Beruflich Dokumente
Kultur Dokumente
• Offices of Physicians
• Nursing Care Facilities
• Temporary Help Services
• Electronic Shopping
• Hotels (except Casino Hotels)
and Motels
In the North Central Kansas region, industry employment in the region increased by 24.02% from 1990
to 2007. Average pay (after adjusting for inflation) has grown by 11.41%, and establishments in the
same period increased by 7.44%. Management of Companies and Enterprises is the highest paying
sector in the region with average annual wages of $62,863. Other high paying sectors are Utilities
(annual average wages of $48,233) and Transportation and Warehousing (annual average wages of
$37,708). In terms of employment, Manufacturing is the largest sector with 18,459 employees. Other
large employers are the Retail Trade (16,454 employees) and Health Care & Social Assistance (12,239
employees) sectors. Retail Trade, with 1,269 establishments, is the largest sector in the North Central
Region in terms of number of establishments, followed by Construction (1,056 establishments) and
Health Care & Social Assistance (845 establishments).
Three set criteria was used to identify key industries in the region - location quotient (LQ) of at least
1.25, average wages greater than national wages and a growth rate of 5% or more for employment.
Three sectors in North Central Kansas met all the three criteria - Motor Vehicle Towing (NAICS
488410), Fertilizer (Mixing Only) Manufacturing (NAICS 325314) and Motor Vehicle Body
Manufacturing (NAICS 336211).
The highest growth rate of all businesses is in Advertising Agencies (85.02%) and Business Support
Services (81.71%). The Residential Electric Lighting Fixture
Manufacturing sector (NAICS 335121) has the highest LQ
in the North Central Region (LQ of 62.38). This sector is Highest Paying Sector – Management of
part of the Electrical Equipment and Appliance and Companies and Enterprises
Component Manufacturing cluster. The sector with the Largest Employer Sector – Manufacturing
second highest LQ in the region, Storage Battery
Sector with Maximum Establishments –
Manufacturing (NAICS 335911), is also part of the same Retail Trade
cluster.
There are four other industries with LQs in the top ten that
are part of the Agribusiness, Food Processing and Technology cluster. The industries are:
Frozen Specialty Food Manufacturing (NAICS 311412)
Dog and Cat Food Manufacturing (NAICS 311111),
Confectionery Manufacturing from Purchased Chocolate (NAICS 311330)
Grain and Field Bean Merchant Wholesalers (NAICS 424510).
Offices of Physicians have the highest local share of growth in the region. Nursing Care Facilities is
another sector with a high local share of employment growth.
The Agribusiness, Food Processing and Technology cluster
has an LQ of 3.99 in the region. The Electrical Equipment,
Appliance and Component Manufacturing cluster has an Highest Paying Sector – Management of
LQ of 4.91. Fabricated Metal Product Manufacturing has an Companies and Enterprises
LQ of 1.54. Glass and Ceramics has an LQ of 1.25 and the Largest Employer Sector – Manufacturing
Machinery Manufacturing cluster has an LQ of 2.5.
Sector with Maximum Establishments –
The North Central Kansas Region has high LQs for two Retail Trade
local clusters – Local Community & Civic Organizations
and Local Financial Services. The Local Education & Training, Local Health Services and Local
Household Goods & Services clusters have growth rates of more than 5%. The only local cluster with
wages higher than the national average is the Local Industrial Products & Services cluster.
Traded Clusters Traded Clusters Local Clusters Local Clusters Local Clusters
with Location with growth with Location with growth with wages
Quotient higher rates more than Quotient higher rates more than higher than
than 1.25 5% than 1.25 5% national wages
23% reporting multiple counties as their region. A majority Economic Development Community
of the regional banks (59%) reported multiple counties as Business Assistance Centers
their service region. Banks
Other Business in Region
Regional Environment
Banks
The regional environment of a region plays an important Professional Service Firms
role in the economic growth of the region. This section Banks
looks at the cost of living in the region, cost of doing
business in the region, quality of life, quality of educational
institutes, availability of trained workforce, availability of capital, and the state and local government
policies. All of the respondents expressed positive views about the overall environment of the region.
Innovation Networks
The interaction of the business with each of the regional institutions affects the business’s capacity to
innovate. Generally, the respondents had a positive view about the role of various institutes, entities
and support organizations in helping the region to innovate.
Most positive factors in the regional environment Most negative factors in the regional environment
Business Owners - Region’s overall quality of life and Business Owners – Level of taxation affecting
overall quality of higher education institutes. businesses and region’s cost of living for employees.
Economic Development Community – Region’s Economic Development Community – Availability of
overall quality of life and quality of technical required number of workers and availability of
assistance offered by regional colleges and workers in the region with the skills required.
universities to businesses. Banks – Level of taxation affecting business, State and
Banks – Overall quality of higher institutes and local governmental regulations and permitted
quality of technical assistance offered by regional procedures affecting businesses.
colleges and universities to businesses.
- Shortsightedness This last part of the report briefly describes the major
learning’s from the quantitative part of the project. A total of
- Recruitment, Retention or
nineteen interviews were conducted for this project. The
Outsourcing
sections highlight the main findings from the discussions
- Infrastructure Barrier-Housing
with the interviewees.
Thought Leaders Barriers Faced
According to the Organization for Economic Co-operation
by a Region
and Development (OECD), among the OECD member
-Co-operation Awareness but No
counties, rural regions face a number of common challenges
Initiative
that contribute to weaker economic performance. These
- Difference in the way economic include: 1) out-migration and aging, 2) lower educational
development agents, businesses
attainment, 3) lower average labor productivity, and 4)
and banks approach economic
overall low levels of public service (OECD, 2006). Rural
development in region.
Kansas shares these concerns with nearly any other rural
region. There are no direct incentives to create partnerships with businesses in neighboring counties.
Shortsightedness from agents and local leaders when making policies for the region is another major
issue, as it greatly affects the ability of the business to predictably expand, grow or even start in a
region. Business recruitment strategies fail to generate the expected success, as a company that is
attracted with economic incentives will tend to move out the moment they find a better, cheaper place
and second, attracting a large employer in a small community increases its dependence on one single
employer.
Appropriate housing is a big issue faced by the communities. Some of the communities have seen
recruitment opportunities fail because they could not find housing for business employees.
The various economic development organizations in the region do understand the importance of co-
operating with each other but also express a reluctance to lead the collaborative activities. A strong
sense of regionalism is not evident and few ties exist between a county and its communities. An
economic development agents’ task is to create a positive
community for businesses that could help them grow and
Connectedness Barriers
thrive. But more often than not, the decisions and policies of the
agents are limited by their view of the community, which People Barriers
essentially has a cut off point at the county line. -Lack of succession planning
Connectedness is highly fragmented in rural regions due to Assets of the Region
factors of geography, economics, political boundaries, culture -Banks are important players
and history. People and agents may know each other but they
-Learning new ways to promote
rarely collaborate with each other or work together in the
region
region. Lack of trust, lack of understanding of the benefit and
value of networks, cultural norms, and ways of doing things -Realizing need of networking
are some of the reasons for this disconnect. -Realizing complexity of
problem
One common problem faced by all the counties in the North
Central region is the increase in out-migration, resulting in a -Youth interested in moving
back to the region
dearth of young people in the region. This makes succession
planning for retiring
businesses in the region
Other Learning’s difficult.
-A region as defined is not a Banks are very important players in rural communities. They
region are the first starting point for a new business who wants to
-Regions can no longer compete locate in the region.
being cheap
Some communities are learning new ways to bring people into
-Clusters need to be redefined the region and to attract new people to the region.
-Social networking can reveal
Any region should value the importance of networking and
deeper connections in region
collaborating with one another and understanding the
-Rural development qualifies as connections and resources that can be accessed through
a wicked problem
networking. In using these resources, regions can bring in new opportunities.
The challenge in defining the problem is nearly as big as the problem itself. Regions realize the
complexity of the problem and realizing this is important in defining the issue and working on finding
a solution for the issue.
Many former residents who left the region to go to school or work are now willing to return to their
community because they either want to raise their families in a familiar environment or they have older
parents in need of care. This can be a big opportunity for the region if it is capitalized on in a timely
manner and addressed in the right way.
Most of the time a region is defined by geographical or political boundary lines that mark it. The
combination of a city, county, and state creates an administrative region but not an economic region.
Economic regions are defined by the way transactions and money flow takes place within a region. A
region is not a standalone entity that can survive on its own.
The regions can no longer compete based on cost of living and attracting new companies into the
region by offering them tax incentives, tax breaks, existing property and other facilities.
There may be other ways to cluster rural businesses instead of categorizing by the output going out the
door (traditional NAICS code approach) or through the skill sets of those employed (Occupational
Clusters). Other characteristics such as the business life stage, local vs. traded commerce, behaviors,
etc., are more meaningful in rural regions where the shared experiences and issues are the critical mass
rather than the specific economic activity in the region.
The social maps of a region can identify the relationships within the region including those between
organizations. Social maps can also pinpoint the holes that exist. Smaller communities are typically
marked by closely tied social networks because issues of trust and information usage arise when small
communities are asked for direct names of social contacts.
The issues raised in the following study attest that rural development issues can be complex,
incomplete, contradictory, and have changing requirements. Solutions to these issues are often difficult
to recognize because of complex social and technical interdependencies. Policy development, with
respect to distressed communities and/or rural communities, clearly qualifies as a “wicked problem”.
Many of the underpinnings that most rural communities were founded on have fundamentally
changed. These foundations will not be retrievable no matter how hard a community works to bring
back a simpler, more prosaic time
Project Introduction
Many Kansas businesses have not fully realized the flatness of the global economy and are ill prepared
to contend with global competitors. Professor Hargadon [1] states that successful innovators are not
necessarily any smarter, more courageous, tenacious or rebellious than the rest of us…they are simply
better connected. Unfortunately, many Kansas manufacturers, particularly those in rural communities,
are isolated from networks of collaborators and consultants and often unable to attract innovation talent
to their community that could help them compete for business in a global marketplace.
A 2004 study entitled, “Strategies for Sustainable Entrepreneurship [2],” cited investment in innovation
as one of its key policy recommendations. This study suggests most organizations and individuals are
deeply embedded in their own small worlds where the people, ideas, and objects with which they
interact are tightly connected. While these small worlds provide structure and stability, they also have
great gravitational pull in terms of tradition, market pressure and “not invented here” perspectives that
prevent inhabitants from gaining sufficient altitude to see new horizons. This limited world-view is an
innovation barrier.
The Progressive Policy Institute’s Report, 2002 State New Economy Index, found that Kansas’
innovation capacity was ranked in the bottom quartile of all states [3]. Some of this dismal national
innovation ranking is due to lack of in-house technical expertise. Though Kansas ranks third in the
nation in BS degrees granted/1,000 individuals, it only ranks 31st in the number of high-technology
establishments in the state [Kansas Inc.]. Consequently, many young Kansas engineers and scientists must
leave the state to seek employment.
Project Objectives
Identify and build on regional assets (asset-based entrepreneurship)
Identify unmet needs and gaps; develop strategies that will address those needs
Network businesses into clusters to provide highly targeted infrastructure
Identify actionable steps for network brokers and regional catalysts
Generate local and regional support for a regional economic development approach
Establish a culture of innovation within North Central Kansas
Weave a regional innovation (entrepreneurship) network that leverages:
Local successful business owners
Identified industry clusters
Potential entrepreneurs with new ventures
Local economic development leaders
Government representatives
Local innovators
Local workforce development leaders
Service providers (inside and outside the region)
Financing community (debt and equity)
Research institutions/universities/technical colleges
Draw innovation and expertise into the region, increase information flow, expand access to
resources, encourage collaboration, and stimulate investment
Create a greater sense of “place” in North Central Kansas through competitive advantage
Methodology
This section provides a brief description of the methodology followed to complete this project.
Geographic area covered
The geographic area for this project included the following nineteen counties in the region of North
Central Kansas. The area includes twelve core counties that are a part of the North Central Regional
Planning Commission and seven additional counties.
Core Counties Additional Counties
Clay Chase
Cloud Geary
Dickinson Lyon
Ellsworth Morris
Jewell Pottawatomie
Lincoln Riley
Marshall Wabaunsee
Mitchell
Ottawa
Republic
Saline
Washington
Data used
The data used for industry analysis is the QCEW data (previously ES202) obtained from the US
Department of Labor Statistics. In many of the counties, the US BLS was unable to provide complete
data due to privacy regulations. To offset the non-disclosure of data at the highest level, ES202 dataset
from IMPLAN MIG group was used for 2003 and 2006. The IMPLAN MIG group data contain the
number of establishments, employment and wages for the NAICS codes.
To support the regional innovation assessment, a questionnaire was used to collect information from
community and business leaders in the region. Based on a methodology described by the US Council
on Competitiveness, the questionnaire contained four sections – regional business environment,
innovation networks, regional norms and attitudes, and social networks. The final part of the
questionnaire contained questions to collect demographic information from the respondents.
Social network mapping was conducted using the combination of a template that listed key members
of the network and requests for more names of other potentially important people. This questionnaire
provided information about the communication patterns among economic development professionals
in the region. In addition, in-depth interviews were also conducted with the economic development
agents in the region. An open schedule was used to facilitate the interview process.
Data collection tools can be found in the Appendix.
Section A: Overview of the region
Region Profile
The North Central Kansas region includes 19 of the 105 counties in the state. The counties in this region
are: Chase, Clay, Cloud, Dickinson, Ellsworth, Geary, Jewell, Lincoln, Lyon, Marshall, Mitchell, Morris,
Ottawa, Pottawatomie, Republic, Riley, Saline, Wabaunsee and Washington. In 2007 the population of
this region was 302,969. According to 2000 estimates, the 14,169 square miles in the region have a
population density of 21.4 people per square mile. The average household size was 2.4 persons in 2000
(US Census Bureau).
Population Estimates
The North Central Region has a population of 302,969 as of July 1, 2007 (US Census Bureau). The
population decreased by 0.09% from the year 2000 to 2007. Per the 2000 census survey, population of
the region was 303,256. In 2000, 20% of the North Central Regions’ population was under the age of 15
years, 31.5% in the age group 15 to 34 years, 30.5% in the age group 35 to 59 years, and about 18% of the
population above 60 years of age.
1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000
$48,895
$47,622
$47,231
$47,097
$46,271
$44,557
$43,735
$50,000
$42,861
$42,172
$41,934
$41,571
$41,061
$40,268
$39,816
$39,136
$38,996
$38,473
$38,282
$38,111
$37,758
$37,732
$37,704
$37,627
$37,562
$37,415
$37,229
$36,738
$36,618
$36,455
$36,215
$35,799
$35,747
$35,071
$34,634
$34,421
$33,874
$40,000
$32,500
$32,322
$31,770
$31,364
$30,000
$20,000
$10,000
$0
Geary and Marshall are the two counties where the median income has increased from 1999(adjusted)
to 2005. The median income for Geary County increased from $37,415 to $37,758 in 2005. Similarly, for
Marshall County, median household income increased from $37,627 to $38,111.
The current poverty rate for various counties in the North Central Region is as shown in the table
above. The poverty rate for Kansas is 11.7%. In the region only six counties have poverty rates greater
than the state rate. The other thirteen counties have poverty rates below the statewide poverty rate.
Wabaunsee County has the lowest poverty rate of 8% followed by Ottawa County with poverty rate of
8.4%. Riley County has the maximum poverty rate of 20.2 % in the region.
Labor Force
The North Central Region’s current unemployment rate is 3.5% which is less than the state rate of 4.1%.
The total labor force for the region increased by 5.7% in the last five years and by 5.9% in the last ten
years; the employed labor force increased by 6.4% in the last five years, and the unemployed labor
force declined by 11.1% in the region.
Employed
97%
Educational Attainment
About 87% of the population above the age of 25 has obtained at least a high school degree. 25.68% of
the population above the age of 25 has had some college education, and 27.42% are college graduates.
Table 9: Annual Covered Employment & Wages over Time (NAICS) – North Central Region
Average Pay in Terms of
Year Establishments Employment Average Annual Pay
20071 Dollars (adj*)
1990 8,414 108,970 $16,419 $26,047
1991 8,549 109,627 $16,981 $25,851
1992 8,531 113,268 $17,555 $25,944
1993 8,415 115,002 $17,943 $25,746
1994 8,411 117,989 $18,542 $25,942
1995 8,475 120,649 $18,995 $25,843
1996 8,549 123,304 $19,797 $26,162
1997 8,676 126,100 $20,316 $26,245
1998 8,845 128,112 $21,088 $26,825
1999 8,774 128,809 $21,839 $27,180
2000 8,723 130,826 $23,125 $27,844
2001 8,687 129,990 $23,787 $27,849
2002 8,740 128,927 $24,423 $28,148
2003 8,665 128,482 $24,994 $28,165
2004 8,627 130,431 $25,815 $28,335
2005 8,672 130,576 $26,636 $28,278
2006 8,774 132,912 $27,800 $28,592
2007 9,040 135,144 $29,020 $29,020
Change from 1990 626 26,174 12,601 2,973
to 2007
1
Average wages in 2007 dollars term calculated using CPI inflation calculator available at Bureau of Labor Statistics website
http://data.bls.gov/cgi-bin/cpicalc.pl. The CPI inflation calculator uses the average Consumer Price Index for a given calendar year. This
data represents changes in prices of all goods and services purchased for consumption by urban households. This index value has been
calculated every year since 1913. For the current year, the latest monthly index value is used (www.bls.gov).
Employment
135,144
132,912
130,826
130,576
130,431
129,990
128,927
128,809
128,482
128,112
160,000
126,100
123,304
120,649
117,989
115,002
113,268
109,627
108,970
140,000
120,000
100,000
80,000
60,000
40,000
20,000
Establishments
9,040
9,200
8,845
9,000
8,774
8,774
8,740
8,723
8,687
8,676
8,672
8,665
8,627
8,800
8,549
8,549
8,531
8,475
8,415
8,414
8,411
8,600
8,400
8,200
8,000
$29,020
$28,592
$30,000
$28,335
$28,278
$28,165
$28,148
$27,849
$27,844
$29,000
$27,180
$26,825
$28,000
$26,245
$26,162
$26,047
$25,944
$25,942
$25,851
$25,843
$25,746
$27,000
$26,000
$25,000
$24,000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Figure 8: Changes in Establishments, Employment and Average Annual Wages in the Region
In terms of employment, Manufacturing is the largest sector with 18,459 employees. Other large
employers are the Retail Trade (16,454 employees) and Health Care & Social Assistance sectors (12,239
employees). Retail Trade is also the largest sector in the North Central Region in terms of number of
establishments with 1,269 establishments, followed by Construction (1,056 establishments) and Health
Care & Social Assistance (845 establishments).
Figure 9: Establishments and Jobs in Various Industry Sectors in the Region
Establishments Jobs
Agriculture Mining
Utilities Construction
Manufacturing Wholesale Trade
Retail Trade Transportation & Warehousing
Information Finance & Insurance
Real Estate Professional, Scientific,& Technical Services
Management of Companies Waste Management &Remediation Services
Educational Services Health Care & Social Assistance
Arts, Entertainment, & Recreation Accommodation & Food Services
Mining
$70,000 Utilities
Construction
$60,000 Manufacturing
$48,233
Wholesale Trade
Retail Trade
$50,000 Transportation & Warehousing
$37,708
$36,650
$35,973
$35,742
$35,465
$34,211
Information
$33,806
$33,804
$33,755
$40,000
$30,240
Real Estate
$25,402
$24,240
$22,873
$30,000
$19,298
Management of Companies
Waste Management &Remediation Services
$12,531
$20,000
$10,306
Educational Services
Health Care & Social Assistance
Arts, Entertainment, & Recreation
$10,000
Accommodation & Food Services
Other Services (except Public Administration)
$0 Public Administration
Key Industries
The North Central Region is home to some well performing industries. These industries may be a part
of existing or emerging clusters. For identifying key industries and clusters, three criteria were used:
Location Quotient – Location quotients (LQ) for industries at 6-digit NAICS level calculated
with the US industry employment as a base. The cutoff for LQ was set at 1.25 (Cortright 2003).
Average Wages – Average wages at 6-digit NAICS codes compared to US average wages. Any
industry with average wages 10% above the US average is considered to be a good performing
industry.
Growth Rate – Growth rates for employment were calculated over a three year period from
2003 to 2006 2; growth rates above 5% are considered to be an indicator of good industry
performance.
Any industry that satisfies one of these three conditions is either a good performing industry or an
industry with good potential for growth. There may or may not be a cluster existing in a region for
every good performing industry, but if there are good performing industries, a cluster may emerge in
the near future.
Three industries in North Central Kansas satisfy all three of the above stated criteria – Motor Vehicle
Towing (NAICS 488410), Fertilizer (Mixing Only) Manufacturing (NAICS 325314) and Motor Vehicle
Body Manufacturing (NAICS 336211).
Table 11: 6-Digit NAICS Codes with High Wages, Location Quotients and Growth Rates
Higher
Average Wages Location
NAICS NAICS Definition Establishments Employment Growth Rate
Wages Than Quotient
Nation
488410 Motor Vehicle Towing 10 85 $33,050 112.79% 15.62% 1.98
325314 Fertilizer (Mixing Only) 1 30 $53,990 130.18% 210.72% 4.22
Manufacturing
336211 Motor Vehicle Body 2 377 $54,317 124.98% 18.60% 6.34
Source: ES202 2006 data, IMPLAN MIG Group
Growth Rate
The industries with high growth rates are both local and traded 3 industries in the North Central
Region. The highest growth rate is for the Advertising Agencies (85.02%) and Business Support
Services (81.71%).
2
There were two reasons for selecting a 2003 base year. 1) The numbers were more likely to be free from 9/11 impacts as compared to
2001 or 2002 numbers. 2) NAICS definitions changed in 2002, so it was very difficult to bridge between 2002 & 1997 codes for some
industries.
3
Traded industries are defined as the ones exporting their goods and/or services outside their region. Local industries are the ones with all
local (within the region) dealings (Porter 2003).
Table 12: Top 10 Industries (6-digit NAICS) with Highest Growth Rates
Employm Average Growth
NAICS NAICS Definition Establishments Cluster
ent Wages Rate
541810 Advertising Agencies 5 19 $31,919 85.02% Business and Financial
Services
561499 All Other Business Support 1 36 $10,105 81.71% Local Commercial
Services Services
561439 Other Business Service 7 46 $12,514 79.15% Local Commercial
Centers (including Copy Services
Shops)
531390 Other Activities Related to 3.6 11 $18,745 76.52% Business and Financial
Real Estate Services
624190 Other Individual and 17 516 $19,543 75.78% Local Health Services
Family Services
451212 News Dealers and 2 38 $17,569 75.75% Local Entertainment &
Newsstands Media
424590 Other Farm Product Raw 1 42 $13,585 73.80% Agribusiness, Food
Material Merchant Processing &
Wholesalers Technology
561210 Facilities Support Services 6 298 $33,716 72.56% Local Commercial
Services
333511 Industrial Mold 2 15 $27,941 71.00% Machinery
Manufacturing manufacturing
561740 Carpet and Upholstery 7 29 $17,827 69.08% Local Personal
Cleaning Services Services (Non-
Medical)
Source: ES202 2006 data, IMPLAN MIG Group
NA – No cluster assigned to NAICS
Location Quotient
The Residential Electric Lighting Fixture Manufacturing sector (NAICS 335121) has the highest LQ in
the North Central Region of 62.38. This sector is part of the Electrical Equipment, Appliance and
Component Manufacturing cluster. The sector with the second highest LQ in the region, Storage
Battery Manufacturing (NAICS 335911), is also part of the same cluster. There are four other industries
with LQs in the top ten that are part of the Agribusiness, Food Processing and Technology cluster. The
sectors are: Frozen Specialty Food Manufacturing (NAICS 311412), Dog and Cat Food Manufacturing
(NAICS 311111), Confectionery Manufacturing from Purchased Chocolate (NAICS 311330), and Grain
and Field Bean Merchant Wholesalers (NAICS 424510). This is a good indicator of higher LQs for the
Electrical Equipment, Appliance and Component Manufacturing cluster and the Agribusiness, Food
Processing and Technology cluster in the North Central Region.
Table 13: Top 10 Industries (6-digit NAICS) with Highest Location Quotients
Average Location
NAICS NAICS Definition Establishments Employment Cluster
Wages Quotient
335121 Residential Electric 1 706 $53,577 62.38 Electrical Equipment,
Lighting Fixture Appliance and
Manufacturing Component
Manufacturing
335911 Storage Battery 1 706 $44,419 52.33 Electrical Equipment,
Manufacturing Appliance and
Component
Manufacturing
561492 Court Reporting and 2 482 $17,342 43.48 Local Commercial
Stenotype Services Services
311412 Frozen Specialty Food 1 2010 $30,101 40.76 Agribusiness, Food
Manufacturing Processing and
Technology
311111 Dog and Cat Food 2 539 $44,418 32.70 Agribusiness, Food
Manufacturing Processing and
Technology
326191 Plastics Plumbing 2 663 $31,718 31.19 Chemicals and Chemical-
Fixture Manufacturing based Products
332439 Other Metal Container 3 459 $27,534 23.43 Fabricated Metal Product
Manufacturing Manufacturing
327125 Non-Clay Refractory 2 129 $31,330 23.20 Glass and Ceramics
Manufacturing
311330 Confectionery 1 653 $26,544 20.70 Agribusiness, Food
Manufacturing from Processing and
Purchased Chocolate Technology
424510 Grain and Field Bean 72 701 $41,345 18.56 Agribusiness, Food
Merchant Wholesalers Processing and
Technology
Source: ES202 2006 data, IMPLAN MIG Group
4 Wages compared to nation –county wages for a particular industry as a percentage of the national average.
5 Pennstate (2003) Using Employment data to better understand your local economy.
National growth share = Employment in base year * National employment growth rate
Industry Mix Share
This is the growth (or decline) in employment in the region that can be attributed to the growth (or
decline) in that particular industry at the national level:
Industry mix share = Employment in base year *(Industry’s national growth rate – National
employment growth rate)
Local Share
This is the share of growth (decline) in employment in a region that can be attributed to the
competitiveness of a region:
Local share = Employment in base year *(Region’s industry growth rate – National industry growth
rate)
Offices of Physicians have the highest local share of growth in the region. This sector had a net growth
of 931 jobs, out of which 867 jobs were attributed to local factors. Nursing Care Facilities is another
sector with a high local share of employment growth. This sector had net growth of 866 jobs, out of
which 854 were attributed to local factors. Moreover, the industry mix share in this sector had a
negative growth effect (-102 jobs). Since the local share has a high growth rate, it means there was a
national decline in employment in the nursing sector, and the region had certain competitiveness
factors(e.g. new nursing homes opened, more nursing graduates entered the profession or could be
result of increase in aged population) that attributed to a high positive growth in the nursing sector.
Table 15: Industries with Highest Local Share of Growth – Shift Share Analysis North Central Region
Net National Industry Mix Local
NAICS NAICS Definition
Growth Growth Share Share Share
621111 Offices of Physicians (except Mental Health 931 48.05 15.75 867.20
Specialists)
623110 Nursing Care Facilities 866 114.54 -102.40 853.86
561320 Temporary Help Services 772 12.73 37.48 721.79
454111 Electronic Shopping 564 0.26 1.73 562.01
721110 Hotels (except Casino Hotels) and Motels 571 36.38 -11.05 545.66
561492 Court Reporting and Stenotype Services 465 0.90 -0.64 464.74
332439 Other Metal Container Manufacturing 448 0.58 -1.16 448.58
621420 Outpatient Mental Health and Substance Abuse 432 2.27 2.17 427.56
Centers
624190 Other Individual and Family Services 421 5.02 4.29 411.69
336214 Travel Trailer and Camper Manufacturing 445 12.57 40.73 391.70
611310 Colleges, Universities, and Professional Schools 314 0.90 0.29 312.81
551114 Corporate, Subsidiary, and Regional Managing 321 23.18 11.40 286.42
Offices
813990 Other Similar Organizations (except Business, 286 0.42 0.32 285.26
Professional, Labor, and Political Organizations)
561422 Telemarketing Bureaus 258 4.86 5.58 247.56
311111 Dog and Cat Food Manufacturing 245 15.52 -5.52 235.00
561210 Facilities Support Services 240 3.06 6.51 230.43
332999 All Other Miscellaneous Fabricated Metal Product 220 0.21 -0.04 219.83
Manufacturing
624310 Vocational Rehabilitation Services 215 5.60 -4.36 213.76
443112 Radio, Television, and Other Electronics Stores 240 7.82 26.12 206.07
492110 Couriers 207 16.00 -7.85 198.85
447110 Gasoline Stations with Convenience Stores 181 65.90 -73.70 188.80
624410 Child Day Care Services 201 15.58 2.20 183.22
621492 Kidney Dialysis Centers 187 5.91 6.27 174.82
333922 Conveyor and Conveying Equipment 148 17.48 -17.21 147.73
Manufacturing
722410 Drinking Places (Alcoholic Beverages) 121 22.34 -44.34 143.00
Data Source: ES202 data, IMPLAN MIG group
Traded Clusters
The table below shows various clusters in the region. Five clusters in North Central Kansas have
location quotients higher than 1.25:
Agribusiness, Food Processing and Technology
Electrical Equipment, Appliance and Component Manufacturing
Fabricated Metal Product Manufacturing
Glass and Ceramics
Machinery Manufacturing
The Agribusiness, Food Processing and Technology cluster has an LQ of 3.99 in the region. However,
the cluster has shown a decline of 1.16% in the last three years, and the average wages are 9.73% less
than the national average for the cluster. The Electrical Equipment, Appliance and Component
Manufacturing cluster has an LQ of 4.91. It has declined by 3.13% and has wages 8.59% less than the
cluster national average. Fabricated Metal Product Manufacturing has an LQ of 1.54, and along with
that it has a high growth rate of 14.38%. Average wages, though, are about 26% less than cluster
averages at the national level. Glass and Ceramics has an LQ of 1.25, a growth rate of 12.68% and wages
less than average. Similarly, the Machinery Manufacturing cluster has an LQ of 2.5, growth of 7.62%,
but very low wages that are about 43% less than cluster national average. Investments into these sectors
should be considered to make them more competitive and attract labor.
LQ
Printing and Transportation and Transportation Equip
Publishing, 0.84 Logistics, 0.85 Mfg, 0.89
Computer and
Electrical Equip & Electronic Product
Component Mfg, 4.91 Manufacturing , 0.04
Education &
Knowledge Cluster, Defense and Security,
0.74 0.33
Figure 12: Traded Clusters in the North Central Region
How to read the figure: each wedge corresponds to a traded cluster, the size indicating the LQ, wedges that extend beyond the faint circle
equate to a LQ greater than 1
Local Clusters
The North Central Kansas Region has high location quotients for two local clusters – Local Community
& Civic Organizations and Local Financial Services. The Local Education & Training, Local Health
Services and Local Household Goods & Services clusters have growth rates of more than 5%. The only
local cluster with wages higher than the national average is the Local Industrial Products & Services
cluster.
Table 17: Local Clusters in the North Central Region
Average
Wages
Establish Employm Average Compare Growth
Cluster LQ
ments ent Wages d to Rate
National
Average
Local Commercial Services 46 412 $18,946 68.60% -3.68% 0.77
Local Community & Civic 145 1584 $22,009 72.06% -1.25% 1.36
Organizations
Local Education & Training 5 172 $20,742 66.83% 15.03% 0.32
Local Entertainment & Media 75 698 $14,255 72.11% -8.69% 1.01
Local Financial Services 191 2653 $32,530 63.52% -1.36% 1.51
Local Food and Beverages 216 3593 $17,074 62.92% -1.55% 1.06
Processing & Distribution
Local Health Services 519.3 5100 $33,857 70.51% 6.20% 1.08
Local Hospitality 609.6 9716 $8,963 65.29% 1.81% 1.22
Local Household Goods & Services 383.3 3624 $24,993 64.77% 5.28% 1.01
Local Industrial Products & 19 172 $69,417 123.59% -9.10% 0.45
Services
Local Logistical Services 20 206 $15,015 53.24% -4.96% 0.43
Local Motor Vehicle Products & 419 3164 $29,522 80.21% 0.00% 1.19
Services
Local Personal Services (Non- 171.3 1083 $14,489 73.97% 4.21% 0.85
Medical)
Local Real Estate, Construction & 451.3 2571 $32,300 63.24% 3.62% 1.03
Development
Local Retail Clothing & Accessories 172.6 4313 $14,921 76.36% 0.76% 1.09
Local Utilities 17 72 $27,228 66.04% -22.55% 0.61
Data Source: ES202 data, IMPLAN MIG group
Highlighted cell represent values higher than specified criteria values
Figure 14: Local Clusters in the North Central Region
70%
54%
50%
the cost of doing business in the region is 40% Negative
23%
23%
23%
18%
30%
Neutral
respondents stated the cost of doing business in 20%
10% Positive
the region is neither beneficial nor harmful and 0%
another 39% reported the cost to be beneficial. Business ED Banks
Community
The banking community also had a favorable
view of the cost of doing business in the region
Cost of Living for the Employees
development agents had the most positive
68%
80%
59%
70%
views. About 68% of the economic
60%
development agents thought the region had a
40%
50%
34%
40% Negative
very favorable cost of living for the employees
23%
21%
18%
18%
30% Neutral
14%
20% Positive of local businesses. The business owners were
10% again split on the issue with almost the same
0%
Business ED Banks number on both side of the scale. 40% of the
Community
business owners consider cost of living to be
The three different respondent groups held beneficial, 34% harmful and 21% had neutral
different views on the cost of living for views. More than 59% of the banks consider
employees in the region. The economic cost of living to be beneficial for the region.
81%
100%
79%
77%
of life to be beneficial for the region. 79% of the 80%
businesses, 81% of the economic development 60% Negative
community and 77% of the banks reported the
23%
40% Neutral
14%
14%
quality of life to be beneficial for the region. 20%
5%
5%
Positive
0%
0%
Business ED Banks
Community
120%
96%
Overall Quality of Educational Institutes
83%
100%
The majority of the respondents in each group 80% 76%
Negative
agreed that the region’s educational institutes 60%
Neutral
benefit the community. 83% of the business 40%
19%
14%
Positive
respondents, 76% of the economic development 20%
5%
2%
0%
0%
100%
77%
80%
60% Negative
offered by regional colleges and universities to
33%
18%
Neutral
20% 33% were neutral responses and just 3%
5%
3%
Positive
0%
55%
60%
a neutral response and 27% reported that the
41%
41%
40%
50%
lack of availability of skilled workers is harmful
32%
29%
40%
27%
to the region. Additionally, a majority of the Negative
30%
18%
14%
economic development agents (55%) also 20% Neutral
10% Positive
reported that the lack of availability of skilled
0%
workers in the region is harmful. Bankers had a Business ED Banks
mixed response: 41% reported that the Community
64%
70%
workers in the region is harmful, 18% were
48%
60%
neutral and 19% reported that worker
37%
50%
32%
29%
27%
40%
24%
availability is beneficial to the region. Negative
19%
18%
30%
Businesses had more varied responses: 32% 20% Neutral
10% Positive
reported that availability of workers is harmful 0%
to the region, 27% gave neutral responses and Business ED Banks
Community
another 37% reported that availability of
workers is beneficial to the region. 48% of the
70%
49%
50%
capital is beneficial to the region, 32% had a
33%
32%
32%
27%
40% Negative
30% neutral response and another 32% reported that
Neutral
11%
20%
9%
41%
50%
35%
that the availability of specialized facilities and
33%
32%
40%
28%
24%
24%
laboratories in the region, for testing products, 30%
19%
Negative
is beneficial. 24% of the business community,
13%
20% Neutral
28% of the economic development agents and 10% Positive
24% of the banks reported that availability of 0%
specialized facilities and laboratories is Business Ed Banks
Community
beneficial to the region.
50%
35%
32%
40%
27%
27%
26%
Negative
20% specialized suppliers to be harmful. 43% of the
Neutral
10% economic development community and 27% of
Positive
0% the banks reported the quality of the region’s
Business Ed Banks
Community
suppliers to be beneficial.
55%
50%
60%
41%
41%
32%
beneficial to them. Another 41% of businesses 40%
23%
Negative
30%
18%
had a neutral response. The majority of the
14%
14%
20% Neutral
economic development community (55%) and 10% Positive
banks (50%) had a neutral response for this 0%
item. Business Ed Banks
Community
41%
50%
37%
36%
40%
27%
26%
30% Negative
20% positive effect on the regional businesses, while
Neutral
10% another 27% reported them to be harmful to the
Positive
0% businesses. 37% of the economic development
Business Ed Banks agents and 23% of the banks also reported the
Community
state and local governmental regulations and
A majority of the businesses had a neutral view permitted procedures to be beneficial to
regarding the state and local governmental businesses.
The Level of Taxation Affecting Business
35% of the business respondents, 19% of the
57%
60%
45%
41%
41%
economic development agents and 41% of the 50%
35%
banks reported the level of taxation to be 40%
24%
Negative
19%
30%
18%
harmful to business. However, in general, the
16%
20% Neutral
majority of the respondents were neutral in 10% Positive
their response on this issue: 45% of businesses, 0%
57% of economic development agents and 41% Business Ed Banks
Community
of banks were neutral when asked about the
level of taxation affecting businesses. Another
16% of the businesses, 24% of the economic
development agents and 18% of the banks
considered the level of taxation to be beneficial
for the businesses in the region.
50%
50%
50% of the economic development community 60%
41%
50%
reported that government sponsored-growth
36%
40%
27%
25%
incentives are beneficial to the businesses in the
23%
23%
Negative
30%
region, but only 25% of the businesses reported 20% Neutral
9%
that they are beneficial and 23% reported that 10% Positive
0%
these programs are harmful while 50% of the
Business Ed Banks
banks had a neutral response to this item. Community
60%
46%
50%
36%
36%
36%
40% Negative
30% they were harmful to businesses. 28% of the
Neutral
10%
20%
economic development community and 36% of
5%
10% Positive
0% the banks also reported that these campaigns
Business Ed Banks were beneficial to the region.
Community
How to read the figure: The larger the word appears the more often the word was recorded in the responses.
The responses from business owners cover a broad range of topics from education and healthcare, to
marketing, taxation and government regulation. It appears that the overarching issue for business
owners is the state and local tax rate allowing for financial growth, and ultimately job creation. Several
business owners also commented on their desire to see increases in educational funding, better health
care provisions, economic development opportunities driven by tax incentives (especially for locally
owned businesses) and continued investment in infrastructure projects. Small business owners would
also like to cooperate with business development agencies and other non-profits during the economic
downturn to find more and better methods to market their products or services. In general, more
business owners appear to be relatively satisfied with the existing programs and policies but appear to
be more concerned about attracting quality employees to existing businesses, in addition to increased
investment in technology to entice new businesses to their region
Community Leaders
Not surprisingly, community leaders in North Central Kansas have many of the same ideas and
concerns as business owners within the region with variations in the degree of the concern. The general
consensus is that although tax credits and tax breaks are helpful, ultimately they do not spur much
economic development, job creation or innovation. They insist, rather, that tax incentives need to be
accompanied by real start-up capital in the form of grants or loans. In this sense, community leaders
appear to be much more aware of the national lending freeze that has occurred over the past year or so.
Community leaders and business owners both agree that rural areas are in the greatest need for
increased investment in technology and infrastructure. Both groups also share the opinion that a well-
trained workforce and affordable housing are crucial to financial success anywhere within the region.
Banks
The regional bankers also highlight similar themes as business owners and community leaders. In
general they emphasize reduced taxes, specifically real estate and property taxes. They would also like
to see taxation levels remain reasonable to attract businesses to relocate to the region in conjunction
with limited government involvement or “business friendly” government. Continued investment in
education is also highlighted as a key to producing and maintaining a well-trained, quality workforce.
Perhaps the most insightful response suggests that communities and businesses might benefit most
without any real change in policy, but rather a better method for state and local agencies to publicize
available funding, programs, incentives, etc.
Most Critical Issues with Regard to Regional Universities and Technical Colleges that
Should be Addressed to Improve Business’s Prospects for Success
Business Owners
Since Kansas State University is conveniently located in the region, employers tend to have their choice
of qualified individuals in varying disciplines. There are also several community and technical colleges
in the area that provide skilled labor and technical expertise. The underlying common interest among
all business owners is keeping tuition costs affordable for everyone at all local institutions of higher
learning. Everyone understands that these schools (especially Kansas State) are a huge asset not only
because they attract faculty and students who will spend their money locally and regionally, but also
because they are responsible for training the next generation’s workforce. First and foremost, business
owners would like to see more programs designed to teach practical, applicable skills in computer
science, management and technical consulting. They would also like to see more courses for non-
traditional students, potentially offered online. Some also said they would like to see stronger ties and
connections between the educational institutions and businesses, potentially in the form of programs
encouraging business innovation. Lastly, some business owners want colleges and universities in the
region to promote educated young people to live and work in the more rural areas of the region.
Community Leaders
Community leaders appear to be most interested in seeing collaboration and networking at the regional
and state level between industry and colleges/universities. Along this same line of thought,
community leaders are very concerned about losing young talent to other states and regions because of
a lack of coordination between public and private entities. They would especially like to see the
development of interdisciplinary programs designed to provide students with opportunities to gain
hands on experience and connections with possible local employers. In regards to training and
education in the region, community leaders would prefer if more students were trained in the areas of
technology, computer science and manufacturing. Some suggest that the best way to train individuals
in these areas is to promote private investment in technical college programs and non-traditional
programs. Their main concern is that Kansas State receives such a large portion of state funding for
higher education that technical colleges and community colleges might be left in the dust if the proper
initiatives aren’t created.
Banks
Regional bankers seem to agree with the suggestions from business owners and community leaders.
However, their emphasis is primarily on promoting useful, applicable programs through increased
funding of community colleges and technical institutions. Bankers typically agree that the areas where
the most training is needed are technical and computer skills, entry level management and other skilled
labor such as welding. They also agree that collaboration between local and regional business and
higher education is essential, but believe that the public and private sector are already working fairly
well together. Bankers are also concerned about losing talent in rural areas to other regions or urban
centers due to a lack of excitement or culture that many young people today weigh heavily in their job
selection.
Section C2 - Innovation Networks
The interaction of the business with each of the regional institutions affects the business’s capacity to
innovate. The chart above shows the importance of different kinds of ties in helping business innovate
by developing and commercializing new products as well as making improvements to existing
products, services or business processes.
Educational Institutes
Educational institutes play an important role in (55% respondents) reported they believe
building the innovative capacity of businesses. regional educational institutes have a positive
Many of the businesses (47%) reported that the impact on business innovation.
educational institutes in the region help their
55%
60%
47%
50%
that they did not help in innovation, while
32%
32%
40% Negative
26%
24%
14%
Neutral
economic development agents had a similar 20%
10%
view with 45% reporting positive impact of Positive
0%
educational institutes on business innovation, Business ED Banks
32% had a neutral view and 18% reporting a Community
64%
70%
55%
60% innovation for local businesses. The majority of
46%
50%
banks (64% of the respondents), 55% of the
32%
27%
27%
40% Negative
economic development agents and 46% of the
18%
30%
14%
Neutral
20%
9%
business community reported that professional
10% Positive
0% service firms have a positive impact on
Business ED Banks innovation in the region. 32% of the businesses
Community
had a neutral response and 18% reported no
More than half of the respondents in all the positive impact of professional service firms on
three groups reported that regional professional innovation in the region.
Regional Customers
Demanding regional customers are also a
57%
54%
60%
45%
source of innovation according to a majority of 50%
32%
32%
40%
26%
the respondents in the three groups. 57% of the Negative
18%
30%
15%
businesses, 45% of the economic development Neutral
10%
20%
agents and 54% of the regional banks reported 10% Positive
0%
that the regional customers have a positive Business ED Banks
impact on the innovation. Community
Regional Suppliers
Regional suppliers also have a positive impact
45%
41%
50% 37%
37%
36%
on the innovation capacity of the businesses 40%
30%
27%
14%
while the majority of the economic 20% Neutral
development agents and banks were neutral on 10% Positive
the issue as were 30% of the businesses. 0%
Business ED Banks
Community
70%
55%
40%
27%
Negative
have a positive impact on innovation capacity
23%
18%
30%
17%
10% Positive
0%
Business ED Banks
Community
Banks
Banks play an important role by providing the
59%
59%
64%
70%
60% required resources to undertake innovative
50%
activities. According to 59% of the businesses,
27%
40% Negative
21% 59% of the economic development agents and
18%
18%
30%
16%
Neutral
20%
64% of the banks, regional banks help
5%
10% Positive
0% innovation in the region by providing funds for
Business ED Banks it.
Community
45%
41%
50%
respondents. Almost the same number of
32%
40%
28%
28%
respondents said the venture capital firms have
27%
25%
23%
30% Negative
18%
a positive, neutral and negative impact on
20% Neutral
innovation for businesses. And while, 41% of
10% Positive
economic development agents reported a
0%
positive value, the majority of the bank Business ED Banks
respondents (45%) reported a negative value of Community
Angel Investors
There was a varied response on whether or not 60%
48%
43%
angel investors provide a network for 50%
36%
29%
29%
innovation in the region. 36% of businesses 40%
25%
24%
Negative
19%
30%
reported a negative value of angel investors
16%
20% Neutral
along with 43% of banks. 48% of economic 10% Positive
development agents reported a positive value 0%
for such networks. Business ED Banks
Community
Government Agencies
region. Businesses were more dispersed on
45%
50%
37%
35%
32%
40%
28%
28%
27%
30% Negative
20% and 34% positive value of such institutions for
Neutral
10% the innovation networks. Only 28% of the
Positive
0% economic development agents and 23% of the
Business ED Banks banks reported a positive value for such
Community
institutions for the innovation networks.
The respondents were again varied on their
responses about the role of government
agencies in the innovation networks of the
Industry or Cluster Association
Industry and/or cluster associations can be an
41%
50%
39%
38%
important part of the innovation network as
34%
32%
40%
28%
27%
they foster innovation by exchange of
23%
30%
19%
Negative
information and ideas. 34% of the businesses, 20% Neutral
39% of the economic development agents and 10% Positive
32% of the banks reported that these 0%
associations have a positive role in the Business ED Banks
Community
innovation networks.
64%
70%
professional associations don’t play an 60%
45%
50%
important role in the innovation networks,
33%
32%
28%
27%
40% Negative
23%
most likely because of the lack of presence of
18%
30%
14%
Neutral
20%
such associations.
10% Positive
0%
Business ED Banks
Community
Entrepreneurial Networks
Entrepreneurial networks are an important part
45%
41%
50%
40%
28%
28%
27%
27%
24%
70%
60% reported that the business assistance centers in
45%
50%
36%
40%
26%
Negative
innovation networks in the region. 36% of the
19%
18%
30%
14%
Neutral
20%
businesses and 45% of the banks also reported
10% Positive
0% that the business assistance centers in the
Business ED Banks region play an important role in the innovation
Community
networks in the region.
Most Valuable Institutions to Innovation for Business Innovation
Business owners
Community Leaders
Banks
Section C3 – Regional Norms and Attitudes
Regional norms and attitudes are important determining factors for the innovation readiness and
capability of a region. Openness to diversity and cultural awareness are also important factors affecting
regional innovation. According to the majority of economic development agents and banks, new
residents can easily integrate into the regional business community. About 41% of the businesses
reported that new residents can easily integrate into the business community whereas an additional
34% of the businesses were neutral on the issue.
About 62% percent of the banks and half the businesses (50%) reported that the region is a welcoming,
tolerant and attractive place for people of diverse backgrounds. On the other hand, half of the economic
development agents (50%) had a neutral view on the issue.
A vast majority of the banks (81%) reported that the leaders in the region are responsive to the needs of
all regional residents, irrespective of ethnicity, cultural heritage, gender or lifestyle. The businesses and
economic development agents were more distributed in their views. About 41% of the businesses and
41% of the economic development agents reported that leaders are responsive, while 23% of the
businesses and 32 % of the economic development agents were neutral, and another 22% of the
businesses and 18% of the economic development agents found that leaders were largely unresponsive
to the needs of all regional residents.
A majority of the banking community reported that the business culture in the region understands
failure as part of the learning and innovation process. On the other hand, majority of the businesses
and economic development agents had a neutral position on this issue.
Majority of the respondents across all groups generally agreed that people from different industry and
economic sectors frequently interact in the region and also celebrate the growth of companies. The
majority of businesses also reported that local artists frequently interact with businesses in the region.
The economic development agents and the banks had a more distributed view; a majority of the
economic development agents (55%) reported that local government institutions eagerly partner with
the private sector to promote new business development, while the majority of banks had a neutral
position on this topic.
Economic development agents and banks reported that the business leaders in the region treat
entrepreneurs, startups and new companies as full partners in all aspects of industry cooperation,
while most of the businesses had a neutral position on this item.
Regarding the sharing of information and resources by the business leaders, a majority of the banks
reported that they share the resources and information. The majority of the economic development
agents and businesses, on the other hand, had a neutral position on this.
Majority of the businesses and banks report that residents actively participate in community
development organizations and projects, while the majority of the economic development agents had a
neutral position on this issue. The majority of respondents in all three groups reported that the
successful business people in the region actively invest in economic development projects and startup
ventures.
Most Important Regional Issue(s) that Should be Addressed to Improve the Prospects of
Success of Businesses in Region
Business Owners
The most important regional issues, according to the business community, that need to be addressed
for business success are limited government involvement, reduced taxes, investment in education and
infrastructure, programs or incentives to retain talent in rural areas, and availability of initial capital to
finance innovation or expand existing businesses.
Community Leaders
Community leaders – more so than business owners or bankers – almost unanimously agree that the
most important regional issue facing business success is maintaining a good infrastructure in the
community, adequate housing, availability of trained manpower to attract new business, and also to
retain existing businesses in the community.
Banks
Regional bankers also agree that creating more jobs and a more consistent revenue stream for the
region is important. The other important issues are adequate housing, a qualified and motivated
workforce, lower development costs, availability of better technology in rural areas and increased
incentives for developing or converting to green energy sources.
Section C4 – Social Networks
This section describes the social networks present in the region. While Section D deals with social
network mapping, the current section focuses on the type of networks present, meeting place,
frequency of interaction, and role of these networks in the region.
develop?
business?
90%
80%
70%
60%
50%
Community
Community
Community
Community
Community
Community
40%
Business
Business
Business
Business
Business
Business
30%
Banks
Banks
Banks
Banks
Banks
Banks
20%
10%
0%
Workforce Training Information Joint Joint activities Sharing of
training workshops for about markets procurement of for promoting knowledge
owners/key raw material business in
employees region
Section C5 - Demographics
The following section briefly describes the demographic profile of the respondents in each group.
Opinion Regarding the Way Industry Will Change in Coming Five Years
Majority of the respondents in all three groups reported that they think the industry will grow slowly
in the coming five years with 68% of the banks, 67% of the economic development agents and 66% of
the businesses sharing this view. Along with that 18% of the businesses said they think the industry
will grow rapidly in the coming five years.
Banks 0.68
Will face threat from
emerging substitutes
Will decline
Community 0.67
Will grow rapidly
-0.5 0 0.5 1
Region Served
Services Offered
Business Community
In the region
11%
89% Elsewhere in US
Exports
85%
15% Yes No
Industry Sector
Aerospace
Industry Sector Manufacturing
25% Finance/Accounting
23%
Insurance/Real Estate/ Legal
Medical/Dental/Health
20% Telecommunications Services
Transportation/Utilities
Construction/Architecture/Engineering
14% Data Processing Services
15% Wholesale/Resale/Distribution
11% Education
Marketing/Advertising/Entertainment
10% Research/Development Lab
7% 7% 7% Business Service/Consultant
6% 6% Computer/Network Consultant
5%
5% 4% Hospitality/Tourism
3% 3% Food Services
2%
1% 1% Agriculture
0% 0% 0% 0% Other
0%
Gross Revenue in 2006
Gross Revenue
40% 35% 34%
35%
30%
25%
20%
13%
15% 11%
10% 4% 4%
5%
0%
Less than a $ 1-10 $ 11-50 $ 51 – 100 Over 100 Don’t
million million million million million know
Company’s Average Annual Revenue Growth Over the Past Three Years
Position in company
50% 47%
40%
30%
21%
20%
12% 12%
8%
10%
0%
Owner/President/CEO Senior Executive or Director / Vice President Manager Other, please specify
Senior Official
Time for which Respondents have Lived in the Region
60%
50%
40%
30% 21%
20%
10%
10% 3%
0%
Less than 2 years 2 to 5 years 5 to 15 years 15+ years
Banks
Definition of Region
Measure 1: Degree
Degree is the count of the number of ties to other players in the network i.e. the number of direct
connections a node has. Higher degree for a node might show that the node is an active player in the
network or is often a connector or hub in network. Most connected does not mean most powerful
position in network as power is depicted by connections of connections, may be in an advantaged
position in the network, may be less dependent on other individuals and can often be identified as
third parties or deal makers (Group).
Degree Case 1:
Frequency = 1 (i.e. interaction once a year or less)
Quality of interaction = link color with low to high quality ranging from grey to black color of link
Size of the node increases with increasing degree and nodes with higher degree are towards the center
of the map
Degree Case 2:
Frequency = 2 (i.e. interaction is quarterly)
Quality of interaction = link color with low to high quality ranging from grey to black color of link
Degree Case 3:
Frequency = 3 (i.e. interaction is monthly)
Quality of interaction = link color with low to high quality ranging from grey to black color of link
Degree Case 4:
Frequency = 4 (i.e. interaction is weekly)
Quality of interaction = link color with low to high quality ranging from grey to black color of link
Degree Case 5:
Frequency = 5 (i.e. interaction is daily)
Quality of interaction = link color with low to high quality ranging from grey to black color of link
Measure 2: Closeness
Closeness is a measure of centrality that measures how quickly an individual can access more
individuals in a network. It reflects the ability to access information through the “grapevine” of
network members. A node with a high closeness centrality generally has quick access to other nodes in
a network, has a short path to other nodes, is close to other nodes and has a high visibility as to what is
happening in the network (Group).
Closeness Case 1:
Frequency = 1 (i.e. interaction once a year or less)
Quality of interaction = link color with low to high quality ranging from grey to black color of link
Closeness Case 2:
Frequency = 2 (i.e. interaction is quarterly)
Quality of interaction = link color with low to high quality ranging from grey to black color of link
Closeness Case 3:
Frequency = 3 (i.e. interaction is monthly)
Quality of interaction = link color with low to high quality ranging from grey to black color of link
Closeness Case 4:
Frequency = 4 (i.e. interaction is weekly)
Quality of interaction = link color with low to high quality ranging from grey to black color of link
Closeness Case 5:
Frequency = 5 (i.e. interaction is daily)
Quality of interaction = link color with low to high quality ranging from grey to black color of link
Measure 3: Betweenness
Betweenness is the measure of the extent to which a node lies between other nodes in the network. This
measure takes into account the connectivity of the node’s neighbors, giving a higher value for nodes
which bridge clusters. The measure reflects the number of people who a person is connecting indirectly
through their direct links.
Betweenness centrality identifies an individual’s position within a network in terms of its ability to
make connections to other pairs or groups in a network. A node with high betweenness centrality
generally holds a favored or powerful position in the network, represents a single point of failure
(taking the single betweenness spanner out of a network would sever ties between cliques), or has a
greater amount of influence over what happens in a network (Group).
Betweenness Case 1:
Frequency = 1 (i.e. interaction once a year or less)
Quality of interaction = link color with low to high quality ranging from grey to black color of link
Betweenness Case 2:
Frequency = 2 (i.e. interaction is quarterly)
Quality of interaction = link color with low to high quality ranging from grey to black color of link
Betweenness Case 3:
Frequency = 3 (i.e. interaction is monthly)
Quality of interaction = link color with low to high quality ranging from grey to black color of link
Betweenness Case 4:
Frequency = 4 (i.e. interaction is weekly)
Quality of interaction = link color with low to high quality ranging from grey to black color of link
Betweenness Case 5:
Frequency = 5 (i.e. interaction is daily)
Quality of interaction = link color with low to high quality ranging from grey to black color of link
SECTION E – QUALITATIVE ANALYSIS
This section briefly describes the major learnings from the qualitative portion of the project. A total of
nineteen interviews were conducted for this project. The sections below highlight the main findings
from the discussions with the interviewees.
According to the Organization for Economic Co-operation and Development (OECD), among the
OECD member countries, rural regions face a number of common challenges that contribute to weaker
economic performance. These include: 1) out-migration and aging, 2) lower educational attainment, 3)
lower average labor productivity, and 4) overall low levels of public services (OECD, 2006). Rural
Kansas shares these concerns with nearly all other rural regions.
The section describes the challenges being faced, the unique strengths of the region and provides
suggestions from literature to overcome the challenges.
Out- Migration
A large proportion of rural regions continue to lose population, particularly younger residents, and
tend to have older populations (OECD, 2006). This is a common problem faced by all of the counties in
the North Central region. Population for some of the counties has been continuously declining over the
last decades. Young kids leave to bigger cities for school and move to other places for jobs leading to a
dearth of young people in the region. Fifteen of the nineteen counties in the North Central region
reached maximum population sometime between WWI and WWII.
Education Attainment
Generally in rural regions, another challenge faced is related to education. In most OECD countries the
percentage of the population attending school up to upper secondary education is typically around or
often below the national average in rural regions (OECD, 2006). In North Central Kansas, education is a
strength rather than a challenge, with a higher percentage of the population (above 25 years) being at
least a high school graduate or more educated when compared to state percentages.
Labor Productivity
Lower labor productivity is the major reason for lagging economic performance by most rural regions
(OECD, 2006). Lower labor productivity is usually characterized by lower value added services, less
educated workforce, low percentage of region’s population in workforce, higher unemployment,
higher percentage of older persons, and a high rate of commuters employed in other regions. North
Central Kansas region in general doesn’t face all of these issues. There are more older people in the
region and people commute to neighboring counties for work, but the flow is both ways.
Unemployment is lower compared to state in most of the counties, the workforce is educated, and
although most of people don’t work in agriculture but work more in a services industry or
manufacturing industry, they do add value to the services provided.
Public Services
Most of the rural regions do not have the necessary critical mass of facilities, services and infrastructure
to support established business or entrepreneurs, leading to fewer employment opportunities and
more youth moving out of the region because the demographics cannot support provision of local
public services (OECD, 2006). North Central Kansas also faces the issue of youth moving away and less
opportunities but it does have infrastructure that it can build on and create more jobs, e.g. technical and
community colleges, central location in the nation, highway and rail roads.
Shortsightedness
The shortsightedness of the agents and local leaders while making policies for the region is another
major issue, as it greatly affects the ability of the business to expand, grow or even start in a region. The
short term payback takes a higher priority for the leaders while drafting policies for the region.
Projects, like recruiting a retail firm, takes priority over projects that will help an entrepreneur set up a
business that could add to employment, create a permanent addition to the community, give back to
community, invest in community and would be an asset to the community as it generates revenue.
While there are outstanding exceptions, some agents and leaders in North Central Kansas exhibit
tendencies that reflect policies that restrict growth opportunities of the businesses.
Housing
Appropriate housing is a big issue faced by the communities. Some of the communities have seen
recruitment opportunities fail because they could not find housing for business employees.
Communities don’t want to invest in housing until the business comes to region and businesses won’t
come to region till they find housing for their employees. This loop needs to be broken.
Big Difference between the Way the Economic Development Agents, Businesses and the
Banks Think
Many define an economic development agents’ task to create a positive community for the businesses,
helping them grow and thrive. However the decisions and policies of the agents are often limited by
the geographic view of the community which essentially cuts off at the county line, whereas businesses
do not tie their outlook to county or city boundaries. This difference in the definition of the region
results in policies or programs that may not be the best that these agents could offer to the businesses
or may not be as good as what could be offered by a multi-county or region partnerships.
Other Learnings
The following are some of the key points we learned during the course of this project.
How far reaching are the geographic limits of the community or region served by your business?
In this section, we are interested in learning about how each of the following factors affect businesses in the
region. Please rate the region’s current performance (level) on each factor.
7. Availability of required □ □ □ □ □ □
number of workers
Summary
16. Considering all the factors presented so far, how □ Poor Location
would you currently rate your region overall as a
□ Fair Location
place for a business to succeed?
□ Good Location
□ Excellent Location
18. With regard to state and local government programs and policies, please list and explain the most
critical issues that should be addressed to improve the prospects of success of businesses in your
region.
19. With regard to regional universities and technical colleges, please list and explain the most critical
issues that should be addressed to improve the prospects of success of businesses in your region.
II. Innovation Networks (Please check one box in each row)
In this section we are interested in understanding how various regional institutions help businesses to spark
innovation (includes developing and commercializing new products as well as making improvements to
existing products, services or business processes). Overall how valuable is interaction with each of the
following regional institutions to business’s capacity to innovate?
1. Educational □ □ □ □ □ □
Institutes
2. Professional Service □ □ □ □ □ □
Firms
3. Regional Customers □ □ □ □ □ □
4. Regional Suppliers □ □ □ □ □ □
5. Other Businesses in □ □ □ □ □ □
the region
6. Banks □ □ □ □ □ □
7. Venture capital □ □ □ □ □ □
Firms
8. Angel Investors □ □ □ □ □ □
9. Government □ □ □ □ □ □
agencies
11. Non-professional □ □ □ □ □ □
Associations (alumni
clubs, athletic clubs,
etc.)
12. Entrepreneurial □ □ □ □ □ □
Networks
14. Please list, by name, the most valuable institutions to innovation for the businesses in your region.
III. Regional Norms and Attitudes (Please check one box in each row)
In this section we are interested in learning about the dynamics of the business and civic environment of
your region.
13. Considering your entire regional business environment, please list and explain the most important
regional issue(s) that should be addressed to improve the prospects of success of businesses in your
region.
IV. Social Network Analysis (For questions 3,4,5 & 8, please check all that apply)
We are trying to understand how people interact with those around them. These are known as the social
networks of a person. Please tell us a bit about the social networks in your region.
Please go to question 5
□ At formal conventions/conferences
□ Churches
□ Games
6 Have these collaborative groups helped Very Somewhat A little Not at all Don’t
the region to develop? much bit know
□ □
□
□ □
7 Have these collaborative groups helped Very Somewhat A little Not at all Don’t
individual business owners in some way? much bit know
□ □
□
□ □
□ Sharing of knowledge
□ Other(please specify)
Please complete this brief background section. All information will be kept confidential.
1. Name
3. Your Title/Position
6. How long have you lived in the region? □ Less than 2 years
□ 2 to 5 years
□ 5 to 15 years
□ 15+ years
□ Will be stagnant
□ Will decline
□ Mailing Address
How far reaching are the geographic limits of the community or region served by your business? (This may
not be the market for end products, but provides for other business needs like raw materials, workforce,
finance, assistance, etc)
Business Environment
(Please check one box in each row)
In this section we are interested in learning about how each of the following factors affects your business.
Please rate the region’s current performance (level) on each factor.
7. Availability of required □ □ □ □ □ □
number of workers
Summary
16. Considering all the factors presented so far, how □ Poor Location
would you currently rate your region overall as a
□ Fair Location
place for your business to succeed?
□ Good Location
□ Excellent Location
18. With regard to state and local government programs and policies, please list and explain the most
critical issues that should be addressed to improve your business’s prospects for success.
19. With regard to regional universities and technical colleges, please list and explain the most critical
issues that should be addressed to improve your business’s prospects for success.
Innovation Networks
(Please check one box in each row)
In this section we are interested in understanding how your relationships with other regional institutions
help your business to be innovative (includes developing and commercializing new products as well
making improvements to existing products, services or business processes). Overall how valuable is
interaction with each of the following regional institutions to your business’s capacity to innovate?
1. Educational □ □ □ □ □ □
Institutes
2. Professional Service □ □ □ □ □ □
Firms
3. Regional Customers □ □ □ □ □ □
4. Regional Suppliers □ □ □ □ □ □
5. Other Businesses in □ □ □ □ □ □
your Industry
6. Banks □ □ □ □ □ □
7. Venture Capital □ □ □ □ □ □
Firms
8. Angel Investors □ □ □ □ □ □
9. Government □ □ □ □ □ □
Agencies
11. Non-professional □ □ □ □ □ □
Associations (alumni
clubs, athletic clubs,
etc.)
12. Entrepreneurial □ □ □ □ □ □
Networks
14. Please list, by name, the most valuable institutions to your business’s innovation
III. Regional Norms and Attitudes
(Please check one box in each row)
In this section we are interested in learning about the dynamics of the business and civic environment of
your region.
We are trying to understand how people interact with those around them. These are known as social
networks of a person. Please tell us a bit about what your social network does for you.
Please go to question 5
□ At formal conventions/conferences
□ Churches
□ Games
6 Have these collaborative groups helped Very Somewh A little Not Don’t Know
the region to develop? Much at bit at all
□
□
□ □ □
7 Have these collaborative groups helped Very Somewh A little Not Don’t Know
you in doing business? Much at bit at all
□
□
□ □ □
8 How have these groups helped the region? □ Workforce training
□ Sharing of knowledge
□ Other(please specify)
V. Demographics
(Please check one box in each row)
Please complete this brief background section. All information will be kept confidential.
□ 50-74%
□ 10-49%
□ Less than 10 %
□ Don’t know
□ Elsewhere in US
□ Outside US
□ Don’t know
4. Which best describes the primary industry □ Aerospace
focus of your company?
□ Manufacturing
(If your company is involved with more than
□ Finance/Accounting
one focus, check the one that creates the
majority of its revenue) □ Insurance/Real Estate/ Legal
□ Medical/Dental/Health
□ Telecommunications Services
□ Transportation/Utilities
□ Construction/Architecture/Engineering
□ Wholesale/Resale/Distribution
□ Education
□ Marketing/Advertising/Entertainment
□ Research/Development Lab
□ Business Service/Consultant
□ Computer/Network Consultant
□ Hospitality/Tourism
□ Food Services
□ Agriculture
□ Other
Current(2008) ______________
□ $ 1-10 million
□ $ 11-50 million
□ $ 51 – 100 million
□ Don’t know
9. Please estimate your company’s average □ Negative
annual revenue growth over the past three
□ 0%
years.
□ 1-5%
□ 6-10%
□ 11-20%
□ 20-100%
□ Over 100%
□ Manager
11. How long have you lived in the region? □ Less than 2 years
□ 2 to 5 years
□ 5 to 15 years
□ 15+ years
□ Will decline
□ Mailing Address
How far reaching are the geographic limits of the community or region served by your bank?
City County Multiple Multi-city within Multi-city across State Multiple Nation
Limits Limits Counties the same county counties States
□ □
□ □ □ □ □ □
In this section, we are interested in learning about how each of the following factors affect businesses in the
region. Please rate the region’s current performance (level) on each factor.
7. Availability of required □ □ □ □ □ □
number of workers
18. With regard to state and local government programs and policies, please list and explain the
most critical issues that should be addressed to improve the prospects of success of businesses in
your region.
19. With regard to regional universities and technical colleges, please list and explain the most
critical issues that should be addressed to improve the prospects of success of businesses in your
region.
In this section we are interested in understanding how various regional institutions help businesses to spark
innovation (includes developing and commercializing new products as well as making improvements to
existing products, services or business processes). Overall how valuable is interaction with each of the
following regional institutions to business’s capacity to innovate?
1. Educational □ □ □ □ □ □
Institutes
2. Professional Service □ □ □ □ □ □
Firms
3. Regional Customers □ □ □ □ □ □
4. Regional Suppliers □ □ □ □ □ □
5. Other Businesses in □ □ □ □ □ □
the region
6. Banks □ □ □ □ □ □
7. Venture capital □ □ □ □ □ □
Firms
8. Angel Investors □ □ □ □ □ □
9. Government □ □ □ □ □ □
agencies
11. Non-professional □ □ □ □ □ □
Associations (alumni
clubs, athletic clubs,
etc.)
12. Entrepreneurial □ □ □ □ □ □
Networks
14. Please list, by name, the most valuable institutions to innovation for the businesses in your region.
III. Regional Norms and Attitudes (Please check one box in each row)
In this section we are interested in learning about the dynamics of the business and civic environment of
your region.
13. Considering your entire regional business environment, please list and explain the most important
regional issue(s) that should be addressed to improve the prospects of success of businesses in your
region.
14. How well does your bank fit into the community, in terms of services provided & linkages with
community members?
IV. Social Network Analysis (For questions 3, 4, 5 & 8, please check all that apply)
We are trying to understand how people interact with those around them. These are known as the social
networks of a person. Please tell us a bit about the social networks in your region.
1 Do people in your region ever get together □ Yes □ No
to discuss issues related to your region?
Please go to next section
Please go to question 5
□ At formal conventions/conferences
□ Churches
□ Games
6 Have these collaborative groups helped Very Somewh A little Not Don’t know
the region to develop? much at bit at all
□
□
□ □ □
7 Have these collaborative groups helped Very Somewh A little Not Don’t know
individual business owners in some way? much at bit at all
□
□
□ □ □
□ Sharing of knowledge
□ Other(please specify)
1. Name
3. Your Title/Position
6. How long have you lived in the region? □ Less than 2 years
□ 2 to 5 years
□ 5 to 15 years
□ 15+ years
□ Will be stagnant
□ Will decline
□ Mailing Address
M = Monthly R – Routine/Regular
Economic Development
Support Institutes
State Representative
State Senator
Banks