Friday, August 18, 2017
   
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Growpconcept_08ADVANCED MANUFACTURING, LOGISTICS & DISTRIBUTION

Industry definition
The advance manufacturing sector is defined by a set of activities that focus on the design, manufacturing, and assembly of complex products utilized in a range of modern industries, including telecommunications, farm equipment, health care, and energy supply. While this industry includes the manufacturing of very different products, they are connected by their technically advanced design, manufacturing, and assembly processes and a common set of workforce requirements, including a dependence on technically trained workers with computer-aided and advanced manufacturing and machinery operation skills.

Logistics is the process of planning, implementing, and controlling the efficient flow of goods and services through the supply chain from producer to consumer. As virtually every product sold in America moves through distribution channels, the industry is responsible for coordinating the transport of one third of the nation's GDP. The distribution of these goods, a $300 billion industry, is increasingly coordinated by high-tech means such as global positioning satellites, real-time internet tracking, and just-in-time inventory systems.

These two independent industries are being targeted in combination because of the connections that exist between the types of technologies, processes and equipment used in both. They also have similar real estate and workforce requirements. Additionally, these two industries are adjacent to each other on the supply chain, with logistics being the gateway from the product to the consumer. However, the greatest synergy between these two industries lies in their need for innovative technology. Both industries have been completely transformed by high tech advances and both are reliant on future technology development as the key to sustained competitive advantage.

PARSONS' ADVANTAGE

Existing cluster strength in manufacturing - Manufacturing is a core component of Parsons' local economy. Building upon existing strengths in products such as fabricated metals, printing and business forms will provide synergies to advanced manufacturing firms looking to expand or relocate. These synergies include economies of scale and industry cluster effects that can substantially improve a company's costs and productivity.

Central Location- Its central location in the U.S. is an advantage and makes Parsons a logical fit for advanced manufacturing, logistics and distribution. Rail access, a rail switching yard at the Great Plains Industrial park, and access to the Port of Catoosa add to the competitiveness of Parsons' location.

Low labor costs- Parsons offers a low cost labor force that is attractive to advanced manufacturing, logistics and distribution firms seeking to maintain competitiveness on U.S. soil. At approximately $36,000, the average wage in advanced manufacturing, logistics and distribution for Labette County is more than 24 percent lower than industry wages for the U.S. as a whole ($47,872).

Available sites- Over 6,000 acres of land with rail access was purchased by the Great Plains Development Authority providing opportunities in advanced manufacturing, warehousing and storage, and logistics and distribution. Tolen Creek Industrial Park, Parsons' recently completed industrial parks offers 100 fully developed acres that can be served by Union Pacific Class 1 rail. Additional rail served sites are available at the newly developed switch yard located at the intersection of US 400 and US 169, 630 acres of prime industrial property is located just one mile east at the Tri-City Regional airport.

Reasonable Utility rates- For a cost sensitive, power hungry industry such as advanced manufacturing, relatively low electric utility rates can be a significant draw for a community. Parsons' reasonable electricity rates will present an important competitive advantage to manufacturers seeking to relocate from higher cost communities.

Responsive community college programs- Labette Community College has demonstrated a great ability to work with local businesses and keep their curriculum and training programs relevant to local business activities.

Strong Midwestern work ethic - Parsons' manufacturers with multiple locations declare their Parsons' workforce as the most productive and most cost effective. This important asset is critical for retaining our existing industries and to recruiting new advanced manufacturing businesses.

Business Machinery and Equipment Tax Credit- Kansas offers an exemption on state and local property tax on commercial and industrial machinery and equipment acquired by qualified purchase or lease or transferred into the state. The exemption pertains to machinery and equipment used in the expansion of an existing facility or the establishment of a new facility. The exemption covers machinery and equipment used in manufacturing or warehousing/distribution, commercial equipment, computers, desks and chairs, copiers and fax machines.