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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 W. Frank Barton School of Business Wichita Industry News and Developments – 4th Quarter 2007 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. The Year’s Major Business Headlines • Raytheon Aircraft sold; now operating as Hawker Beechcraft Corp. • Optima Bus Corp. closes Park City facility • Sedgwick County voters reject casinos and slots • Wild West World closes 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 • Financial Services Industry • Professional and Business Services Industry • Educational and Health Care Services Industry • Leisure and Hospitality Services Industry • Other Services Industry • Government Sector - 1 - Center for Economic Development and Business Research W. Frank Barton School of Business Labor Market Trends Non-Farm Wage & Salary Employment Numbers • Non-farm wage and salary employment increased in fourth quarter 2007, up 1.3 percent from third quarter 2007 and up 3.6 percent from fourth quarter 2006 (see Table 1 for current data by industry). Initial Claims for Unemployment • 4th Qtr: claims stand at 8,769; up 34.5 percent from third quarter 2007; up 13.4 percent from fourth quarter 2006. Unemployment Rate • 4th Qtr: stands at 3.6 percent; down 0.7 percentage points from third quarter 2007; also down 0.7 percentage points from fourth quarter 2006. Average Hours Worked per Week in Manufacturing • 4th Qtr: stands at 48.5; down 3.5 percent from third quarter 2007; up 3.6 percent from fourth quarter 2006. Average Hourly Earnings in Manufacturing • 4th Qtr: stands at $17.94; up 9.2 percent from third quarter 2007; down 4.4 percent from fourth quarter 2006. 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. - 2 - Center for Economic Development and Business Research W. Frank Barton School of Business Table 1. Wage and Salary Employment by Industry, Wichita MSA Percentage Change From Fourth Third Fourth Quarter Quarter Quarter 2007 2007 2006 Total wage and salary (in number of filled positions) 310,567 1.3 3.6 Natural resources and construction 17,500 -3.5 5.4 Manufacturing 67,133 1.2 4.5 Transportation equipment manufacturing 40,133 1.1 5.4 Trade, transportation & utilities 52,733 1.5 2.9 Wholesale trade 12,100 0.6 6.8 Retail trade 32,333 2.6 2.3 General merchandise stores 7,333 5.8 0.5 Transportation, warehouse, & utilities 8,300 -1.2 -0.4 Information 6,067 1.7 2.2 Finance 11,733 -0.6 2.3 Professional and business services 30,000 -1.1 4.3 Professional, scientific & technical services 8,867 -1.1 6.0 Administrative and waste services 18,333 -1.3 1.3 Employment services 5,833 -3.3 4.8 Educational and health services 43,267 1.3 4.3 Leisure and hospitality 27,767 -1.3 2.6 Other services 11,967 -2.2 7.2 Government 42,400 9.1 1.8 Natural Resources, Mining and Construction Industry News • In March, Brad Saville announced the development of Holland Place, a $20 million, 200,000-square-foot retail and restaurant project in west Wichita. • In March, Abengoa Bioenergy announced it had been awarded a federal grant to design, construct and operate a commercial facility to produce ethanol in Kansas. • In March, Westar Energy announced the construction of a $330 million gas-fired power plant near Emporia. • In June, two new Andover residential developments, Prairie Creek and Ami Lane, were announced, with more than 600 homes planned. • In June, Star Lumber announced it would build a new store at K-96 and Greenwich and a new store in Manhattan, Kan. The Manhattan store will help the company service its government contract for building materials at Fort Riley. - 3 - Center for Economic Development and Business Research W. Frank Barton School of Business • The Kansas Elks Training Center for the Handicapped announced plans to begin construction on a $2.1 million, 20-unit Wichita housing facility for its disabled clients. • Westar Energy announced in October that it would build three wind farms in Kansas, one each in Wichita, Cloud and Barber counties. • Poet Ethanol will expand into a new corporate headquarters on North Webb Rd. that is triple the size of its current facility. Construction on the new facility is expected to be complete by fall 2008. • Hutton Construction will be building the new Murfin Animal Care Campus at K- 96 and Hillside. There will be separate facilities on the 22-acre campus, one for the Kansas Humane Society and one for the city of Wichita’s Animal Services department. Construction Activity • 4th Qtr: value of construction permits for new residential totaled $46.6 million; down 22.6 percent from third quarter 2007; down 2.3 percent from fourth quarter 2006. • 4th Qtr: value of construction permits for new non-residential totaled $34.8 million; up 15.5 percent from third quarter 2007; up 42.2 percent from fourth quarter 2006. • 4th Qtr: value of construction permits for remodels, repairs and additions totaled $34.1 million; down 37.4 percent from third quarter 2007; down 0.1 percent from fourth quarter 2006. Employment Numbers • 4th Qtr: employment stands at 17,500; down 3.5 percent from third quarter 2007; up 5.4 percent from fourth quarter 2006. 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 employment trends, click here. Selected List of Major Industry Employers in the Wichita Metro Area • Berexco Inc. • Cornejo Corporation • Drywall Systems Inc. • Key Construction Inc. • Marten K. Eby Construction Co. Inc. • The Law Co. Inc. • Utility Contractors Inc. - 4 - Center for Economic Development and Business Research W. Frank Barton School of Business 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 • Existing home sales statistics, National Association of Realtors • Mortgage Bankers Association • National Association of Home Builders • New home 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 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 • In February, the General Aviation Manufacturing Association announced that 2006 industry billings totaled $18.8 billion, up 24.1 percent from 2005. Industry shipments in 2006 totaled 4,042, up 12.9 percent over the previous year’s total of 3,580 units. • In March, the sale of Raytheon Aircraft Co. to Onex Corp. was completed. The company will now do business as Hawker Beechcraft Corp. • In June, Triumph Aerospace Systems Inc. announced expansion plans, including the addition of 40 new employees over the next five years with an average annual wage of $38,900. • In June, North American Bus Industries Inc. announced it would close the Optima Bus Corp. manufacturing facility in Park City, eliminating more than 200 jobs. • In June, Machines International LLC announced plans to relocate its corporate headquarters to Wichita from Fort Smith, Ark., and build a 10,000-square-foot facility. • In July LSI Corp. announced it would be eliminating 225 jobs at its Wichita facility. - 5 - Center for Economic Development and Business Research W. Frank Barton School of Business • In August The Boeing Co. announced that Spirit AeroSystems Inc. would be part of the development team for the company’s new P-8A Poseidon submarine-hunter aircraft. Spirit will build the aircraft’s fuselage along with airframe tail sections and struts in its Wichita production facility. • In September Cessna Aircraft Co. announced plans to build an $11 million, 100,000-square-foot building for an expansion at its Georgia facility that is expected to add 150 jobs. Currently, Cessna has about 600 employees at its facility in Columbus. • Bombardier Aerospace’s new Learjet, known as the NXT, will be assembled in Wichita. • Flint Hills, a subsidiary of Koch Industries Inc. announced in November it had acquired a Port Arthur, Texas, chemical plant and its pipelines for $770 million from the Huntsman Corp. • Cessna Aircraft plans to add about 1,200 new jobs in Wichita in 2008. • Hawker Beechcraft plans to hire 1,100 employees in 2008. Some will be new employees and some will fill open positions. • In January, Hawker Beechcraft Corp. announced that the Federal Aviation Administration certified for production the new Beechcraft King Air C90GTi. • In January, Tyson Foods Inc. announced plans to end beef slaughtering at its Emporia plant, cutting about 1,500 jobs. • Foley Equipment Co. announced its purchase of the 125,000-square-foot former Optima Bus Corp. facility. Foley plans to use the building to expand the branch of its business that remanufactures engines. • In February, Spirit AeroSystems and Cessna Aircraft Co. announced that Spirit had been selected to produce the fuselage and empennage for its new Citation Columbus business jet.
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