneKC WIRED 4, ,199 $40,559 Offices along with other health care providers. Kansas Side 1,885 54,565 $39,340 Missouri employs more workers in Residential Missouri Side 2,300 64,634 $41,589 Care Facilities and Kansas employs more in Doctor and Other Medical Practitioners Offices. Please see Notes section for a complete listing of all industries within this target profile. Concentrations in Kansas City, Overland Park, Topeka and St. Joseph suggest the strong relationship between hospitals and academic centers. In the case of Kansas City, Missouri this includes nursing, dentistry, radiological and anesthesiological technician schools. OneKC WIRED Health Care Employment Density
12 Industry Employment within the Health Care Cluster Nursing and Residential Care Facilities General and Psychiatric Hospitals Health Care Offices, Outpatient and Home Health Care Missouri Kansas 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 The Health Care cluster is by far the largest of target industry sectors, comprising just over 10% of the employment in the OneKC WIRED region. Since health care employment generally grows with the population, the OneKC WIRED region will likely see this industry continue to increase relative to the other sectors. Highlighted Occupations in Health Care Title # of Registered Job Seekers OneKC WIRED 2006 US Median Wage Education/Training Typically Required Nursing Aides, Orderlies, & Attendants 1,339 $22,200 Postsecondary Vocational Training Medical Assistants 385 $26,300 Moderate-term On-the-job Training Pharmacy Technicians 171 $25,600 Moderate-term On-the-job Training Licensed Practical & Licensed Vocational Nurses 163 $36,500 Postsecondary Vocational Training Registered Nurses 154 $57,300 Associate's Degree Source: MERIC, Missouri GreatHires Database, Kansas JobSearch Database Of the highlighted occupations in Health Care, only Medical Assistants and Registered Nurses are paid higher wages on the Missouri side of the OneKC WIRED region than on the Kansas side. In terms of education and training all of the five highlighted occupations in this target cluster require less than four years of post-secondary education, a characteristic that is consistent with many of the highest employing occupations in the Heath Care cluster. The large quantity of workers in the region s available labor pool matched by related skill set shows the area s strength in terms of being able to support both new and existing companies in the Health Care field.
13 Biotechnology Profile This targeted industry shares some common activities with the Health Care and Advanced sectors. With large employment in medical labs (which is also in the Health Care profile) and pharmaceutical manufacturing, this industry is closely linked to the Health Care sector. Please see Notes section for a complete listing of all industries within this target profile. Biotechnology Businesses Employment Avg. Wage OneKC WIRED ,076 $63,949 Kansas Side 273 8,514 $63,557 Missouri Side 202 5,561 $64,549 Employment density analysis reveals a high concentration of biotechnology businesses around Lenexa and Overland Park. Since some Biotechnology industries are closely related to the Health Care sector, especially in Medical and Diagnostic Services, it is not surprising that the two targeted industries are closely located. OneKC WIRED Biotechnology Employment Density
14 Industry Employment within the Biotechnology Cluster Specialty Hospitals Medical and Diagnostic Labs Professional, Scientific, and Technical Services Publishing Industries (except Internet) Miscellaneous Industrial Machinery Pesticide, Pharmaceutical and Medicine Missouri Kansas Animal Food ,000 1,500 2,000 2,500 3,000 3,500 Both Kansas and Missouri companies produce medicines and pharmaceuticals, and both have scientific and medical research services. Kansas also publishes software and is very heavily involved in medical and diagnostic services and laboratories industries. Highlighted Occupations in Biotechnology Title # of Registered Job Seekers OneKC WIRED 2006 US Median Wage Education/Training Typically Required First-Line Supervisors of Production & Operating Workers 425 $47,300 Work Experience in a Related Occ. Chemical Equipment Operators & Tenders 20 $40,290 Moderate-term On-the-job Training Chemists 16 $59,870 Bachelor's Degree Medical & Clinical Laboratory Technologists 16 $49,700 Bachelor's Degree Animal Scientists 2 $47,800 Bachelor's Degree Source: MERIC, Missouri GreatHires Database, Kansas JobSearch Database Of the highlighted occupations in Biotechnology, workers in all five careers are paid higher wages on the Missouri side of the OneKC WIRED region than on the Kansas side. In terms of education and training, three of the five highlighted occupations in this target cluster require at least four years of post-secondary education, a characteristic that is consistent with many of the highest employing occupations in the Biotechnology cluster. The quantity of workers in the region s available labor pool matched by related skill set shows the area s strength in terms of being able to support emerging employment in this growing field.
15 Notes Target industries were defined by the OneKC WIRED region using the North American Industry Classification System (NAICS). The NAICS code groups industries together based on common economic activities. Medical Laboratories is the only industry in two targeted sectors (Health Care and Biotechnology) at the most detailed industry classification level. Advanced Health Care Biotechnology NAICS DESCRIPTION NAICS DESCRIPTION NAICS DESCRIPTION 3254 Pharmaceutical & Medicine Mfg Physicians Offices (except Mental Health Specialists) Medicinal Chemicals & Botanical Products 3255 Paint, Coating, & Adhesive Mfg Physicians Offices, Pharmaceutical Preparations Mental Health Specialists 3256 Soap, Cleaning Compound, & Toilet Prep. Mfg Dentists Offices In Vitro & In Vivo Diagnostic Substances Small Arms Ammunition Mfg Chiropractors Offices Biological Products, (No Diagnostic Substances) Ammunition (except Small Arms) Mfg Optometrists Offices Agricultural Chemicals Small Arms Mfg Mental Health Practitioners Industrial Organic Chemicals Offices (except Physicians) Other Ordnance & Acc. Mfg Physical, Occup., Audio & Special Industry Machinery Speech Therapists Offices 3331 Agriculture, Construction, Podiatrists Offices Measuring and Controlling Devices & Mining Machinery Mfg Industrial Machinery Mfg All Other Miscell. Health Surgical and Medical Instruments Practitioners Offices 3336 Engine, Turbine, & Pow er Transmission Equip. Mfg Family Planning Cent Ophthalmic Instruments and Apparatus Mfg Other General Purpose Machinery Mfg Outpatient Mental Health & Surgical Appliances and Supplies Substance Abuse Cent Computer & Peripheral HMO Medical Cent Dental Equipment and Supplies Equipment Mfg Communications Equipment Mfg Kidney Dialysis Cent X-Ray Apparatus and Tubes 3343 Audio & Video Equipment Mfg Freestanding Ambulatory Surgical Electro-medical Equipment & Emergency Cent Semiconductor & Other Electronic All Other Outpatient Care Cent Prepackaged Softw are Component Mfg Navigational, Measuring, Medical Laboratories Medical Laboratories Electro-Medical, & Control Instr. Mfg Mfg. & Reproducing Magnetic Diagnostic Imaging Cent Commercial Physical Research & Optical Media 3353 Electrical Equipment Mfg Home Health Care Services Noncommercial Research Organizations All Other Electrical Equip Ambulance Services Testing Laboratories & Component Mfg Motor Vehicle Mfg Blood & Organ Banks Prepared Animal Feeds 3362 Motor Vehicle Body & Trailer Mfg All Other Miscell. Ambulatory Biological Products, Except Diagnostic Health Care Services 3363 Motor Vehicle Parts Mfg General Medical & Surgical Hosp Specialty Hospitals 3364 Aerospace Product & Parts Mfg Psychiatric & Substance Abuse Hosp Medical Equipment & Supplies Mfg Specialty (except Psychiatric & Substance Abuse) Hosp Nursing Care Fac Res. Mental Retardation Fac Res. Mental Health & Substance Abuse Fac Continuing Care Retirement Communities Homes for the Elderly Other Res. Care Fac.
16 2004 Local Employment Dynamics (LED) charts and maps were created from MERIC analysis using Kansas and Missouri LED data. LED is a program developed by the US Census Bureau, in partnership with the state labor market information offices and the IRS is the most recent year for which data is available. First quarter 2007 industry analysis is based on information from the Bureau of Labor Statistics - Quarterly Census of Employment and Wages (QCEW) Program. This program, a federal-state cooperative venture, gathers business information on approximately 98% of all non-farm employers. Analysis does not include establishments from NAICS Private Households. Density maps represent employers for which accurate physical locations and employment data were available. Registered Missouri jobseeker data is based on information from the GreatHires database maintained by the Missouri Department of Economic Development s Division of Workforce Development and was pulled for the December 2007 time period. Registered Kansas jobseeker data is based on information from the Kansas JobLink database created by Kansas Department of Commerce s Division of Workforce Development and was pulled for the December 2007 time period. About OneKC WIRED OneKC WIRED is an innovative approach to regional workforce and economic development one that recognizes the new reality that a highly skilled, educated and trained workforce is the essential foundation of a strong regional economy. Such knowledge workers fuel the growth of companies and regional economies. OneKC WIRED is a dynamic, entrepreneurial partnership strategically designed to drive significant economic and workforce development transformation within an 18-county, bi-state region. OneKC WIRED partners are integrating and building upon what were once independent activities to develop a comprehensive regional system of workforce development, education and training, and economic development. OneKC WIRED initially targets the high-demand, high-growth industries of advanced manufacturing, biotechnology, and healthcare; but efforts are underway to continually assess regional and industry trends and explore strategies that will enhance the region s overall competitiveness. Note: The Greater Kansas City area competed with more than 100 regions nationally for a WIRED (Workforce Innovation in Regional Economic Development) grant from the U.S. Department of Labor. It was among 13 selected to receive a $15 million grant for its OneKC WIRED initiative. For more information: OneKC WIRED 920 Main Street Suite 640 Kansas City, MO (816) To access an electronic version of this report, visit Report produced for the by the Missouri Economic Research and Information Center (MERIC) in partnership with the Kansas Department of Labor. More information about MERIC, the research arm of the Missouri Department of Economic Development, can be found at
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