Made in Kansas: The Evolution of a Manufacturing Sector

The story of manufacturing in Kansas over the past three decades is one of resilience, transformation, and divergent paths for its two largest metropolitan hubs, Wichita and Kansas City. While the state’s manufacturing sector has seen overall growth in economic output, its employment landscape has undergone significant shifts, heavily influenced by the volatile aerospace industry in Wichita and a steady relative decline in the Kansas City MSA’s share of the state’s manufacturing workforce.

The decade of the 1990s began with a downturn. From 1990 to 1993, statewide manufacturing employment fell from 177,600 to 171,900, a loss of nearly 6,000 jobs. This decline was mirrored, and often magnified, in the major metro areas. Wichita, the state’s manufacturing powerhouse, was hit particularly hard. Its crucial Aerospace Product and Parts Manufacturing sector collapsed from 39,500 employees in 1990 to a low of 31,700 by 1995, dragging total manufacturing employment in the Wichita MSA from 63,800 down to 57,300 over the same period.

However, the mid-to-late 1990s witnessed a spectacular boom. Driven by a resurgence in aerospace, Wichita’s employment soared, peaking in 1998 with 46,500 aerospace jobs and 74,700 total manufacturing jobs. This boom propelled the entire state, with Kansas manufacturing employment reaching a high of 205,000 in 1998. The Kansas City MSA also participated in this expansion, growing to 96,500 manufacturing employees by 1998.

The turn of the millennium marked the beginning of a painful, sustained contraction. The combination of the 2001 recession, the impact of the 9/11 attacks on aviation, and global competition triggered a deep bust. By 2003, Wichita’s aerospace employment had plummeted to 32,600, and its total  manufacturing workforce was nearly halved from its peak of 57,900. Statewide employment fell to a low of 173,900 in 2003, with the Kansas City MSA following the downward trend.

The post-Great Recession recovery period (2010-2019) reveals a critical divergence between output and employment, as well as between the two major metro areas.

Statewide Output vs. Employment: While statewide manufacturing employment never recovered to its late-1990s peak—hovering between roughly 162,000-171,000 for most of the 2010s—economic output told a different story. Real GDP (in chained 2017 dollars) for Kansas manufacturing surged from $17.64 billion in 2009 to more than $26 billion last year. 

The reasons behind that can’t be overstated: those figures indicate a dramatic increase in productivity, with fewer workers generating significantly more value.

Wichita’s Volatile Stagnation: Wichita’s manufacturing sector never truly recovered from the early-2000s bust. Aerospace employment stabilized at a much lower level, averaging around 28,000-30,000 for most of the 2010s, and total manufacturing employment remained stuck near 50,000-52,000. This represents a permanent structural shift, with the sector employing over 20,000 fewer people than at its 1998 peak. Despite this, average hourly earnings for production workers in Wichita grew steadily, from $19.22 in 2011 to $20.76 in 2020, suggesting a higher-skilled, but smaller, workforce.

Kansas City’s Relative Decline: The story for the Kansas City MSA is one of a declining share of the state’s manufacturing base. From representing roughly 50 percent of the state’s manufacturing jobs in the 1990s (e.g., 89,200 out of 177,600 in 1990), its share gradually eroded. Employment fell from a peak of 96,500 in 1998 to a low of 71,500 in 2013. While it has seen a recovery since 2014, reaching 81,100 in 2019, its proportional footprint within Kansas manufacturing has shrunk.

Then Came COVID

The COVID-19 pandemic delivered a sharp, severe blow in 2020. Statewide manufacturing employment dropped to 159,200, and Wichita was again the epicenter of the pain. Aerospace employment cratered to 23,500, and total manufacturing jobs in Wichita fell to 45,900.

The recovery since 2020, however, has been remarkably strong. By 2024, statewide manufacturing employment had nearly fully recovered to 174,500. This rebound has been led significantly by the Kansas City MSA, which has reached a new series high of 90,000 manufacturing employees, solidifying its position as a stable and growing hub.

Wichita is also recovering, with aer-ospace employment climbing back to 28,900 and total manufacturing to 52,300 in 2024. This recovery has occurred alongside a significant jump in wages, with average hourly earnings in Wichita rising to $24.04 in 2023, a sign of intense competition for a skilled workforce.

Most impressively, the economic output of Kansas manufacturing has exploded. Nominal GDP hit a record $36.4 billion in 2024, and real GDP reached $29.3 billion, far surpassing pre-pandemic levels and demonstrating the sector’s increased capacity and value.

Over the past 34 years, Kansas manufacturing has transformed into a more productive, higher-value, but leaner industry. The narrative is one of two cities on different trajectories:

Wichita remains the volatile, high-value aerospace specialist. Its employment levels are highly cyclical and are now structurally lower than in the 1990s, but it supports a well-paid workforce and remains central to the state’s manufacturing identity.

The Kansas City MSA has seen a relative decline in its share of the state’s manufacturing pie but has demonstrated resilience and has recently led the employment recovery, reaching new highs and serving as a more diverse and stable counter-weight to Wichita’s booms and busts.

Ultimately, while employing roughly the same number of people as it did in 1990, the manufacturing sector in Kansas today generates vastly more economic output, underscoring a fundamental shift towards greater efficiency and higher-value production.