2015 Leadership Wichita - Session One
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The document discusses the economic landscape of Wichita, Kansas, using a pickle metaphor to illustrate various characteristics of the local economy, such as growth, diversity, and challenges. It highlights the regional employment statistics, industry focuses like aerospace, and issues related to poverty and education among different demographics. Additionally, it raises questions about the future direction of Wichita's economy and the community's aspirations for development.
2015 Leadership Wichita - Session One
- 2. Scott Anderson, Chief Economist, Senior Vice President Bank of the West Ted Jones, Chief Economist, Senior Vice President Stewart Title Guaranty Company
- 3. Is Wichita like a Pickle?
- 4. Is Wichita like a Pickle •Crunchy/soft •Sweet/sour •Stuck in a jar •Common/unique •In demand/yesterday’s health food craze
- 5. Is Wichita like a Pickle? •Gherkin •Cornichon •Brined •Kosher dill •Polish •Spice •Hungarian •Lime •Kool-Aid
- 6. Leadership Wichita 2015 •How big is the pickle jar? • What is the physical size of our “regional” economy? •What type of pickle are we? • Are we “Kosher?” •Is there a sour pickle among us? • Poverty, race, and education •What does the pickle production look like? • Are we growing or declining? •Do we want to make a new pickle? • What do we do now?
- 7. How big is the pickle jar?
- 16. How big is the pickle jar?
- 17. What type of pickle are we?
- 18. Total Employment 27% 73% Jul-05 Goods Producing Service Producing 24% 76% Jul-15 Goods Producing Service Producing
- 22. Value of Kansas Exports Sources: Foreign Trade Division of the U.S. Census Bureau 0 100,000,000 200,000,000 300,000,000 400,000,000 500,000,000 600,000,000 Jan-02 Sep-02 May-03 Jan-04 Sep-04 May-05 Jan-06 Sep-06 May-07 Jan-08 Sep-08 May-09 Jan-10 Sep-10 May-11 Jan-12 Sep-12 May-13 Jan-14 Food & Agri Chemicals Machinery Aerospace
- 23. What type of pickle are we? •Manufacturing state •Commodity driven state •Manufacturing city •Aerospace drives the economy, creates wealth, and provides new income •Aerospace remains a vital component of the regional economy
- 24. What type of pickle are we? Part 2
- 25. Source: U.S. Census Bureau, 2005-2009 American Community Survey United States Average 25.2 Minutes Sedgwick County Average 17.9 Minutes
- 27. Rail Network
- 28. Energy Kansas U.S. Average Diference Unit Petroleum $53.12 54.38 ($1.26) Barrel Natural Gas $14.50 12.61 $1.89 Thousand cu ft Coal $1.68 2.25 ($0.57) Million Btu Electricity Residential $12.90 12.95 ($0.05) Cents/kWh Commercial $10.15 10.44 ($0.29) Cents/kWh Industrial $7.20 6.65 $0.55 Cents/kWh Sources: EIA http://www.eia.gov/state/data.cfm?sid=KS#Prices Energy Prices - May 2015
- 29. Per Capita Income (% of U.S.) 80 85 90 95 100 105 110 1970 1975 1980 1985 1990 1995 2000 2005 2010 2013 Des Moines-West Des Moines, IA (Metropolitan Statistical Area) Kansas City, MO-KS (Metropolitan Statistical Area) Wichita, KS (Metropolitan Statistical Area) Source: BEA
- 30. Cost of Living 1Q 15 Kansas Other MSA’s Topeka, KS 92.3 Tulsa, OK 85.4 Dodge City, KS 94.7 Wichita, KS 90.8 Wichita, KS 90.8 Dallas, TX 97.1 Hutchinson, KS 91.0 Kansas City, MO 94.8 Manhattan, KS 90.6 Denver, CO 107.7 Chicago, IL 114.6 U.S. 100 Source: ACCRA Cost of Living Index, May 2015
- 31. Home Price Appreciation Source: Federal Housing Finance Agency -10 -5 0 5 10 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 Kansas Wichita, KS United States
- 32. What makes us special? •Centralized position within the US •Limited geological boundaries •Rail and highway network •Wage costs •Cost of living •Consistent growth/home price appreciation
- 33. Is there a sour pickle among us?
- 37. Where do minorities live?
- 40. Where is the poverty?
- 42. Where does the least educated live?
- 44. Where does the most educated live?
- 46. Where does the wealthy live?
- 48. Is there a sour pickle among us?
- 49. Is there a sour pickle among us? •Aging population base •In migration within the regional states •Out migration to the rest of the world •Homogenous/non-diversified population • Gentrification – minority, poverty, and less educated
- 50. What does the pickle production look like?
- 51. Source: Bureau of Labor Statistics, State and Area Employment
- 52. Source: Bureau of Labor Statistics, State and Area Employment
- 53. Is this good, bad, or ugly? (6.00) (5.00) (4.00) (3.00) (2.00) (1.00) - Total Goods Producing Service Producing June 2009 - July 2015 (8.00) (6.00) (4.00) (2.00) - 2.00 4.00 6.00 June 2009 - July 2015 Source: BLS - CES
- 54. Is this good, bad, or ugly? •The structure of the aerospace industry has changed! •What will be the economic drivers for the regional economy?
- 55. Do we want to make a new pickle?
- 56. “How do we get out of this pickle?” •Challenges and opportunities •What do you want out of Wichita? •What do you want Wichita to be? •Development from above and/or development from below!
- 57. CEDBR DATA WSU's Center for Economic Development and Business Research is a responsive, reliable source of local, state and national demographic and economic data. KANSAS INFORMATION DATABASE The Kansas Information Database (KID) is a set of data containing economically pertinent news articles and information on the state of Kansas and the Midwest region. MARKET RESEARCH CEDBR provides customized market research to government, businesses and nonprofit agencies. Research.CEDBR.org FORECASTS CEDBR provides employment and retail sales forecasts, as well as population projections. Presentations.CEDBR.org CEDBR E-CONNECTION CEDBR publishes e-connection, a monthly e-mail newsletter, providing ongoing reports on business and the economy, as well as timely delivery of special reports. Newsletter.CEDBR.org