Six analysis tools are used to determine which industries should be chosen for targeting in the Kansas City Metro Region. This analysis does not include Kansas City proper, which will be studied in the next edition of the TM2 series. The first two tools, Specialization Ratios (SR) and the Regional Shift (RS) component of Shift-Share Analysis (SSA), help to determine which industries might have a competitive advantage in a region. The third and most important type, the Economic Impact (EI) analysis, helps to identify which industries will benefit the region most should they expand. The Skills-Mismatch Index (SMI) determines whether the skills of the available workforce in a region match the needed skills for a particular industry. The Industrial Mix (IM) component of SSA helps to identify emerging industries. Finally, the Current Employment (CE) level of a regional industry helps to determine whether needed infrastructure is in place to attract particular industries and is an important factor when considering SRs.
Industries are awarded points on a scale of 0 to 100 based on whether they meet necessary criteria in these six categories. Those industries that score the highest are recommended for targeting. The table on the following page displays the categories and the point value an industry receives if it performs well in a specific category. If an industry does not meet the condition for that category, no points are awarded. An industry that scores well in each of the categories receives a score of 100 points, while those industries that perform poorly receive 0 points. Industries that score 50 or more points are those recommended for targeting.
The diagram below presents a graphic illustration of this methodology. The orange lines connect those factors that have a specific relationship as described above.
Industries chosen for targeting are those industries that have high scores in the six categories discussed above. For each category, a condition has been established that determines whether an industry has performed well in a category. For each category in which an industry performs well, that industry is awarded a set amount of points. If an industry does not meet the condition for that category, no points are awarded. The categories and their point values are as follows:
| Category | Point Value | |
|---|---|---|
| Condition 1: High Economic Impact | 40 | |
| Condition 2: High Specialization Ratio | 20 | |
| Condition 3: Strong Regional Shift | 20 | |
| Condition 4: Low Skills-Mismatch | 10 | |
| Condition 5: Positive Industrial Mix & Regional Shift | 5 | |
| Condition 6: High Current Employment | 5 | |
| Total Points: | 100 |
The tables that follow present those industries with scores of 50 or higher on the target scale for the Kansas City Metro Region. Not surprisingly, Motor Vehicles and Equipment Mfg. (SIC 371) earned a perfect score of 100 points. This industry has consistently scored at the top for each region previously surveyed. However, SIC 353, Construction Machinery Mfg., also scored a surprising 100 points. Another six industries (of the 85 total) scored 80 points or higher, while 45 of these scored the minimum 50 points.
It is important to note the strong showing of IT firms in the KC Metro Region. Communications (SIC 48) and Computer Services (SIC 737) received 90 and 70 points, respectively.
Other interesting findings are related to the Life Sciences Industries in the KC Metro Region. Only one industry, Agriculture Chemicals (SIC 287) has a relatively strong presence in this Region. Other life science-manufacturing industries, including Pharmaceuticals (SIC 283), have high potential economic impact and a good skills match among the regions workforce, but a relatively weak presence. This implies the KC Metro Region is ripe for development in areas such as Pharmaceuticals, Industrial Chemicals (SIC 286), and Medical Instrument production (SIC 384). Conversely, the Research Services industry (SIC 873) scored very low in this study.
The map on the final page shows the current locations of target industries in the Kansas City Metro Region. More importantly, it implies that those locations already have needed infrastructure in place to attract additional target industries.
TM2 has provided a list of 85 industries that have the best potential for economic development in the Kansas City Metro Region. The original Target Missouri provided a list of only 34 target industries for the entire Kansas City Metro Region. Of these, 26 appear on both lists, so in this case, the two studies have obtained similar results. The expanded list generated by TM2 provides a list of industries that better fits the specifics of the Kansas City Metro Region, as well as providing rankings that shed some light on the relative importance of certain industries.
| Kansas City Metro Region Target Industries | ||
|---|---|---|
| SIC | Industry | Total Score |
| 353 | Construction and related machinery | 100 |
| 371 | Motor vehicles and equipment | 100 |
| 352 | Farm and garden machinery and equipment | 95 |
| 355 | Special industry machinery | 95 |
| 267 | Converted paper products except containers | 95 |
| 356 | General industrial machinery and equipment | 90 |
| 14 | Nonmetallic minerals, except fuels | 90 |
| 48 | Communications | 90 |
| 346 | Metal forgings and stampings | 75 |
| 364 | Electric lighting and wiring equipment | 75 |
| 209 | Miscellaneous food and kindred products | 75 |
| 40 | Railroad | 75 |
| 45 | Air Transportation | 75 |
| 324 | Hydraulic cement | 70 |
| 327 | Concrete, gypsum, & plaster products | 70 |
| 349 | Miscellaneous fabricated metal products | 70 |
| 357 | Computer and office equipment | 70 |
| 362 | Electrical industrial apparatus | 70 |
| 366 | Communications equipment | 70 |
| 374 | Railroad equipment | 70 |
| 381 | Search and navigation equipment | 70 |
| 386 | Photographic equipment and supplies | 70 |
| 204,207 | Grain mill products and fats and oils | 70 |
| 287 | Agricultural chemicals | 70 |
| 737 | Computer and data processing services | 70 |
| 60 | Depository institutions | 65 |
| 64 | Insurance agents, brokers, and services | 65 |
| 344 | Fabricated structural metal products | 60 |
| 354 | Metalworking machinery and equipment | 60 |
| 491,%493 | Electric utilities | 60 |
| 735 | Miscellaneous equipment rental and leasing | 60 |
| 791,799 | Amusement and recreation services, nec | 60 |
| 836 | Residential care | 60 |
| 348 | Ordnance and ammunition | 55 |
| 358 | Refrigeration and service industry machinery | 55 |
| 359 | Industrial machinery, nec | 55 |
| 277 | Greeting cards | 55 |
| 308 | Miscellaneous plastics products, nec | 55 |
| 793 | Bowling centers | 55 |
| 833 | Job training and related services | 55 |
| 252,253,259 | Office and misc. furniture and fixtures | 50 |
| 332 | Iron and steel foundries | 50 |
| 333 | Primary nonferrous smelting & refining | 50 |
| 334,339 | All other primary metals | 50 |
| 335 | Nonferrous rolling and drawing | 50 |
| 341 | Metal cans and shipping containers | 50 |
| 342 | Cutlery, hand tools, and hardware | 50 |
| 351 | Engines and turbines | 50 |
| 361 | Electric distribution equipment | 50 |
| 363 | Household appliances | 50 |
| 365 | Household audio and video equipment | 50 |
| 367 | Electronic components and accessories | 50 |
| 369 | Miscellaneous electrical equipment | 50 |
| 373 | Ship and boat building and repairing | 50 |
| 375,379 | Miscellaneous transportation equipment | 50 |
| 382 | Measuring and controlling devices | 50 |
| 384 | Medical equipment, instruments and supplies | 50 |
| 385 | Ophthalmic goods | 50 |
| 387 | Watches, clocks, and parts | 50 |
| 393,395,396,399 | Manufactured products, nec | 50 |
| 201 | Meat products | 50 |
| 202 | Dairy products | 50 |
| 203 | Preserved fruits and vegetables | 50 |
| 205 | Bakery products | 50 |
| 206 | Sugar and confectionery products | 50 |
| 208 | Beverages | 50 |
| 261-263 | Pulp, paper, and paperboard mills | 50 |
| 265 | Paperboard containers and boxes | 50 |
| 272 | Periodicals | 50 |
| 273 | Books | 50 |
| 281,286 | Industrial chemicals | 50 |
| 282 | Plastics materials and synthetics | 50 |
| 283 | Drugs | 50 |
| 284 | Soap, cleaners, and toilet goods | 50 |
| 285 | Paints and allied products | 50 |
| 289 | Miscellaneous chemical products | 50 |
| 291 | Petroleum refining | 50 |
| 295,299 | Miscellaneous petroleum and coal products | 50 |
| 301 | Tires and inner tubes | 50 |
| 302,305,306 | Rubber products and plastic hose and footwear | 50 |
| 10 | Metal mining | 50 |
| 12 | Coal mining | 50 |
| 44 | Water transportation | 50 |
| 46 | Pipelines, except natural gas | 50 |
| 473,474,478 | Miscellaneous transportation services | 50 |
| Life Science Industries | ||
| Information and Communications Technologies | ||
| Advanced Manufacturing Industries | ||
