Industrial employment in Kansas fell 4.7 percent over the past 12 months according to the 2010 Kansas Manufacturers Directory, an industrial directory published annually by Manufacturers' News Inc. MNI reports Kansas lost 10,693 industrial jobs and 176 manufacturers between March 2009 and March 2010, the sharpest decline MNI has ever reported in the 14 years it has been tracking the state's industry.
Manufacturers' News reports Kansas is now home to 4,614 manufacturers employing 216,640 workers.
"It's a perfect storm of negative conditions," says Tom Dubin, president of the Evanston, Ill.-based publishing company, which has been surveying industry since 1912. "The country has suffered deep losses in manufacturing employment due to automation and technology, outsourcing and the recession, while the faltering housing market has affected industries such as wood products, furniture and building products."
According to MNI, the lumber and wood sector saw the worst decline in employment, down 19.2 percent.
The transportation equipment sector saw the next largest decline, down 11.9 percent, following layoffs at Cessna Aircraft, Bombardier Inc. and Cobalt Boats, as well as the closure of a Hawker Beechcraft plant in Salina. Transportation equipment remains the state's top sector by employment with 49,693 jobs. Food products rank second with 32,229 jobs, down 3.5 percent. Third-ranked industrial equipment and machinery accounts for 25,166 jobs, down 2.5 percent.
According to MNI, employment losses were spread out across most sectors and included printing/publishing, down 6.9 percent; stone/clay/glass, also down 6.9 percent; furniture/fixtures, down 6.8 percent; electronics, down 5.6 percent; textiles/apparel, down 4.7 percent; paper products, down 3.3 percent; rubber/plastics, down 3.2 percent; primary metals, down 1.7 percent; and chemicals, down 1.5 percent.
Bright spots for the state included the planned opening of two wind turbine plants, with Denmark-based Jupiter Group's wind turbine production facility to open in Junction City and Tindall Corporation's turbine component plant to break ground in Newton. Plastics manufacturer Spartech Corp announced the planned expansion of its Wichita facility, while GM announced an expansion of its Kansas City plant, preserving 3,869 jobs. Food giant Sara Lee Corporation announced plans to open a sliced meat plant in Kansas City, with production expected to begin in 2011.
MNI reports Southeast Kansas accounts for the most industrial employment in the state, with 103,778 industrial jobs, down 5.7 percent over 12 months. Northeast Kansas accounts for 89,306 industrial jobs, down 4 percent. The Southwest region of the state saw no significant change in employment, and is currently home to 17,191 industrial workers, while the Northwest saw employment drop 11.1 percent and is home to 6,365 industrial workers.
Wichita remains the state's top city by industrial employment with 61,337 manufacturing jobs, down 4.6 percent over the year. Kansas City saw employment increase 4.2 percent and is currently home to 14,212 industrial workers. Third-ranked Lenexa also saw an increase, with industrial employment up 2.4 percent and is currently home to 9,834 manufacturing jobs. Topeka's manufacturing employment dropped 2.7 percent and currently accounts for 8,821 jobs, while fifth-ranked Olathe accounts for 7,681 jobs, down 3.5 percent.