Why is Kansas City falling behind its economic competitors?
First, the good news.
By many measures, the Kansas City area is in solid economic shape.
The metropolitan area is marching forward, keeping pace with national growth trends. We can expect to add 18,000 to 20,000 jobs per year for the next two years. And the number of people who are unemployed has reached a 16-year low.
Kansas City is in a “Goldilocks” moment, according to Frank Lenk of the Mid-America Regional Council.
Now, for the reality check.
We’re lagging in some key areas. The broader national trends are relevant, but more important is how we fare when compared to our peer cities.
And we’re falling behind.
Economic indicators show that our peer cities are doing much more, much faster. Their wage growth is faster. They are attracting more “quality jobs” that pay above the median wage and lead to a career path. Kansas City needs more jobs in fields such as technology and health care.
The Kansas City area ranks 12th among its 31 closest economic competitors in quality job growth. We rank 19th among the 31 for overall economic growth.
So even though we are doing well by many measures of economic vitality, there are troubling signs.
This was the message delivered by Lenk in his annual economic forecast report, presented to the Greater Kansas City Chamber of Commerce.
Local leaders should heed the warning now.
Kansas City just submitted a proposal to land Amazon’s second headquarters. That plan should be a road map for the future, regardless of which city online retail giant eventually graces with its presence.
To compete with peer cities and to lure new businesses, we need a more disciplined focus on economic drivers such as trade, talent, innovation and entrepreneurship. To attract quality jobs, Kansas City must do a better job educating and training its workforce.
To be competitive and to bring new companies to town, Kansas City also will need a 21st-century airport. Voters have a chance to make that happen on Nov. 7.
Improving our ranking among our peer cities will require an intensified focus on a new set of metrics with an eye toward landing quality jobs and growing income.
MARC’s report points this out: “Rising wealth leads to rising optimism which is now leading to rising investment in the real, as well as financial, economy.” It’s a trickle-down effect that is real and measurable.
As Lenk’s report noted, the Kansas City area is a stable region, with many factors working in our favor. But it also includes a stern warning that Kansas City ignores at its peril.
This story was originally published October 29, 2017 at 3:30 PM with the headline "Why is Kansas City falling behind its economic competitors?."