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-35, I-70, I-29 and I-49) 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 2.9 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 Hill s Pet Nutrition, Inc. Pure Fishing Case New Holland Home Depot Sony Electronics Coca-Cola Bottling Coleman Company Del Monte Federal Express Ford Motor Company Garmin International Goodyear Tire & Rubber Co. Honeywell Aerospace Electronics System J.C. Penney Catalog Logistic Center Kohl s Musician s Friend O Reilly Automotive Pacific Sunwear Target Toys R Us Tyson Foods, Inc. U.S. Toy Wainwright Industries Walmart Stores, Inc. Zumiez Grainger Pepsi-Cola Hallmark Cards, Inc. Prescription Solutions 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 2014 Kansas Named No. 17 Most-Innovative State Using data collected by the Kauffman Foundation, Kansas is the No. 17 most-innovative state. The list was compiled by Bloomberg News, using statistics based on each state s concentration of STEM workers, R&D spending, percentage of public companies and patent approvals. The Kauffman Foundation, January Kansas City is One of the 100 Smartest Cities in America In a study by VentureBeat, Kansas City is listed as one of America s 100 Smartest Cities. The study used data from more than three million people that have played Lumosity brain-training games. VentureBeat, April KC Ranks in Most Affordable Areas to Buy a Home A study by NerdWallet ranked Kansas City as No. 7 on the list of America s Most Affordable Metros for Homeownership. Areas were analyzed through a home-price-to-income formula. NerdWallet, April KC Ranks No. 5 on Cities Creating the Most High-Paying Jobs In a recent Forbes article, Kansas City was ranked No. 5 on the list of cities creating the most high-paying jobs. Kansas City beat out cities including San Jose, Denver and San Francisco. Forbes, November 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. Indianapolis 92.0 Atlanta 95.3 Dallas 95.9 Kansas City 99.2 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 $154,200 United States $196,900 Source: National Association of Realtors 10 Logistics Park Kansas City