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Agri-Business Council of Wichita: July 2011 Issue MEMBER PROFILE: "What isn't made in Kansas?" - Wichita Eagle July 17, 2011
What isn't made in Kansas? We make the aerosol cans for insecticides, the containers for pop-up sanitizing wipes, and the food our dogs and cats eat, as well as the steaks on our table — or hamburger, depending on how the recession has affected your pocketbook. We tell people where to go and how to get there — because Garmin, which makes Nuvi and other GPS devices, originated with Kansan Gary Burrell.- We give the world much of its sweetness. We have Russell Stover candies, and we will soon be mass-producing M&Ms and Snicker Bars at the Mars Chocolate North America plant in Topeka. From bullet clips to poker chip weights, Kansas-made products are pretty much everywhere. "We are one of the top manufacturing areas in the United States," said Karyn Page, president and chief executive of the Kansas World Trade Center. "When people think of manufacturing areas, they think of Pittsburgh or Detroit, but we are right up there with them. People know how to make stuff around here — and that makes us globally competitive." Kansas exported $9.93 billion worth of goods overseas last year, made by 2,747 companies. For the 150 years Kansas has been a state, Kansans — with their own hands and know-how — have carved names for themselves. "I have been in Kansas longer than I was in Louisiana," said Chad Kassem owner of Acoustic Sounds, Quality Record Pressings and Blue Heaven Studios in Salina. He makes high-quality vinyl LPs, one of only three places in the nation to do so. "People say, 'Salina? You are in the middle of nowhere.' But I tell them, 'No, in Kansas you are in the middle of everywhere.' " He has the vision, the passion and the sometimes cantankerous spirit that's marked many other Kansans. "I came here with nothing, except what I was making doing minimum wage as a cook," Kassem said. "I've always gone against the grain.... One time they used to say I was only a fool. Now, I'm looking like a genius." Started with farming First and foremost, Kansas is an agriculture state. Always has been. Because of our vast volume of wheat — nearly a fifth of all wheat grown in the United States is grown in Kansas — we are the largest wheat-producing state in the nation, thus earning us the nicknames "Wheat State" or "Breadbasket of the World." But we are also so much more. "When my grandfather started farming, he had a couple of mules and a plow," said Kansas Secretary of Commerce Pat George. "Now, we farm with big tractors and equipment, and more often than not, that equipment has been made in Kansas. "We not only produce the commodities, we make them and export them around the world." Aircraft, industrial machinery, meat products, cereal and electric machinery all top the list of the state's most exported industrial sectors. We also are a leading state in pharmaceutical products. We are first in the nation for exporting civilian aircraft, engines and parts. We are second in the number of cattle — or meat products — we export; third for producing dog and cat food. "Wichita exports over 50 percent of the state's total exports" by dollar figure, Page said. "We have every reason to be proud." Kansas work ethic Talk with most Kansans and there are traits that describe us as workers, Page said. Kansans are known for their humility, resilience, perseverance, self-reliance, imagination, independence, pragmatism, determination and entrepreneurial spirit. "I wish we would shout about what we do — in our humble way," Page said. "But we always kind of hang our head. "We are humble farmers, that's our historical roots and part of our culture. But we need to humbly and quietly tell people we have some of the best products in the world — not just in the U.S., not just better than Texas — in the world." On Chuck Comeau's website promoting his company, Dessin Fournir in Plainville, he posts this quote from W. Eugene Smith, a world-renowned photojournalist from Wichita known for his outspokenness and passion: "Passion is in all great searches and is necessary to all creative endeavors." It pretty much defines Comeau. A native of Plainville, Comeau started his furniture, lighting and textiles company in California but chose in the mid-1990s to relocate it in Plainville. "I never left Plainville; I commuted to southern California," he said. "But in 1996, I believed that in order for the company to succeed and grow, it needed to be in Kansas." He renovated a 1920s car dealership in Plainville and moved the company in. It has since expanded to six buildings. "This is home. I've never found any place I liked better," Comeau said. "When we started expanding, the people were so much better than what we found in California. Kansans have a work ethic; they trust and are loyal. Those were all attributes we needed. "And that translates to customers. The customers need realistic and caring people on the phone. This business has been able to grow because of the quality of people in Kansas." In a 2005 poll conducted by House & Garden magazine of the nation's top interior designers, Dessin Fournir was voted one of the top three furniture design and manufacturing firms. "I love the creative spirit," Comeau said. "We are able to live in a small town where we can relax, think and be creative." Going global When Kansas officials landed the contract last month with Mars Chocolate to build a $250 million chocolate production plant in Topeka, the Kansas work ethic helped seal the deal. "Companies like Mars are looking to move to Kansas," said George, the Commerce secretary. "They told us that was one of the things that set Kansas apart. Kansans know how to work. They take pride in their work product." The future, George said, will hopefully include more contracts that highlight what Kansas offers. Agriculture will still be at the forefront. "We know how to use a tractor and get the most out of our soils," George said. "But we are also working with Kansas State University in sharing our knowledge. We have relationships with countries who might still be farming the way my grandfather did with mules and looking now to use tractors and equipment. Instead of being protective, we can also be exporting our knowledge." In western Kansas, as more dairies are established, there are more chances of locating major companies that use milk in that end of the state, George said. "It makes sense. Instead of exporting our milk products to Colorado or Texas, companies can cut down on the cost of transportation." Kansas aviation is still the gold standard for what we manufacture. Wind energy will also be at the forefront, George said. "The potential is almost endless," he said. "We have some of the highest sustained wind of anywhere in the nation. ... "As soon as we build the transmission lines ... we can export electricity. Plus, we can manufacture the wind turbines. We will become more aggressive in attracting more of those." Pharmaceutical breakthroughs could also come from Kansas. "We have one of the top-rated schools of pharmacy in the nation," George said of the University of Kansas. "Two of the largest pharmaceutical companies — Bayer and Merck — are located here. "Not only are we making medicines for humans, but we also have a large presence in the animal science world, through K-State." But the best commodity Kansas offers, George said, is found in its people. When people moved to Kansas in the late 19th century, they learned to work hard, or die or leave. Those who stuck it out were strong. "The motive to work was so strong," George said. "It had to be. "That work ethic has carried on from generation to generation. We like making things. We like using our hands and taking pride in what we make. "That's part of our sales pitch when we meet with companies looking to move to Kansas. We are not being shy or humble about it anymore — that's part of our story."
Read more: http://www.kansas.com/2011/07/17/1936744/made-in-kansas.html#ixzz1SUDpKNvN Protecting General Aviation against Unfair Foreign Assistance Even in today’s sluggish economy, general aviation remains a leading U.S. industry. Employing more than 1.2 million people; contributing $150 billion to the U.S. economy annually; and exporting 40% of all American-produced components, general aviation is one of the top domestic industries fueling our nation’s economy. I’m proud to say that Kansas continues to be a leader in this vital industry. According to a recently released Brookings Institution report, general aviation continues to drive the nation’s economic growth through significant increases in export opportunities. The report recognizes the world-class Wichita Kansas Aviation Cluster by naming Wichita as the leading U.S. city for exports measured by gross metropolitan product. Despite this good news, we all know that general aviation has experienced a major downturn since the fall of 2008. In the past two years, 13,000 Kansans lost their jobs in the general aviation industry. Unfortunately, some members of Congress, officials in the White House, and members of the media have criticized the use by business executives of general aviation aircraft. These attacks are uncalled for and unhelpful. In addition to the domestic challenges facing general aviation, the industry also faces unfair international competition. Some foreign governments are heavily subsidizing – sometimes illegally – their domestic aircraft industries. It is critical that we fully engage the competition and pursue all means necessary to ensure that an important U.S. industry is not negatively affected by the illegal actions of foreign governments. Brazil in particular has made a concerted effort to expand its presence in the general aviation market through Embraer, one of Brazil’s largest exporters and employers. Since entering the business aviation market in 2002, Embraer is now responsible for about 14% of all global sales of business aircraft. This is an almost unbelievable feat for a company that has been manufacturing business aviation aircraft for a little over seven years. Considering similar statistics from previous years that were later proven to be the result of illegal subsidization of aircraft by the European Union, Embraer’s activity does not seem possible without heavy and creative government support across the board. After meeting with representatives from industry and discussions with the U.S. International Trade Commission and the U.S. Trade Representative, I have determined that there is a need for a thorough analysis of the global competitiveness of the U.S. business jet aircraft industry. Similar to previous studies on the global large civil aircraft market and the competitiveness of U.S. industry, we should authorize the ITC to do an analysis of the general aviation market. I am working with my colleagues who sit on the Senate Finance Committee to request that the ITC investigate the global competiveness of the U.S business aircraft industry and whether foreign government actions or subsidizations have had a negative impact on this industry. Specifically, the ITC should focus on the business aircraft industry in the United States, China, Brazil, Canada, and Europe, examining the composition of the current industry and the factors of competition in the global industry. This study should also analyze the current structure of each country’s business jet aircraft industry, developments in the global market that impact sales of business jet aircraft, and analyze significant developments and trends that may affect the future competitiveness of the U.S. business jet aircraft industry in the future. For years, Kansas has been leading the way in the general aviation industry, and I know that if everyone plays by the rules, Kansans will easily rise above the competition. With the ITC report, we will have a better understanding of the global players in the general aviation industry and how the U.S. can ensure we are all competing on a level playing field. USITC Reports SMEs Account for Nearly One-Third of U.S. Merchandise Exports U.S. small and medium-sized enterprises (SMEs) accounted for about 30 percent of known U.S. merchandise exports between 1997 and 2007, reports the U.S. International Trade Commission (USITC) in its report Small and Medium Sized Enterprises: Overview of Participation in U.S. Exports. The most heavily exported goods were computer and electronic products, machinery, and chemicals, with the biggest share of merchandise exports going to Canada and Mexico, according to the report. The USITC, an independent, nonpartisan, factfinding federal agency, completed the report at the request of the U.S. Trade Representative. As requested, the USITC provided an overview of SME characteristics, including their role in generating domestic jobs and economic activity; described the value of overall SME exports; listed the principal products, industries, and destination markets involved; and highlighted data gaps that inhibit a complete understanding of SMEs' role in U.S. exports. Highlights of the report follow.
A CD-ROM or printed copy of the report may be requested by emailing pubrequest@usitc.gov, calling 202-205-2000, or writing to the Office of the Secretary, U.S. International Trade Commission, 500 E Street, SW, Washington, DC 20436. Requests may also be faxed to 202-205-2104. |
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