A History of Manufacturing in Kansas: Profile of an Economic Strength

Transcription

1 Research Report A History of Manufacturing in Kansas: Profile of an Economic Strength Arthur P. Hall, Ph.D. Executive Director Center for Applied Economics University of Kansas School of Business arthall@ku.edu Dan Korber Senior Research Analyst Kansas, Inc. Prepared for December 8

2

3 Table of Contents I. Key Findings... II. Introduction... III. Trends in Manufacturing: How Kansas Compares... IV. The Dynamics and Details of Kansas Manufacturing, V. Kansas, Inc. Board of Directors... List of Charts, Maps and Tables Chart : Growth in Value of Manufacturing Output, Chart : Growth of Manufacturing Employment, Chart : Growth of Manufacturing Productivity, Map : Growth of Manufacturing GDP, Table : Kansas Ranking among the States, Measures of Growth for Select Time Periods... Map : Growth of Manufacturing Payroll, Map : Growth of Manufacturing Employment, Table : Summary Count of Kansas Counties in Map and Map... 8 Table : Kansas Counties in Top Quartile of Manufacturing Payroll Growth, Chart : Net Change in Kansas Manufacturing Jobs, Chart : Gross Changes in Kansas Manufacturing Jobs from Establishment Expansion and Contraction, Chart : Gross Changes in Kansas Manufacturing Jobs from Establishment Birth and Death, Chart : Gross Changes in Kansas Manufacturing Jobs from Establishment Interstate Relocation, Table : Dynamics of Manufacturing in Kansas, Select Years by County... Table : Change in Manufacturing Structure, Jobs, and Establishments Between Select Years... Table : Top- Manufacturing Sectors in each County that have Persisted Since Paid for with taxes or public funds

4 I. Key Findings Manufacturing is still important to the economy: Manufacturing remains a key driver of wealth creation. Kansas has a diversified manufacturing base and is geographically positioned to capture an increasing share of manufacturing activity. To a significant degree, U.S.-based manufacturing has been migrating to the non-metropolitan areas of the Southwest and Great Plains. To capture more market share, Kansas must create a platform for manufacturers to compete both domestically and internationally. Kansas outperforms the U.S. in the growth of manufacturing output: Kansas consistently outperforms the U.S. in terms of growth in value of manufacturing output over the past years, except for during the decade-long productivity lag that Kansas experienced beginning in 98. This growth has occurred across several broad categories of manufacturing. Kansas manufacturing growth is driven more by employment growth than productivity growth: Despite the large drop in U.S. manufacturing employment, the absolute value of manufacturing output has continued to increase due to the growth of manufacturing productivity. Kansas, on the other hand, has retained its output lead primarily because of superior employment growth rather than superior productivity growth. The slower growth of Kansas productivity in the overall manufacturing sector is a complex economic development issue that deserves deeper analysis. There is an imperfect alignment between the growth of manufacturing payroll and employment: Even though Kansas lags in productivity growth, the unmistakable trend is for fewer manufacturing employees to create more output in terms of volume and value. This economic process drives prosperity in the form of higher per-employee payroll. Nevertheless, the data illustrates that the growth of manufacturing employment and the growth of manufacturing payroll are not well correlated. Each business is different. Economic development policies that focus exclusively on employment can be misguided, and proactive economic development policy should not try to pre-specify the attributes of specific businesses. Many counties in rural Kansas are developing a manufacturing base: When evaluating all U.S. counties with positive payroll growth over the past three decades, Kansas counties rank in the top quartile. Ten more counties including the large counties of Johnson, Sedgwick and Saline rank in the nd highest quartile. Many of the counties in the top quartile are small so small absolute changes in manufacturing activity make a large difference in percentage terms. However, the key point is that manufacturing is developing as a core base for sustainable rural economic development. Manufacturing gains and losses are an essential part of a dynamic business environment: Employment growth in manufacturing is highly correlated with the birth of new manufacturing establishments far more highly correlated than employment growth from the expansion of existing manufacturing establishments. Yet, the birth and death of manufacturing establishments are also highly correlated. Success derives from achieving birth rates that exceed death rates from the natural, marketdriven process of trial-and-error. A business environment that embraces this dynamic should make it as easy and cost-effective as possible for businesses to start operation and refrain from interfering with the inevitability of failure.

5 II. Introduction Modern manufacturing often seems misunderstood. Popular discussions and press accounts that emphasize the shrinking of manufacturing employment and highlight the so-called new economy leave individuals with the mistaken impression that manufacturing has lost its economic importance. Manufacturing remains a key driver of new wealth creation the key measure of sustainable economic development. No other industry sector stimulates as much additional, supporting or complementary economic activity as manufacturing. Many of the facts reported about manufacturing are true. But a full interpretation requires an understanding of the transformation of modern manufacturing. In the June 99 edition of the American Economic Review, Stanford University economists Paul Milgrom and John Roberts noted that: Manufacturing is undergoing a revolution. The mass production model is being replaced by a vision of a flexible multiproduct firm that emphasizes quality and speedy response to market conditions while utilizing technologically advanced equipment and new forms of organization. Technology and innovation the current-day darlings of economic development policy often become embedded in manufactured products. That is the natural process of ever-increasing productivity that creates new wealth and, thereby, higher take-home pay. Economist Gregory Tassey of the National Institute of Standards and Technology has argued that manufacturing constitutes the main source of technology for the larger service sector. While knowledge-based services are the largest source of economic growth for the U.S. economy, their long-term performance is highly dependent on synergies with a domestic manufacturing sector. Such synergies work best when the partners work in close geographical proximity to one another. Kansas has a manufacturing base that is more diverse than many individuals realize. Kansas is also well-positioned geographically to capture an increasing share of the manufacturing activity that takes place in the U.S. To a large extent, over the past several decades, U.S.-based manufacturing has migrated to the non-metropolitan areas of the Southwest and Great Plains. For Kansas to capture more market share will require that it create a platform for manufacturers to thrive in a super-competitive domestic and international context. These two features of the Kansas economy explain why manufacturing became a core feature of the Kansas Economic Development Strategic Plan. A core theme of the plan emphasizes the integration of nine strengths and capabilities. Manufacturing holds the promise of leveraging (and being leveraged by) all nine: rural development and agriculture; professional, scientific, and technical services; energy and natural resources; bioscience; business and tax climate; workforce development; technology and innovation; and state branding. During the creation of the plan, one Kansan envisioned Kansas as the go-to destination for U.S. manufacturing. U.S. Department of Commerce, Manufacturing in America: A Comprehensive Strategy to Address the Challenges to U.S. Manufacturers, January, p.. Paul Milgrom and John Roberts, The Economics of Modern Manufacturing: Technology, Strategy, and Organization, American Economic Review, Vol. 8, No., June 99, p.. Gregory Tassey, R&D and Long-Term Competitiveness: manufacturing s Role in a Knowledge-Based Economy, Planning Report -, National Institute of Standards and Technology, February, p. i. Kansas, Inc., Leveraging our Foundations and Designing the Future: A Kansas Economic Renaissance, January 8.

6 III. Trends in Manufacturing: How Kansas Compares Kansas consistently outperforms the United States in terms of the growth of manufacturing output over the past years. This is true for the time period 9 to. It is also true for the -, -, and - year intervals within this time span. Kansas can claim such economic success only for the manufacturing sector. Chart shows the inflation-adjusted growth trend in manufacturing output the manufacturing component of gross domestic product from 9 to. If the reader breaks the trends in the chart into decade-by-decade segments, the 98 to 99 segment represents the only time period in which Kansas did not register superior growth rates compared to the U.S. or Plains region. This time period corresponded with the decade-long productivity lag that Kansas experienced beginning in 98. Chart shows several distinct episodes of manufacturing output growth. As Kansans would expect, the fortunes of aircraft manufacturing and petroleum refining tend to dominate the growth patterns. However, many different types of manufacturing have contributed to Kansas manufacturing growth. From 9 to 99, five other broad categories of manufacturing contributed significantly:. Chart : Growth in Value of Manufacturing Output ( Dollars), 9- Kansas.. Growth Index (9 = ).. Plains States United States Source: U.S. Bureau of Economic Analysis Kansas Plains States United States Peter F. Orazem and Arthur P. Hall, The Kansas Productivity Puzzle, Technical Report -8, Center for Applied Economics, University of Kansas School of Business, November.

7 Industrial Machinery and Equipment; Lumber and Wood Products; Stone, Clay, and Glass Products; Food Products; and Printing and Publishing. From 98 to 99, Printing and Publishing substantially increased its contribution to output growth and two new categories became additional growth drivers: Rubber and Plastic Products and Motor Vehicles. The aircraft and refining sectors account for the decline from to ; however, many broad categories of manufacturing experienced positive growth during this period. Finally, Computer-related and Chemical-related manufacturing played a strong supporting role in the post- growth surge. (It is important to note that, as a broad classification, aircraft manufacturing is one component of other transportation equipment manufacturing. That makes it difficult to isolate the aircraft growth contribution from other contributions like the undoubtedly strong contribution, for example, of Cobalt Boats and Big Dog Motorcycles, which would have the same classification.) The U.S. manufacturing sector has undergone substantial changes over the past four decades. Individuals seem more aware of the decline in relative employment than the dramatic rise in productivity (the value of per-employee output). A comparison of Chart, Chart, and Chart tells the basic story. Despite the sharp drop in U.S. manufacturing employment shown in Chart, Chart demonstrates that the absolute value of manufacturing output has continued to increase. The reason for the increase is entirely related to the productivity trends shown in Chart. From 9 to, inflation-adjusted output in U.S. Manufacturing has increased by percent. Yet employment has declined by. percent. The percent increase in productivity has made up the difference and primarily explains why inflation-adjusted average wages in manufacturing have risen by percent over the same time period. Charts - demonstrate that manufacturing in Kansas has had a much different evolution from that experienced by the nation as a whole. From 9 to, the value of manufacturing output has increased by percent. However, the composition of that increase is more balanced between increased manufacturing employment and increased productivity. Manufacturing employment in Kansas has increase by 8 percent; productivity has increased by percent. Growth Index (9 = ) Chart : Growth of Manufacturing Employment, Source: U.S. Bureau of Economic Analysis Growth Index (9 = ) Kansas Plains States United States Chart : Growth of Manufacturing Productivity ( Dollars), 9- Kansas Plains States United States Source: U.S. Bureau of Economic Analysis Kansas Plains States United States United States Kansas Plains States

8 The difference in the evolution of the manufacturing sector in Kansas compared to the nation as a whole is part of a larger story related to the changing geographic composition of manufacturing activity. The broad pattern of the change is relatively apparent: manufacturing operations in the U.S. have tended to shift the employment of workers to the non-metropolitan areas of the Southwest and Plains states. A study of shifting manufacturing employment by economists at the Federal Reserve Bank of Boston documents two important facts regarding job flows between regions. First, job flows within companies between regions are an important contributor to the shifting geographic distribution of manufacturing employment at multi-plant firms. Firms that operate plants in more than one region have tended to destroy jobs in regions with declining manufacturing employment and create jobs in regions with expanding manufacturing employment. Second, differences between regions in the industry mix of their manufacturing employment explain little of the differences between regions in the net growth rates in manufacturing employment. Most of the differences in employment growth between regions have tended to be due to employment shifts within industries. Map helps illustrate that Kansas has benefited from the changing geographic patterns of manufacturing activity. The black-colored states represent the states with the fastest manufacturing-related output (GDP) growth over the past years. Kansas ranks in the second highest quartile (composed of the states that had positive inflation-adjusted manufacturing-related GDP growth). Kansas would have made the top quartile if it had not been for extremely poor productivity growth over this time period, because it ranked among the highest states in terms of manufacturing-related employment growth. Table reports how Kansas ranked among the states, during different time periods, for several key manufacturingrelated growth measures. Kansas consistently ranks in the top tiers except for the number of establishments (physical places of business) and productivity. The number of establishments is not necessarily indicative of anything important. However, the chronic lag in productivity growth is a key economic development issue that merits deeper investigation. No ready answers are available for this report. Map : Growth of Manufacturing GDP ($), 9- Table : Kansas Ranking among the States, Measures of Growth for Select Time Periods 9 to 9 to Key Bottom Quartile nd Quartile rd Quartile Top Quartile Negative Growth Source: U.S. Bureau of Economic Analysis 98 to 99 to Manufacturing Output (GDP) Manufacturing Employment 9 Manufacturing Payroll 8 Manufacturing Productivity 8 Manufacturing Capital Investment* Manufacturing Establishments *Endpoint is not. Sources: U.S. Bureau of Economic Analysis; U.S. Census Bureau; U.S. Bureau of Labor Statistics Scott Schuh and Robert K. Triest, The Evolution of Regional Manufacturing Employment: Gross Job Flows within and between Firms and Industries, New England Economic Review, Third Quarter,, p..

9 Map : Growth of Manufacturing Payroll ($), 9- Key Bottom Quartile nd Quartile rd Quartile Top Quartile Negative Growth Source: U.S. Census Bureau; U.S. Bureau of Labor Statistics Map : Growth of Manufacturing Employment, 9- Key Bottom Quartile nd Quartile rd Quartile Top Quartile Negative Growth Source: U.S. Census Bureau; U.S. Bureau of Labor Statistics

10 Map and Map provide a more detailed look at the geographical distribution of manufacturing growth across the counties of the United States. Map illustrates the locations of growth in manufacturing payroll from 9 to ; Map illustrates growth in manufacturing employment. (Payroll is used instead of value-added, a measure collected by the Census Bureau, because the value-added by county series is much less complete than payroll and the last data available is for. For the counties that have complete information, for 9 and, there is a percent correlation between the growth of payroll and the growth of valueadded, so payroll offers a reasonably good proxy.) A comparison of Map and Map reveals an imperfect alignment between the growth of payroll and the growth of employment. This is one illustration of why economic development policies that focus exclusively on employment can be misguided. As revealed in Chart, productivity growth is a prominent feature of the evolution of manufacturing. Even though Kansas lags in productivity growth, the unmistakable trend is for fewer manufacturing employees to create more output in terms of both volume and value. This is the economic process that drives prosperity in the form of higher peremployee payroll. Table provides a summary of the Kansas data that describes Map and Map. Two noteworthy points emerge from the summary counts. First, about one-quarter of all Kansas counties rank in the top quartile in terms of payroll growth. Second, there is little correlation Table : Summary Count of Kansas Counties in Map and Map Payroll Employment Same Quartile Bottom Quartile nd Quartile 9 rd Quartile Top Quartile Negative Growth 8 Table : Kansas Counties in Top Quartile of Manufacturing Payroll Growth, All U.S. Counties, 9- Payroll Growth Employment Growth Payroll ($,) Employment Chautauqua 9% 8%, Cherokee 9% %,9, Cheyenne % 8%,8 8 Coffey 9% %,8 Decatur % %, Dickinson % %,9, Doniphan % %, Finney % %,8,8 Ford % %,8,99 Greeley % %, Greenwood % -%, 9 Haskell 8% 8%, Hodgeman* n/a n/a,9 Jefferson 9% % 8,89 Kearny % %,9 Lane,% %, Logan 9% 8%,8 8 Marshall % 9%,, Morton 9% % 9,9 9 Nemaha % 9%,9, Norton % %,8 Ottawa,% -%, Pottawatomie % %,9,9 Stafford % %, Washington % %,9 9 Wichita % %, *Hodgeman County started 9 with no manufacturing activity. Source: U.S. Census Bureau; U.S. Bureau of Labor Statistics among counties in how they rank in terms of payroll growth and employment growth. The two variables have different drivers. Proactive economic development policy should not try to pre-specify the attributes of specific businesses. Each type of manufacturing operation may face different competitive environments and have different strategies and operating characteristics to meet the competition. 8

11 Table provides a list of the Kansas counties that rank in the top quartile of inflation-adjusted payroll growth (among all counties in the United States) from 9 to. The counties listed in bold italics also rank in the top quartile in the growth of manufacturing employment. The level of payroll and employment is listed for reference. Not surprisingly, many of these counties listed in Table are small rural counties. Small changes in manufacturing activity in these counties make a large difference in percentage terms. However, the point is that these counties have attracted manufacturers and manufacturing represents a core base for economic development. Among the larger Kansas counties: Douglas ranked in the nd percentile in terms of payroll growth ( percent) and ranked in the th percentile in terms of employment growth (9 percent); Johnson ranked in the th percentile in terms of payroll growth ( percent) and ranked in the th percentile in terms of employment growth ( percent); Sedgwick ranked in the th percentile in terms of payroll growth ( percent) and ranked in the nd percentile in terms of employment growth ( percent). Shawnee and Wyandotte Counties both experienced negative growth in payroll and employment. IV. The Dynamics and Details of Kansas Manufacturing, 99- Market economies demonstrate a high degree of change and adaption. Growth is measured by positive rates of net change over time. Charts - document the net changes in manufacturingrelated economic measures over time. However, gross changes (positive and negative) represent an underappreciated component of economic growth. Markets are appropriately thought of as a discovery process related to what types of enterprises can best serve the end demands of consumers. Number of Jobs,,,,, -, -, -, -, -, -,8 Chart : Net Change in Kansas Manufacturing Jobs, , In a thorough study of shifting Year Source: National Establishment Time Series Database manufacturing geography in the United States, Federal Reserve Bank of Cleveland economist, Yoonsoo Lee, found evidence suggesting that geographic redistribution in U.S. manufacturing has been driven not only by the differences in the number of plants entering and exiting a state, but also by interstate differences in the number of jobs created and destroyed by plant startups and shutdowns. Moreover, growing states have not only a higher fraction of employment gains from plant openings but also a higher fraction of employment losses from plant closings. The higher turnover rates found in growing states suggest that creative destruction, reflected in the high number of turnovers, may play an important role in the growth of a state. This finding highlights the importance of the reallocation process in understanding the disparity of growth rates across states. Such a process has been ignored in previous studies focusing on net employment changes across states. Yoonsoo Lee, Geographic Redistribution of U.S. Manufacturing and the Role of State Development Policy, Federal Reserve Bank of Cleveland, CES -, March, p..,,,,,88 -, , -, -, -,9,,8,,8 9

12 The pattern cited by Lee holds even over the relatively short time span available from the public-use files related to manufacturing dynamism offered by the U.S. Census Bureau (99-). It creates a challenging dynamic from an economic development perspective: employment growth in manufacturing is highly correlated with the birth of new manufacturing establishments far more highly correlated than employment growth from the expansion of existing manufacturing establishments. Yet, the birth and death of manufacturing establishments are also highly correlated. Success derives from achieving birth rates that exceed death rates from the natural, market-driven process of trial-and-error. A business environment that embraces this dynamic should make it as easy and costeffective as possible for businesses to start operation and refrain from interfering with the inevitability of failure. Charts - illustrate the dynamic (gross) changes in Kansas manufacturing employment that have driven the net changes illustrated in Chart. The charts make two noteworthy points. First, the growth periods illustrated in Chart correspond to the strong periods of employment growth driven by new manufacturing establishments, as illustrated in Chart a role equally as important, if not more so, than the expansion of existing. Actual relocations of establishments, as shown in Chart, also play a role, but an extremely minor one. Second, notice the symmetry in any given year between expansions and contraction, births and deaths, and interstate relocations (mostly in areas around the borders of Kansas). The marketplace is in continual flux. No one wants to see the failure or contraction of Kansas manufacturing establishments, but this is a natural and healthy component of the growth process. Number of Jobs Number of Jobs Number of Jobs,,,,, -, -, -, -, -,,,,,, -, -, -, -, -,,,,,, -, -, -, -, -, Chart : Gross Changes in Kansas Manufacturing Jobs from Establishment Expansion and Contraction, Source: National Establishment Time Series Database Chart : Gross Changes in Kansas Manufacturing Jobs from Establishment Birth and Death, Source: National Establishment Time Series Database Contract Death Expand Chart : Gross Changes in Kansas Manufacturing Jobs from Establishment Interstate Relocation, 99- Birth Source: National Establishment Time Series Database Move Out Move In

13 A Brief Discussion about Data The data used to create Charts -, and the detailed data tables below, derive from the National Establishment Times Series Database (NETS). This proprietary data source, constructed and maintained by Walls and Associates, compiles the data collected on businesses by the private firm Dun and Bradstreet, which creates tracking numbers to make it possible to follow specific business establishments (a place of business with a unique physical address) over time. The NETS database has certain strengths and weakness compared to government data sources. Its strengths relate to its descriptive detail. For this study, the strength of NETS relates to its ability to measure the dynamism of businesses at the establishment level in fine geographic detail. Government data sources have rules that prevent the reporting of data if such reports run the risk of exposing operational details of specific businesses. This problem often arises in the context of rural Kansas counties. The NETS database has complete reporting for identified business establishments. Also, comparison studies of different data sources indicate that NETS seems to do a superior job of identifying small businesses. The weaknesses of NETS relate to the purpose of the data and, therefore, how the data is collected. Dun and Bradstreet are in the business of selling information about other businesses. It strives to gather information on all business establishments by canvassing all available data sources and employs call centers to confirm and update information by contacting individual business units. Unlike government sources, which rely to a large degree on legal reporting requirements, Dun and Bradstreet relies on the data acquired through its manual efforts. 8 Two notable consequences result from the Dun and Bradstreet data-collection process. First, job counts tend to be rounded to the nearest,, or, depending on establishment size. Second, data gaps arise which must be filled by imputation and estimation (a value-added activity of Walls and Associates). As a practical matter, this means that the NETS data, with regard to measures like job counts, tends to be more accurate over longer time periods. NETS is not the best source of data for measuring annual changes in employment. It is worth noting, however, that government data sources differ from each other in an important respect. For example, with regard to manufacturing employment in Kansas over the past years, the reported data by the U.S. Bureau of Economic Analysis, the U.S. Bureau of Labor Statistics, and the U.S. Census Bureau all differ from one another sometimes by thousands of jobs. And the annual change in jobs recorded does not have a perfect correlation among these sources, with Census data having the weakest correlation. For the information in Charts - and Tables -, the analysis relies on the NETS database to the extent possible. However, the NETS data was cross-referenced with government data sources as a quality control measure. In some instances, data from government sources have been used to remedy clear deficiencies in the NETS data. The reader should place more emphasis on the diversity and dynamism of manufacturing activity represented by the data rather than on exact counts or levels of different metrics. A Discussion of Tables - Tables - seek to provide a profile of the dynamic change in the manufacturing sector among the different Kansas counties. Each table offers a progressively finer level of detail. 8 David Neumark, Junfu Zhang, and Brandon Wall, Employment Dynamics and Business Relocation: New Evidence from the National Establishment Time Series, National Bureau of Economic Research Working Paper W, November.

14 Table illustrates the enormous amount of change that occurs over time at the county level. This is shown by the fluctuating types of manufacturers and the jobs active in the different types of manufacturing operations. Government agencies classify businesses according to codes. The NETS database relies on the Standard Industrial Classification (SIC) code (the government switched to a newer code system recently, but that has no relevance for the data reported herein). These codes are stratified into levels of detail. For example, the -digit code of classifies the manufacturers of Transportation Equipment ; the -digit code of specifies the manufacturers of Motor Vehicles and Equipment ; and the 8-digit code, the most detailed code level, of 9 specifies the assembly of taxicabs. Table relies on the -digit SIC code, a broad classifications that still offers a meaningful level of detail. Manufacturing has SIC classifications at the -digit level. In 99, Kansas had 9 of these in operation; in, it had in operation. The data listed in Table reports the number of -digit manufacturing sectors that each Kansas county lost and gained over different time periods and the jobs associated with the lost and gained sectors. Atchison County offers an interesting example. In 99, compared to 99 (according the NETS database), the county lost eight different -digit manufacturing activities;, jobs were lost along with those activities. However, Atchison County gained seven new -digit manufacturing sectors; 98 jobs were gained with those new sectors. This type of dynamism reinforces the dynamic change illustrated in Chart. Virtually all other Kansas counties have experienced this level of dynamism over time, even if the results are not as symmetric. Table is similar to Table, except it offers a finer level of detail. It reports the total number of 8-digit manufacturers operating in different years (along with corresponding jobs) and tracks the number of specific business establishments that survived from one date to the next. The SIC code records,8 different manufacturing related 8-digit classifications. In 99, Kansas had, of those operating in the state; in,,88 operated in the state. Sedgwick County offers an example. In, according to the NETS database, Sedgwick hosted 9 manufacturing-related business establishments operating in 8 different 8-digit industries. By, Sedgwick County had, establishments operating in different 8-digit industries. Of the, establishments, also operated in the year, implying that establishments closed and 9 were born. Table reports data about the top- manufacturing sectors that have persisted in each county from 99 to. The manufacturing activity is delineated by the -digit SIC code. The top- refers to 99 job count, which allows the reader to see if the sector has grown or shrunk across the defined time periods. (Bigger counties include more sectors and the table reports the top- sectors for the state.) Table also includes a measure of Estimated Productivity. This measure divides the inflationadjusted sales volume for each sector reported by NETS by the number of jobs. This measure is far from an ideal way to measure actual productivity, but it offers a useful way to illustrate relative value and value growth that is internally consistent to the NETS database. The measure is not ideal because sales volumes can fluctuate from year-to-year in a manner that reveals nothing about the inherent efficiency of a manufacturing operation.

15 Table : Dynamics of Manufacturing in Kansas, Select Years by County Manufacturing Changes: 99 v. 99 Manufacturing Changes: 99 v. Manufacturing Changes: v. County Sectors Lost Jobs Lost Sectors Gained Jobs Gained Sectors Jobs Sectors Jobs Lost Lost Gained Gained Sectors Lost Jobs Lost Sectors Gained Jobs Gained Allen 8 Anderson Atchison 8, 98 Barber Barton Bourbon 9 9 Brown Butler Chase Chautauqua Cherokee Cheyenne Clark Clay 9 Cloud Coffey Comanche Cowley Crawford Decatur Dickinson 8 9 Doniphan Douglas Edwards Elk Ellis Ellsworth 9 Finney Ford Franklin Geary Gove Graham 9 8 Grant Gray Greeley 8 8 Greenwood Hamilton Harper Harvey Haskell Hodgeman Jackson Jefferson Jewell Johnson Kearny Kingman Kiowa Labette Lane Leavenworth Lincoln 8 8 Linn 9 Logan Lyon McPherson Marion 9 Marshall 8 Meade Miami 8 8 Mitchell 9 Montgomery Morris 9 Morton

16 Table (Cont.): Dynamics of Manufacturing in Kansas, Select Years by County Manufacturing Changes: 99 v. 99 Manufacturing Changes: 99 v. Manufacturing Changes: v. County Sectors Jobs Sectors Jobs Sectors Jobs Sectors Jobs Sectors Jobs Sectors Jobs Lost Lost Gained Gained Lost Lost Gained Gained Lost Lost Gained Gained Nemaha Neosho Ness Norton Osage Osborne Ottawa 8 9 Pawnee 8 Phillips 9 8 Pottawatomie Pratt Rawlins 9 8 Reno, Republic 8 8 Rice 8 9 Riley 8 8 Rooks 9 8 Rush 9 Russell 99 Saline Scott Sedgwick 9,98, 8 Seward, Shawnee ,9 Sheridan 9 Sherman 9 Smith 9 Stafford Stanton Stevens 8 9 Sumner 8 Thomas 9 Trego 9 Wabaunsee Wallace Washington Wichita Wilson Woodson 9 Wyandotte 9 8 Kansas, Source: National Establishment Time Series Database; Center for Applied Economics, KU School of Business

17 Table : Change in Manufacturing Structure, Jobs, and Establishments Between Select Years Count y Number Number Estab. Number Estab. Number of 8-Digit Job Estab. of 8-Digit Job Estab. Still in of 8-Digit Job Estab. Still in of 8-Digit Industries Count Count Industries Count Count Business Industries Count Count Business Industries Estab. Job Estab. Still in Count Count Business Allen,9 9,8,88, 9 Anders on Atchis on, 9,,89,99 Barber Barton 8,89 8,9 8 9, 9 8, Bourbon,, 8, 8, Brown Butler,8, 8 8,8 88,9 9 Chase Chautauqua Cherok ee,9, 9,9 8 9,8 Cheyen ne 8 Clark Clay 8 9 Cloud Coffey 8 9 Coman che Cowle y, 9,9,88 9, Crawfo rd 8,999 8, 9 9,8 9 8,8 Decatur Dickin son 9,8 8,9, Doniph an Dougla s,, 9,9 88 8, 8 Edwards 9 8 Elk 9 Ellis 8,,8 9,8 Ellswo rth Finney,9, 9,9,9 Ford,8,,9 8,8 9 Frankl in,,, 9, 9 Geary Gove Graham 9 Grant Gray 9 8 Greeley Greenw ood Hamilto n 8 8 Harper Harvey,98 8 9,9 9,98 9, 8 Haskel l 8 8 Hodge man

18 Table (Cont.): Change in Manufacturing Structure, Jobs, and Establishments Between Select Years Count y Number Number Estab. Number Estab. Number of 8-Digit Job Estab. of 8-Digit Job Estab. Still in of 8-Digit Job Estab. Still in of 8-Digit Industries Count Count Industries Count Count Business Industries Count Count Business Industries Estab. Job Estab. Still in Count Count Business Jackso n Jefferso n 8 9 Jewell 8 Johnso n,9 9 9,,8 9,8, 8,,8 Kearny 8 Kingm an Kiowa 9 Labett e,8 8,8,9, Lane Leave nworth, 8,88 9,, 8 Lincol n Linn Logan Lyon, 9, 8,,88 McPh erson,9 9 9,99 9,8 8,88 9 Marion Marsh all , Meade Miami Mitch ell Montg omery, 9 8, 8, , Morris 8 9 Morton Nema ha ,8 Neosh o 9,9,, 9,8 Ness Norton Osage 9 Osborn e Ottaw a Pawne e Phillip s 9 Pottaw atomie,9,9 9,8,9 9 Pratt Rawlin s 8 Reno,9,,8 8,8 9 Republ ic 88 8 Rice Riley , 89 Rooks Rush Russe ll

19 Table (Cont.): Change in Manufacturing Structure, Jobs, and Establishments Between Select Years County Number Number Estab. Number Estab. Number Estab. of 8-Digit Job Estab. of 8-Digit Job Estab. Still in of 8-Digit Job Estab. Still in of 8-Digit Job Estab. Still in Industries Count Count Industries Count Count Business Industries Count Count Business Industries Count Count Business Saline 8,, 9 8,8 9,8 Scott Sedgwick, 9, ,9 9,89, Seward 9,,,9 Shawnee 9,,,,9 Sheridan 8 8 Sherman 8 8 Smith 9 9 Stafford Stanton 9 Stevens Sumner,,8, Thomas Trego Wabaunsee Wallace 9 Washington 9 99 Wichita 8 Wilson, 9,, 8,89 Woodson Wyandotte, 89,8,8 9, Kansas, 9,,9 9 9,,,, 8,8,9,89,88,,8,89 Source: National Establishment Time Series Database; Center for Applied Economics, KU School of Business

20 Table : Top- Manufacturing Sectors in each County that have Persisted Since 99, Ranked by 99 Job Count, Reported for Select Years (Note: Not all counties have five sectors to report; larger counties show top- or top-; state shows top ; productivity estimates reported in dollars.) Code County Group Name (SIC-) 99 Estab. Count 99 Job Count 99 Estimated Productivity Estab. Job Estimated Estab. Job Estimated Estab. Count Count Productivity Count Count Productivity Count Job Count Estimated Productivity Allen Motor Vehicles and Equipment,8 8 9,,8,8 Concrete, Gypsum, and Plaster Products 8, 9,8,, Miscellaneous Publishing 8,98 8,8, 8,98 Miscellaneous Manufactures 99,,99 9,, Hose & Belting & Gaskets & Packing,, 8,, Anderson Public Building & Related Furniture,8,,, Newspapers,8 9,,89,8 Metalworking Machinery 8 9,8 9,8,, Industrial Machinery, NEC 9 8,, 8,,8 Logging,8 88,9,99 8, Atchison Beverages 8,, 8,, Miscellaneous Manufactures 99 8, 9, 8,9 8, Metal Forgings and Stampings 9,8,,8, Commercial Printing 9,8, 8, 8, Newspapers 8,,,9, Barber Newspapers, 8,,8 9, Farm and Garden Machinery 9 9,8,9 8,, Commercial Printing,, 9,9, Barton Soap, Cleaners, and Toilet Goods 8,9 9, 8,8, Meat Products 9 8, 9, 8,9 8, Communications Equipment,8 8,,, Industrial Machinery, NEC 9 9 8, 89 8,8 8 8,9 8,8 Farm and Garden Machinery 9 8,8 9,89, 9, Bourbon Fabricated Structural Metal Products 9,88 8,9 98, 9, Manifold Business Forms 8,8 8,,,9 Men's and Boys' Furnishings,, 9,9,8 Nonferrous Rolling and Drawing 8 99,8 9, 99, 8, Commercial Printing,8,8,, Brown Millwork, Plywood & Structural Members 8,8, 88,9, Cutlery, Handtools, and Hardware 8, 9 8,8, 9 9,9 Fabricated Structural Metal Products, 9,,,8 Industrial Machinery, NEC 9,8 8,,88 8, Screw Machine Products, Bolts, Etc. 9,88, 9,9, Butler Petroleum Refining 9 8 8, 8,9 9,899 8,8 Fabricated Structural Metal Products 9,9 9 89,9, 9,8 Metal Services, NEC,9,8 8,9 9, Aircraft and Parts 8, 9 99, 9,9 9 9, Miscellaneous Plastics Products, NEC 8 8, 88 9, 9,8 9,8 8

21 Table (Cont.): Top- Manufacturing Sectors in each County that have Persisted Since 99, Ranked by 99 Job Count, Reported for Select Years (Note: N ot all counties have five sectors to report; larger counties show top- or top-; state shows top ; productivity estimates reported in dollars.) County Code Group Name (SIC-) Estab. Job Estimated Estab. Job Estimated Estab. Job Count Count Productivity Count Count Productivity Count Count Estimated E Productivity Co stab. Job Estimated unt Count Productivity Farm and Garden Machinery 8 8,8 8,8,8 Newspapers 9,9,,8 Meat Products,98,89 8,9 Commercial Printing,,99 8, Chase,,,8,8 Chauta uqua Grain Mill Products,,9 9,, ee Motor Vehicles and Equipment 9,,98, Misc. Food and Kindred Products 9 9 8,9,8 8, Special Machinery,, 8,8 Electronic Components and Accessories,8 8 8,8,8 Manifold Business Forms,89,9, Cherok,,9 9 9,8 9,9 8, ne Newspapers 8, 9,89,98 Concrete, Gypsum, and Plaster Products,98,9, Special Machinery,8,9, Miscellaneous Manufactures 99 9,8, 8,9 Cheyen,,,, Clark Newspapers, 8,8,9 8, Farm and Garden Machinery,99 9,, Grain Mill Products 9,8,9,9 Electrical Industrial Apparatus 8,,98 9, Newspapers,9,9 9, Wood Containers,, 8,9 Clay 9,,8,,, Fabricated Structural Metal Products 8 9,8 8 8,8,98 Structural Clay Products 8,8 9, 8, Newspapers,9, 8, Industrial Machinery, NEC 9 8,, 9, Miscellaneous Manufactures 99, 8,9, Cloud, 8, 8,,, Miscellaneous Manufactures 99 9,8, 8,9 Partitions and Fixtures,8 8,99 9, Newspapers,8 8,8,98 Industrial Machinery, NEC 9 8 8,,9 8, Meat Products,,8,9 Coffey, 9,,,,9 che Farm and Garden Machinery 9,89 88,, Misc. Fabricated Metal Products 9 8,,9, Newspapers,88,9, Construction and Related Machinery,8,, Millwork, Plywood & Structural Members 9,8 88,9 99,8 Coman 8, 8,,, 8, Miscellaneous Plastics Products, NEC 8 9, 88,, 9,8 Plumbing and Heating, Except Electric, 8 8,8 8,99 Construction and Related Machinery,99,8, Grain Mill Products 9 88,9,8 8, Newspapers,, 8,8 Cowley 88, 8, 9 8,, 8, 9

22 Table (Cont.): Top- Manufacturing Sectors in each County that have Persisted Since 99, Ranked by 99 Job Count, Reported for Select Years (Note: Not all counties have five sectors to report; larger counties show top- or top-; state shows top ; productivity estimates reported in dollars.) Code County Group Name (SIC-) Estab. Job Estimated Estab. Count Count Productivity Count Job Estimated Estab. Job Estimated Estab. Job Estimated Count Productivity Count Count Productivity Count Count Productivity Crawford Manifold Business Forms 9,, 88 8,,8 Knitting Mills,9,,, Construction and Related Machinery 8,,98 9 9,9 89, Misc. Converted Paper Products 9,9,8,,9 Fabricated Structural Metal Products 9 8,9 98 9,8 8, , Decatur Newspapers,, 8,9 8, Toys and Sporting Goods 9, 8,,99 8, Miscellaneous Manufactures 99,9 9,,9, Jewelry, Silverware, and Plated Ware 9 9,8,8,89, Dickinson Electric Distribution Equipment 9, 9,8,8 8, Grain Mill Products 9,8,9 8 8, 9, Misc. Converted Paper Products, 98,,8 8, Farm and Garden Machinery 9, 98,,9 89,8 Newspapers,9,8,, Doniphan Drugs 8 9,, 9, 9 8, Fabricated Structural Metal Products 8,8, 9,9, Millwork, Plywood & Structural Members,98,,, Sawmills and Planing Mills 8,9 9 9, 9 9,, Newspapers,,8,8, Douglas Greeting Cards, 8,,,9, 9,,, Paperboard Containers and Boxes, 8,,9 8 8, Miscellaneous Plastics Products, NEC 8 8, 8,,,9 Newspapers 9 9,8 8,98 8, , Commercial Printing 9 8, ,9,8 8 8,8 Edwards Industrial Machinery, NEC 9 9, 89, 9, 8 9, Grain Mill Products,89 9,,8,8 Concrete, Gypsum, and Plaster Products 8,,,89,8 Farm and Garden Machinery,89,, 9, Commercial Printing 9,9,8 9 9,8 8, Ellis Misc. Electrical Equipment & Supplies 9 9,89 9,8 9 9,8 8, Medical Instruments and Supplies 8 8,98 8 9,,, Newspapers 9, 8,9 8,,9 Construction and Related Machinery,99,8,99,8 Industrial Machinery, NEC 9 8, 89,99 9,9 9 8,988 Ellsworth Misc. Fabricated Metal Products 9 9,,, 8, Newspapers 9,89 8, 9, 9, Commercial Printing 8,9 8, 9,9, Concrete, Gypsum, and Plaster Products, 9 8,8,8, Farm and Garden Machinery 9,8 8 9,9 99, 99,8

23 Table (Cont.): Top- Manufacturing Sectors in each County that have Persisted Since 99, Ranked by 99 Job Count, Reported for Select Years (Note: Not all counties have five sectors to report; larger counties show top- or top-; state shows top ; productivity estimates reported in dollars.) Code County Group Name (SIC-) Estab. Job Estimated Estab. Count Count Productivity Count Job Estimated Estab. Job Count Productivity Count Count Estimated Estab. Job Estimated Productivity Count Count Productivity Finney Meat Products, 8,9, 8, 9 8,999 8, Farm and Garden Machinery 8 9, 8 99, 9, 9,9 Paperboard Containers and Boxes, 8,8 88, 88,9 Newspapers,8 8,9 8, 8, Grain Mill Products 89,9 9, 8,8 9 8, Ford Meat Products,,8 9 8,,8 9,,8 8, Farm and Garden Machinery 9,8 9 9,99 8 9, 9 9, Grain Mill Products 88, 9 8,, 8,9 General Industrial Machinery,9, 8 98,8,8 Newspapers,,8 8,8 8, Franklin Construction and Related Machinery 8, 9,9 9,8 9, Fabricated Structural Metal Products, 9,, 8,8 General Industrial Machinery,89 8, 9,9 9 8,9 Miscellaneous Wood Products 9 8,8 9 8,8,9, Newspapers 8, 9,99,88,8 Geary Iron and Steel Foundries,9,,, Newspapers,,8 8,8, Motor Vehicles and Equipment 8,8, 9,,8 Concrete, Gypsum, and Plaster Products 8,,9, 8 8, Industrial Machinery, NEC 9, 9,,9, Gove Farm and Garden Machinery 9,9 9 98,8,9 9 8, Commercial Printing,8, 9,9 8, Ordnance and Accessories, NEC 8,,8,9, Plastics Materials and Synthetics 8,,,, Construction and Related Machinery,8 9,9,, Grant Miscellaneous Chemical Products 89,8,8, 9, Newspapers 9,,,9, Industrial Machinery, NEC 9 9,,8,, Commercial Printing 8 8,, 8,, Agricultural Chemicals 8,,8,9 9 89, Gray Farm and Garden Machinery, 9, 8, 8 8, Newspapers 9 8,,,, Commercial Printing 9,9,8 8,, Grain Mill Products 8,8,,9, Motor Vehicles and Equipment,8, 8,, Greeley Newspapers,89, 8, 8, Refrigeration and Service Machinery 8,,,98,

24 Table (Cont.): Top- Manufacturing Sectors in each County that have Persisted Since 99, Ranked by 99 Job Count, Reported for Select Years (Note: Not all counties have five sectors to report; larger counties show top- or top-; state shows top ; productivity estimates reported in dollars.) Code County Group Name (SIC-) Estab. Job Estimated Estab. Count Count Productivity Count Job Estimated Estab. Job Estimated Estab. Job Estimated Count Productivity Count Count Productivity Count Count Productivity Greenwood Miscellaneous Plastics Products, NEC 8, 8, 8 9,89 8, Newspapers,98,9 9,9 8, Concrete, Gypsum, and Plaster Products,9,8, 9, Industrial Machinery, NEC 9,8,8 9,88 8,8 Miscellaneous Manufactures 99,,8 8,, Hamilton Industrial Machinery, NEC 9,,9,, Harper Farm and Garden Machinery,,,8 8,98 Meat Products 8 8,9 8, 8,9, Aircraft and Parts,8 9 89, 8,, Fabricated Structural Metal Products,,88 9,9, Hose & Belting & Gaskets & Packing 8,8 8,99 9,8 8,8 Harvey Farm and Garden Machinery,, 9 9,9,, 9 8, Construction and Related Machinery 9,9 9,,9 8,9 Fabricated Structural Metal Products 8 9, ,, 8 9,8 Millwork, Plywood & Structural Members,9,8 8 8, 8, Motor Vehicles and Equipment,, 98, 9, Haskell Industrial Inorganic Chemicals 8 8, 9 8,9 9,,8 Meat Products 8,9 8,,9, Grain Mill Products 9,9,9 9, 9 8, Hodgeman Newspapers 8,9,8,, Jackson Farm and Garden Machinery,8,, 9, Meat Products,, 9,9, Industrial Machinery, NEC 9,98,9,9,8 Commercial Printing,9 8,8,, Millwork, Plywood & Structural Members 9,98 8,9 8,9, Jefferson Sawmills and Planing Mills 9,9 9, 9,, Toys and Sporting Goods 9,, 8,,89 Industrial Machinery, NEC 9 8,8,9 8,9, Millwork, Plywood & Structural Members,8 8,98 8,9, Miscellaneous Wood Products 9,8 9,8,9, Jewell Newspapers,,8 8,8, General Industrial Machinery,,9 9, 8,8 9,

25 Table (Cont.): Top- Manufacturing Sectors in each County that have Persisted Since 99, Ranked by 99 Job Count, Reported for Select Years (Note: Not all counties have five sectors to report; larger counties show top- or top-; state shows top ; productivity estimates reported in dollars.) Code County Group Name (SIC-) Estab. Job Estimated Estab. Count Count Productivity Count Job Estimated Estab. Job Count Productivity Count Count Estimated Estab. Job Estimated Productivity Count Count Productivity Johnson Commercial Printing, 9, 9, 8,8,,, 9, Search and Navigation Equipment 8, 99,8,9,8,9,8,8,9 Miscellaneous Plastics Products, NEC 8,,,8,9,,8 8,8 88, Miscellaneous Publishing,, 98,,, 9, 8, Drugs 8 8,,,,8 8,9,8,9,9 Men's and Boys' Furnishings, 8, 8,,, 9,9,9, Beverages 8 8,9 8, 9, 9 8 8,, Blankbooks and Bookbinding 8,8 8,8 8,8 9 9, 9 8, Electronic Components and Accessories,,9 8,9,9, Miscellaneous Chemical Products , 8,88 8, 9 9,99 Misc. Converted Paper Products 9,8 9,,88,,88,,9 Special Machinery,9 8 8, 8 8, ,9 Books 9 99, 9,9 9 89, 9 98,9 Fabricated Structural Metal Products 8 9,9 9, 9 8, 9 98, Computer and Office Equipment 8, 9,9 9, 9, Misc. Food and Kindred Products 9 9 9,, 9 8, 8,9 Periodicals, 9 9,8, 9,,, Misc. Electrical Equipment & Supplies 9 8 9, 8 8,,9 8,98 Construction and Related Machinery,8,8 8,,8 Newspapers,88 8,8,8, Kearny Newspapers,99,8,9 8, Kingman Miscellaneous Textile Goods 9, 9, 9,8 9,9 Iron and Steel Foundries, 98,8 9,8, Farm and Garden Machinery,9 8,,8,98 Newspapers 9, 9,,9,9 Concrete, Gypsum, and Plaster Products,,8,, Kiowa Commercial Printing 9,,8 8,, Industrial Machinery, NEC 9,9,8 9,, Labette General Industrial Machinery,8 9,99,,9 Fabricated Structural Metal Products,8,99,8 9, Millwork, Plywood & Structural Members, 8,,9 9, Manifold Business Forms 9,89 8, 9,9, Plumbing and Heating, Except Electric, 98, 9, 9,9 Lane Household Furniture 8,8 8,9 8,8 8, Farm and Garden Machinery, 9,,, Newspapers, 9,,, Leavenworth Misc. Converted Paper Products 8,, 9,, Special Machinery 8,9 9 8,8 9,99 8, Fabricated Structural Metal Products 9,8 9 9,, 8,8 Commercial Printing 9, 9, 8, ,9 Concrete, Gypsum, and Plaster Products,9 8,9,,

26 Table (Cont.): Top- Manufacturing Sectors in each County that have Persisted Since 99, Ranked by 99 Job Count, Reported for Select Years (Note: Not all counties have five sectors to report; larger counties show top- or top-; state shows top ; productivity estimates reported in dollars.) Code County Group Name (SIC-) Estab. Job Estimated Estab. Count Count Productivity Count Job Estimated Estab. Job Estimated Estab. Job Estimated Count Productivity Count Count Productivity Count Count Productivity Lincoln Construction and Related Machinery,9,,9,8 Concrete, Gypsum, and Plaster Products 9, 9,98 9 9,, Miscellaneous Manufactures 99,,9,, Linn Concrete, Gypsum, and Plaster Products, 89,9,8 8,9 Newspapers 9,, 8,9 9, Industrial Machinery, NEC 9 8 8, 9,9, 8, Miscellaneous Transportation Equipment 9,,89 9, 8, Logging,8 88,9,99, Logan Newspapers,9,8,, Miscellaneous Manufactures 99,9 9,,, Concrete, Gypsum, and Plaster Products,,8,8, Lyon Meat Products,88 88,8,9 8,8, 9,98 8,98 Bakery Products,9 9,,9, Motor Vehicles and Equipment,8 9, 8,9 9 9, Fats and Oils, 8,, 8,8 Fabricated Structural Metal Products,8 9, 8 9,, McPherson Petroleum Refining 9 9,,8,9 8, Miscellaneous Plastics Products, NEC 8, 8, , 8,89 Misc. Nonmetallic Mineral Products 9,9,, 88 9, Drugs 8,9,8,, Miscellaneous Transportation Equipment 9,8,,88 8,8 Marion Farm and Garden Machinery,8 8,9 8 9, 8, Misc. Fabricated Textile Products 9 8,9,8,8 9, Metalworking Machinery, 8,88, 8 8, Industrial Machinery, NEC 9 8, 88,,8 9 9, Newspapers 9,8 9,, 8,9 Marshall Aircraft and Parts,, 9,, Concrete, Gypsum, and Plaster Products, 88,8,,8 Farm and Garden Machinery 8 8,8,89 8 9, 8 99, Motor Vehicles and Equipment,8 9, 9 9,8 9,9 Misc. Converted Paper Products 9,,,8, Meade Meat Products 9,9,9, 8,89 Misc. Food and Kindred Products 9,8,,9,8 Commercial Printing,, 8,9,9 Miscellaneous Chemical Products 89 8,8 88, 88,89, Miscellaneous Plastics Products, NEC 8 9, 9,98,9 9,

27 Table (Cont.): Top- Manufacturing Sectors in each County that have Persisted Since 99, Ranked by 99 Job Count, Reported for Select Years (Note: Not all counties have five sectors to report; larger counties show top- or top-; state shows top ; productivity estimates reported in dollars.) Code County Group Name (SIC-) Estab. Job Estimated Estab. Count Count Productivity Count Job Estimated Estab. Job Count Productivity Count Count Estimated Estab. Job Estimated Productivity Count Count Productivity Miami Blast Furnace and Basic Steel Products 9,8 9, 9 8, 9, Newspapers 8,,99,9 8,8 Fabricated Structural Metal Products 9,9,9, 9,8 Concrete, Gypsum, and Plaster Products,8 9,9 8,,8 Commercial Printing 9,9,,8 8, Mitchell Farm and Garden Machinery,8 8,8,89 9, Miscellaneous Plastics Products, NEC 8 9,88 9,, 8, Newspapers,, 8,8, Concrete, Gypsum, and Plaster Products 9,89, 8,99, Grain Mill Products,,, 9, Montgomery Electrical Industrial Apparatus, 9, 8 9,8 8 8,9 8, Miscellaneous Plastics Products, NEC 8, 9 99, 8 9, 9,99 General Industrial Machinery 9,99 8,, 9, Petroleum Refining 9 89, 88,9,9, Iron and Steel Foundries 8,9 8, 9, 8 8, Morris Misc. Nonmetallic Mineral Products 9 9,, 9 9,9 8 9, Fabricated Structural Metal Products 8 8,88 9, 8 8,9 8, Miscellaneous Plastics Products, NEC 8 8, 9,9 9,8,8 Commercial Printing 8,8, 8, 9, Concrete, Gypsum, and Plaster Products 8,,9, 8, Morton Meat Products,,9,9, Nemaha Special Machinery,9 8,8,9 8, Construction and Related Machinery,89,8,, Millwork, Plywood & Structural Members, 9,, 8,89 Concrete, Gypsum, and Plaster Products 9,8,98 99,8 9, Newspapers,,9,9,9 Neosho Miscellaneous Transportation Equipment 9 9, 8,9,9, Hose & Belting & Gaskets & Packing,8, 8, 8, Fabricated Structural Metal Products 8,99,8, 99, Cement, Hydraulic, 89,8, 8,9 Household Furniture, 8,9 9, 8,998 Ness Farm and Garden Machinery, 9,8,9, Industrial Machinery, NEC 9,9 8,8 9,, Newspapers 8,9,9 8,8, Agricultural Chemicals 8,8,,, Sawmills and Planing Mills 9,,9,89,

28 Table (Cont.): Top- Manufacturing Sectors in each County that have Persisted Since 99, Ranked by 99 Job Count, Reported for Select Years (Note: Not all counties have five sectors to report; larger counties show top- or top-; state shows top ; productivity estimates reported in dollars.) Code County Group Name (SIC-) Estab. Job Estimated Estab. Count Count Productivity Count Job Estimated Estab. Job Estimated Estab. Job Estimated Count Productivity Count Count Productivity Count Count Productivity Norton Newspapers,,8, 8, Construction and Related Machinery, 8, 9,8 8, Misc. Nonmetallic Mineral Products 9,, 8,, Misc. Food and Kindred Products 9,8,,, Commercial Printing,8,,9, Osage Newspapers,9 8,9, 9, Measuring and Controlling Devices 8,8,,9 9, Commercial Printing 8, 8,, 8, Fabricated Structural Metal Products,,,9, Toys and Sporting Goods 9,, 9,9,9 Osborne Meat Products,99 98,,8 9,98 Miscellaneous Furniture and Fixtures 9 8 8,,9,9 8 8, Newspapers,,8 9,99 8, Industrial Machinery, NEC 9,, 88,8 8, Miscellaneous Manufactures 99,8 9,,, Ottawa Newspapers 8 8, 8,8,, Miscellaneous Manufactures 99 9,8 9, 8, 8, Farm and Garden Machinery,9,9 8,8, Miscellaneous Transportation Equipment 9, 8,98,9, Pawnee Fabricated Structural Metal Products 8, 8,9,, Newspapers,,88,9,8 Commercial Printing,9 9,,8, Grain Mill Products 8,,998, 8 8, Household Furniture,,9,9, Phillips Asphalt Paving and Roofing Materials 9,, 9,8,8 Newspapers,9,9 8,888,8 Farm and Garden Machinery,,9, 8, Miscellaneous Chemical Products , 9,98,9 9, Meat Products,8, 8,, Pottawatomie Construction and Related Machinery,9 8,,,99 Newspapers, 8,9 9,9, Fabricated Structural Metal Products, 9,98,8 9, Misc. Converted Paper Products,88 9, 8,8,8 Grain Mill Products 8,9 8 9, 8,,8 Pratt Newspapers, 9,,,8 Industrial Machinery, NEC 9,99,8,,9 Grain Mill Products,,,8 8, Commercial Printing,9, 9,, Fabricated Structural Metal Products,8,8,9 8,

29 Table (Cont.): Top- Manufacturing Sectors in each County that have Persisted Since 99, Ranked by 99 Job Count, Reported for Select Years (Note: Not all counties have five sectors to report; larger counties show top- or top-; state shows top ; productivity estimates reported in dollars.) Code County Group Name (SIC-) Estab. Job Estimated Estab. Count Count Productivity Count Job Estimated Estab. Job Count Productivity Count Count Estimated Estab. Job Estimated Productivity Count Count Productivity Rawlins Newspapers 8,, 9 8,8 9,8 Farm and Garden Machinery 8 9,9, 9,8, Industrial Machinery, NEC 9, 8, 88,9, Reno Industrial Machinery, NEC 9, 8,88 8 8,88 9 9,8 9 8, Motor Vehicles and Equipment,, 8,8 8,, Commercial Printing, 8, 9, 9,9 Farm and Garden Machinery 99,8 8,9, 8, Meat Products 8,989,9,89, Republic Medical Instruments and Supplies , 9,98 98,, Newspapers, 8,,9, Miscellaneous Primary Metal Products 9,98,,89, Farm and Garden Machinery 8 98,8,9, 9, Industrial Machinery, NEC 9 9, 8, 9,, Rice Aircraft and Parts 89,9 9,,, Industrial Machinery, NEC 9,,8, 9, Newspapers,8 9,9 9,99, Commercial Printing 8,9 8,9 9, 8, Wood Containers,, 8,8, Riley Miscellaneous Publishing 8 9,9 9 8,,89 88,99 Newspapers, 99,,8, Commercial Printing 9,, 9,9 9,99 Grain Mill Products,9 8 98, 9 8,9,98 Electrical Industrial Apparatus 9,,9,9, Rooks Industrial Machinery, NEC 9 8,,,9, Concrete, Gypsum, and Plaster Products 9,8, 8,99, Commercial Printing,,9 8,, Rush Household Furniture 9,, 9,8 9,8 Aircraft and Parts, 9,9,, Industrial Inorganic Chemicals 8, 8,9,,8 Newspapers,98,,89 8, Meat Products,,9 8,8 8, Russell Misc. Fabricated Metal Products 9 9 9, 8 9,98 98, 8,98 Newspapers 8, 9,,, Toys and Sporting Goods 9, 8, 99,9,9 Industrial Machinery, NEC 9,, 9 8, 8, Concrete, Gypsum, and Plaster Products, 8,9,8 9,

30 Table (Cont.): Top- Manufacturing Sectors in each County that have Persisted Since 99, Ranked by 99 Job Count, Reported for Select Years (Note: Not all counties have five sectors to report; larger counties show top- or top-; state shows top ; productivity estimates reported in dollars.) Code County Group Name (SIC-) Estab. Job Estimated Estab. Count Count Productivity Count Job Estimated Estab. Job Estimated Estab. Job Estimated Count Productivity Count Count Productivity Count Count Productivity Saline Preserved Fruits and Vegetables, 8,, 8,, 99,8, 9,9 Electric Lighting and Wiring Equipment 9, 8,9, 9, Motor Vehicles and Equipment 8 8,9 9, 9 9,8,9 Aircraft and Parts,89 9,9,, 8, Misc. Electrical Equipment & Supplies 9,8 9, 9 8, 88,8 Scott Grain Mill Products 9, 99,8, 8, Newspapers 9,9,8 9,, Meat Products 89,9 8,, 8, Industrial Machinery, NEC 9,, 88, 8, Commercial Printing,,8,88 9, Sedgwick Aircraft and Parts 89 8,9,8 9,,9,, 8,8 9,9 Search and Navigation Equipment 8 8,9,8 8, 8,,9 Refrigeration and Service Machinery 8,8 9,9, 8,,9,9, 9,88 Petroleum Refining 9, 8,8,,,99 88,8,9, Commercial Printing, 9,, 99,99 9,,8 98,9 8,8 Computer and Office Equipment 8,8,, 9,88 8, Industrial Machinery, NEC 9 8, 9, 8,8, 88,, 8, 98, Miscellaneous Plastics Products, NEC 8, 9,8,9,8 8, 9,8,8 98, Fabricated Structural Metal Products 8,, ,8, 8, 9, 9,89 Construction and Related Machinery 9,8 8,8,,,9 9,9 Metalworking Machinery 8, 8,9 9, 8, Meat Products 8 99,8 9,9,99, 8, Newspapers 8 8,8 9, 8 8,, Industrial Inorganic Chemicals 8 9, 98, ,8 9,98 Measuring and Controlling Devices 8, 99 8,,, 8, 8, Plumbing and Heating, Except Electric,89, 9, 8, Beverages 8 9,8 9 9,88 8, 8 9 8, Miscellaneous Manufactures 99, 9 99, 8 8, 9 8,8 Cutlery, Handtools, and Hardware 8,,8,,8 8, Products of Purchased Glass 8 8, 8, 88,9 9, Seward Construction and Related Machinery,9 9,9,,8 Industrial Machinery, NEC 9, 8,89 8 9,89 8, Grain Mill Products 8, 8,, 9, Commercial Printing,9,9,, Hose & Belting & Gaskets & Packing 9 89,9 8,99 9 9, 8, 8

31 Table (Cont.): Top- Manufacturing Sectors in each County that have Persisted Since 99, Ranked by 99 Job Count, Reported for Select Years (Note: Not all counties have five sectors to report; larger counties show top- or top-; state shows top ; productivity estimates reported in dollars.) Code County Group Name (SIC-) Estab. Job Estimated Estab. Count Count Productivity Count Job Estimated Estab. Job Count Productivity Count Count Estimated Estab. Job Estimated Productivity Count Count Productivity Shawnee Commercial Printing,998, 9,8,8,, 8 9, Newspapers 9,8, 9 8 8,8 9, 9, Books,,8,,8, 9, Greeting Cards 9 8,,,9, 9,, Misc. Food and Kindred Products 9, 9 9,9,8, ,9 Grain Mill Products 9 8, 89 8,8,8, 8, Industrial Inorganic Chemicals 8,88 99,8,8 8,9 Misc. Converted Paper Products,, 9 8,98 9,9 Manifold Business Forms,9 8, 8 89,8 9,9 Meat Products 8,,,8 8, Sheridan Blankbooks and Bookbinding 8,,9 9,8 8, Concrete, Gypsum, and Plaster Products, 9,98,9, Newspapers, 9, 8,, Sherman Newspapers 8,9 8,9 8,9 9, Aircraft and Parts,9, 9,88, Miscellaneous Manufactures 99,,9,9,8 Smith Miscellaneous Transportation Equipment 9 99,9 89,,88,9 Newspapers,8,9 9,8 9, Meat Products 8,8 8 9,9 8 9,88 8, Miscellaneous Plastics Products, NEC 8 9,8,,, Fabricated Structural Metal Products 8,,,8 8, Stafford Grain Mill Products,89,9 9,8 8,8 Newspapers,8 8,8 8,, Miscellaneous Manufactures 99 8,8,,, Bakery Products,9,98,, Periodicals, 9,98 88,8 8, Stanton Meat Products,8,,88, Newspapers,,8,, Stevens Newspapers,9, 8,, Industrial Machinery, NEC 9, 8, 88, 8, Sumner Aircraft and Parts,,, 9,8 8, 9,8 98,8 Industrial Machinery, NEC ,8 9 8, 9,, Newspapers 8 9,, 9, 9,8 Grain Mill Products 8,9, 9,8, Meat Products, 9,9 9 8,8 8, Thomas Farm and Garden Machinery 9,9, 8,9, Newspapers 9,,89 8,8, Industrial Machinery, NEC 9 9,,9 88,8 8, Miscellaneous Publishing 8,8, 8,98, Misc. Fabricated Metal Products 9,9,,8,9 9

32 Table (Cont.): Top- Manufacturing Sectors in each County that have Persisted Since 99, Ranked by 99 Job Count, Reported for Select Years (Note: Not all counties have five sectors to report; larger counties show top- or top-; state shows top ; productivity estimates reported in dollars.) Code County Group Name (SIC-) Estab. Job Estimated Estab. Job Estimated Count Count Productivity Count Count Productivity Estab. Job Estimated Estab. Job Estimated Count Count Productivity Count Count Productivity Trego Newspapers 9, 9,88 8 8,8, Farm and Garden Machinery 8,,9 8,8, Concrete, Gypsum, and Plaster Products,,,, Industrial Machinery, NEC 9 8,, 8,, Handbags and Personal Leather Goods,8,,8 9, Wabaunsee Fabricated Structural Metal Products, 8,9 9 8,,8 Meat Products 9 8,99 9 8, 9 8,9,8 Pottery and Related Products,, 8, 9,9 Newspapers 9,, 8,, Beverages 8 8,88 8,, 8, Wallace Newspapers 9,89,,, Farm and Garden Machinery,8,, 9, Washington Farm and Garden Machinery,,8,8 9, Newspapers,8 8,8,98, Toys and Sporting Goods 9,9,9 9, 9, Misc. Fabricated Textile Products 9,, 8,, Electronic Components and Accessories 8,,9 9,9, Wichita Grain Mill Products,9,,8 9, Newspapers,,8,9,8 Wilson Ship and Boat Building and Repairing,89, 8, 9,8 Special Machinery, 8,9,9, Millwork, Plywood & Structural Members,,9 8,8,9 Commercial Printing,99, 8, 9,8 Cement, Hydraulic, 89,8 8, 8,9 Woodson Newspapers,,,9, Concrete, Gypsum, and Plaster Products,,9, 8, Wyandotte Motor Vehicles and Equipment 8,,, 9,,,,9 Misc. Nonmetallic Mineral Products 9,, 8,,9, ,9 Soap, Cleaners, and Toilet Goods 8,,9 99,89 8,8 8, Commercial Printing 98 8, 98,, 9 8, Construction and Related Machinery 9, 9,8, 9 8, Meat Products 9,9, 8,9,8 Concrete, Gypsum, and Plaster Products 89,, 9 8,, Fabricated Structural Metal Products, 8, 9,9 9, Misc. Converted Paper Products, 8 8, 9, 8, Paperboard Containers and Boxes 8,9,89 9, 8,

33 Table (Cont.): Top- Manufacturing Sectors in each County that have Persisted Since 99, Ranked by 99 Job Count, Reported for Select Years (Note: Not all counties have five sectors to report; larger counties show top- or top-; state shows top ; productivity estimates reported in dollars.) Code County Group Name (SIC-) Estab. Job Estimated Estab. Job Estimated Estab. Job Estimated Estab. Job Estimated Count Count Productivity Count Count Productivity Count Count Productivity Count Count Productivity Kansas Aircraft and Parts,89,,8,, 8, 9, 9, Search and Navigation Equipment 8 9, 8 8,,8 9,, 89, Meat Products,,8,8 9, 9,,99 9 8,8,8 Grain Mill Products 8,88,,8, 9,, 8, 8,8 Commercial Printing 8,8 9, 8,, 8,,8 8,98 8, Motor Vehicles and Equipment 9,9,,,89 8,,999, 8,89 Special Machinery,9 8, 8,,9,,,9, Farm and Garden Machinery,, 9,9,,8,,88, Refrigeration and Service Machinery 8,,,,9,,,9,9 Miscellaneous Plastics Products, NEC 8,8,8,,,8,89,, Newspapers 8,, 8,8,8,,,, Fabricated Structural Metal Products 88, 8,,8,8,,,9 98, Construction and Related Machinery,, 9,,,9 8,,9, Industrial Machinery, NEC 9, 8,9,8 8,98 8,, 8, 8, Petroleum Refining 9, 9,,,8,,,, Miscellaneous Manufactures 99 9, 9,, 9,, 8,,9, Beverages 8 8 8, 8 8,9,9, Misc. Fabricated Metal Products 9,9, 8,,8 9,8, 8,8 99,98 Misc. Converted Paper Products,9,99,9,,,, 8,8 General Industrial Machinery 9,9 9,8,9 9,,9 88,8,8 Men's and Boys' Furnishings, 9,,8,9,8, 8,, Concrete, Gypsum, and Plaster Products,899, 8,9,98 8, 9, 88,8 9,8 Misc. Nonmetallic Mineral Products 9,,,98,8, 8,9 8,,9 Miscellaneous Publishing,9,9, 8,9 8, 9, 9, 9,9 Metalworking Machinery 8,,9,,9,,8,, Misc. Electrical Equipment & Supplies 9 8,9,9,,99,,9 89,9 8,8 Tires and Inner Tubes,,,,99,9 Blankbooks and Bookbinding 8 9,9,99,8 8,88,8 8,,,8 Millwork, Plywood & Structural Members,98 8,8,8,8,8 8,,8 9,99 Books, 9,8 9,8,,, 8 89,8 Drugs 8 8, 8, 9,, Computer and Office Equipment 9,,9 9,9 9,, Misc. Food and Kindred Products 9 8, 89, 9,9 9, Greeting Cards,99 8,9,,,8 89,, 9,9 Manifold Business Forms,,,,,,,, Bakery Products,,,8 9,,,,9 88, Paperboard Containers and Boxes,9 8,8,9 8,,9,8 8 8, Industrial Inorganic Chemicals 8, 9,8, 8, Soap, Cleaners, and Toilet Goods 8, 9, 8 8,8 9,89 9 8,8 Electrical Industrial Apparatus 9,, 8 8,98,, Electronic Components and Accessories 8 8,8,8 99,8, 8, Miscellaneous Chemical Products 89 9, 9,, 8, Measuring and Controlling Devices 8,8 9, 9 88,8 8,89,99 Ordnance and Accessories, NEC 8 9,, 9 8 9,8 9,, Nonferrous Foundries (Castings) 8, 8,9 8 8,9 8,9 Preserved Fruits and Vegetables, 9,89 8,8 98, 8,8,9 Communications Equipment 8,, 9,,98 Plumbing and Heating, Except Electric,8 9, 9,, 9,,8 Cutlery, Handtools, and Hardware,, 88,88, 98, 8,9 8,9 Medical Instruments and Supplies 8, 9,9,8 8,99, 98,

34 V. Kansas, Inc. Board of Directors Created by the Legislature in 98, Kansas, Inc. is an independent, objective, and non-partisan organization designed to conduct economic development research and analysis with the goal of developing policies and recommendations to ensure the state s ongoing competitiveness for economic growth. To attain our mission, Kansas, Inc. undertakes these primary activities: ) Identifying, building, and promoting a Strategic Plan for economic development efforts in the State of Kansas; ) To complement the Strategic Plan, Kansas, Inc. develops and implements a proactive and aggressive research agenda, which is used to identify and promote sound economic development strategies and policies; ) Through collaboration and outreach with economic development entities and other potential partners, Kansas, Inc. conducts evaluation reviews and provides oversight of economic development programs to benchmark development efforts in the State of Kansas. Co-Chaired by the Governor, Kansas, Inc. is governed by a -member Board of Directors. Board members, as mandated by legislation, include four members of Legislative leadership, a representative from the Board of Regents, the Secretary of Commerce, the Commanding General of the Kansas Cavalry, a representative from labor, and eight other members from the private sector representing key Kansas industrial sectors. Private sector members are appointed by the Governor and confirmed by the Kansas Senate. Through analysis and open dialogue, Kansas, Inc. identifies policy options and builds the consensus essential for concerted action on vital economic issues. Kansas, Inc. is designed to be a public-private partnership with expectations that state investments are leveraged with other funds to maintain a strong research portfolio. Co-Chairs Governor Kathleen Sebelius Topeka Donna Johnson Pinnacle Technology, Lawrence Members Gene Argo American Rodeo Company, Hays Patti Bossert Key Staffing, Topeka Secretary David Kerr Kansas Department of Commerce, Topeka Wil Leiker AFL-CIO, Topeka Reginald Robinson Kansas Board of Regents, Topeka Stephen L. Waite Kansas Cavalry, El Dorado Rep. Tom Burroughs State Representative, Kansas City Rep. Lana Gordon State Representative, Topeka Sen. Laura Kelly State Senator, Topeka Don Landoll Kansas Cavalry, Marysville Lawrence L. McCants First National Bank, Goodland John Pilla Spirit AeroSystems, Wichita Donald P. Schnacke P.A., Topeka Sen. David Wysong State Senator, Mission Hills Kansas, Inc. Staff Stan Ahlerich President Debby Fitzhugh Director of Operations Dan Korber Sr. Research Analyst

35

36 SW Van Buren, Suite Topeka, KS (8) 9- (8) 9- (fax) University of Kansas School of Business Summerfield Hall, Sunnyside Avenue Lawrence, KS -8 (8) 8-