Business Retention and Expansion Highlights: 2017

Transcription

1 Berkel & Company Bonner Springs, KS INX Edwardsville, KS Geiger Ready-Mix Headquarters Kansas City, KS Business Retention and Expansion Highlights: 2017

2 + MAMTC s mission is to grow Kansas manufacturing by delivering solutions to small and medium sized manufacturers with value driven results. MAMTC is the only advisory firm solely focused on growing Kansas manufacturing with proven published results. MAMTC and WYEDC are jointly committed to growing the manufacturing economy of Kansas. WYEDC is a strategic partner of MAMTC which allows direct funding of specific programs that deliver on the manufacturing floor, plant facilities or the C suite all with the intent of fueling Kansas industry. MAMTC S CORE CAPABILITIES SAVINGS: Lean: Reduce Waste and Improve Efficiency MAMTC was an exceptional partner in a recent LEAN project. Energy: Institute Energy Savings to Increase Profits EFFICIENCY: Supply Chain: Create an Efficient, Perpetual, and Agile Supply Chain Workforce: Attract, Develop, Reward and Maintain a Skilled Workforce MANAGEMENT: Quality: Develop a Continuous Improvement Process to Deliver Quality for Your Operations Financial: Comprehensive Financial Expertise focused on Kansas Manufacturing Companies They assessed our machine shop and through their process mapping they reduced set up time by 50% resulting in an annual savings of $100K. That s a real partner delivering real results. Eddie Smith Director of operations Kuhn Krause

3 RETENTION AND EXPANSION 136 BRE Visits GOAL: 120 visits 42 total active BRE projects $6.7 Million payroll Impact 24 Expansion/Retention Announcements 462,821 s.f. $168M 168 net, new jobs Average project = $4.3M (excluding PQ Corp.) 15% introduced new products within 3 years 49% identified 2017 as a growth year 54% hiring $20.40 average wage $46,831 average property taxes paid in years average number of years in Wyandotte 486 total BRE visits from Business Growth Continuum Common characteristics of Wyandotte County companies in various growth stages Dynamic Growth >$40K Wages (County Median Wage) Hiring Utilizing New Technology Strong Employee Retention Releasing New Products Invests in Training Exploring Global Expansion >10 Customers 4% identified as dynamic growth companies Intermittent Growth $15 20/Hour May Expand If Interested in Global Trade, Not Yet Involved Usually Dependent on <5 Customers 86% identified as intermittent growth companies Stagnant Growth <$15/Hour High Turnover Not Investing in Equipment/Facility 10% identified as stagnant growth companies 2

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 any 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. Kansas City Kansas Community College (KCKCC) tailors the desired training to correspond with the company s vision, mission and goals in order to support and/or foster the desired growth and innovation culture of the company. Preventative Maintenance Technician program developed to create a dedicated talent pipeline for the transportation industry in collaboration with KCKCC, Kansas Department of Commerce Workforce AID and Workforce Partnership. 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. Workforce Partnership will design a customized solution based on the company s needs to assist in the areas of recruiting and training including: candidate recruitment, screening, proficiency testing, customized assessments, on/off site recruitment, training solutions, logistical support & interview space. Expanding Global Trade opportunities through awareness of resources, new markets and incentives. Development Process Communication including collaboration with Development Review Committee and assisting community partners to make the process most efficient. 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. Any reason community may not be considered for expansion? 16% Yes 84% No Primary reason for not expanding: Building/land availability or cost 3

5 BUSINESS RETENTION Greatest Business Achievements Sustainability Business Growth/Sales Increase Employment Growth Greatest Business Challenges Workforce Issues Competition National Economy 2017 Key Trends Community Strengths Accessible Location Positive Quality of Life Local Economy Community Challenges Workforce Recruitment Infrastructure Cost of Doing Business Wyandotte County businesses are seeing an increase of 52% in sales, while 33% report a stable sales cycle. Decreasing 15% Stable 33% Increase 52% 4

6 EXPANSION WYANDOTTE COUNTY VS. NATIONAL AVERAGE $4.3M per expansion (excluding PQ Corporation) 19K s.f. average physical expansion National Expansion Averages* $16.7M per expansion 91K 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 5

7 INDIVIDUAL CITY FINDINGS WITH MAP AND KEY 136 total 2017 visits Manufacturing (63) KEY Service (24) Logistics (43) Life Science (3) Retail (3) 2017 Retention Visits by Industry 47% Manufacturing/industrial 32% Logistics/transportation Edwardsville 33% logistics 56% report global trade engagement 78% report hiring 75 open positions identified Bonner Springs $53M average annual sales 67% report global trade engagement 33% report hiring 3 open positions identified Kansas City, KS 31% logistics 22% report global trade engagement 59% report hiring 330 open positions identified $27M Average annual sales 12 visits 6 visits 118 visits Average employee size 56% report expansion within one year 17% report new products within three years 27% report expansion within one year 45 44% manufacturing or industrial 50% manufacturing or industrial 47% manufacturing or industrial 6

8 GLOBAL TRADE IN WYANDOTTE COUNTY GOAL: Expand global trade opportunities through awareness of resources and access to incentives to promote business growth. 28% of companies surveyed in YTD participate in global trade WYCO Top Export Markets: CANADA MEXICO AUSTRALIA Where WYCO companies send their products National 16% Global 22% Global National 19% 28% Regional 59% Regional 57% Kansas Top Export Markets: MEXICO CANADA JAPAN WYEDC ASSISTANCE: Let WYEDC help you position your products and services for a global marketplace. Wyandotte County Top Exporters Support Services We can assist with getting started and align you with export service providers that 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 Our partners stand ready to assist you: 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 Several opportunities are available for educating yourself about exporting through Kansas Small Business Development Center, Kansas Department of Commerce, US Commercial Services. International Trade Shows Our partners assist with information on trade shows that will best fit your portfolio of products or services. 7

9 WORKFORCE SOLUTIONS Amazon Update Overview $310.5M investment/2.3m useable square feet $13 per hour plus full benefits (some differential pay levels) Workforce a key driver Outcomes 8 local job fairs/25,000+ applications Operational August 2017 Initial 2016 full-time employee announcement: 1,500 Year-end 2017 full-time employees: 3,000 + Wyandotte Countians represent 34% of employees hired COMMUNITY HEALTH ASSESSMENT/COMMUNITY HEALTH IMPROVEMENT PLAN In 2017, Jobs and Education was identified as the community s leading health challenge as identified by Wyandotte County residents through a Community Health Assessment conducted by the Wyandotte County Health Department. The Workforce Solutions Committee was asked to develop a 5-year Community Health Improvement Plan to increase access and quality of Jobs and Education in the community. Focus areas include: Childcare Early Childhood Education Language Transportation Post-Secondary Education/ Industry-Recognized Certifications Criminal History Career Pathways 8

10 WORKFORCE SOLUTIONS Wyandotte County Employment by Industry, 2017 Health Care & Social Assistance Manufacturing Transportation & Warehousing $64,460 $52,843 $63,466 9,418 11,092 19,545 Retail Trade Educational Services Administrative, Support & Waste Management Accommodation & Food Services Wholesale Trade Professional, Scientific & Technical Services Construction $29,286 8,189 $46,364 6,602 $33,147 $19,075 $57,545 5,728 5,725 5,378 $72,412 5,080 $59,483 4,755 Public Administration $54,729 3,821 Other Services Arts, Entertainment & Recreation Finance & Insurance Real Estate Rental & Leasing $27,930 2,833 $26,565 1,996 $51,783 $41,078 1,115 1,064 Source: JobsEQ Average Annual Wage 54% are hiring 61% report skilled production labor gap 85% report stability of current workforce $40,081 average annual salary Desired Employer Traits: Reliability Work Ethic Skilled Top Positions Requested Healthcare Nursing Machinists CDL Warehouse Diesel Sales 9

11 BRE TRENDS: Since 2014, 486 total business retention and expansion interviews have been conducted. 150 BRE visits 50% Plan expansion within 1 year % 30% 20% 41% 41% 38% 28% 10% Average hires from expansions Average investment from expansions $5 M $4 M $4.3 M $3 M $2 M $1 M $3 M $2 M $2.3 M

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