Johnson County has long been considered the driving force of the Kansas economy. “As Johnson County goes, so goes the state,” is an often-used adage, but what’s not so well-known that within the state, Edgerton’s LPKC has become an economic power house, according to a report from Wichita State University.
“The Wichita State Study illustrates that the success of LPKC provides critical revenue to all local, regional and state taxing jurisdictions, even those that do not require the same level of service. For example, LPKC directly provides revenue to USD231 without the addition of new students, unlike Gardner’s new residential development which would add students and the need for new schools. LPKC provides increased revenue to Johnson County while the lane miles of roads maintained by County decreases in area of development, allowing the county opportunity for reinvestment,” said Donald Roberts, Edgerton mayor.
“In firsthand accounts from employees at Logistics Park Kansas City, we know LPKC has provided a new type of career opportunity for local families personally impacting them and their families such as buying their first home, paying off debt or purchasing a car. This new career path opens up opportunities for our local families to better their lives for them and their families,” said Roberts.
More than three percent of Kansas’ overall economy is generated at the LPKC in Edgerton, and over $221 million is contributed to state and local government entities each year, according to a report conducted by Wichita State University in August 2021.
And growth has not slowed, “In 2020, the logistics sector grew by 5.2 percent, adding just over 1,000 jobs during the global pandemic,” according to the NE Kansas Logistics Cluster – Statewide Impact report. Wages expanded by 15.9 percent.
Jobs Created: Logistics Park Kansas City (LPKC) has changed the face of logistics in the State of Kansas. According to the study, “LPKC has an estimated 4,735 full-time equivalent workers. The regional cluster, which includes Johnson, Miami, and Wyandotte Counties, has an estimated 22,171 people working in logistics. There were just less than 42,000 people at the state level, meaning that the industrial cluster in northeast Kansas represents about 53 percent of all the jobs within the state.”
“As described in the study, development of LPKC increases the demand for commercial/retail services in our area available for use by all community members. Companies and employees at LPKC continue to drive private investment for many types of services in our area including healthcare, restaurant, hotels, etc.,” said Roberts.
“The direct employment at the LPKC impacts the local economy in two main ways. First, the labor income is spent on items like housing, food, and entertainment, captured by the induced effect in this report. Therefore, 291 million dollars of wages support 1,274 additional jobs within the two-county area,” according to the report. “Second, the firms at the logistics park consume goods and services from other companies. The consumption would include security, cleaning services, vending machines, freight forwarders, and banks. The supplier activity is called an indirect effect. The LPKC firms supported 2,582 supplier-related jobs in 2020 and generated an additional 473 million dollars in sales.”
As an entire cluster, the 22,171 logistics-related jobs in northeast Kansas support 13,398 jobs within the three-county local market area, according to the report. “This cluster also supports 1,886 jobs within the region and 2,324 across the rest of the state. Thus, for every one hundred people employed in this industry, 79 other people are positively impacted across Kansas.
“The 39,779 jobs supported by the logistics park and cluster generated over two billion dollars of labor income and just shy of six billion in total output in 2020. To put this in perspective, Kansas’s gross domestic product in 2020 was 173.3 billion dollars. That means that the cluster directly represents 1.6
percent of the entire Kansas economy and supports 3.4 percent of the state’s overall economic activity.”
The LPKC is located between Edgerton and Gardner, along highways 56 and 50. It has 3,000 acres of developable space, and it is home to at least 29 logistics-related firms.