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2Nd Quarter 2006 Industry News and Developments

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2Nd Quarter 2006 Industry News and Developments Center for Economic Development and Business Research Wichita Industry News and Developments – 4th Quarter 2009 Wichita Industry News and Developments provides a brief overview of statistical trends and major announcements by industry sector. The data, unless otherwise noted, cover the Wichita MSA, which is comprised of Butler, Harvey, Sedgwick and Sumner counties in Kansas. Industry News and Trends Labor Market Trends Natural Resources, Mining and Construction Industry Manufacturing Industry Wholesale Trade Retail Trade Transportation and Warehousing Industry Information Services Industry Finance and Insurance Industry Professional and Business Services Industry Educational and Health Care Services Industry Leisure and Hospitality Services Industry Other Services Industry Government Sector Labor Market Trends Non-Farm Wage & Salary Employment Numbers Non-farm wage and salary employment increased in fourth quarter 2009, up 0.5 percent from third quarter 2009 and down 4.9 percent from fourth quarter 2008 (see Table 1 for current data by industry). Unemployment Rate 4th Qtr: stands at 7.8 percent; 1.4 percentage points lower than third quarter 2009 and 3.2 percentage points higher than fourth quarter 2008. Average Hours Worked per Week in Manufacturing 4th Qtr: stands at 42; up 3.5 percent from third quarter 2009; down 8.9 percent from fourth quarter 2008. Average Hourly Earnings in Manufacturing 4th Qtr: stands at $19.21; up 1.4 percent from third quarter 2009; up 5.1 percent from fourth quarter 2008. Historical Trends To view a PowerPoint presentation of historical labor market trends, click here. (If a dialog box appears asking for a password, click the cancel button and the slideshow presentation will appear.) To view data tables of historical labor market trends, click here. Wichita State University, 1845 Fairmount St., Wichita, KS 67260-0121 Telephone: (316) 978-3225 Fax: (316) 978-3950 www.wichita.edu/cedbr 2 Table 1. Wage and Salary Employment by Industry, Wichita MSA Percentage Change From Fourth Third Fourth Quarter Quarter Quarter 2009 2009 2008 Total wage and salary (in number of filled positions) 297,167 0.5 -4.9 Natural resources and construction 16,100 -0.8 -3.4 Manufacturing 54,233 -5.4 -20.8 Transportation equipment manufacturing 31,867 -4.3 -24.7 Trade, transportation & utilities 51,300 0.9 -2.3 Wholesale trade 11,300 -0.3 1.5 Retail trade 31,567 1.2 -4.0 General merchandise stores 7,433 1.8 -3.9 Transportation, warehouse, & utilities 8,433 1.6 -1.2 Information 5,100 -0.6 -13.1 Finance 11,633 -0.6 -0.3 Professional and business services 31,100 0.0 -1.7 Professional, scientific & technical services 8,567 -1.2 -3.4 Administrative and waste services 18,667 -0.7 -0.5 Employment services 5,000 -1.3 -10.7 Educational and health services 45,767 2.2 3.8 Leisure and hospitality 28,200 -3.3 1.1 Other services 10,833 0.9 1.6 Government 42,900 10.7 -0.5 Natural Resources, Mining and Construction Industry News The first phase of the Wichita Public Schools $370 million bond issue will begin with the following projects: a new $35.7 million high school and a $20.3 million K-8 school in northeast Wichita, a $15 million addition to Wichita Heights High School, a $7.8 million addition to Wichita East High School, a $6.1 million addition to Spaght Elementary School, and a total of $6.2 million in additions to six other elementary schools. Construction Activity 4th Qtr: value of new residential construction permits totaled $17.2 million; down 25 percent from third quarter 2009; down 12.1 percent from fourth quarter 2008. 4th Qtr: value of new non-residential construction permits totaled $10.5 million; up 5.4 percent from third quarter 2009; down 65.2 percent from fourth quarter 2008. Wichita State University, 1845 Fairmount St., Wichita, KS 67260-0121 Telephone: (316) 978-3225 Fax: (316) 978-3950 www.wichita.edu/cedbr 3 4th Qtr: value of construction permits for remodels, repairs and additions totaled $32.7 million; down 26.4 percent from third quarter 2009; up 47.3 percent from fourth quarter 2008. Employment Numbers 4th Qtr: employment stands at 16,100; down 0.8 percent from third quarter 2009; down 3.4 percent from fourth quarter 2008. Historical Trends To view a PowerPoint presentation of historical employment trends, click here. (If a dialog box appears asking for a password, click the cancel button and the slideshow presentation will appear.) To view data tables of historical labor market trends, click here. Selected List of Major Industry Employers in the Wichita Metro Area Berexco Inc. Cornejo Corporation Drywall Systems Inc. Key Construction Inc. Martin K. Eby Construction Co. Inc. The Law Co. Inc. Utility Contractors Inc. For More Industry Information Try These Links The Kansas Independent Oil & Gas Association The Energy Information Administration The American Petroleum Institute National Petroleum Council The Independent Petroleum Association of America OPEC Middle East Economic Survey Construction spending statistics, U.S. Census Bureau National Association of Realtors Mortgage Bankers Association National Association of Home Builders New residential sales statistics, U.S. Census Bureau New residential construction statistics, U.S. Census Bureau 2002 Economic Census – Construction National Association of Home Builders Economic & Housing Data Portland Cement Association Economic Research Associated General Contractors of America Wichita State University, 1845 Fairmount St., Wichita, KS 67260-0121 Telephone: (316) 978-3225 Fax: (316) 978-3950 www.wichita.edu/cedbr 4 DISCLAIMER: Links to non-Wichita State University Internet sites are provided for your convenience and do not constitute an endorsement by CEDBR or WSU. Manufacturing Industry News (All industry news is from 2009, unless specified.) Bombardier Learjet contracted with Wichita State University’s National Institute for Aviation Research to form a partnership in developing its new all-composite Learjet 85 business jet. Due to the economic downturn, Cessna Aircraft announced in April that it would lay off an additional 1,300 Wichita employees in addition to the previously announced cuts of 4,000. In addition, some salaried employees were expected to be laid off by mid-June. At the end of June, a four-week furlough took place. Also, the Cessna Columbus project will be suspended until the market improves. In April, Bombardier Learjet announced a second round of layoffs in Wichita, bringing the total number of expected job reductions to 820. Hawker Beechcraft announced layoffs of 2,300 employees for 2009. Boeing Wichita announced a local work force reduction of 800 jobs. In response to the current aircraft manufacturing environment, Spirit Aerosystems cut about 75 independent contractors in the Wichita area. In June, Cessna Aircraft announced an order for 46 182 Turbo Skylanes from the Turkish military and 30 Grand Caravan turboprops from Indonesia’s Susi Air. In mid-June, Cessna Aircraft announced 1,300 additional layoffs, which would bring its current workforce to approximately half of what it was in November 2008. In July, Textron Inc., the parent company of Cessna Aircraft Co., formally cancelled the Citation Columbus jet project. In June, Hawker Beechcraft announced employee furloughs that would total 11 days throughout the rest of 2009. In addition, it was reported that some employees would be relocated to other Hawker facilities in Wichita, and two of its buildings would be closed. Spirit AeroSystems Inc. will be one of more than 17 suppliers for Bombardier Aerospace’s CSeries aircraft – a single-aisle commercial plane that will enter service in 2013. Spirit will be responsible for the design, manufacturing and testing of the pylons for the CSeries. The pylons are major structural components holding the engines and nacelle assembly to the wings. Hiller Inc., a manufacturer of cabinets for the general aviation industry, is expanding by adding a 7,000-square-foot warehouse to his facility. In 2005 the Air Force awarded Boeing a contract to modify 76 B-52s with a new technology known as Combat Network Communications Technology. In May, Boeing Integrated Defense Systems in Wichita successfully flew the first B-52 upgraded with the new technology. Wichita engineers will continue to provide support for the project. Wichita State University, 1845 Fairmount St., Wichita, KS 67260-0121 Telephone: (316) 978-3225 Fax: (316) 978-3950 www.wichita.edu/cedbr 5 Nex-Tech Aerospace in Wichita is planning a $2.3 million expansion of its facility and will relocate more than $10 million in manufacturing equipment to Wichita from its other plants. This global manufacturer of machine parts for aerospace and defense anticipates adding at least 85 jobs over the next three years. In July, the Greater Wichita Economic Development Coalition announced a new metal finishing company would open in Wichita in early fall of this year. The company, Premier Processing, expects to create 100 jobs over the next five years with an average total annual payroll of more than $3 million. Cessna Aircraft will deliver its light sport aircraft, the SkyCatcher, to its first customer by the end of this year. Cox Machine, a manufacturer of precision parts and assemblies for the aerospace industry, is undertaking a $4.4 million project to expand its current facility by 30,000 square feet. It plans to add machinery and equipment, as well as 50 jobs over the next three to five years. In August, Universal Lubricants had a ribbon cutting ceremony to open its new eco-friendly re-refinery. The facility will process 12 million gallons of post- consumer lubricant annually to make new motor oil, resulting in a 90 percent energy use reduction and 36 percent reduction in greenhouse gas emissions compared to conventional motor oil refineries. In August, Hawker Beechcraft Corp.
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