Business Retention and Expansion Highlights: 2016

Transcription

1 Business Retention and Expansion Highlights:

2 BUSINESS RETENTION AND EXPANSION Business Retention and Expansion (BRE) is one of the four strategic goals that drive WYEDC. WYEDC conducts a survey with local existing businesses each year to better understand the challenges and opportunities that businesses are facing in this dynamic economy. Each interview is an opportunity to learn more about the region s workforce, supply chains and general business competitiveness. BRE Highlights WYEDC conducted 128 company interviews which resulted in quantitative and qualitative data that tracks and identifies business needs and trends. 92 Total Active BRE Projects $15.7 MILLION Payroll Impact 18 Expansion/Retention Announcements 200K s.f. $275M 395 net, new jobs Average project = $2.3M (excluding GM and KU) Incentives for BRE Projects Incentive UG Neighborhood Revitalization Area PEAK (State) BPU Energy Efficiency Pilot Tax Abatement HPIP (State) Kansas Industrial Training/Retraining (State) BPU Economic Development Discount Used an Incentive % 47% 33% 27% 13% 13% 7% 7% 73% 2 Business Retention and Expansion Highlight:

3 RETENTION AND EXPANSION Wyandotte County Continues to Grow Out of the 128 Wyandotte County business surveyed in : 66% of companies 38% released new products 41% are growing in last 2 years plan on expanding within 1 year Innovation: 54% have implemented new technology 38% of the innovation is new product 42% of the innovation is new equipment/processes 87% of companies specify adequate technology infrastructure Jobs Annual Payroll State Withholding Taxes Local Property Taxes Location Sales Volume Average Company Direct Impact 55 $6.4M $260K $99K $42M Business Growth Continuum: 10/80/10 Rule Common characteristics of Wyandotte County companies in various growth stages Dynamic Growth >$37K Wages (County Median Wage) Hiring Utilizing New Technology Strong Employee Retention Releasing New Products Invests in Training Exploring Global Expansion Multiple Customers 10% identified as dynamic growth companies Intermittent Growth $15 20/Hour May Expand If Interested in Global Trade, Not Yet Involved Usually Dependent on 1 3 Customers 80% identified as intermittent growth companies Stagnant Growth Less Than $15/Hour High Turnover Not Investing in Equipment/Facility No New Products Released in Last 10 Years 10% identified as stagnant growth companies Business Retention and Expansion Highlight: 3

4 BUSINESS RETENTION The WYEDC team approaches retention efforts by facilitating meetings with local businesses, workforce development partners, and federal, state and local leaders to proactively identify and solve challenges a company might have including: Workforce Solutions are explored with each company during BRE visits. This includes marketing of positions, new training programs and incentives. Preventative Maintenance Technician program developed with workforce partners to create a dedicated talent pipeline. Promoting College & Career Academies (Diploma+) by connecting employers to KCKPS and developing in-demand technical pathways. Workforce Opportunities is a new communication strategy ( alert system) WYEDC has implemented in order to communicate high wage job opportunities to populations that are not always aware of them. Expanding Global Trade opportunities through awareness of resources, new markets and incentives. Development Process Communication including collaboration with the Development Review Committee and assisting community partners to make the process most efficient. Innovation is being promoted through KCKCC s Innovation Summit, global trade opportunities, MAMTC, BPU and other programs. Community Engagement of employers is key to retaining companies and such efforts include companies hosting tours, teaching classes, sponsoring space and equipment, participating on committees and much more. Marketing existing companies through Made in The Dotte, BRE reports, WYEDC website and regular WYEDC presentations. Primary reason for not expanding: Building/land availability cost In the last three years, expansions have decreased in square footage due to space constraint. 4

5 Retention Highlights Greatest Achievements Business Growth/Sales Increase Challenge(s) Successful Conclusion Products/Services Added Greatest Challenges Workforce Issues Maximizing Facility Efficiency Community Strengths Location (access) Business Climate Positive Proximity to Suppliers Community Weaknesses Regulatory Requirements Infrastructure Building Availability/Cost Wyandotte County businesses are seeing an increase of 57% in sales, while 33% report a stable sales cycle. Top Stresses for Business Owners Decreasing 10% Workforce Building/Land Availability Effi ciency Stable 33% Increase 57% 2015 Workforce High Taxes Growth 5

6 EXPANSION Wyandotte County s expansion projects are slightly larger than the national averages and for growing local companies, WYEDC assists with identifying financing, business incentive and workforce planning programs. $2.3M per expansion (excluding GM and KU) 23 net, new jobs 15K s.f. average physical expansion National Expansion Averages* $1.2M per expansion 10 net, new jobs 18K s.f. average physical expansion *data provided by Synchronist Business Information Systems Trends of Interest Competition finding/keeping talent Industrial Park(s) food options Crime Improving work environments Pride K 12 Focus 6 Business Retention and Expansion Highlight:

7 INDIVIDUAL CITY FINDINGS WITH MAP AND KEY 128 total visits 65% Manufacturing/industrial 23% Logistics/transportation $42M Average annual sales 118 Average employee size Edwardsville 43% logistics 35% report global trade engagement 78% report hiring 210 open positions identifi ed 23 visits 48% report expansion within one year 35% manufacturing or industrial Bonner Springs $25M average annual sales 60% report global trade engagement 60% report hiring 18 open positions identifi ed 5 visits 40% report expansion within one year 100% manufacturing or industrial Kansas City, KS 23% logistics 24% report global trade engagement 74% report hiring 902 open positions identifi ed 100 visits 45% report expansion within one year 42% manufacturing or industrial Business Retention and Expansion Highlight: 7

8 GLOBAL TRADE IN WYANDOTTE COUNTY Global Trade Statistics 95% of the world s consumers live outside of the U.S. 75% of U.S. companies have not taken advantage of or were unaware of available export support services. Trade Markets Global Trade Initiatives: Global Cities Initiative US Commercial Services Data, Information Resources Kansas Small Business Development Center KS Commerce and World Trade Center Grants Global 24% National 18% Regional 58% Wyandotte County Exports (2015) Engineering & Heavy Industry 13% Eds, Meds & Tourism 8% Agriculture, Forestry & Fishing 1% General Business Services 1% Insurance 1% Information & Technology 5% Manufacturing 71% Economic Impact: EXPORTING = Growth Jobs Sustainability WYEDC ASSISTANCE: Support Services WYEDC can assist companies by connecting the company with export service providers who will make it easier to export and to accelerate exporting into new markets. Services include trade counseling, market intelligence, business matchmaking, financing, trade promotion programs, freight, documents, insurance, etc. Partners WYEDC partners stand ready to assist: Kansas Department of Commerce, Kansas Small Business Development Center, U.S. Commercial Services, World Trade Center-KC, Small Business Administration, EXIM Bank, Mid-America Manufacturing Technology Center, International Trade Council of Greater Kansas City. Incentives Kansas State Trade and Export Promotion (STEP) Grant and WTC Exporting Micro- Grant, among others. Training Kansas Small Business Development Center, Kansas Department of Commerce, US Commercial Services. International Trade Shows WYEDC partners assist with information on trade shows that will best fit the company s portfolio of products or services. 8 Business Retention and Expansion Highlight:

9 ADDRESSING WORKFORCE Federal & State Commerce Labor Education K-16 Education Providers Funders & Policymakers Business Needs Placement & Recruiting Providers For Profit Non-Profit Workforce Partnership KCKCC Donnelly College Unions Neighborhood Groups Business B usiness i R Retention etenti t tion a and nd de Expansion xpansion i H Highlight: ighl hliight ht: Board of Regents UG Workforce Partnership MARC Foundations Training Providers KCKCC Donnelly College For Profit Non-Profit Unions 9

10 WORKFORCE Improve county health rankings IMPROVING THE HEALTH OF THE COMMUNITY TRANSFORMING THE COMMUNITY Increase household income Business LEVERAGING INVESTMENT Reduce number of unfilled, high-paying positions Reduce unemployment levels Increase interest in skilled jobs among student, immigrant and underemployed populations Increase total number of workers CREATE A CULTURE OF CHANGE 70% are hiring 62% report skilled production labor gap 73% report current workforce between average and excellent $43,659 average annual salary Desired Employer Traits: Reliability Problem solving Work ethics 1,164 open positions identified in Top Positions Requested Industrial Maintenance Machinists CDL Warehouse Diesel Sales 10 Business Retention and Expansion Highlight:

11 BRE TRENDS: 2014 Since 2014, 350 total business retention and expansion interviews have been conducted. BRE visits Plan expansion within 1 year % 41% 38% Average hires from expansions Average investment from expansions $3 M $3 M $2 M $2 M $2.3 M $1 M Began identifying workforce topics as biggest concern Exporting rarely discussed Merger and acquisition activity was minimal Amenities desired within industrial parks 2015 Developed Workforce Solution strategies to address concerns Growing exports a regular topic Slight increase in merger and acquisition activity Amenities desired within industrial parks Implemented a number of Workforce Solution Strategies Implementation of export concierge services Larger increase in merger and acquisition activity Amenities desired within industrial parks High interest in improving environment to compete for workforce Business Retention and Expansion Highlight: 11

12 Danica Rome Senior Director, Retention and Workforce Solutions Marcia Harrington Coordinator, Business Retention and Expansion 727 Minnesota Avenue Kansas City, Kansas Ph Fx Loretta Colombel Business Retention and Expansion