Kansas City's Thriving Business Market: A Collaboration Across State Lines
Kansas City is proving to be a hot business destination, thanks to its stable workforce, affordable real estate, and strategic location. However, what makes the city particularly attractive to businesses is its collaborative approach to economic development, which transcends state lines. As a result, businesses are flocking to the area, and economic development partnerships are thriving. In this blog, we’ll explore the factors contributing to the city’s booming business market and what it means for economic development professionals, tax consultants, and CPA clients.
Kansas City’s economy is characterized by a diverse mix of industries, including healthcare, education, logistics, and advanced manufacturing. The city boasts a highly educated and skilled workforce of over 1.5 million people within a 50-mile radius. Moreover, Kansas City is home to several large corporations, including Hallmark, Cerner, Sprint, and Panasonic, as well as a thriving startup ecosystem. These features make the city an attractive destination for businesses looking to expand or relocate.
In addition to its favorable business climate, Missouri and Kansas offer a range of tax incentives to companies looking to invest in the area. These incentives include corporate income tax credits, sales tax exemptions, and property tax abatements. For example, the Missouri Works program provides tax incentives for businesses that create new jobs. The Kansas Economic Opportunity Initiative helps businesses that invest in the state create new jobs or retain existing jobs.
One main reason businesses choose Kansas City is the tax incentives offered by Missouri and Kansas. Companies can receive up to 100% tax abatement on property taxes for up to 10 years and sales tax exemptions on construction materials. These programs and others make it easier for businesses to grow and prosper in the area.
What sets Kansas City’s economic development apart is its collaborative approach, which transcends state lines. Economic development organizations, chambers of commerce, and other stakeholders work together to provide support and resources for businesses.
Perhaps the best example of this collaboration is the Kansas City Area Development Council (KCADC), which serves as the economic development agency for both Missouri and Kansas. The KCADC works closely with local, state, and regional partners to promote the area’s business climate, provide access to incentives, and facilitate site selection.
Moreover, the partnerships between Missouri and Kansas demonstrate that economic development is not a zero-sum game. By working together, both states can benefit from new business investments and job creation, ultimately leading to increased economic prosperity. Kansas City’s hot business market is not just a flash in the pan – it’s a result of strategic planning, tax incentives, cross-state partnerships, industry diversity, and excellent quality of life.
Economic development professionals, tax consultants, and CPA clients should take note of the advantages this thriving city offers and work to bring their clients or businesses to the area. With its central location, stable economy, and attractive business environment, Kansas City is sure to remain a top destination for businesses of all types and sizes for years to come.
When you are considering relocating, expanding, making capital investments, or adding new jobs, McGuire Sponsel can help you take advantage of these economic incentives and guide you through the process. Contact our Location Advisory Services team for more insights on the site selection process as well as other credits and incentive opportunities.