2008
North Central Region
North Central Kansas County Profiles
ROUGH DRAFT Project funding support provided by Rural Business Tax Credits from the Kansas Department of Commerce through NCKCN, an affiliate of North Central Regional Planning Commission.
Advanced Manufacturing Institute 510 McCall Road Manhattan, KS – 66502-5034 785-532-7044 785-532-7031
NORTH CENTRAL REGION Industry at a Glance – North Central Kansas Region Highest Growth Rates 541810 Advertising Agencies 561499 All Other Business Support Services 561439 Other Business Service Centers (including Copy Shops) 531390 Other Activities Related to Real Estate 624190 Other Individual and Family Services 451212 News Dealers and Newsstands 424590 Other Farm Product Raw Material Merchant Wholesalers 561210 Facilities Support Services 333511 Industrial Mold Manufacturing 561740 Carpet and Upholstery Cleaning Services Highest Wages (as Compared to National Average) 524292 Third Party Administration of Insurance and Pension Funds 611710 Educational Support Services 611512 Flight Training 488490 Other Support Activities for Road Transportation 812191 Diet and Weight Reducing Centers 488991 Packing and Crating 519190 All Other Information Services 447190 Other Gasoline Stations 335121 Residential Electric Lighting Fixture Manufacturing 423830 Industrial Machinery and Equipment Merchant Wholesalers Highest Location Quotient 335121 Residential Electric Lighting Fixture Manufacturing 335911 Storage Battery Manufacturing 561492 Court Reporting and Stenotype Services 311412 Frozen Specialty Food Manufacturing 311111 Dog and Cat Food Manufacturing 326191 Plastics Plumbing Fixture Manufacturing 332439 Other Metal Container Manufacturing 327125 Non-Clay Refractory Manufacturing 311330 Confectionery Manufacturing from Purchased Chocolate 424510 Grain and Field Bean Merchant Wholesalers Shift Share 621111 623110 561320 454111 721110 561492 332439
Offices of Physicians (except Mental Health Specialists) Nursing Care Facilities Temporary Help Services Electronic Shopping Hotels (except Casino Hotels) and Motels Court Reporting and Stenotype Services Other Metal Container Manufacturing 2
NORTH CENTRAL REGION 621420 624190 336214
Outpatient Mental Health and Substance Abuse Centers Other Individual and Family Services Travel Trailer and Camper Manufacturing
Traded Clusters in North Central Kansas 1. Location quotient higher than 1.25. Agribusiness, Food Processing and Technology Electrical Equipment, Appliance and Component Manufacturing Fabricated Metal Product Manufacturing Glass and Ceramics Machinery Manufacturing 2. Growth rates more than 5% Education and Knowledge Cluster Fabricated Metal Product Manufacturing Glass and Ceramics Machinery Manufacturing Primary Metal Manufacturing 3. Wages higher than national wages None Local Clusters in the North Central Kansas Region 1. Location quotient higher than 1.25 Local Community & Civic Organizations Local Financial Services 2. Growth rates more than 5% Local Education & Training Local Health Services Local Household Goods & Services 3. Wages higher than national wages Local Industrial Products & Services Largest Employer Manufacturing Sector Maximum Establishments Retail Trade Sector Highest Annual Average Wages Management of Companies & Enterprises
3
NORTH CENTRAL REGION
Section I Overview of the North Central Region
The North Central Region of Kansas includes twelve core counties supported by the North Central Regional Planning Commission and seven other counties of the sunflower state.
4
NORTH CENTRAL REGION
Region Profile – North Central Region, KS The North Central Kansas region includes 19 out of the 105 counties in the state of Kansas. The counties in this region are – Chase, Clay, Cloud, Dickinson, Ellsworth, Geary, Jewell, Lincoln, Lyon, Marshall, Mitchell, Morris, Ottawa, Pottawatomie, Republic, Riley, Saline, Wabaunsee and Washington. The 2007 populations estimate listed the population of this region to be 302,969. According to 2000 estimates, it has 14169.26 square Miles in land area and a population density of 21.4 people per square mile. The average household size was 2.4 persons in 2000 (US census Bureau).
Population Estimates The North Central Region has a population of 302,969 as of July 1, 2007 (US Census Bureau). The population decreased by 0.09% from the year 2000 to 2007. As per the 2000 census survey, population of the region was 303,256. In 2000, North Central Region had 20% of its population under the age of 15 years, 31.5% in the age group 15 to 34 years, 30.5% in the age group 35 years to 59 years and about 18% of population above 60 years of age. Table 1: Population Estimates for North Central Region Population Estimates
Year Ending July 1,2007
North Central Region 302,969
Kansas 2,775,997
July 1,2006
302,167
2,755,817
July 1,2005
300,874
2,741,665
July 1,2004
300,207
2,730,828
July 1,2003
301,214
2,721,824
July 1,2002
300,387
2,712,383
July 1,2001
301,721
2,700,979
July 1,2000
303,224
2,692,890
April 1,2000
303,256 -0.09%
2,688,418 3.26%
-0.7%
8.5%
Census 2000 2000 to 2007 % change 1990 to 2000 % change Source: US Census Bureau
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NORTH CENTRAL REGION 3,000,000 2,500,000 2,000,000 Kansas 1,500,000 1,000,000 500,000 315,000 310,000 305,000 300,000 295,000 290,000
19 County Region
285,000 280,000 275,000 270,000 265,000
1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 Source: US census Bureau
Figure 1: Population Change in the Last Century Table 2: Sex and Age of Population (2000 Census) SEX AND AGE Male Female Under 5 years 5 to 9 years 10 to 14 years 15 to 19 years 20 to 24 years 25 to 34 years 35 to 44 years 45 to 54 years 55 to 59 years 60 to 64 years 65 to 74 years 75 to 84 years 85 years and over
Count 152,274 150,982 19,306 19,827 21,505 26,778 31,559 37,186 43,022 36,426 13,079 11,069 20,807 15,612 7,080
Percentage 50.21% 49.79% 6.37% 6.54% 7.09% 8.83% 10.41% 12.26% 14.19% 12.01% 4.31% 3.65% 6.86% 5.15% 2.33%
Source: US Census Bureau
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NORTH CENTRAL REGION
Household Income Median household income for various counties in the North Central Region is as given in the table below. The state median household income for 2005 is $42,861 and it has declined by 9.9% from 2000 to 2005. Table 3: Median Household Income in North Central Region County Kansas Chase Clay Cloud Dickinson Ellsworth Geary Jewell Lincoln Lyon Marshall Mitchell Morris Ottawa Pottawatomie Republic Riley Saline Wabaunsee Washington
Median Income (1999)
Median Income (1999) Adjusted*
Median Income (2005)
$40,624 $32,656 $33,965 $31,758 $35,975 $35,772 $31,917 $30,538 $30,893 $32,819 $32,098 $33,385 $32,163 $38,009 $40,176 $30,494 $32,042 $37,308 $41,710 (H) $29,363
$47,622 $38,282 $39,816 $37,229 $42,172 $41,934 $37,415 $35,799 $36,215 $38,473 $37,627 $39,136 $37,704 $44,557 $47,097 $35,747 $37,562 $43,735 $48,895 (H) $34,421
$42,861 $34,634 $37,732 $33,874 $41,061 $38,996 $37,758 (G) $32,500 $32,322 $36,455 $38,111 (G) $36,738 $36,618 $41,571 $46,271 (H) $31,364 $35,071 $40,268 $47,231 (H) $31,770
2005 Median Income as Percent of Kansas 100% 80.81% 88.03% 79.03% 95.80% 90.98% 88.09% 75.83% 75.41% 85.05% 88.92% 85.71% 85.43% 96.99% 107.96% 73.18% 81.82% 93.95% 110.20% 74.12%
Source: US Census Bureau (Downloaded from www.stats.indiana.edu) *Adjusted for inflation, G- Median income increased from 1999 to 2005, H – Median income higher than state median income
Wabaunsee is the only county with median income higher than the state in both 1999 and 2005. In 2005, median income of Wabaunsee County was about 110% of the state median income. In 2005, Pottawatomie County’s median income was also higher than the state median income. Geary and Marshall are the two counties where the median income has increased from 1999(adjusted) to 2005. The median income for Geary County increased from $37,415 to $37,758 in 2005. Similarly for Marshall County, median household income increased from $37,627 to $38,111.
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NORTH CENTRAL REGION Figure 2: Median Income for various counties in the North Central Region $60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
Median Income (1999) Adjusted*
Median Income (2005)
Source: US Census Bureau (Downloaded from www.stats.indiana.edu) *Adjusted for inflation
8
NORTH CENTRAL REGION
Poverty Rates The current poverty rate for various counties in the North Central Region is as shown in the table below. The poverty rate for Kansas is 11.7. In the region only six counties had poverty rates greater than the state rate. All other thirteen counties have poverty rates less than state poverty rate. Wabaunsee County has the lowest poverty rate of 8 percent followed by Ottawa County with poverty rate of 8.4%. Riley County has the maximum poverty rate of 20.2 percent in the region. Table 4: Poverty Estimates for the North Central Region County Kansas Chase Clay Cloud Dickinson Ellsworth Geary Jewell Lincoln Lyon Marshall Mitchell Morris Ottawa Pottawatomie Republic Riley Saline Wabaunsee Washington
Poverty Rate
Compared to Kansas 11.7 11 10.8 12.6 8.8 9.4 13.4 13.2 11.9 16.6 10.4 11 10.8 8.4 9.6 10.4 20.2 11.5 8 11.3
-0.7 -0.9 0.9 -2.9 -2.3 1.7 1.5 0.2 4.9 -1.3 -0.7 -0.9 -3.3 -2.1 -1.3 8.5 -0.2 -3.7 -0.4
Source: US Census Bureau (Downloaded from www.stats.indiana.edu)
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N NORTH CEN NTRAL REG GION
Labor Force F The Norrth Central Region’s current c une employmentt rate is 3.5 5% which is i less than n the state ratte of 4.1%. The total la abor force for the regiion increased by 5.7% % in the lastt five years an nd by 5.9% % in the lastt ten years; the employed labor force f increa ased by 6.4 4% in the last five f years, and the unemployed labor l force declined byy 11.1% in the region. Table 5: Labor Force Annua al Averages s for North h Central Region R Labor Fo orce Annual Averages A in 2007 Total Labo or Force 5-year % change 10-yearr % change Employed d 5-year % change 10-yearr % change Unemployyed 5-year % change 10-yearr % change Unemployyment Rate 5-year % change 10-yearr % change
North Central Region 163,5 532 5.7% % 5.9% % 157,8 839 6.4% % 5.8% % 5,69 93 -11.1% -9.1% % 3.5 5 -14.6 6% -12.5 5%
Kansas 1,478,781 3.8% 6.9% 1,418,666 5.0% 6.7% 60,115 -17.8% 12.0% 4.1 -19.6% 5.1%
Source: US Bureau of Laborr Statistics (Down nloaded from ww ww.stats.indiana.edu)
3.48% %
Emp ployed Uneemployed
96.52%
Figure e 3: Emplo oyed & Une employed Percent off Total Lab bor Force in n the Regio on
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NORTH CENTRAL REGION
Educational Attainment About eighty-seven percent of the population above the age of 25 has at least a high school degree. 25.68% of the population above the age of twenty-five had some college education, and 27.42% are college graduates. Table 6: Educational Attainment – North Central Region Educational Attainment: Census 2000 Total Population 25 and Older Less Than 9th Grade 9th to 12th, No Diploma High School Graduate (incl. equiv.) Some College, No Degree Associate Degree Bachelor's Degree Graduate or Professional Degree
North Central Region 183,968 8,937 14,533 62,813 47,243 9,963 25,552 14,927
Percent of Population 25+ 100.0% 4.86% 7.90% 34.14% 25.68% 5.42% 13.89% 8.11%
Kansas 1,701,207 88,124 149,675 507,612 417,722 99,096 290,271 148,707
Percent of Population 25+ 100.0% 5.2% 8.8% 29.8% 24.6% 5.8% 17.1% 8.7%
Source: US Census Bureau
100% 90% 80% 70% 60%
8.11%
8.70%
13.89%
17.10%
5.42% 25.68%
50%
5.80%
Graduate or Professional Degree Bachelor's Degree Associate Degree
24.60% Some College, No Degree
40% 30%
34.14%
29.80%
7.90% 4.86%
8.80% 5.20%
North Central Region
Kansas
20% 10% 0%
High School Graduate (incl. equiv.) 9th to 12th, No Diploma Less Than 9th Grade
Figure 4: Education Attainment in the 19 County Region
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NORTH CENTRAL REGION
Workers Commuting to Work The table below shows the number of workers commuting to work from each county. In all the counties, the majority of workers are employed in the county itself, except for Wabaunsee County where 36.79% of workers commute to Shawnee County for work and 35.57% work in Wabaunsee County itself. Table 7: Workers Commuting from North Central Region for Work* Residence County Geary Co. KS Pottawatomie Co. KS Wabaunsee Co. KS Ottawa Co. KS Chase Co. KS Dickinson Co. KS Jewell Co. KS Clay Co. KS Clay Co. KS Dickinson Co. KS Dickinson Co. KS Ellsworth Co. KS Jewell Co. KS Lincoln Co. KS Lincoln Co. KS Morris Co. KS Morris Co. KS Pottawatomie Co. KS Republic Co. KS Riley Co. KS Riley Co. KS Wabaunsee Co. KS Wabaunsee Co. KS Washington Co. KS
Work County Riley Co. KS Riley Co. KS Shawnee Co. KS Saline Co. KS Lyon Co. KS Saline Co. KS Mitchell Co. KS Geary Co. KS Riley Co. KS Geary Co. KS Riley Co. KS Saline Co. KS Nuckolls Co. NE Ellsworth Co. KS Saline Co. KS Geary Co. KS Riley Co. KS Shawnee Co. KS Cloud Co. KS Geary Co. KS Pottawatomie Co. KS Pottawatomie Co. KS Riley Co. KS Marshall Co. KS
Count
Percent of Total Commuting Workers of Residence County
4,238 2,694 1,267 1,290 468 1,214 187 249 398 691 573 254 93 98 176 173 230 751 203 2,013 1,821 342 328 286
31.59% 29.88% 36.79% 42.18% 30.81% 12.59% 10.48% 5.80% 9.27% 7.17% 5.94% 8.63% 5.21% 5.41% 9.71% 5.84% 7.76% 8.33% 7.34% 5.82% 5.26% 9.93% 9.52% 9.05%
Source: US Census Bureau (Includes only workers over 16 years old) *Shown are the counties where more than 5% of population commutes to a particular location for work.
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NORTH CENTRAL REGION
Figure 5: Workers Commute from the North Central Region
13
NORTH CENTRAL REGION
The table below shows the number of workers commuting for work to each county. The maximum flow of workers in the North Central Region is from Geary County to Riley County. Around 4,238 workers commute from Geary to Riley County in the North Central Region for work. Table 8: Workers Commuting to North Central Region for Work* Residence County Ottawa Co. KS Geary Co. KS Chase Co. KS Pottawatomie Co. KS McPherson Co. KS Dickinson Co. KS Jewell Co. KS Wabaunsee Co. KS Lincoln Co. KS Coffey Co. KS Wabaunsee Co. KS Greenwood Co. KS Clay Co. KS Washington Co. KS Ellsworth Co. KS Morris Co. KS Republic Co. KS Dickinson Co. KS Dickinson Co. KS Morris Co. KS Riley Co. KS Clay Co. KS Lincoln Co. KS Riley Co. KS
Work County Saline Co. KS Riley Co. KS Lyon Co. KS Riley Co. KS Saline Co. KS Saline Co. KS Mitchell Co. KS Pottawatomie Co. KS Saline Co. KS Lyon Co. KS Riley Co. KS Lyon Co. KS Riley Co. KS Marshall Co. KS Saline Co. KS Riley Co. KS Cloud Co. KS Geary Co. KS Riley Co. KS Geary Co. KS Geary Co. KS Geary Co. KS Ellsworth Co. KS Pottawatomie Co. KS
Count 1,290 4,238 468 2,694 688 1,214 187 342 176 420 328 318 398 286 254 230 203 691 573 173 2,013 249 98 1,821
Source: US Census Bureau (Includes only workers over 16 years old) *Shown are the counties where more than 5% of population commutes to a particular location for work.
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NORTH CENTRAL REGION
Figure 6: Workers Commuting to the North Central Region for Work
15
NORTH CENTRAL REGION
Section – II Industry Analysis
16
NORTH CENTRAL REGION
Industry Analysis Industry Totals for the North Central Region Industry employment grew at a rate of 24.02% from 1990 to 2007 in North Central Kansas. Average pay (after adjusting for inflation) has grown at a rate of 11.41%, and establishments in the same period increased at rate of 7.44%. This is a good indicator of growing industry in the region. Table 9: Annual Covered Employment & Wages1 over Time (NAICS) – North Central Region Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Establishments 8,414 8,549 8,531 8,415 8,411 8,475 8,549 8,676 8,845 8,774 8,723
Employment 108,970 109,627 113,268 115,002 117,989 120,649 123,304 126,100 128,112 128,809 130,826
Average Annual Pay $16,419 $16,981 $17,555 $17,943 $18,542 $18,995 $19,797 $20,316 $21,088 $21,839 $23,125
Average Pay in Terms of 20072 Dollars (adj*) $26,047 $25,851 $25,944 $25,746 $25,942 $25,843 $26,162 $26,245 $26,825 $27,180 $27,844
1
Covered Employment & Wages (CEW) also known as ES202 data are the product of a federal-state cooperative program, the Quarterly Census of Employment and Wages (QCEW) program, also known as the ES-202 program. The data are derived from summaries of employment and total pay of workers covered by state and federal unemployment insurance (UI) legislation and provided by State Workforce Agencies (SWAs). The summaries are a result of the administration of state unemployment insurance programs that require most employers to pay quarterly taxes based on the employment and wages of workers covered by UI. (www.bls.gov). 2
Average wages in 2007 dollars term calculated using CPI inflation calculator available at Bureau of Labor Statistics website http://data.bls.gov/cgi-bin/cpicalc.pl. The CPI inflation calculator uses the average Consumer Price Index for a given calendar year. This data represents changes in prices of all goods and services purchased for consumption by urban households. This index value has been calculated every year since 1913. For the current year, the latest monthly index value is used (www.bls.gov).
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NORTH CENTRAL REGION Year 2001 2002 2003 2004 2005 2006 2007 Change from 1990 to 2007 Percent change from 1990 to 2007
Establishments 8,687 8,740 8,665 8,627 8,672 8,774 9,040 626 7.44%
Employment 129,990 128,927 128,482 130,431 130,576 132,912 135,144 26,174 24.02%
Average Annual Pay $23,787 $24,423 $24,994 $25,815 $26,636 $27,800 $29,020 12,601 76.75%
Average Pay in Terms of 20072 Dollars (adj*) $27,849 $28,148 $28,165 $28,335 $28,278 $28,592 $29,020 2,973 11.41%
Source: US Bureau of Labor Statistics (BLS) *adj = Adjusted for Inflation.
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8,774
8,672
8,627
8,665
8,740
8,687
8,723
8,774
8,676
8,549
8,475
8,411
8,415
8,600
8,414
8,800
8,531
8,549
9,000
8,845
Establishments 9,200
9,040
NORTH CENTRAL REGION
8,400
135,144
132,912
130,576
130,431
128,482
128,927
129,990
130,826
128,809
128,112
126,100
123,304
120,649
117,989
115,002
120,000
113,268
140,000
108,970
8,000 Employment 160,000
109,627
8,200
100,000 80,000 60,000 40,000 $29,020
$28,592
$28,278
$28,335
$28,165
$28,148
$27,849
$27,180
$26,245
$26,162
$25,843
$25,942
$25,746
$26,000
$25,944
$27,000
$25,851
$28,000
$26,047
$29,000
$26,825
Average Annual Pay (in terms of 2007 $) $30,000
$27,844
20,000
$25,000 $24,000 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Figure 7: Changes in Establishments, Employment and Average Annual Wages in the Region 19
NORTH CENTRAL REGION
Jobs and Average Wages by Industry Management of Companies and Enterprises is the highest paying sector in the region with average annual wages of $62,863. Other high paying sectors are: Utilities (annual average wages of $48,233) and Transportation and warehousing (annual average wages of $37,708). Table 10: Industry Distribution of Establishments, Jobs, and Average Wages – North Central Region Industry Distribution of Establishments, Jobs & Average Wages (2007) Total Covered Employment and Wages Private Agriculture, Forestry, Fishing and Hunting Mining Utilities Construction Manufacturing Wholesale Trade Retail Trade Transportation and Warehousing Information Finance and Insurance Real Estate and Rental and Leasing Professional, Scientific, and Technical Services Management of Companies and Enterprises
Establishments 9,040 8,065 154 32 59 1,056 336 458 1,269 446 199 573 314 631 35
Jobs 135,144 101,507 350 49 84 6,601 18,459 3,501 16,454 2,736 2,807 3,656 1,153 2,544 264
Annual Average Wage $29,020 $27,453 $27,043 $36,650 $48,233 $33,806 $35,742 $33,804 $19,298 $37,708 $34,211 $35,465 $21,500 $35,973 $62,863
Administrative and Support and Waste Management and Remediation Services
394
5,743
$24,240
Educational Services Health Care and Social Assistance Arts, Entertainment, and Recreation Accommodation and Food Services Other Services (except Public Administration) Public Administration
150 845 135 653 817 510
4,488 12,239 1,047 10,267 4,275 10,170
$25,402 $30,240 $12,531 $10,306 $22,873 $33,755
Source: US Bureau of Labor Statistics (BLS) N – Non-disclosed, NA- Not Applicable
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NORTH CENTRAL REGION In terms of employment, Manufacturing is the largest sector with 18,459 employees. Other large employers are the Retail Trade (16,454 employees) and Health Care & Social Assistance sectors (12,239 employees). Retail Trade is also the largest sector in the North Central Region in terms of number of establishments with 1,269 establishments followed by Construction (1,056 establishments) and Health Care & Social Assistance (845 establishments).
Establishments
Agriculture Utilities Manufacturing Retail Trade Information Real Estate Management of Companies Educational Services Arts, Entertainment, & Recreation Other Services (except Public Administration)
Jobs
Mining Construction Wholesale Trade Transportation & Warehousing Finance & Insurance Professional, Scientific,& Technical Services Waste Management &Remediation Services Health Care & Social Assistance Accommodation & Food Services Public Administration
Figure 8: Establishments and Jobs in Various Industry Sectors in the Region
21
NORTH CENTRAL REGION
$10,000 $0
$33,755 $10,306
$22,873
$30,240
$24,240
$35,973
$37,708
$33,804
$35,742
$35,465 $21,500
$12,531
$20,000
$19,298
$30,000
$33,806
$40,000
$27,043
$50,000
$36,650
$48,233
$60,000
$34,211
$70,000
$25,402
$62,863
Annual Average Wage
Agriculture Mining Utilities Construction Manufacturing Wholesale Trade Retail Trade Transportation & Warehousing Information Finance & Insurance Real Estate Professional, Scientific,& Technical Services Management of Companies Waste Management &Remediation Services Educational Services Health Care & Social Assistance Arts, Entertainment, & Recreation Accommodation & Food Services Other Services (except Public Administration) Public Administration
Figure 9: Average Wage in Various Industries in the Region
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NORTH CENTRAL REGION
Key Industries North Central Region is home to some very well performing industries. These industries may be a part of existing or emerging clusters. For identifying key industries and clusters, three criteria were used: 1. Location Quotient – Location quotients (LQ) for industries at 6-digit NAICS level were calculated with US industry employment as a base. The cutoff for LQ was taken as 1.25 (based on previous studies, especially Cortright 2003). 2. Average Wages – Average wages at 6-digit NAICS codes were compared to US average wages. If any industry has average wages 10% above the US average, it is considered to be a good performing industry. 3. Growth Rate – Growth rates for employment were calculated over a three year time period from 2003 to 20063; growth rates above 5% are considered to be an indicator of good industry performance. Any industry that satisfies one of these three conditions is either a good performing industry or an industry with good potential for growth. There may or may not be a cluster existing in a region for every good performing industry, but if there are good performing industries, a cluster may emerge in the near future. Three industries in North Central Kansas satisfy all three of the above stated criteria – Motor Vehicle Towing (NAICS 488410), Fertilizer (Mixing Only) Manufacturing (NIACS 325314) and Motor Vehicle Body Manufacturing (NAICS 336211). Table 11: 6-Digit NAICS Codes with High Wages, Location Quotients and Growth Rates NAICS 488410 325314 336211
NAICS Definition Motor Vehicle Towing Fertilizer (Mixing Only) Manufacturing Motor Vehicle Body Manufacturing
Establishments
Employment
Average Wages
Higher Wages Than Nation
Growth Rate
Location Quotient
10 1 2
85 30 377
$33,050 $53,990 $54,317
12.79% 30.18% 24.98%
15.62% 210.72 18.60%
1.98 4.22 6.34
Source: ES202 2006 data, IMPLAN MIG Group
3
There were two reasons for selecting a 2003 base year. 1) The numbers were more likely to be free from 9/11 impacts as compared to 2001 or 2002 numbers. 2) NAICS definitions changed in 2002, so it was very difficult to bridge between 2002 & 1997 codes for some industries.
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NORTH CENTRAL REGION Growth Rate The industries with high growth rates are both local and traded4 industries in the North Central Region. The highest growth rate is for the Advertising Agencies (85.02%) and Business Support Services (81.71%). Table 12: Top 10 Industries (6-digit NAICS) with Highest Growth Rates NAICS
NAICS Definition
Establishments
Employment
Average Wages
Growth Rate
Cluster
541810
Advertising Agencies
5
19
$31,919
85.02%
Business and Financial Services
561499
1
36
$10,105
81.71%
Local Commercial Services
561439
All Other Business Support Services Other Business Service Centers (including Copy Shops)
7
46
$12,514
79.15%
Local Commercial Services
531390
Other Activities Related to Real Estate
3.6
11
$18,745
76.52%
Business and Financial Services
624190 451212
Other Individual and Family Services News Dealers and Newsstands Other Farm Product Raw Material Merchant Wholesalers
17 2
516 38
$19,543 $17,569
75.78% 75.75%
1
42
$13,585
73.80%
Local Health Services Local Entertainment & Media Agribusiness, Food Processing & Technology
424590 561210 333511
Facilities Support Services Industrial Mold Manufacturing
6 2
298 15
$33,716 $27,941
72.56% 71.00%
561740
Carpet and Upholstery Cleaning Services
7
29
$17,827
69.08%
Local Commercial Services Machinery manufacturing Local Personal Services (NonMedical)
Source: ES202 2006 data, IMPLAN MIG Group NA – No cluster assigned to NAICS
4
Traded industries are defined as the ones exporting their goods and/or services outside their region. Local industries are the ones with all local (within the region) dealings (Porter 2003).
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NORTH CENTRAL REGION Location Quotient The sector Residential Electric Lighting Fixture Manufacturing (NAICS 335121) has the highest LQ in the North Central Region of 62.38. This sector is part of the Electrical Equipment, Appliance and Component Manufacturing cluster. The sector with the second highest LQ in the region, Storage Battery Manufacturing (NAICS 335911), is also part of the same cluster. There are four other industries with LQ in the top ten that are part of the Agribusiness, Food Processing and Technology cluster. The sectors are: Frozen Specialty Food Manufacturing (NAICS 311412), Dog and Cat Food Manufacturing (NAICS 311111), Confectionery Manufacturing from Purchased Chocolate (NAICS 311330) and Grain and Field Bean Merchant Wholesalers (NAICS 424510). This is a good indicator of higher LQ for the Electrical Equipment, Appliance and Component Manufacturing cluster and the Agribusiness, Food Processing and Technology cluster in the North Central Region. Table 13: Top 10 Industries (6-digit NAICS) with Highest Location Quotients Establishments
Employment
Average Wages
Location Quotient
Residential Electric Lighting Fixture Manufacturing
1
706
$53,577
62.38
Electrical Equipment, Appliance and Component Manufacturing
335911
Storage Battery Manufacturing
1
706
$44,419
52.33
Electrical Equipment, Appliance and Component Manufacturing
561492
Court Reporting and Stenotype Services
2
482
$17,342
43.48
Local Commercial Services
311412
Frozen Specialty Food Manufacturing
1
2010
$30,101
40.76
Agribusiness, Food Processing and Technology
311111
2
539
$44,418
32.70
326191
Dog and Cat Food Manufacturing Plastics Plumbing Fixture Manufacturing
2
663
$31,718
31.19
Agribusiness, Food Processing and Chemicals and Chemical-based Products
332439
Other Metal Container Manufacturing
3
459
$27,534
23.43
Fabricated Metal Product Manufacturing
327125
Non-Clay Refractory Manufacturing Confectionery Manufacturing from Purchased Chocolate Grain and Field Bean Merchant Wholesalers
2
129
$31,330
23.20
1
653
$26,544
20.70
72
701
$41,345
18.56
Glass and Ceramics Agribusiness, Food Processing and Technology Agribusiness, Food Processing and Technology
NAICS
NAICS Definition
335121
311330 424510
Cluster
Source: ES202 2006 data, IMPLAN MIG Group
25
NORTH CENTRAL REGION Wages Compared to National Average Wages The county’s Third Party Administration of Insurance and Pension Funds sector (NAICS-524292) has average wages around 88% more than the national averages. This may be because of two reasons – this sector is a well performing industry with higher profits and they pay higher wages, or there is shortage of labor so to retain employees they have to pay higher wages. The sector has a LQ of and growth rate of (Table 15). Table 14: Top 10 Industries (6-digit NAICS) with Wages Above National Averages NAICS
NAICS Definition
Establishments
Employment
Average Wages
2.3
2
$99,780
Wages Compared to Nation5 88.50%
Cluster
524292
Third Party Administration of Insurance and Pension Funds
611710 611512
Educational Support Services Flight Training Other Support Activities for Road Transportation
4 2
15 8
$59,678 $70,240
63.85% 55.72%
Education and Knowledge Creation Education and Knowledge Creation
2
3
$44,386
49.88%
Transportation and Logistics
812191
Diet and Weight Reducing Centers
1
1
$22,926
43.71%
Local Personal Services (NonMedical)
488991 519190 447190
Packing and Crating All Other Information Services Other Gasoline Stations Residential Electric Lighting Fixture Manufacturing
1 1 48
1 3 618
$41,381 $60,744 $28,737
41.03% 40.69% 37.79%
1
706
$53,577
37.47%
Transportation and Logistics Printing and Publishing Energy (Fossil and Renewable) Electrical Equipment, Appliance and Component Manufacturing
Industrial Machinery and Equipment Merchant Wholesalers
10
123
$77,669
33.87%
488490
335121 423830
Business and Financial Services
Local Industrial Products & Services
Source: ES202 2006 data, IMPLAN MIG Group
5
Wages compared to nation – the difference in county & national average wages for a particular industry as a percentage of the national average.
26
NORTH CENTRAL REGION
Shift Share Analysis Shift share analysis breaks down changes in employment (growth or decline) over a period of time into three components: national growth share, Industry mix share and local share. This analysis is used to account for the competitiveness of a region’s industries and to analyze the local economic base6. National Growth Share This is the share of growth (decline) in local employment that can be attributed to growth (decline) in employment at the national level. National Growth Share = Employment in base year * National employment growth rate Industry Mix Share This is the growth (decline) in employment in the region that can be attributed to the growth (decline) in that particular industry at the national level. Industry Mix Share = Employment in base year *(Industry’s National Growth rate – National employment growth rate) Local Share This is the share of growth (decline) in employment in a region that can be attributed to the competitiveness of a region. Local Share = Employment in base year *(Region’s industry growth rate – National Industry growth rate) Offices of Physicians have the highest local share of growth in the region. This sector had a net growth of 931 jobs, out of which 867 jobs were attributed to local factors. Nursing Care Facilities is another sector with a high local share of employment growth. This sector had net growth of 866 jobs, out of which 854 were attributed to local factors. Moreover, the industry mix share in this sector had a negative growth effect (-102 jobs). Since the local share has a high growth rate, it means there was a national decline in employment in the nursing sector, and the region had certain competitiveness factors that attributed to a high positive growth in the sector.
6
Pennstate (2003) Using Employment data to better understand your local economy.
27
NORTH CENTRAL REGION Table 15: Industries with Highest Local Share of Growth – Shift Share Analysis North Central Region NAICS 621111 623110 561320 454111 721110 561492 332439 621420 624190 336214 611310 551114 813990 561422 311111 561210 332999 624310 443112 492110 447110 624410 621492 333922 722410
Offices of Physicians (except Mental Health Specialists) Nursing Care Facilities Temporary Help Services Electronic Shopping Hotels (except Casino Hotels) and Motels Court Reporting and Stenotype Services Other Metal Container Manufacturing Outpatient Mental Health and Substance Abuse Centers Other Individual and Family Services Travel Trailer and Camper Manufacturing Colleges, Universities, and Professional Schools Corporate, Subsidiary, and Regional Managing Offices Other Similar Organizations (except Business, Professional, Labor, and Political Organizations)
931 866 772 564 571 465 448 432 421 445 314 321
National Growth Share 48.05 114.54 12.73 0.26 36.38 0.90 0.58 2.27 5.02 12.57 0.90 23.18
286
0.42
0.32
285.26
Telemarketing Bureaus Dog and Cat Food Manufacturing Facilities Support Services All Other Miscellaneous Fabricated Metal Product Manufacturing Vocational Rehabilitation Services Radio, Television, and Other Electronics Stores Couriers Gasoline Stations with Convenience Stores Child Day Care Services Kidney Dialysis Centers Conveyor and Conveying Equipment Manufacturing Drinking Places (Alcoholic Beverages)
258 245 240 220 215 240 207 181 201 187 148 121
4.86 15.52 3.06 0.21 5.60 7.82 16.00 65.90 15.58 5.91 17.48 22.34
5.58 -5.52 6.51 -0.04 -4.36 26.12 -7.85 -73.70 2.20 6.27 -17.21 -44.34
247.56 235.00 230.43 219.83 213.76 206.07 198.85 188.80 183.22 174.82 147.73 143.00
NAICS Definition
Net Growth
Industry Mix Share 15.75 -102.40 37.48 1.73 -11.05 -0.64 -1.16 2.17 4.29 40.73 0.29 11.40
Local Share 867.20 853.86 721.79 562.01 545.66 464.74 448.58 427.56 411.69 391.70 312.81 286.42
Data Source: ES202 data, IMPLAN MIG group
28
NORTH CENTRAL REGION
Clusters in the North Central Region Traded Clusters The table below (Table16) shows various clusters in the region. Five clusters in North Central Kansas have location quotients higher than 1.25. They are Agribusiness, Food Processing and Technology Electrical Equipment, Appliance and Component Manufacturing Fabricated Metal Product Manufacturing Glass and Ceramics Machinery Manufacturing Agribusiness, Food Processing and Technology cluster has LQ of 3.99 in the region. However, the cluster has shown a decline of 1.16% in the last three years, and the average wages are 9.73% less than the national average wages for the cluster. The Electrical Equipment, Appliance and Component Manufacturing cluster has LQ of 4.91. It has declined by 3.13% and has wages 8.59% less than the cluster national wages. Fabricated Metal Product Manufacturing has LQ of 1.54, and along with that it has a high growth rate of 14.38%. Average wages, though, are about 26% less than cluster averages at the national level. Glass and Ceramics had LQ of 1.25, a growth rate of 12.68% and wages less than average. Similarly, the Machinery Manufacturing cluster has LQ of 2.5, growth of 7.62%, but very low wages that are about 43% less than cluster national average wages. Investments into these sectors should be considered to make them more competitive and attract labor.
29
NORTH CENTRAL REGION Table 16: Clusters in the North Central Region Cluster
Average Wages
Average Wages Compared to National Average
Growth Rate
Establishments
Employment
LQ
Advanced Materials Agribusiness, Food Processing and Technology Apparel and Textiles Arts, Entertainment, Recreation and Visitor Industries
104.3 384.2 30
3026 11,401 119
$34,714 $30,715 $27,429
-43.40% -9.73% -29.66%
-0.18% -1.16% -8.24%
0.63 3.99 0.11
239.9
2,824
$13,306
-59.42%
1.92%
0.67
Biomedical/Biotechnical (Life Sciences) Business and Financial Services Chemicals and Chemical-Based Products Computer and Electronic Product Manufacturing Defense and Security Education and Knowledge Cluster Electrical Equipment, Appliance and Component Manufacturing
374.3 972 87.3 6 134.6 90.6
9,674 5,174 2,238 49 1,184 1,486
$25,230 $35,759 $31,903 $41,439 $29,218 $24,097
-39.80% -53.00% -42.46% -49.47% -55.54% -45.01%
-0.90% -0.79% 3.53% -30.51% 4.86% 8.02%
0.94 0.50 1.05 0.04 0.33 0.74
7.3
1,879
$45,565
-8.59%
-3.13%
4.91
Energy (Fossil and Renewable) Fabricated Metal Product Manufacturing Forest and Wood Products Glass and Ceramics Information Technology and Telecommunications Machinery Manufacturing Mining Primary Metal Manufacturing Printing and Publishing Transportation and Logistics Transportation Equipment Manufacturing Total All Industries
653.2 49.6 123.6 10.3 250.5 61 30.3 3 126.3 362.6 21 7,905
7,266 2,047 1,020 362 2,813 2,607 163 91 1,808 3,601 1,393 99,908
$32,994 $32,379 $27,510 $32,103 $39,767 $39,075 $37,393 $31,239 $28,306 $33,422 $42,813 $26,274
-44.79% -26.30% -31.10% -24.72% -47.44% -27.94% -32.23% -43.01% -45.64% -20.65% -29.50% -38.04%
-0.50% 14.38% 0.03% 12.68% -5.74% 8.03% -3.61% 7.62% 1.00% -12.31% 4.84% 1.07%
1.08 1.54 0.44 1.25 0.52 2.50 0.92 0.23 0.84 0.85 0.89 1.00
Data Source: ES202 data, IMPLAN MIG group Highlighted cell represent values higher than specified criteria values
30
NORTH CENTRAL REGION Transportation Transportation and Equip Mfg Logistics 0.89 0.85 Printing and Publishing 0.84 Primary Metal Mfg 0.23
Mining 0.92
IT & Telecom 0.52 Glass and
LQ
Advanced Materials 0.63
Apparel and Textiles 0.11
Agribusiness 3.99
Biomedical 0.94
Machinery Mfg 2.5
Business & Financial Services 0.5
Ceramics 1.25
Chemicals 1.05
Forest and Wood Products 0.44 Fabricated Metal Prod Mfg 1.54
Arts & Entertainment 0.67
Electrical Equip & Component Mfg 4.91 Energy 1.08
Defense and Computer and Electronic Security Product 0.33 Manufacturing 0.04 Education & Knowledge Cluster 0.74
Figure 10: Location Quotient for Various Traded Clusters
31
NORTH CENTRAL REGION
Figure 11: Traded Clusters in the North Central Region
32
NORTH CENTRAL REGION
Figure 12: Traded Clusters in Various Counties and their LQ 33
NORTH CENTRAL REGION Local Clusters The North Central Kansas Region has high location quotients for two local clusters – Local Community & Civic Organizations and Local Fanatical Services. The Local Education & Training, Local Health Services and Local Household Goods & Services clusters have growth rates of more than 5%. The only local cluster with wages higher than the national average is the Local Industrial Products & Services cluster. Table 17: Local Clusters in the North Central Region Cluster
Average Wages
Average Wages Compared to National Average
Growth Rate
Establishments
Employment
46 145 5 75 191
412 1584 172 698 2653
$18,946 $22,009 $20,742 $14,255 $32,530
-31.40% -27.94% -33.17% -27.89% -36.48%
-3.68% -1.25% 15.03% -8.69% -1.36%
0.77 1.36 0.32 1.01 1.51
216
3593
$17,074
-37.08%
-1.55%
1.06
519.3 609.6 383.3 19 20 419 171.3 451.3 172.6 17
5100 9716 3624 172 206 3164 1083 2571 4313 72
$33,857 $8,963 $24,993 $69,417 $15,015 $29,522 $14,489 $32,300 $14,921 $27,228
-29.49% -34.71% -35.23% 23.59% -46.76% -19.79% -26.03% -36.76% -23.64% -33.96%
6.20% 1.81% 5.28% -9.10% -4.96% 0.00% 4.21% 3.62% 0.76% -22.55%
1.08 1.22 1.01 0.45 0.43 1.19 0.85 1.03 1.09 0.61
Local Commercial Services Local Community & Civic Organizations Local Education & Training Local Entertainment & Media Local Financial Services Local Food and Beverages Processing & Distribution Local Health Services Local Hospitality Local Household Goods & Services Local Industrial Products & Services Local Logistical Services Local Motor Vehicle Products & Services Local Personal Services (Non-Medical) Local Real Estate, Construction & Development Local Retail Clothing & Accessories Local Utilities
LQ
Data Source: ES202 data, IMPLAN MIG group Highlighted cell represent values higher than specified criteria values
34
NORTH CENTRAL REGION
Figure 13: Local Clusters in the North Central Region 35