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Kansas competitiveness improving but growth still lags several neighbors, consultant tells committee

2159263 · January 27, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Ted Abernathy of Economic Leadership told the committee that Kansas’s economy has improved modestly since the pandemic but still trails several neighboring states on job and wage growth.

Ted Abernathy, managing partner of Economic Leadership, told the Committee on Commerce, Labor and Economic Development that Kansas has seen modest economic gains since the COVID-19 pandemic but still ranks in the middle of U.S. states on several measures of growth.

Abernathy said Kansas’s gross domestic product rose roughly 8% since the pandemic while the national average rose about 10%, placing the state roughly 35th nationally on some measures. He highlighted the state’s strengths — notably an infrastructure ranking in the top five and steady growth in manufacturing, construction and trade/transport — and its weaknesses, including slower growth in office-based sectors such as finance, professional services, education and health, and a technology-sector ranking near 37th.

Abernathy told committee members the state’s labor force and population growth are weak relative to peers. “If I can come away with one thing today, it’s that you’ve got to — if you want to grow your state economy, you’re gonna have to grow your labor force,” he said. He and Kansas Chamber staff recommended measures to improve the state’s attractiveness to businesses and residents: tax reform, regulatory responsiveness, workforce training and retention strategies, housing and childcare investments, and attention to electric power capacity that businesses increasingly cite as a locational factor.

Committee members asked for clarification on data vintage and scope; Abernathy said the analysis uses finalized, nationally comparable series and that some 2024 data will be available later in 2025. Representative Clayton asked what employers mean by deficits in “soft skills.” Abernathy said employers cited two items: personal work habits (attendance, reliability, teamwork) and business skills such as adaptability and the ability to learn on the job; he recommended internships, apprenticeships and applied work experience as the primary remedies.

Abernathy closed by saying the Kansas Chamber will release a final upgraded competitiveness report in February and expects to share recommendations for committees and legislators. Committee staff later confirmed chamber slides and supporting data will be placed on the committee S drive.