Bootheel Region Study
Central Region Study
Kansas City Region Study
Lake Ozark-Rolla Region Study
Lower East central - Cape Region Study
Northeast Region Study
Northwest Region Study
Southwest Region Study
St. Louis City Study
St. Louis Metro Region Study
Springfield Region Study

Target Missouri II:

The Kansas City Metro Region
Executive Summary

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

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