Kansas Economic Development Alliance
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1 Presentation to Kansas Economic Development Alliance Stan Ahlerich Executive Director Governor s Council of Economic Advisors February 2, 2015
2 Governor s Council of Economic Advisors Organized by Executive Order in 2011 Council includes up to 20 business men and women
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4 Economy of Our Past Agriculture Oil & Gas Manufacturing
5 Present Economy Rural Development and Agriculture Energy & Natural Resources Manufacturing Aerospace & General Professional Scientific & Technical Services Bioscience
6 Transitioning into the Integrated Global Economy Professional Scientific & Technical Services Rural Development & Agriculture Energy and Natural Resources Bioscience Manufacturing
7 MANUFACTURING AND RESHORING
8 Potential for Reshoring the shift to U.S. manufacturing, combined with an increase in exports due to improved U.S. competitiveness, will create 2 million to 3 million jobs. Boston Consulting Group report, 2012 Walmart will buy an additional $250 billion in US products over the next ten years
9 TheKansasEdge.com
10 TheKansasEdge.com Highlights strengths and advantages of doing business with companies in Kansas Latest news on The Kansas Edge initiative and manufacturing sector Features the Kansas Supplier Database
11 Kansas Supplier Database TheKansasEdge.com
12 Ability to Drill Down to Detailed Views
13 Basic Entity Information
14 Still More Detail-Business Resources Filters
15 Ability to Update/Add a Listing to Database
16 Environment for Opportunity 50 Year Water Vision Entrepreneurship Technology & Innovation Jobs Housing Business & Tax Climate Trade/Export Regulatory Issues Workforce Development Infrastructure High Speed Internet Access Roads Education Marketing
17 50 Year Water Vision for Kansas Kansas Water Vision Team: Department of Agriculture Kansas Water Office Aquifers Lakes and Streams
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19 Trade/Exports By 2018, 83 percent of global GDP growth will occur outside the U.S. (International Monetary Fund report) Less than 1% of firms export and of those, most sell goods and services to only one country
20 Statewide Comprehensive Strategy for Trade/Exports Governor tasked Harland Priddle to lead initial development of trade/export strategy Coordinated initiative Leveraging state resources Cooperation for public/private partnerships
21 Pillars of Statewide Comprehensive Plan for Trade/Exports Awareness Recruitment Service Provider Delivery Elevate Importance to Governor level
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24 Regulatory Issues Suggestions from the Governor s Council of Economic Advisors Agency cooperation Targeted survey Opportunity for specific recommendations from small business
25 Joint Small Business Survey Cooperative effort among five agencies: Labor Commerce Agriculture Revenue Health & Environment
26 Survey Design Results will be targeted based on respondent s size and location Number of Employees 0-5 Employees 6-49 Employees Employees Employees Location in Kansas
27 JOBS / TALENT
28 Comparison of Two Previous Recessions Private Sector Nonfarm Jobs, Seasonally Adjusted Kansas Recession Recession Apr 2008 Month Oct 2014 Month Month Index Feb 2010 Month Peak 1,106,200 1,136,400 Peak Month Mar 2001 Apr 2008 Trough 1,059,100 1,059,500 Trough Month Feb 2004 Feb 2010 Jobs Lost 47,100 76,900 Time Jobs Lost 35 Months 22 Months Jobs Lost/Month 1,346 3,495 Time Jobs Gained 34 Months 56 Months Jobs Gained/Month 1,524 1, Recession Timeline (Months) Source: Kansas Department of Labor, Labor Market Information Services, in conjunction with the Bureau of Labor Statistics. KDOL serves Kansas workers and businesses by providing fair and efficient administration of state labor laws. 17
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31 WORKFORCE According to a recent survey, 92% of executives believe there is a serious gap in workforce skills and nearly 50% are struggling to fill jobs. [The Skills Gap and the State of the Economy, Adecco, October 2013] To remain competitive, Kansas must be responsive to business demands
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33 Workforce AID (Aligned w/industry Demand) KANSAS DEPARTMENT OF COMMERCE KANSAS COMPANIES STATE LEVEL SINGLE POINT OF CONTACT ED = Director of Workforce Training and Education KANSAS BOARD OF REGENTS Federal/State Training Resources Community and Technical Colleges Private Resources SKILLED EMPLOYEES WITH INDUSTRY AND COLLEGE CREDENTIALS
34 Education Linked to a Job 100 percent of both group respondents indicated they felt prepared for the job after the training [Student Survey-Oct/Nov 2014]
35 What Businesses are Saying I think it is the most effective way to train new prospects that I have seen so far [Spears Manufacturing, Caney, Kansas] Workforce AID will provide a sustainable resource to meet this industry demand for workers [AGC of Kansas] [Workforce AID] is much needed and a win-win for business, college[s] and students [CST Storage, Parsons, Kansas]
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37 Environment for Opportunity Entrepreneurship Jobs Rural Development & Agriculture 50 Year Water Vision Professional Scientific & Technical Services Technology & Innovation Housing Energy and Natural Resources Trade/Export Business & Tax Climate Regulatory Issues Bioscience Infrastructure High Speed Internet Access Roads Education Manufacturing Workforce Development Marketing
38 AND. SO WHAT????
39 NOW IS THE TIME KANSAS IS THE PLACE YOU ARE THE KEY
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