Manufacturing 2.0: A More Prosperous California

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Kansas


Kansas' manufacturing real GDP totaled $15.4 billion, or 15.9 percent of the state's real GDP in 2007. Manufacturing real GDP rose 11.4 percent from 2000 to 2007, most of it from non-high-tech manufacturing industries. Kansas’ manufacturers’ capital spending grew, one of just two peer states where that area increased.

Manufacturing employment in Kansas totaled 185,500 jobs in 2007. Though employment declined, the rates of decline in both high-tech and non-high-tech manufacturing were not as severe as the national average during the seven-year study period. In fact, employment in both high-tech and non-high-tech manufacturing rebounded after the state’s entire manufacturing sector bottomed out in 2003, though high-tech employment is growing faster. The growth of the high-tech industries increased Kansas’s share of high-tech manufacturing employment to 2.15 percent in 2007 versus the U.S. average of 2.0 percent.

The average manufacturing wage in Kansas was $48,600, an increase of 25.3 percent since 2000. Although the average wage for manufacturing employees in the state was lower than in some of the peer states and the U.S. average, the growth rate was in line with the national average of 25.3 percent for the seven-year period. The value added per production worker in the state was $207,944 in 2007, less than the U.S. average.

Manufacturing employment index (2000-2007)
State 2000 2001 2002 2003 2004 2005 2006 2007
California 100.00 96.01 88.08 83.25 82.11 81.10 80.31 78.98
Kansas 100.00 97.38 91.65 87.06 88.12 89.84 91.12 92.47
United States 100.00 95.22 88.37 84.03 82.91 82.40 82.00 80.41

Sources: U.S. Bureau of Labor Statistics, Moody's Economy.com, Milken Institute.

Top five indicators
Indicator United States
Value
KS
Value
%
Change
Peer State
Rank
Real gross state product (US$ billions) $11,523.9 $96.5 16.6% 6
Per capita personal income (US$) $38,615 $25,197 22.9% 7
Total exports of goods (US$ billions) $1,162.5 $10.3 99.7% 2
Manufacturing's share of real GDP (%) 13.6% 15.9% -4.4% 5
Real manufacturing output per worker (US$ thousands) $113.6 82.8 20.2% 8

Sources: Bureau of Economic Analysis, Bureau of Labor Statistics, U.S. Census Bureau, Milken Institute.
Note: Data are 2007 figures, unless stated otherwise. The rankings are among the eight peer states, 1 = best and 8 = worst, based on the growth rate between 2000 and 2007.

Economic climate indicators
Indicator United States
Value
KS
Value
%
Change
Peer State
Rank
Real gross domestic product (US$ billions) $11,523.9 $96.5 16.6% 6
Total nonfarm employment (thousands, SA) $13,7604.3 $1,380 2.5% 7
Total exports of goods (US$ billions) $1,162.5 $10.3 99.7% 2
Per capita personal income (US$) $38,615 $25,197 22.9% 7
Median household income (US$) $50,740 $47,341 16.5% 7

Sources: Bureau of Economic Analysis, Bureau of Labor Statistics, U.S. Census Bureau, Milken Institute.
Note: Data are 2007 figures, unless stated otherwise. The rankings are among the eight peer states, 1 = best and 8 = worst, based on the growth rate between 2000 and 2007.

Business climate indicators
Indicator United States
Value
KS
Value
%
Change
Peer State
Rank
Corporate income tax rate 15.0% -35.0% 4.00% - 7.35% 0.0% -83.8% 5
Individual income tax rate 10.0% -35.0% 3.5%-6.45% 0.00% 4
Property tax rate 13.8% 2.09% -- 5
Sales tax rate 0% 5.3% 8.20% 2
Employer unemployment insurance tax rate 0.66% 0.48% 11.60% 3
Total state-local tax burden rate 9.9% 9.9% 6.50% 5
Per capita total state-local taxes paid (US$) $4,223 $3,886 41.90% 5
Government debt as % of GDP 65.5% 4.8% 108.70% 4
Per capita government spending (US$) $14,327 $4,749 39.90% 5
Nonfarm establishments (latest 2006) 7,601,160 $76,446 2.00% 8

Sources: Bureau of Economic Analysis, The Tax Foundation, U.S. Census Bureau, U.S. Office of Management and Budget, Milken Institute.
Note: Data are 2007 figures, unless stated otherwise. The rankings are among the eight peer states, 1 = best and 8 = worst, based on the growth rate between 2000 and 2007.

Manufacturing indicators
Indicator United States
Value
KS
Value
%
Change
Peer State
Rank
Manufacturing share of real GDP 13.6% 15.9% -4.4% 5
High-tech manufacturing share of real GDP 4.8% 6.5% 1.9% 7
Manufacturing employment (thousands) 13,882.6 185.5 -7.5% 1
High-tech manufacturing employment (thousands) 2,468.7 53.1 -9.2% 2
Share of U.S. high-tech manufacturing employment 2.0% (U.S. avg.) 2.15% 12.6% 2
Manufacturing wage per employee (US$) $53,804 $48,558 25.3% 4
Manufacturers' capital expenditures (US$ billions) $135.8 $1.9 51.8% 1
Industrial R&D expenditures (US$ billions, 2005) $226.2 $2 74.8% 2
Real manufacturing output (US$ billions) $1,571.7 $15.4 11.4% 5
Real manufacturing output per worker (US$ thousands) 113.6 82.8 20.2% 8
Value added per production worker (US$) $249,139 $207,944 43.4% 4
Exports of manufactured goods (US$ billions) $1,022.1 $9 92.4% 2

Sources: Bureau of Economic Analysis, Bureau of Labor Statistics, The National Science Foundation, U.S. Census Bureau, Milken Institute.
Note: Data are 2007 figures, unless stated otherwise. The rankings are among the eight peer states, 1 = best and 8 = worst, based on the growth rate between 2000 and 2007.
Leading business and economic indices
Indicator Peer State
Rank
National
Rank
State Business Tax Climate Index (Tax Foundation) 6 33
Best & Worst States [to do business] Survey (Chief Executive Magazine) 4 21
Competitiveness Index (Beacon Hill Institute) 4 17
Economic Competitiveness Index (American Legislative Exchange Council) 6 42
2007 State and Local Tax Burden (Public Policy Institute of New York) 4 22
Economic Freedom Index (Pacific Research Institute) 1 1
Small Business Survival Index (Small Business & Entrepreneurship Council) 5 31
2007 Cost-of-Doing-Business Index (Milken Institute) 8 38
State New Economy Index (Kauffman Foundation) 7 31
State Technology & Science Index (Milken Institute) 7 24

Note: Indices cited were published in 2008, unless otherwise stated. Some index rankings results were reversed from published rank in order to make them consistent across the different indices as presented here. The rankings are among the eight peer states, 1 = best and 8 = worst.
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