< Previousto help grow our relationship with German businesses as part of the “Why KC” business recruitment program. Our Department of Commerce is setting up a team in Germany to represent Kansas and engage with German companies interested has established a presence in the United States. What are the biggest challenges facing rural communities in Kansas, and what are some measures your administration is taking to address them? GOV. KELLY: Knowing our rural residents often weren’t being heard, we created the Offi ce of Rural Prosperity (ORP) in 2019 to give rural Kansans a voice. During statewide ORP listening sessions, access to affordable housing and childcare were among the signifi cant challenges rural Kansans cited. Information gathered during the listening sessions is leading to new programs and services to better support rural Kansas, such as the new Rural by Choice Champions program. Funding for Rural Champions supports specifi c projects identifi ed by local residents, ranging from housing incentive programs to support for childcare providers, worker training and beautifi cation programs. The program will drive success in rural communities that until now did not have the essential resources to complete these critical projects. Healthcare is another top focus. With rural hospitals struggling, we are pushing for Medicaid expansion to bring more money to hospitals to pay their bills, hire doctors and nurses, keep healthcare affordable and accessible, and foster economic growth. What’s been your biggest economic development success as Governor of Kansas? GOV. KELLY: Kansas is experiencing record- setting private-sector investment and outstanding job growth. More than $18 billion has been invested in Kansas since we took offi ce, with more than 65,000 jobs created or retained. Our impressive surge led to back- to-back Governor’s Cup Awards (Kansas had never earned a Governor’s Cup before) and a Gold Shovel Award three-peat, also a fi rst for Kansas. We’re proud to see Kansas become a model among states for sensible, effective efforts to drive pragmatic, long-lasting economic growth. One key initiative to help supercharge our economic success came in the Attracting Powerful Economic Expansion (APEX) Act, which I signed into law in 2022. The law addresses the unique needs of for-profi t companies within targeted industry sectors that invest $1 billion or more to expand their operations or to relocate their headquarters anywhere in our great state. Kansas has since attracted two blockbuster APEX projects: First was a $4 billion, 4,000-job facility in De Soto from Panasonic Energy, the global leader in electric vehicle (EV) battery production. The project will transform the Kansas economy, providing high-quality, high-tech jobs while also bringing a new industry to the state with an additional 4,000 indirect jobs for suppliers and other related businesses. 8 KANSAS: THE NEW GOLD STANDARD Main street in Marysville. Photo courtesy of Kansas Department of Commerce “ We have put Kansas back on track. After years of budget shortfalls before we took offi ce, we now have money in the bank and robust, record-setting economic growth. ” —Laura Kelly , Governor of KansasKANSAS: THE NEW GOLD STANDARD 9 The Panasonic announcement was followed by Kansas-based Integra Technologies, a provider of outsourced testing and packaging services to the semiconductor industry, announcing a $1.8 billion investment with nearly 2,000 new jobs — that’s more high-tech opportunities that will strengthen our economy. What have you learned about Kansans during your time as Governor? GOV. KELLY: Kansans want strong public schools, economic growth and balanced budgets. They appreciate sensible, Kansas- specific strategies to grow and sustain their communities, with strong schools, access to healthcare and economic growth that builds a strong foundation for the future. Kansans are responsible and embrace common sense in their own lives, so naturally they expect the same of their elected officials in civil and bipartisan cooperation and problem-solving. What do you want your legacy to be once your tenure as Governor has concluded? GOV. KELLY: I believe my legacy will be in our thoughtful approach to putting Kansas back on the path to prosperity. From day one, my goal has been to make Kansas the best place in the nation to live, work and raise a family. I’ve emphasized fiscal responsibility, strong schools, affordable healthcare and strategic economic growth. We have put Kansas back on track. After years of budget shortfalls before we took office, we now have money in the bank and robust, record-setting economic growth. We restored state services crippled by the reckless tax policies of the previous administration. We even attracted historic private investment during the pandemic because we were strategic in selling our state’s strengths. I expect my legacy to be one of governing in a bipartisan manner, which moved our state forward in the face of unprecedented challenges. By working from the middle, we will continue to get things done with this common-sense approach. What do you plan to do in your career following your term as Governor? GOV. KELLY: I plan to be as involved as possible in continued efforts to make Kansas an even better place to do business and raise a family. I’m also looking forward to dedicating more of my time to being a grandmother. Groundbreaking and rendering of the new Panasonic EV battery manufacturing plant in De Soto. Photo courtesy of Kansas Department of Commerce10 KANSAS: THE NEW GOLD STANDARD ack-to-back championships in the Site Selection Governor’s Cup race confirm that Kansas competes at an elite level for meaningful economic development wins. This Central Plains state of just 3 million people garnered 139 corporate facility investment projects in 2021, and then followed up that performance by snagging another 138 deals in 2022 — good for consecutive victories in the per-capita Governor’s Cup sweepstakes. In each year, the Sunflower State landed a signature project win. First, Kansas notched a $4 billion factory deal by Panasonic to make electric vehicle batteries in De Soto. A year later, Kansas laid claim to a $1.8 billion investment from Integra, which will construct a giant semiconductor complex in Bel Aire in the Wichita region. Kansas did not stop there, however. Throughout 2023, Kansas kept its foot on the gas pedal, securing major investments from Walmart, Michelin, Infinity Windows and High Plains Ponderosa Dairy. Walmart announced it would build a $257 million, 330,000-sq.- ft. distribution center in Olathe in Johnson County and hire 667 new workers. Michelin B by RON STARNER Fiscal responsibility and a new incentive program played vital roles. How Kansas Built an Economic Development Dynasty BUSINESS CLIMATE OVERVIEW Governor Laura Kelly speaks at a press event announcing that Kansas has won its second straight Governor’s Cup award from Site Selection magazine. Photo courtesy of Kansas Governor’s Office and Kansas Department of CommerceKANSAS: THE NEW GOLD STANDARD 11 North America Inc. and Camso USA Inc. jointly announced a $100 million expansion of a tire factory in Junction City, while Infinity Windows Inc. pledged to spend $76 million and hire 585 employees at a new 600,000-sq.-ft. facility in Kansas City, Kansas. Finally, High Plains said it would hire 95 workers and invest $168 million to add 2.2 million sq. ft. of new space in Plains in Meade County. Investment deals from a wide variety of industries flowed like milk and honey into all corners of Kansas in all 12 months of 2023, from Salina and Pittsburg to Shawnee and La Crosse and everywhere in between. Big names and small dotted the roster of investors – from Pure Imagination Studios and Hill’s Pet Nutrition to Redguard LLC and QuickStep Technologies. When the dust settled, Kansas had racked up three straight years of record-setting performance in economic development. Some would call that a dynasty. AN APEX PREDATOR IS BORN A new state incentive program called APEX facilitated the biggest wins of the past two years: Panasonic Energy and Integra. APEX stands for Attracting Powerful Economic Expansion. Governor Laura Kelly helped pass the APEX Act in early 2022 and has since used it to lure $6 billion in new investment to the state. In the case of Integra, this semiconductor “ Kansas has never been in better fiscal shape than we are right now. Over the past four years and continuing now, we’ve been able to have balanced budgets every year that also left very healthy ending balances. We’re on very safe and secure ground, which has allowed us to provide tax credits and some tax cuts. Good things are going on right now that will continue to keep Kansas on an upward trajectory. ” — Laura Kelly, Governor of Kansas12 KANSAS: THE NEW GOLD STANDARD plant project that was announced in early 2023 qualified for $304 million in state incentives through the APEX program and is awaiting confirmation of federal incentives through the CHIPS and Science Act. Collectively, these funds will help bring more than 2,500 high-wage jobs in the wafer fab sector to Greater Wichita. Why does Kansas keep winning? For starters, Kansas excels at making things. Look at the 10 largest employment sectors in Kansas today. Most require specialized higher education and unique skill sets. According to the U.S. Bureau of Labor Statistics, manufacturing is the fifth largest sector in Kansas, accounting for over 170,000 jobs statewide. The other top five sectors, in order, are trade, transportation and utilities; government services; education and healthcare; and professional and business services. According to U.S. News, more than 44% of adults in Kansas have at least a college education. That’s one of the highest rates in the nation. Kansas also ranks No. 7 in infrastructure and No. 10 in opportunity. Numbers like that produce economic growth. The Bureau of Economic Analysis recently published a report showing that last year Kansas placed fourth in personal income growth (8.4%) and seventh in state GDP growth (6.0%). READY FOR RAINY DAYS AND MORE Kansans also tend to be highly responsible. “Kansas has never been in better fiscal shape than we are right now,” Governor Laura Kelly told Site Selection’s Mark Arend after picking up her second straight Governor’s Cup trophy. “Over the past four years and continuing now, we’ve been able to have balanced budgets every year that also left very healthy ending balances. We’re on very safe and secure ground, which has allowed us to provide tax credits and some tax cuts. Good things are going on right now that will continue to keep Kansas on an upward trajectory.” That rainy day fund, by the way, now stands at more than $1 billion. Prudent fiscal management currently has the state on track to add another $500 million or more to the reserves. Kelly has repeatedly told Site Selection over the years that she is an economic development governor. With $18 billion in new capital investment and more than 65,000 jobs created and retained since the start of her administration, she does more than talk about it. She delivers. Governor Laura Kelly frequently visits construction sites around Kansas. This time, she did so to proudly claim her second consecutive victory in the Site Selection Governor’s Cup competition. Photo courtesy of Kansas Governor’s Office and Kansas Department of Commerce14 KANSAS: THE NEW GOLD STANDARD here won’t be any resting on laurels if Kansas Lieutenant Governor and Secretary of Commerce David Toland has anything to do with it. Coming off three record-setting years of economic development performance, from 2021 through 2023, the leader of the Kansas Department of Commerce knows that past success is no guarantee of future rewards. That is why the Commerce Department will continue to push the envelope when it comes to outworking the opposition, says Toland. In the following interview, he explains how. by RON STARNER T Victories Achieved, Lessons Learned Sow Seeds for Future Success Q&A: LIEUTENANT GOVERNOR DAVID TOLAND Kansas Lieutenant Governor and Secretary of Commerce David Toland speaks at an event announcing a $1.8 billion, 2,000-job semiconductor facility in the Wichita area. Photo courtesy of Kansas Department of CommerceKANSAS: THE NEW GOLD STANDARD 15 What were the three biggest economic development project wins of 2023 for Kansas? TOLAND: As of the date of this interview, our Top 3 in 2023 reflect the diversity in economic development successes throughout our state. Walmart announced plans for a $257 million investment in a beef packaging facility in Olathe with nearly 700 new jobs. High Plains Ponderosa Dairy, LLC, has a $168 million investment in the works in Plains (95 jobs). Camso Manufacturing is investing $114 million in an agricultural track manufacturing facility in Junction City (193 jobs retained, 181 new jobs). There are bigger project wins such as EMP Shield and Integra Technologies ($1.9 billion and $1.8 billion respectively), but those will not be finalized until the federal government approves their CHIPS Act funding proposals. What will be the three biggest priorities for the Kansas Department of Commerce in 2024? TOLAND: We’re extremely proud of the record- breaking economic development success that’s taken place since Governor Kelly took office. Since then, Kansas has logged more than 1,000 new economic development projects generating more than $18 billion in capital investment and over 65,000 new or retained jobs. Even as we ride this unprecedented wave, we won’t be complacent. In 2024, we will continue to: •Emphasize recruitment of cutting-edge businesses that are making Kansas the innovation hub of the Midwest. Plans for the new Panasonic Energy EV battery manufacturing plant represent an important first step in transforming and modernizing our economy statewide. The ripple effect in opportunities for suppliers and other related businesses will be significant. •Enhance the focus on additional growth in the EV battery manufacturing industry, as well as other growing key sectors: animal health, cybersecurity, bioscience, advanced manufacturing, aerospace, logistics and transportation, and many others. •Train and retrain workers needed to meet companies’ evolving needs. That means cultivating the skills and readiness of the Kansas workforce through individualized service to jobseekers, additional apprenticeship offerings and new training opportunities statewide. When companies choose to invest in Kansas, it’s just the start of a mutually beneficial relationship. Our team, the State of Kansas and our community partners will continue to support those companies for years to come, making sure they have the tools and resources necessary to thrive in 2024 — and beyond. What lessons did Kansas learn from the Panasonic and Integra wins that can be applied to corporate recruitment moving forward? TOLAND: As impressive as they were, our first two megaprojects in Panasonic and Integra didn’t signal the culmination of our economic development efforts. Just the opposite. While those successes did prove we are all-in when it comes to powerful economic development initiatives, we also consider the projects to be strong first steps, and critical building blocks, when it comes to building a truly future- proof economy in Kansas. We take a holistic approach to economic development, knowing it takes partnerships at all levels to succeed. We had local communities, state agencies, utility partners, higher education institutions, workforce groups and local economic development organizations at the table early on with both megaprojects. The megaprojects also reflected our comprehensive approach in recruiting from the outside —as with Panasonic —while also looking to existing Kansas companies interested in growing here — as with Integra. With competition fierce in both situations, the two megaprojects and overall record-setting growth in Kansas prove our state has unique appeal to companies and projects of all sizes. “ When companies choose to invest in Kansas, it’s just the start of a mutually beneficial relationship. ” — Kansas Lieutenant Governor David Toland16 KANSAS: THE NEW GOLD STANDARD What are you doing to encourage talent retention and attraction in Kansas? TOLAND: Job and career opportunities are growing exponentially as more and more companies locate to Kansas or expand their operations in our state. We’re working on numerous fronts to fortify talent retention and attraction. The new Office of Registered Apprenticeship is equipping students with skills and on-the-job training they need to achieve successful careers and further develop the state’s workforce. We will continue to invest in apprenticeships, covering opportunities ranging from teaching to skilled trades as we help more people get good jobs and contribute to the economy. In one year since the Office of Registered Apprenticeship was created, Kansas has seen a nearly 40% increase in registered apprenticeships. As Kansas continues to attract and create jobs by the thousands, registered apprenticeships are helping to fill our state’s most in-demand and high-wage occupations. Governor Kelly’s decision to establish the Kansas Office of Registered Apprenticeship is paying great dividends across the state. This past legislative session, lawmakers from both sides of the aisle approved a $2 million investment in a talent recruitment campaign. Currently, Kansas exports thousands of graduates from our universities, community colleges and technical schools to other states every year. Our campaign will target those who left to pursue careers that weren’t available in Kansas. Now that we’re attracting so many high-tech companies to invest in our state, we now can legitimately attract these former Kansans back. The campaign will launch in early 2024. Workforce development is the biggest challenge facing most high- tech employers today in America. How is Kansas addressing that? TOLAND: As Kansas continues to attract transformative economic development projects, our state’s talent pipeline has to have the best possible training to build out skillsets needed in these targeted sectors. We work closely with partners at universities, community colleges and technical schools to meet the education/ workforce needs of private sector employers. Earlier this year, nearly $10 million was awarded to 26 recipients for training and workforce development initiatives in high- demand, high-wage industries. Applicants to our new Delivering Residents and Workforce (DRAW) program requested investments in a wide array of areas, such as mobile workforce training providers, healthcare providers, education providers, technology- based businesses and employers working with disabled persons. Additional applications were accepted by employers hiring high-demand and high-wage positions, such as accountants, welders, sales managers and computer systems analysts. To meet manufacturers’ needs, our Career Technical Education program has the state covering costs for high school students who want to participate in technical training opportunities. We also have the University Engineering Initiative, with the state providing matching funds to our top three universities to increase the number of students pursuing engineering degrees. These powerful programs have helped create a strong pipeline of workers for businesses in Kansas. A lot of folks don’t know that Kansas is a major manufacturing state. What can you share with them to change their mind? TOLAND: Whether it’s Panasonic Energy’s $4 billion plan to build one of the nation’s largest electric vehicle battery manufacturing facilities in De Soto — the biggest economic development project in our state’s history —or the many other announcements made during our record-setting surge, there’s a common thread. All manufacturing operations across the board understandably are embracing our excellent workforce, effective business incentives, central location and outstanding quality of life for their employees. While our agriculture strength is known worldwide, we are seeing the most significant economic growth in other industries, including advanced manufacturing. This trend is in large part due to corporate investments in aviation manufacturing and design, automotive production, semiconductors and EV battery production. Kansas is on track to have higher five- year employment growth than peer states and the nation as a whole in all major advanced manufacturing subsectors: aerospace, distribution, transportation and e-commerce, food and agriculture. Some of the finest products in the world are made right here in KANSAS: THE NEW GOLD STANDARD 17 Kansas, and our recently launched Made in Kansas program is showcasing these manufacturers to customers worldwide. The Kansas economy is booming in part because we have so many innovative manufacturing enterprises in our state. What is your best two-minute pitch to a CEO in another state about why they should expand in Kansas? TOLAND: We’re not messing around here in Kansas. We’re a competitive force in economic development, thanks to our highly skilled workforce, central location, solid infrastructure, great schools, superior quality- of-life amenities and other advantages. We’ve also strengthened our incentive toolkit to make our state even more appealing to your business. Naturally, your company wants to know where the talent you need will come from, and we work to closely align the strengths of our higher education system with what businesses need. In Kansas, educational partnerships are invaluable and plentiful. We are ready to tailor these education and training resources to meet your needs. We do not believe in cookie-cutter solutions. Our modern, visionary approach to economic development is working. Kansas is on a roll, with our trophy case showcasing two straight Governor’s Cups for the most private investment per capita in the nation, and three consecutive Gold Shovels for attracting high-value investment projects that create a significant number of new jobs in the state. Companies are flocking to our state and bringing new investment and new jobs with them. Kansas is at the top of its game, and we aren’t slowing down. When we talk about Kansas being the best state in the nation to live, work and raise a family, we know it is possible because of great companies like yours driving success in our communities. Let’s discuss how you can move your business forward in Kansas. “ Kansas is at the top of its game, and we aren’t slowing down. ” – Kansas Lieutenant Governor David TolandNext >