Photo of Kansas airplane manufacturing floor

a great place for business

It’s hard to find a better place to do business than Kansas. In 2004, Forbes magazine ranked Kansas the single most business-friendly state in the nation and continues to list the state among the best places in the country to own a business. Pollina Corporate Real Estate agreed in its 2006 annual survey, ranking Kansas among the nation’s top 10 pro-business states and calling the state a leader in job creation and retention. In addition, Kansas recently garnered the No. 1 ranking in the Pacific Research Institute for Public Policy’s annual economic freedom index, which ranks the 50 states on a variety of criteria. With a reputation like this, it’s no wonder Kansas is home to the operational headquarters of Sprint Nextel and the world headquarters of Hill’s Pet Nutrition, Garmin, Payless ShoeSource and Cobalt Boats.

Of course, no listing of Kansas-based businesses would be complete without the airplane manufacturers that have made Kansas the aviation capital of the world, including Cessna, Boeing, Raytheon Aircraft, Spirit Aerosystems and Learjet Inc. After a downturn following the Sept. 11, 2001, terrorist attacks, the Kansas aviation industry has roared back and last year totaled an all-time high of $2.6 billion in exports, marking a 43 percent increase from 2005 and a 168 percent increase from 2003. In addition, increased sales to overseas markets — particularly in China — indicate the Kansas aviation industry will again break sales records in 2007.

The Wichita aerospace giants are not the only Kansas companies selling to overseas buyers. Kansas businesses totaled a record $8.63 billion in exports in 2006, shattering the previous high of $6.72 billion set in 2005. Last year’s upsurge also marks the fourth consecutive year the state has seen an increase in export totals. Kansas exports have increased $4.3 billion — or 101 percent — since 1998, and this year’s preliminary totals point toward another record-setting year.

Photo of Topeka Skyline - Photo by: Michael C. Snell

A business-friendly climate

Business is booming in Kansas, thanks largely to a series of policies and initiatives designed to help Kansas businesses grow and prosper. A recent example of the State’s efforts to grow the economy is the elimination of property taxes on new business machinery and equipment. Signed into law in 2006 by Governor Kathleen Sebelius, this historic tax relief paves the way for Kansas businesses to invest in new machinery and technology - including computers, copiers, furniture and equipment used in manufacturing and warehousing - without having to pay property taxes on the purchase. The new legislation also raises the exemption for “low-cost” items from $400 to $1,500, allowing businesses to devote less time to paperwork and more time to producing goods. The result is tax relief that benefits all Kansas companies and further exemplifies why the state has emerged as one of the most business-friendly places in the nation. Other state incentives available to businesses include:

  • Income and premium tax credits for new job creation and investment and annual property taxes paid on machinery and equipment.
  • Sales tax exemptions on the purchase of construction labor and materials and facility machinery and equipment.
  • Sales tax exemption on personal property that is consumed or becomes a component part in the manufacturing process.
  • Property tax abatement on real and personal property for up to 10 years.
  • Property tax exemptions for manufacturers’ and merchants’ inventories.
  • Industrial Revenue Bonds that provide up to 100 percent financing of land, building and equipment.
  • Community Development Block Grants for projects in non-metro areas.
  • Forgivable loans for project-related costs associated with the establishment or expansion of a business facility.

In addition to these incentives, there are countless other reasons businesses are finding success in Kansas:

  • Quick delivery: Kansas is within next-day freight delivery of nearly 70 percent of the United States
  • Diversified Economy: Kansas is the home to major companies from all sectors of the economy. Companies headquartered in Kansas include:
    • Black & Veatch
    • Koch Industries
    • Payless ShoeSource
    • Sprint Nextel
    • Yellow Transportation
  • Service firms in Kansas include:
    • AIG Insurance
    • DaimlerChrysler Finance
    • Empire Carpet
    • Farmer’s Insurance
    • Midland Loan Services
    • Royal Caribbean
    • T-Mobile
  • Recent locations and expansions include:
    • Pacific Sunwear
    • Capital One
    • Hospira
    • Quintiles
    • Keebler
  • Kansas is in the top one-third of states for:
    • Percent of adults with a high school diploma
    • Percent of adults with a college degree
    • Number of students per instructional computer
    • Pupil-teacher ratio