< Previous58 KANSAS: THE NEW GOLD STANDARD JOIN THE PACK Hill’s expanding presence and the growing horde of industry giants in the region continue to draw companies to the corridor. This ecosystem of innovation, commercialization, research, manufacturing, distribution and logistics has created a network that corporations across the animal health industry want to join. Hill’s Pet Nutrition’s newest neighbor at the Tonganoxie Business Park, DSM, is among the latest companies to join the cluster. The Netherlands-based company broke ground in July on a 70,000-sq.-ft. nutritional premix plant at the park, which will supply animal health companies with high-quality premixes for use in branded pet food. DSM chose this site due to the plethora of leading pet food manufacturers nearby, enabling the company to attract business and reduce supply-chain risks and logistics expenses. Like all North American DSM facilities, this plant will operate on 100% renewable electricity. Its automated mixing vessels will also reduce waste by decreasing the flushes necessary for sequencing. Additionally, the plant will feature innovative precision micro- batching capabilities, allowing for precise automated micro-additions of ingredients in a traceable method. This technology will support a broader range of ingredients while improving accuracy and automated weight verification. “The pet food industry has been looking for a better source for the highest quality, traceable and reliable nutritional ingredients for their products, and we are thrilled to be able to deliver for the industry and for ‘pet parents’ with this new facility in Tonganoxie,” said DSM Co-CEO Dimitri de Vreeze. “We appreciate the support of Kansas Governor Laura Kelly, the Kansas Department of Commerce, the Leavenworth County Development Corporation, the City of Tonganoxie, Evergy and the Animal Health Corridor in making this state-of- the-art facility a reality.” On October 16, 2023, Hill’s Pet Nutrition held a ribbon cutting at its new smart factory in Tonganoxie. Photo courtesy of Kansas Department of Commerce KANSAS: THE NEW GOLD STANDARD 59 his year has been quite exciting for Kansas’ burgeoning biotech cluster. KCAS Bioanalytical and Biomarker Services opened a $28 million laboratory in Olathe (creating 175 new jobs), MilliporeSigma invested $25 million to establish a location in Lenexa (creating 60 jobs) and Eurofins Viracor also expanded its operations in Lenexa (creating 235 new jobs). Yet these investments are only the tip of the iceberg. Research institutions throughout the state have embarked on ambitious projects to establish high-tech resources, expand skills training and make room for more life sciences companies. Anchored by their efforts, this industry is exploding. by LINDSAY LOPP T Research Universities Establish Room and Resources for Expanding Companies BIOSCIENCE WSU President Rick Muma believes that the Wichita Biomedical Campus will be nothing short of transformational for Wichita and the entire state in healthcare and healthcare education. Photo courtesy of Wichita State University62 KANSAS: THE NEW GOLD STANDARD A COLLABORATIVE APPROACH Together, Wichita State University, WSU Tech and the University of Kansas are constructing a 471,000-sq.-ft. health sciences center in the heart of downtown Wichita. The trio has already raised $205 million of the necessary $300 million for this endeavor and expects construction to begin in early 2024, with completed slated for fall 2026. This new facility will feature state- of- the-art simulation centers, shared spaces for advanced laboratories, clinical research and technology, standardized patient exam rooms and modern learning facilities. WSU President Rick Muma believes that the Wichita Biomedical Campus will be nothing short of transformational for Wichita and the entire state in healthcare and healthcare education. “Our commitment to downtown is no accident,” said Muma in a press release. “If you look at other health science centers in the country, they are almost always located downtown. The central location for the biomedical campus will create a healthcare corridor that will strengthen collaboration and support interprofessional healthcare learning, partnerships and research. It will benefit our entire community.” With this expansion, WSU’s College of Health Professions, WSU Tech’s Health Professions program and the Wichita campuses of KU School of Medicine and KU School of Pharmacy will be brought together under one location, initially housing around 3,000 students and 200 faculty and staff, with opportunities for growth in existing and new programs. “This new facility, along with the combined strengths of the KU and Wichita State University professional health programs, means that future students will benefit from the latest technologies and teaching modalities,” said Robert D. Simari, M.D., executive vice chancellor of the University of Kansas Medical Center. “And as students from multiple health programs learn to interact with each other, it improves the effectiveness of interprofessional medical teams and, ultimately, improves the health of the patient.” KU INNOVATION PARK In 2022, the University of Kansas kicked off a 15-year plan to develop a bioscience and high-technology business park at its campus in Lawrence. By 2036, the KU Innovation Park will house 10 buildings totaling 800,000 sq. ft. of workspace for startups private companies and government agencies looking to gain access to university facilities, intellectual property and an ever-flowing pool of students and graduates. As of June 2023, 66,672 sq. ft. of space is already rented and nearly 430 jobs have been created. Based on KU Innovation Park’s historical growth and the current prospect pipeline, there is enough projected demand to fill an additional 116,242 sq. ft. by 2028. Contiuum Educational Technologies PBC, a private firm based at the KU Innovation Park, is already exploring the unique opportunities this strategic “ By empowering our biomedical researchers and facilitating their journey from lab to market, we’re not only fostering innovation but also driving economic growth and improving healthcare outcomes. ” — Tricia Bergman, Associate Vice Chancellor for Economic Development, University of Kansas The University of Kansas Medical Center has campuses in Kansas City, Salina and Wichita, with nearly 3,700 students enrolled. Photo Courtesy: KU Medical Center KANSAS: THE NEW GOLD STANDARD 63 The Quest for a Cure F rom laboratory studies to clinical trials, the KU Cancer Center’s team of almost 350 researchers and 150 disease- specific oncologists are dedicated to finding a cure and providing life- saving care. After nearly 20 years of determination and hard work, it finally received its NCI designation in 2022, as well as a five-year $13.8 million grant. It is the only National Cancer Institute (NCI) designated comprehensive cancer center in the state. In support of this mission, the Sunderland Foundation gifted the center $100 million to help build a new cancer research facility. This gift is both the largest ever given by the Sunderland Foundation and the largest ever received by the University of Kansas and the University of Kansas Health System. This project is also supported by a $43 million federal investment secured by Senator Jerry Moran in the FY2023 Appropriations Package. Currently, the KU Cancer Center’s labs and researchers are spread across multiple campuses in Kansas City, Kansas, and Lawrence. This funding will help the center bring its operations under one roof in Kansas City. “Our vision is for The University of Kansas Cancer Center to be a beacon of hope and a global destination for both those with cancer and for scientists and clinicians seeking to cure cancer,” said Roy Jensen, vice chancellor and director of the University of Kansas Cancer Center, in June. “This building will be a hub that brings together leading-edge patient care and innovation as we seek to transform both cancer care and cancer research in our quest to cure cancer — together. Patients treated at NCI-designated cancer centers have a 25% greater chance of survival compared to other cancer centers because of the enhanced relationship between patient care and research. This building will advance our goals even further, serving as a catalyst for breakthroughs that will change cancer care on the national level.” KU Medical Center’s Health Education Building (HEB) in Kansas City, Kansas Photo courtesy of KU Medical Center location offers. The company has partnered with KU researchers on a three-year project focused on growing biomedical startups. The initiative, which has been dubbed Smart Tools to Accelerate Research Translation by Uplifting Participants for the Central IDeA State Region (STARTUP Central), is supported by a $3 million grant from the National Institutes of Health’s IDeA Regional Entrepreneurship Development program. As of October 2023, the STARTUP Central team is working to develop an online educational curriculum to teach academic researchers how to commercialize their innovations. They plan to launch the platform through two pilot programs based at public higher education intuitions in North and South Dakota, Nebraska, Kansas and Oklahoma and later solicit proposals from faculty, staff and student researchers. “This project has the potential to be a game-changer for universities and their surrounding communities, including KU,” said Tricia Bergman, associate vice chancellor for economic development at KU, who is serving as assistant director of STARTUP Central. “By empowering our biomedical researchers and facilitating their journey from lab to market, we’re not only fostering innovation but also driving economic growth and improving healthcare outcomes.” With Phases III nearing completion, the Park is currently gearing up to begin Phases IV and V. Phase IV will focus on growing the parks Cybersecurity & Defense cluster and Phase V will center around the Biomedical & Life Sciences and Sustainable Engineering cluster. Collectively, these phases will add 160,000 sq. ft. of wet labs, dry labs and high- security office infrastructure to the campus and bring more than 450 jobs to the area. The university estimates that once the entire project is completed, 4,032 new jobs will be created. DISTRIBUTION, LOGISTICS & TRANSPORTATION 64 KANSAS: THE NEW GOLD STANDARD by ADAM BRUNS A Logistics Investment Takes Many Shapes In a Top State for Goods Movement total of 73 logistics facility investments from January 2021 through November 2023 meant the bi-state Kansas City metro area was No. 14 in the nation for warehouse, distribution and e-commerce projects over that span, according to Site Selection magazine’s Conway Projects Database. That means the region is nipping at the heels of such national logistics stalwarts as Greater Philadelphia; Columbus, Ohio; and California’s Inland Empire. That total is a 28% jump up from 57 major projects the publication qualifi ed for its database during the previous three-year period, when the region ranked No. 18 in the nation. Moreover, 41 of those 73 projects (56%) are on the Kansas side of the state line, attracted to ready infrastructure, supportive development policies and a ready regional workforce. Kansas Governor Laura Kelly greeted some of those workers in October 2022 when she helped cut the ribbon at a new $403 million, 1.5-million-sq.-ft. omni-channel fulfi llment center in Kansas City, Kansas, from URBN, best known for iconic brands Urban Outfi tters and Anthropologie. The facility is URBN’s largest and most automated facility and is considered the company’s “North Star Showcase for North America.” “We thought Kansas City was the best position for reaching customers in the shortest amount of time,” said URBN Chief Development Offi cer Dave Ziel, just months before the company announced another, smaller fulfi llment center project on the Missouri side of the metro area in Raymore. “The state, including Governor Kelly and Lieutenant Governor Toland, really put their best foot forward. The relationship got off to a great start because of their pro-business perspective.” “URBN is a company that strives to put people fi rst and that always stays on the cutting edge of not only style trends, but also logistics and distribution best practices,” Kansas Lieutenant Governor and Secretary of Commerce David Toland said. “They are exactly the type of partner and employer the Kelly Administration envisioned recruiting when we prioritized logistics and distribution in the Kansas Framework for Growth.” In the past fi ve years, according to the Kansas City Area Development Council, the Kansas City area has successfully attracted e-commerce companies pledging to create more These two women are part of a workforce slated to reach 2,000 at URBN’s new omni- channel fulfi llment center in Kansas City, Kansas. Photo courtesy of URBNKANSAS: THE NEW GOLD STANDARD 65 than 10,650 jobs, invest $1.9 billion and occupy 17.8 million sq. ft. “We are fortunate to have Urban Outfi tters in Wyandotte County,” said Greg Kindle, president of the Wyandotte Economic Development Council. “Their interest from the outset to be a part of the community from their focus on providing transit, a commitment to hiring local, to working with local fi rms and their socially conscious efforts are to be commended.” The company’s forward thinking is demonstrated in its facilities, too. URBN has stated the KCK facility will feature some of the most advanced infrastructure in the company’s supply chain, including automated material handling equipment that features energy-saving automatic shutdowns for unused components and energy management active recovery systems. Among other projects in the Greater KC area, Chick-fi l-A Supply, a wholly owned subsidiary of Chick-fi l-A, Inc., and distribution service provider of the chain’s restaurants, announced plans in March 2023 to establish a $31 million, 60-plus-job market distribution center at Lone Elm Commerce Center in Olathe, developed by Frontier Real Estate Investment, formerly Heise-Meyer. The project comes just three years after Chick-fi l-A Supply opened its fi rst full-scale distribution center, which employs approximately 200 people with the capacity to serve up to 300 restaurants. Since then, the company has opened distribution centers in Mebane, North Carolina; Nashville, Tennessee; St. Louis, Missouri; and Cleveland, Ohio. It has four more on the way in the Carolinas and Texas. The KCK facility is projected to operate at full scale in early 2024. Chick-fi l-A in November 2023 opened its 3,000th restaurant nationwide. “With 12.6 million sq. ft. of new industrial space under construction in the KC market at the end of last year, our KC SmartPort team is focused on elevating our region’s comprehensive strengths to attract manufacturing and distribution businesses from around the world,” said Tim Cowden, president and CEO of the Kansas City Area Development Council, at the Chick-fi l-A announcement. “The Kansas City area is a prime location to invest in our business, create jobs and grow our supply chain operation,” said Josh Grote, executive director, Chick-fi l-A Supply. “The region has a deep pool of skilled talent that we know will excel in serving the franchise operators, licensees and team members delivering an authentic Chick-fi l-A experience at each of our locations.” RADIATING IN ALL DIRECTIONS Not all logistics activity takes place in vast warehouses. Some of it takes place in the quick, agile minds and systems of the brokers and technology providers helping goods get from one place to another. Quick and agile personnel and real estate moves help too. In August, on the heels of the announced bankruptcy of national truck and freight company Yellow, Washington-based Radiant Logistics announced its wholly owned subsidiary and U.S. brokerage platform Radiant Road and Rail, Inc. was opening a new operating location in Overland Park. It’s led by former Yellow Logistics leaders and it’s located at the same Aspiria campus where YRC Enterprise Services, a Yellow subsidiary, had recently expanded to new digs. The transition occurred in about two weeks, as repurposed leaders and re-repurposed real estate (Aspiria is the name of the former Sprint headquarters property) got busy. “We called this initiative ‘Project Charger’ because we believe this is going to super-charge the growth in our over-the-road brokerage capabilities,” said Radiant Founder and CEO Bohn Crain. “Now it is time to go to work and prove just that.” In a November earnings call about the 85% of the U.S. population can be reached from a KC-area location in two days or less.66 KANSAS: THE NEW GOLD STANDARD company’s Q3 performance, Crain gave “a bit of shout-out to the progress we’re making in Kansas City with the truck brokerage team we were able to onboard there.” He said the ramp-up is “far exceeding expectations in terms of their growth and trajectory and path to profitability with the team we put in place there.” As other acquisition opportunities come along in a consolidating marketplace, he went on to say, the office stand-up in Overland Park will serve as a model for onboarding a team and supporting customers. “We’ve got a strong core team in Overland Park that we have positioned to scale in terms of headcount as the business grows,” says Christopher Brach, senior vice president and general manager of brokerage for Radiant. “As we began to explore standing up the operation we were amazed at the density of brokerages in Kansas City and particularly Overland Park. We feel it is a great, competitive market for us to have a growing brokerage location in.” RAILROAD LEADERSHIP HELPED BY UPGRADES Just as not every logistics operation involves a warehouse, not every Kansas logistics- focused investment involves the KC area or roads. In fact, the Kansas Department of Transportation notes, “the 4,216-mile rail system in Kansas plays an essential freight transportation role both within the state and nationally. Kansas’ location and position on principal rail corridors provides rail access to every region of the U.S., as well as to Canada and Mexico.” The state ranks in the top 10 in the nation in the following categories: total miles of rail (6th), rail tons carried (6th), and rail carloads carried (8th) and farm products originating by state (6th). In April 2023, Governor Kelly attended a groundbreaking ceremony to celebrate upcoming improvements to the Cimarron Valley Railroad in southwest Kansas from Dodge City to Hugoton. The railway was awarded nearly $15 million from both private and public sources, including the federal Consolidated Rail Infrastructure and Safety Improvements (CRISI) fund and the Kansas Department of Transportation (KDOT), to complete the Southwest Kansas Infrastructure Upgrade Project. “These upgrades are not just an investment in our infrastructure, but an investment in our agriculture industry — and our economy as a whole,” said Governor Kelly. “By rehabilitating over 85 miles of an essential rail line in southwest Kansas, this project will make it easier and more efficient for local businesses to transport biodiesel and other agricultural products.” “The Cimarron Valley Railroad has been committed to transporting Kansas-grown goods across the country and the world in a safe, environmentally friendly and cost-efficient way for over two decades. These funds will help us continue to do that,” said Nathan Champion, president of the Cimarron Valley Railroad. “We are thankful for the partnerships — both public and private — that have helped make these upgrades happen to ensure uninterrupted transportation of essential goods throughout local, national and international markets.” Company City County Investment (US$M) Jobs URBN Kansas City Wyandotte 403 2000 Walmart Inc. Olathe Johnson 257 600 The Clorox Company Olathe Johnson 22 250 The Gatorade Company Edgerton Johnson 200 Amazon.com, Inc. Lenexa Johnson 35 175 Simmons Pet Food, Inc. Edgerton Johnson 54 175 Smithfield Foods, Inc. Olathe Johnson 110 127 Chick-Fil-A Supply, LLC Olathe Johnson 31 60 Equipmentshare.com Inc Shawnee Johnson 2 50 Bungii LLC Overland Park Johnson 0.5 42 Arrowhead Intermodal Services LLC Edgerton Johnson 10.3 20 Tvh Parts Co. Olathe Johnson 44.1 10 Crosscountry Courier, Inc. Kansas City Wyandotte 15.5 Heartland Coca-Cola Bottling Company LLC Olathe Johnson 300 source: Conway Projects Database KANSAS-SIDE KC LOGISTICS Selected Kansas City Area Logistics Projects in Kansas, 2022-2023Next >