Kansas City: The Crossroads of Connectivity

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1 Kansas City: The Crossroads of Connectivity Edgerton, KS

2 The Kansas City Transportation Advantage Kansas City is... #1 RAIL by tonnage in U.S. #3 TRUCK center in U.S. Kansas City has long been a hub for transportation. Its growing economy, geographic location, business-friendly environment, low tax rate and developed and evolving infrastructure contribute to this well-deserved reputation. It all culminates with Kansas City being an attractive location for transportation and logistics operations. The largest rail center in the United States by tonnage More Foreign Trade Zone (FTZ) space than any other U.S. city (more than 10,000 acres) Located at the crossroads of four of the nation s major interstate highways (I-35, I-70, I-29 and I-49) The heart of a rail corridor spanning coast to coast across the United States and extending from Canada to Mexico (NAFTA Railway) The Kansas City International Airport, which moves more air cargo each year than any air center in a six-state region Located on the nation s largest navigable inland waterway (Missouri / Mississippi River system) 1 Logistics Park Kansas City

3 At the Intersection of Opportunity Whether by highway, water, rail or air, Kansas City offers excellent transportation advantages. Because of its central location and outstanding multimodal infrastructure, it is easier and more cost-efficient to ship into and out of Kansas City, making Logistics Park Kansas City (LPKC) an ideal location for production facilities, warehouses and distribution centers. When you are located in the nation s heartland, you have an immediate cost advantage when shipping raw materials and finished goods. Proximity to Major Markets 1200 MILES San Francisco 90 Seattle MILES 70 Denver 500 MILES KANSAS Kansas City 44 Chicago Boston New York San Diego 25 Dallas 45 Houston Logistics Park Kansas City

4 Multimodal Transportation = Flexibility Kansas City is a prime player in the emerging international trade corridor. Its access to the West Coast and East Coast via connectivity to the U.S. intermodal network provides for the efficient flow of goods. Kansas City s strategic location at the crossroads of highway and rail traffic enhances its position in the global marketplace. Air Kansas City is one of the lowest-cost air travel markets in the country. It is served by 10 major commercial airlines and their connection partners, with approximately 200 daily departures and nonstop service to more than 50 destinations. Highway No other city in the United States has more freeway-lane miles per capita than Kansas City. It is one of eight cities in the United States in which four interstates intersect. Kansas City s highway infrastructure includes: Four interstates (I-70, I-49, I-35 and I-29) Four interstate linkages (I-435, I-635, I-470 and I-670) Nine U.S. highways Rail Kansas City ranks first in U.S. freight volume by tonnage and is generally regarded as the second largest rail center. Five Class I rail carriers, three regional lines and a local switching carrier (Kansas City Terminal) serve the area. From Kansas City, you can reach 80 percent of the United States in less than two days; 100 percent within three days. 3 Logistics Park Kansas City

5 Internet Fulfillment Kansas City is well-positioned for internet fulfillment (package and parcel) due to its proximity to the nation s leading less-than-truckload (LTL) and parcel shippers terminals. ESTIMATED FREIGHT DELIVERY TIMES LPKC 2 3 Zone 1 Overnight (12 hours) Zone 2 Next Day (16 hours) Zone 3 2nd Morning (24 hours) Zone 4 2nd Day (30 hours) Zone 1 Chicago Memphis Kansas City Omaha Denver Zone 2 New Orleans Atlanta New York Salt Lake City Major Delivery Zone Cities Des Moines Minneapolis / St. Paul Dallas / Ft. Worth Indianapolis Houston Cincinnati Washington D.C. Baltimore Zone 3 Miami Boston Phoenix Zone 4 Los Angeles Seattle Portland Billings, MT Montreal, PQ Toronto, ON San Francisco Vancouver, BC 4 Logistics Park Kansas City

6 Labor Supply The state of Kansas and the Kansas City region offer a highly motivated and well-educated workforce with a strong work ethic. The community and region surrounding LPKC offer an ample workforce supply projected for both the long-term and short-term. Skilled Workforce The education system in Kansas contributes to its successful industry. Both the public high school graduation rate and the percentage of the population with a bachelor s degree are above the national average. The progressive business climate, coupled with a top-notch educational system, has resulted in an adept, well-skilled workforce. The U.S. Census Bureau states that the workforce in the Kansas City region contributes 40 percent more value per hour than the national average. Supply Chain Trained Kansas City is committed to a supply chain education initiative that brings those involved in the transportation and logistics industry together with area educational institutions to identify training needs. Through high schools, universities and colleges in the region, there are several programs that offer training to educate the workforce with the necessary skills for current and upcoming jobs in the transportation and logistics industry. Supply Chain Support Companies From air cargo to warehousing, the Kansas City area is home to many different types of companies that directly or indirectly support international trade efforts. Because of its position as a top-tier logistics hub in the United States, Kansas City has an array of businesses linked to the supply chain, including companies that provide loading and handling, packaging, trucking and management of the shipping process. 5 Logistics Park Kansas City

7 In Kansas City, the transportation industry currently employs about 53,000 workers or 4.1 percent of the region s total workforce. State and Local Government Support With a population of just over 2.8 million, Kansas has a proactive legislative and regulatory environment and offers major advantages in costs, taxes, skilled workforce and major transportation assets. The state has built a diverse industry base that includes bioscience, animal health, energy technology, aviation, advanced manufacturing and agriculture. Companies benefit from the state s central location and access to major transportation corridors and recruit from some of the nation s best universities and technical schools. 6 Logistics Park Kansas City

8 Kansas is Pro-Business As a right-to-work state, compulsory union membership is prohibited Being e-commerce sales tax safe is attractive for internet fulfillment centers, and unique in the Midwest and to other BNSF Logistics Parks All merchants and manufacturers inventories are exempt from property taxes Workers compensation premium rates are low 7th lowest in the nation, which can significantly reduce costs for employers Commercial and industrial machinery and equipment is exempt from state and local property tax Income tax exemption on certain non-wage income for SubChapter S Corp, LLCs, LLPs, Sole Proprietorships and Partnerships 7 Logistics Park Kansas City

9 You will be in good company. Join other intelligent companies who have wisely chosen the Kansas City region as a distribution center location, including: American Eagle Outfitters Case New Holland Coca-Cola Bottling Coleman Company Del Monte Federal Express Ford Motor Company Garmin International Goodyear Tire & Rubber Co. Grainger Hallmark Cards, Inc. Hill s Pet Nutrition, Inc. Home Depot Honeywell Aerospace Electronics System J.C. Penney Catalog Logistic Center Kohl s Musician s Friend O Reilly Automotive Pacific Sunwear Pepsi-Cola Prescription Solutions Pure Fishing Sony Electronics Target Toys R Us Tyson Foods, Inc. U.S. Toy Wainwright Industries Walmart Stores, Inc. Zumies Kansas City was the optimal location to get products shipped anywhere in the United States in three days or less. No other city could offer that kind of guarantee without expedited shipping costs. Jeff Kisling Vice President, Logistics & Services Pure Fishing 8 Logistics Park Kansas City

10 Kansas City by the Numbers: Ratings & Rankings for 2012 Among America s 50 Best Cities Kansas City ranks No. 15 among America s 50 Best Cities thanks to its unique blend of technology, arts and history. Bloomberg Businessweek evaluated 100 of America s largest cities based on leisure attributes, educational attributes, economic factors and more to generate the top 50 cities in America. Kansas City out-ranked cities such as Los Angeles, Chicago and Dallas. Bloomberg Businessweek, September Nation s Eighth-Strongest Metro Kansas City ranks as the nation s eighth-strongest metropolitan area in terms of its economy according to a 20-year study done by Policom Corporation. Other cities that made the list included Washington D.C., Des Moines, Iowa and Seattle. Kansas City Business Journal, May No. 16 for Best Cities for Jobs in 2012 Up 41 spots from its position at No. 57 in 2011, Kansas City claimed the No. 16 spot for the Best Cities for Jobs in With its increasing metropolis, Kansas City is continuing its economic growth and development and bringing in more jobs than ever. New Geography, May No. 3 on Forbes List of 10 Best Cities to Buy a Home Kansas City boasts a modest median list price and a large pool of options that make this city rank No. 3 on Forbes list of 10 Best Cities to Buy a Home. Forbes, April Logistics Park Kansas City

11 Low Cost of Living The Kansas City region s cost-of-living measures below the United States average, as reported by the ACCRA cost-of-living index. ACCRA Cost-of-Living Index, 2012 Indianapolis 94.4 Atlanta 96 Dallas 98.8 Kansas City 99.7 United States Denver Minneapolis / St. Paul Chicago Los Angeles Boston Source: The Council for Community and Economic Research (C2ER) Affordable Housing Kansas City consistently rates as one of the most affordable housing markets among metropolitan areas with populations exceeding one million Median Sales Price, Existing Single-Family Homes Location Median Sales Price Kansas City Metro $131,300 United States $163,500 Source: National Association of Realtors 10 Logistics Park Kansas City