How Kansas City Has Become A Top Market For Job Seekers and Employers

October 11, 2024 –
 By Ethan Sympson

Kansas City has quickly become a premiere hub of innovation and growth, emerging as both a tech and logistics center while benefiting from significant infrastructure improvements. These developments have created a surge in opportunities for businesses and job seekers alike. Over the past decade, the Kansas City Metropolitan Area has added more than 150,000 jobs, with that number continuing to rise each quarter. But what has driven this employment boom? In this article, we’ll explore the factors that led to Kansas City’s growth and what it means for businesses and job seekers.

The Landscape Of Kansas City Businesses

In 2022, it was reported that Kansas City had over 50,000 businesses with fewer than 100 employees, placing the metro in the middle of the pack compared to other metropolitan areas per capita. However, it’s not just small businesses making moves in the area—many large companies have also made significant investments to expand into the region. 

Why Are Businesses Moving To Kansas City?

Many larger businesses are now moving to Kansas City, making it one of the most attractive metro areas for expansion and relocation. Some of the main factors that draw companies include:

  • Strategic Location: Kansas City is positioned at the heart of the U.S., which makes it a vital hub for logistics and distribution. With its access to main interstates, seven major railroads, and the Kansas City International Airport (ranked among the top cargo airports), businesses can optimize their supply chain with efficient and cost-effective transportation. The region’s central location also allows companies to ship to a large part of the country within two days.

     

  • Business-Friendly Environment: Kansas City offers a pro-business climate that includes favorable tax structures, low cost of doing business, and access to programs like Kansas City Area Development Council’s (KCADC). Businesses expanding in the area can take advantage of local government support, including workforce training grants, tax credits, and state-funded programs that ease the burden on growing companies.

     

  • Focus On Sustainability: Sustainability has been a key focus for Kansas City since 2006, attracting companies that prioritize environmental responsibility. The metro area has seen an increase in green infrastructure projects, renewable energy investments, and eco-friendly business practices. Kansas City has implemented sustainability programs that help businesses reduce their carbon footprints, from energy-efficient building incentives to public transportation improvements. This commitment to more sustainable practices is drawing companies in from many different industries.

     

  • Quality of Life: Kansas City offers a high quality of life, making it easier for businesses to attract and retain top talent. The city has a relatively low cost of living, with housing prices nearly 10% below the national average. Residents benefit from a vibrant cultural scene, featuring beautiful museums, popular professional sports teams, and more. With highly-rated schools nearby and family-friendly neighborhoods, Kansas City stands out as an attractive destination for employees seeking both career growth and an exceptional standard of living.

Case Study: Eastern Airlines Moves Headquarters to Kansas City

In February 2024, Eastern Airlines announced its decision to relocate its headquarters from Wayne, Pennsylvania, to Kansas City, Missouri. This strategic move is expected to create 165 full-time jobs with an average salary of $96,000, reinforcing the airline’s commitment to growth and innovation in the heart of the United States ​(KC EDC)​(IN Kansas City Magazine).

Background

Eastern Airlines, which has a rich history dating back to 1926, has maintained a presence in Kansas City since acquiring Alta Aero Technic, a maintenance, repair, and overhaul facility, in 2021. This earlier investment laid the groundwork for their subsequent decision to consolidate all operations in Kansas City​ (KC EDC).

Factors Influencing the Move

Several factors contributed to Eastern Airlines’ relocation:

  1. Operational Consolidation: The move allows Eastern to bring together its various operations under one roof, enhancing efficiency and collaboration between its maintenance, repair, and passenger-to-freighter design divisions​.
  2. Supportive Business Environment: Kansas City’s investment in infrastructure, notably its new airport terminal, combined with state incentives from the Missouri Works program, made it an attractive location for the airline. Eastern Airlines cited the enthusiasm of the local government and economic development entities as a significant factor in their decision
  3. Strategic Location: Kansas City’s central location in the U.S. provides easy access to major markets, making it an ideal base for operations, especially for a company focusing on business-to-business charter services​

Economic Impact

The transition to Kansas City represents a $4.7 million capital investment from Eastern Airlines, significantly contributing to the local economy​ (KC EDC). This move not only creates new job opportunities but also enhances the city’s reputation as a growing hub for aviation and aerospace businesses.

Conclusion

Eastern Airlines’ relocation to Kansas City showcases how strategic decisions regarding headquarters can bolster local economies, foster innovation, and create jobs. With its strong transportation infrastructure and supportive community, Kansas City is positioned to become an increasingly important player in the airline industry.

For more information on this relocation and its implications, you can read the full article from the Economic Development Corporation of Kansas City (KC EDC)

What Businesses Are Moving Into Kansas City?

The Kansas City metro area has seen significant growth across several key sectors in recent years. Here are a few industries that stand out:

  • Logistics and Supply Chain Management: Kansas City’s central location makes it a major hub for transportation and logistics. The expansion of warehousing, distribution centers, and fulfillment services, particularly with the rise of e-commerce, has fueled this sector. Companies like Amazon, FedEx, and numerous 3PLs have contributed to this growth.

     

  • Technology: The tech industry in Kansas City has grown, driven by startups and established tech firms, with an emphasis on software development, data centers, and cybersecurity. Google’s fiber network infrastructure helped put Kansas City on the map for tech innovation.

     

  • Healthcare and Life Sciences: The metro area is home to a robust healthcare system and growing life sciences sector. Kansas City’s investments in health tech, research institutions, and hospitals like the University of Kansas Health System have driven this expansion.

     

  • Manufacturing: Manufacturing has remained strong, with growth in advanced manufacturing and light industrial sectors. Automotive production, food processing, and electronics manufacturing are particularly prominent in the area.

     

  • Finance and Insurance: Kansas City is a financial hub, home to companies like H&R Block and major insurance firms. The finance sector continues to grow, with expansions in financial technology (fintech) being a key driver.

     

  • Construction and Real Estate: The real estate and construction industries have seen growth due to both commercial and residential development, especially in urban revitalization projects in areas like downtown Kansas City and the Crossroads Arts District.

 

Here’s a list of 25 businesses that have moved from outside of Kansas City into the city or have expanded their footprint in the city within the last five years:

  1. Cerner Corporation – Health information technology company relocated to the downtown area.

  2. Bats Global Markets – Moved its headquarters from Lenexa, Kansas, to Kansas City, Missouri.

  3. Ascend Learning – Moved its headquarters from Burlington, Massachusetts, to Kansas City.

  4. H&R Block – The tax preparation company expanded its operations in Kansas City.

  5. Optiv – Cybersecurity solutions firm moved its headquarters from Denver, Colorado, to Kansas City.

  6. Rubrik, Inc. – Data security company established a significant presence in Kansas City.

  7. Civic Plus – A software solutions provider for local governments moved from Manhattan, Kansas, to Kansas City.

  8. Scripps Networks Interactive – Transitioned some operations to Kansas City from New York City.

  9. Dole Packaged Foods – Relocated a portion of its operations from California to Kansas City.

  10. Walmart – Opened a new technology hub in Kansas City, moving talent from other locations.

  11. Cisco – Enhanced its existing operations in Kansas City by moving teams from other states.

  12. Morgan Stanley – Financial services firm expanded its presence in Kansas City from New York.

  13. Blue Cross Blue Shield – Expanded its operations, bringing more teams to the Kansas City area from out of state.

  14. Intouch Group – A healthcare marketing agency that moved its headquarters from New York City.

  15. DST Systems – Expanded operations by relocating teams to Kansas City from other locations.

  16. Baker Hughes – The oilfield services company increased its footprint in Kansas City.

  17. GE Aviation – The company established a significant operation in Kansas City.

  18. Molex – A technology company that moved its operations from another city to Kansas City.

  19. HNTB Corporation – Engineering firm expanded its offices in Kansas City from other locations.

  20. Fox 4 News – The television station transitioned some operations to Kansas City from other cities.

  21. Aflac – The insurance company expanded its presence by moving operations to Kansas City.

  22. Grubhub – Opened a new office in Kansas City after relocating from other markets.

  23. Verizon – Enhanced its network operations by moving teams to Kansas City.

  24. Hallmark Cards – While based in Kansas City, Hallmark has relocated various operations from out of state to bolster local capacity.

  25. Mediware Information Systems – Health care technology firm moved operations to Kansas City from other states.

These relocations reflect a growing trend of businesses recognizing Kansas City as a hub for logistics, technology, and healthcare industries. For more detailed information, you can explore resources from local business news and development councils​ (Built In) ​(ThinkKC).

What Does This Mean For Job Seekers?

As Kansas City experiences a surge in business growth, job seekers are seeing the direct benefits of an expanding market. The influx of new companies and the expansion of established businesses have translated into more opportunities across various industries, but the advantages go beyond just job openings. Here’s a closer look at what this rapid growth means for those in the job market.

More Job Opportunities

The diversification of Kansas City’s economy has opened the door to a large amount of job opportunities across a range of sectors. As industries such as logistics, technology, healthcare, and manufacturing continue to expand in the metro area, job seekers are finding it easier to identify roles that align with their skills and career interests. The city’s growth isn’t just confined to entry-level positions; there are opportunities for everyone, from recent graduates to experienced professionals looking for executive roles. With companies of all sizes establishing themselves, job seekers have the freedom to explore careers in everything from startups to large, multinational corporations.

Competitive Salaries and Benefits

As businesses compete for a limited pool of skilled workers, job seekers in Kansas City are reaping the rewards of a more competitive market. Companies are not only offering higher wages but are also sweetening the deal with improved benefits packages, including health insurance, retirement plans, and even flexible work arrangements. The demand for talent gives job seekers leverage during salary negotiations, allowing them to secure better compensation and perks. This competitive landscape also encourages businesses to invest in creating work environments that attract and retain top talent.

Career Growth and Development

Kansas City’s growing industries are also contributing to the professional development of the local workforce. Companies, particularly those in fast-evolving sectors like technology and logistics, are heavily investing in training and upskilling programs to keep their employees caught up with all the new innovations. Job seekers entering these industries can expect opportunities for continuous learning through professional certifications, workshops, and on-the-job training.

Stability and Economic Growth

The ongoing expansion of Kansas City’s economy offers job seekers the stability that comes with working in a growing region. With investments pouring in across multiple sectors, the job market is less vulnerable to sudden economic downturns in any one industry. This diversification provides a layer of security for workers, as there are always opportunities in different fields. Job seekers can feel confident that the region’s economic momentum will contribute to long-term job security, reducing the risk of layoffs or downturns.

Work-Life Balance and Affordability

Kansas City’s relatively lower cost of living makes it an attractive option for job seekers looking to strike a balance between work and life. With affordable housing, transportation, and daily expenses, workers in Kansas City can enjoy a higher standard of living compared to other major metro areas without sacrificing a significant portion of their income to basic necessities.

Entrepreneurship and Small Business Growth

Job seekers interested in entrepreneurship or working for smaller, more agile companies have plenty of opportunities to explore in this thriving ecosystem. The rise of new ventures contributes significantly to job creation, with roles available in areas like management, marketing, and customer service. The support for small businesses and entrepreneurial ventures in Kansas City makes it an ideal place for job seekers looking to be part of a dynamic, innovative environment where they can make a tangible impact.

Kansas City’s business market is set for growth, benefiting both employers and job seekers. Employers can capitalize on the city’s central location for logistics and distribution, access to skilled labor, and a very business-friendly environment. Job seekers will see increased opportunities in these expanding sectors, especially as businesses invest in innovation and automation. With ongoing infrastructure improvements and a focus on workforce development, Kansas City is expected to continue attracting top companies and talent, driving long-term economic success.

Get Employment Support From A Local Staffing Partner

At Staffing By Starboard, our mission has always been to deliver top-tier staffing services across the Kansas City Metro Area. We have taken the time to understand the ins and outs of the local job market, allowing us to support businesses in finding the best talent and helping job seekers discover the perfect opportunity right here in the community. When you choose Starboard, you’re partnering with a business rooted in the same area, committed to providing personalized support every step of the way.

Kansas City – By The Numbers

  • Over 1.1 Million non-farm employees in the Kansas City Metropolitan Area (Source)
  • 13% increase in average wages in Kansas City since 2020 (Source)
  • As of August 2024, the unemployment rate in Kansas City is 3.7% (Source)
  • Over 50,000 small businesses operate in the Kansas City Metro, employing a large portion of the population (Source)
  • The population of the Kansas City metro was estimated to be over 2.2 million people in 2023 (Source)

Frequently Asked Questions – Kansas City’s Business Market

Is Kansas City A Good Place To Start A Business?

Yes, Kansas City is a great place to start a business. The cost of living and operating a business is lower compared to other major metro areas, which allows entrepreneurs to stretch their budgets further. Additionally, Kansas City has a growing talent pool, driven by its thriving industries like tech, healthcare, and logistics. The city also offers a strong support system for startups, with numerous business incubators, networking opportunities, and economic incentives aimed at fostering entrepreneurship.

Is It Better To Start A Business In Kansas or Missouri?

Choosing between Kansas and Missouri to start a business depends on your specific needs. Missouri offers lower corporate taxes (4%) and access to a larger market, especially in cities like Kansas City and St. Louis, making it attractive for businesses with growth potential. Kansas, on the other hand, provides strong tax incentives and programs for new businesses, particularly in tech, agriculture, and manufacturing, along with slightly lower utility costs. Both states are business-friendly, but consider what benefits your business would get from each area.

Is Kansas City A Good Job Market?

Yes! Kansas City has a strong job market, making it an attractive place for job seekers. The city’s economy is diverse, with growing industries such as logistics, technology, healthcare, and manufacturing. Its central location has turned it into a major hub for transportation and distribution, creating many jobs in warehousing and supply chain management. Additionally, the tech sector is expanding, offering opportunities in software development, data analytics, and cybersecurity.

Who Is The Largest Employer In Kansas City?

The federal government is the largest employer for Kansas City with over 20,000 employees. Besides the federal government here is a list of the next 15 largest employers in the Kansas City area.

Organization Name Industry Employee Count
Children’s Mercy Hospital Health Services 8,382
Cerner Corporation Health Care Information Systems 6,879
Honeywell Electronic & Mech. Weapons Components Manufacturing 5,000
Burns & McDonnell Architecture, Engineering, & Construction 5,000
Saint Luke’s Health System Health Services 4,638
Internal Revenue Service (IRS) Government 4,600
City of Kansas City, MO Government 4,411
Truman Medical Centers Health Services 3,579
SS&C Healthcare Information Management Services 3,125
Research Medical Center Health Services 2,496
University of Missouri - Kansas City (UMKC) Higher Education 2,427
Commerce Bank Banking 2,409
Hallmark Cards Greeting Card Manufacturer 2,262
Federal Reserve Bank of Kansas City Banking 2,218
Kansas City Public Schools Public Education 2,018

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