Back-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 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 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.
“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 Kansas
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.
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 Commerce
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.
