A Productive Workforce
Statistics from federal sources back it up: Workers in the Kansas City area are among the most productive in the nation. There are reasons for that.
In a recent comparison of large metro areas across the United States, Kansas City had the lowest drop in unemployment from January 2011 to January 2012.
Although the region has experienced recession with other areas, employment here rose by 23,000 over that 12-month period, according to Mid-America Regional Council. With economic growth for the past two years and a work force of more than 1 million, this is a region where economic fates and the quality of the labor force are clearly linked. Fortunately for the region, that work force comes well-qualified to deliver broad economic success.
Quality Work Force
Kansas City’s metro area has a population of more than 2 million; a little more than half of that comprises the labor force. Less visible is the role played by the productivity of that work force:
They contribute 40 percent more value per hour than the national average, according to the U.S. Census Bureau.
One reason is the presence of a Midwestern work ethic, whether the worker resides in Kansas City’s urban core or in adjacent or outlying communities. Because many of the region’s residents are no more than a generation or two removed from the farm, the hard work and focus of farming and small-town values are still present.
In addition to producing more than average, they lose less time at work for health or other reasons. Employees in the greater Kansas City area consistently take fewer sick days than workers in 33 other metro areas—not a surprise, as this area ranks third for residents’ overall health.
The region’s work force is also diverse, with skilled employees covering everything from factory lines to business offices. In addition to a large work force in manufacturing, with companies like Ford and General Motors, health-care businesses like Cerner and HCA and retail giants like Hallmark generate skilled workers for new and growing industries.
Just one area firm, information processing giant DST Systems, employs 5,000 IT workers out of a work force of more than 34,000. The Wall Street Journal selected Kansas City as a national industry hub for IT. In the growing field of biotechnology, the region has more than 20,000 employees working in more than 200 biotech companies.
In addition, numerous highway systems, relatively mild winters and lower transportation costs allow area workers to reach their jobs with relative ease.
Broad-Based Support
Kansas City already meets the work-force needs of a large number of major employers. This includes a wide range of major companies that have renewed their commitments to this region with major expansions. This successful track record is an important component of investment decisions.
A recent example is the expansion under way by Ford Motor Company, with a $1.2 billion investment at its KC Plant in Claycomo. The work includes $110 million for a new stamping plant and rebuilding existing lines to manufacture a new van. Those projects are adding 1,600 jobs to the local economy and safeguard thousands of others in supplier industries. The high productivity of the local work force has been cited by Ford as a major reason the company has stayed in this area for nearly a century.
An investment by General Motors of $136 million in its Fairfax Assembly Plant in Kansas City, Kan., is further evidence of the area’s ability to supply the necessary work force. GM recently added a third shift of 900 jobs to meet demand for its Chevy Malibu and Buick Lacrosse models.
In other industries, a good example is Cerner Corp.’s investment and development in Wyandotte County. An estimated 4,000 jobs will be created on the corporation’s new campus. In addition, the investment is expected to create more than 1,800 spin-off jobs.
In 2010, Missouri and Kansas received a combined $71.4 million from the U.S. Department of Labor for job training. But it’s not just the federal government helping increase and train the work force; both states have multiple training programs as well.
The High Performing Incentive Program and the Investments in Major Projects and Comprehensive Training) program are just two incentive and training efforts offered in Kansas. And across the state line, the Missouri Quality Jobs Act extends tax credits for increases in employment, among its range of job-training assistance programs.
The regional work force is also highly educated, with the number of those holding college degrees 5 percentage points higher than the national average. Ninety percent of residents over 25 have high school degrees. Add to this educational base the accessibility to job training programs and you have a win-win situation.
Both states have programs pairing job training with education, but another avenue for the Kansas City area’s work force is private educational facilities. Schools like DeVry University and ITT Technical Institute, among others, offer career-focused education. Both sides of the state line have community colleges, including Metropolitan Community College with multiple branch campuses in Missouri and both Johnson County and Kansas City Kansas community colleges offering programs emphasizing specific skills and expertise for the job market, especially business and technology.
In terms of work-force supply and quality, Greater Kansas City is better off on average than many metropolitan areas in the country. The two-year climb back from the recession has been augmented by efforts to bring and maintain business and industry in the area. The success of these efforts has many factors, but is partly due to the ability to provide a work force that investors demand. 