Six analysis tools are used to determine which industries should be chosen for targeting in the Kansas City region. The first two, 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 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 Kansas City. No industry scored a perfect 100 points in the city. Drugs (SIC 283) and Misc. Chemicals (289) each scored 95 points, along with Concrete Products (327). Surprisingly, Motor Vehicles and Equipment Mfg. (371) scored only 55 points. This industry had consistently scored at the top for each region previously surveyed. Another ten industries (of the 84 total) scored 80 points or higher, while 50 of these scored the minimum 50 points.
Other interesting findings are related to the Life Sciences Industries in Kansas City. Of these, only the Drug Industry has a strong presence in the City. Other life science-manufacturing industries have high potential economic impact and a good skills match with the City'acute;acute;s workforce, but a relatively weak presence. This implies that Kansas City is ripe for development in areas such as Industrial Chemicals (286), Medical Instruments (384), and Agricultural Chemicals (287). Similarly, the Transportation Manufacturing industry also has high potential in the City.
TM2 has provided a list of 84 industries that have the best potential for economic development in Kansas City. The original Target Missouri provided a list of only 34 target industries for the entire Kansas City Metro Region. Of these, only 22 appear on both lists, so in this case, the two studies have obtained somewhat different results. The expanded list generated by TM2 provides a list of industries that better fits the specifics of Kansas City, as well as providing rankings that shed some light on the relative importance of certain industries.
| Kansas City Target Industries | ||
|---|---|---|
| SIC | Industry | Total Score |
| 283 | Drugs | 95 |
| 327 | Concrete, gypsum, & plaster products | 95 |
| 289 | Miscellaneous chemical products | 95 |
| 267 | Converted paper products except containers | 90 |
| 285 | Paints and allied products | 90 |
| 40 | Railroad | 90 |
| 473,474,478 | Miscellaneous transportation services | 85 |
| 491,%493 | Electric utilities | 85 |
| 492,%493 | Gas utilities | 85 |
| 494-497,%493 | Water and sanitation | 85 |
| 63 | Insurance carriers | 85 |
| 64 | Insurance agents, brokers, and services | 85 |
| 50,51 | Wholesale trade | 85 |
| 45 | Air Transportation | 75 |
| 251 | Household furniture | 70 |
| 331 | Blast furnaces and basic steel products | 70 |
| 341 | Metal cans and shipping containers | 70 |
| 374 | Railroad equipment | 70 |
| 239 | Miscellaneous fabricated textile products | 70 |
| 272 | Periodicals | 70 |
| 295,299 | Miscellaneous petroleum and coal products | 70 |
| 751 | Automotive rentals, without drivers | 70 |
| 48 | Communications | 65 |
| 60 | Depository institutions | 65 |
| 62 | Security and commodity brokers | 65 |
| 792 | Producers, orchestras, and entertainers | 60 |
| 791,799 | Amusement and recreation services, nec | 60 |
| 243 | Millwork, plywood, and structural members | 55 |
| 254 | Partitions and fixtures | 55 |
| 252,253,259 | Office and misc. furniture and fixtures | 55 |
| 371 | Motor vehicles and equipment | 55 |
| 265 | Paperboard containers and boxes | 55 |
| 42 | Trucking | 55 |
| 794 | Commercial sports | 55 |
| 321-323 | Glass and glass products | 50 |
| 324 | Hydraulic cement | 50 |
| 333 | Primary nonferrous smelting & refining | 50 |
| 334,339 | All other primary metals | 50 |
| 335 | Nonferrous rolling and drawing | 50 |
| 342 | Cutlery, hand tools, and hardware | 50 |
| 345 | Screw machine products, bolts, rivets, etc. | 50 |
| 346 | Metal forgings and stampings | 50 |
| 348 | Ordnance and ammunition | 50 |
| 349 | Miscellaneous fabricated metal products | 50 |
| 351 | Engines and turbines | 50 |
| 352 | Farm and garden machinery and equipment | 50 |
| 353 | Construction and related machinery | 50 |
| 355 | Special industry machinery | 50 |
| 356 | General industrial machinery and equipment | 50 |
| 357 | Computer and office equipment | 50 |
| 358 | Refrigeration and service industry machinery | 50 |
| 366 | Communications equipment | 50 |
| 367 | Electronic components and accessories | 50 |
| 372,376 | Aerospace | 50 |
| 373 | Ship and boat building and repairing | 50 |
| 375,379 | Miscellaneous transportation equipment | 50 |
| 381 | Search and navigation equipment | 50 |
| 384 | Medical equipment, instruments and supplies | 50 |
| 386 | Photographic equipment and supplies | 50 |
| 387 | Watches, clocks, and parts | 50 |
| 201 | Meat products | 50 |
| 202 | Dairy products | 50 |
| 203 | Preserved fruits and vegetables | 50 |
| 204,207 | Grain mill products and fats and oils | 50 |
| 206 | Sugar and confectionery products | 50 |
| 208 | Beverages | 50 |
| 209 | Miscellaneous food and kindred products | 50 |
| 21 | Tobacco products | 50 |
| 221-224,226,228 | Weaving, finishing, yarn, and thread mills | 50 |
| 225 | Knitting mills | 50 |
| 227 | Carpets and rugs | 50 |
| 229 | Miscellaneous textile goods | 50 |
| 261-263 | Pulp, paper, and paperboard mills | 50 |
| 273 | Books | 50 |
| 281,286 | Industrial chemicals | 50 |
| 282 | Plastics materials and synthetics | 50 |
| 284 | Soap, cleaners, and toilet goods | 50 |
| 287 | Agricultural chemicals | 50 |
| 291 | Petroleum refining | 50 |
| 301 | Tires and inner tubes | 50 |
| 308 | Miscellaneous plastics products, nec | 50 |
| 472 | Passenger transportation arrangement | 50 |
| 781-783 | Motion pictures | 50 |
| 871 | Engineering and architectural services | 50 |
| Life Science Industries | ||
| Information and Communications Technologies | ||
| Advanced Manufacturing Industries | ||
