Advanced Manufacturing Institute 510 Mccall Road Manhattan, Ks - 66502-5034 785-532-7044 785-532-7031
Advanced Manufacturing Institute 510 Mccall Road Manhattan, Ks - 66502-5034 785-532-7044 785-532-7031
Advanced Manufacturing Institute 510 Mccall Road Manhattan, Ks - 66502-5034 785-532-7044 785-532-7031
2008
Riley County
ROUGH DRAFT
Project funding support provided by Rural Business Tax Credits from the
Kansas Department of Commerce through NCKCN, an affiliate of North
Central Regional Planning Commission.
Section I
Overview of Riley County
2
RILEY COUNTY
Population Estimates
Riley County has a population of 69,083 as of July 1, 2007 (US Census Bureau). The
population increased by 9.93% from the year 2000 to 2007. As per the 2000 census
survey, the population of the county was 62,843 with a median age of 23.9 years. In
2000, Riley County had 15.8% of its population under the age of 15 years, 52.6% in the
age group 15 to 34 years, 21.9% in the age group 35 years to 59 years and 9.6% of its
population above 60 years of age.
3
RILEY COUNTY
3,000,000
2,500,000
2,000,000
1,500,000 Kansas
1,000,000
500,000
80,000
70,000
60,000
50,000
40,000
Riley
30,000
20,000
10,000
0
1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000
4
RILEY COUNTY
Household Income
Median household income for Riley County is $35,071 which is 18.18% less than the
state median income. The median household income had declined by 6.63% from 1999
to 2005, but that rate is far less than the rate state median income has declined at 9.9%
$10,000
$0
Median household income in 2005 Median household income in 1999
Poverty Rates
The current poverty rate for Riley County is more than that of the state. In 2007, Riley
County’s poverty rate was 11.9% which increased to 19% in 2007. The poverty rate for
Kansas in the same period went from 8.9% to 11.7%.
1
Value 2005 dollars term was calculated using the CPI inflation calculator available at the Bureau of Labor Statistics
website http://data.bls.gov/cgi-bin/cpicalc.pl. The CPI inflation calculator uses the average Consumer Price Index for
a given calendar year. This data represents changes in prices of all goods and services purchased for consumption
by urban households. This index value has been calculated every year since 1913. For the current year, the latest
monthly index value is used (www.bls.gov).
5
RILEY COUNTY
Labor Force
Riley County’s current unemployment rate is 3.1% which is less than the state rate of
4.1%. The total labor force for the county increased by 10.8% in the last five years and
by 15.9% in the last ten years, but along with that the unemployed labor force also
increased by 2.0% in the last five years.
3%
Employed
Unemployed
97%
6
RILEY COUNTY
Educational Attainment
Approximately ninety-four percent of the population above the age of 25 has at least a
high school degree. Around 25.3% of the population above the age of twenty-five has
some college education, and 46.1% hold some kind of college degree.
100%
8.70%
90% 18.89%
Graduate or Professional
17.10% Degree
80%
Bachelor's Degree
70% 21.63% 5.80%
Associate Degree
60%
5.59% 24.60%
50% Some College, No Degree
7
RILEY COUNTY
More than eighty-one percent of the labor force work in the county itself. The maximum
outflow of workers from Riley County is to Geary County (2,013 workers i.e. 5.82% of
commuting workers travel to Geary County for work). Another 1,821 workers travel to
Pottawatomie County for work (i.e. about 5.42% of commuting workers).
8
RILEY COUNTY
9
RILEY COUNTY
10
RILEY COUNTY
The maximum inflow of workers to Riley County is from Geary County. According to the
2000 census, 4,238 workers commute to Riley County from Geary County for work, and
2,694 come from Pottawatomie County. In total 9,443 workers commute to Riley County
for work (i.e. approximately 25% of the workers are commuters).
12
RILEY COUNTY
13
RILEY COUNTY
14
RILEY COUNTY
15
Section – II
Industry Analysis
RILEY COUNTY
Industry Analysis
Industry employment increased by approximately 39% from 1990 to 2007 in Riley County. Average pay (after adjusting for
inflation) has increased by 18.08%, and the number of establishments in the same period increased by around 20%. The
industry has increased steadily in the county in the last seventeen years, but it had a slight decline in the number of
establishments during the period 1998 to 2001. However, it has maintained an overall growth pattern over the years. The
employment also maintained a positive growth trend over the years.
Table 9: Annual Covered Employment & Wages2 over Time (NAICS) – Riley County
Average Pay in Terms of
Year Establishments Employment Average Annual Pay
20073 Dollars (adj*)
1990 1297 19962 $16,600 $26,334
1991 1339 19937 $17,724 $26,982
1992 1348 20554 $19,075 $28,190
1993 1331 21120 $18,079 $25,941
1994 1345 21686 $18,829 $26,343
1995 1355 22340 $19,568 $26,623
1996 1380 22376 $20,979 $27,724
1997 1403 23564 $20,671 $26,704
2
Covered Employment & Wages (CEW) also known as ES202 data are the product of a federal-state cooperative program, the Quarterly Census of Employment
and Wages (QCEW) program, also known as the ES-202 program. The data are derived from summaries of employment and total pay of workers covered by state
and federal unemployment insurance (UI) legislation and provided by State Workforce Agencies (SWAs). The summaries are a result of the administration of state
unemployment insurance programs that require most employers to pay quarterly taxes based on the employment and wages of workers covered by UI.
(www.bls.gov).
3
Average wages in 2007 dollars term were calculated using the CPI inflation calculator available at the Bureau of Labor Statistics website http://data.bls.gov/cgi-
bin/cpicalc.pl. The CPI inflation calculator uses the average Consumer Price Index for a given calendar year. This data represents changes in prices of all goods
and services purchased for consumption by urban households. This index value has been calculated every year since 1913. For the current year, the latest
monthly index value is used (www.bls.gov).
17
RILEY COUNTY
18
RILEY COUNTY
Establishments
1554
1600
1497
1461
1432
1422
1421
1411
1500
1403
1399
1394
1394
1380
1355
1348
1345
1339
1331
1400
1297
1300
1200
1100
Employment
26706
27768
25813
25238
24780
24696
24474
24087
23788
23627
23564
30000
22376
22340
21686
21120
20554
19962
19937
25000
20000
15000
10000
5000
0
$28,190
$28,547
$30,289
$30,641
$31,365
$31,170
$31,583
$31,075
$31,519
$31,096
$27,724
$27,353
Average Pay (adjusted)
$26,982
$26,704
$26,623
$26,334
$26,343
$25,941
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Figure 7: Changes in Establishments, Employment and Average Annual Wages in the County
19
RILEY COUNTY
Retail Trade is the largest sector in Riley County with 219 establishments and 3441 jobs. The highest paid sector is the
Management of Companies &Enterprises with annual average wages of $65,466. Other high wage paying sectors are:
Transportation and Warehousing (annual average wages of $51,714) and Professional, Scientific and Technical Services
(annual average wages of $40,697). The Accommodation & Food Services and the Health Care & Social Assistance are
the other two sectors with large employment.
Table 10: Industry Distribution of Establishments, Jobs, and Average Wages – Riley County
Industry Distribution of Establishments, Jobs & Average Wages (2007) Establishments Jobs Annual Average Wage
Total Covered Employment and Wages 1554 27768 $31,096
Private 1466 19757 $24,581
Agriculture, Forestry, Fishing and Hunting 7 N N
Mining 1 N N
Utilities 2 N N
Construction 190 1569 $34,188
Manufacturing 32 757 $31,184
Wholesale Trade 63 630 $38,224
Retail Trade 219 3441 $17,339
Transportation and Warehousing 31 N $51,714
Information 23 522 $26,274
Finance and Insurance 106 994 $37,915
Real Estate and Rental and Leasing 97 472 $20,840
Professional, Scientific, and Technical Services 164 838 $40,697
Management of Companies and Enterprises 11 119 $65,466
Administrative and Support and Waste Management and Remediation Services 74 1798 $18,749
Educational Services 30 408 $27,807
Health Care and Social Assistance 144 3125 $31,575
Arts, Entertainment, and Recreation 21 292 $9,120
Accommodation and Food Services 149 3268 $10,066
Other Services (except Public Administration) 141 1258 $27,046
Public Administration 53 1708 $38,168
Source: US Bureau of Labor Statistics (BLS) N – Non-disclosed, NA- Not Applicable
20
RILEY COUNTY
Establishments Jobs
Agriculture Mining
Utilities Construction
Manufacturing Wholesale Trade
Retail Trade Transportation & Warehousing
Information Finance and Insurance
Real Estate & Rental & Leasing Professional, Scientific & Technical Services
Management of Companies Waste Management
Educational Services Health Care & Social Assistance
Arts & Entertainment Accommodation & Food Services
Other Services (except Public Administration) Public Administration
21
RILEY COUNTY
Agriculture
Annual Average Wage
$65,466
Mining
$70,000 Utilities
Construction
$51,714
Manufacturing
$60,000 Wholesale Trade
Retail Trade
$40,697
$38,168
$38,224
$50,000 Transportation & Warehousing
$37,915
$34,188
Information
$31,575
$31,184
$40,000 Finance and Insurance
$27,807
$27,046
$26,274
Real Estate & Rental & Leasing
$20,840
Professional, Scientific & Technical Services
$18,749
$30,000
$17,339
Management of Companies
Waste Management
$10,066
$20,000 Educational Services
$9,120
Health Care & Social Assistance
$10,000 Arts & Entertainment
Accommodation & Food Services
$0
$0
$0
Other Services (except Public Administration)
$0 Public Administration
Key Industries
Riley County is home to some very well performing industries. These industries may be a part of existing or emerging
clusters. For identifying key industries and clusters, three criteria were used:
1. Location Quotient – Location quotients (LQ) for industries at 6-digit NAICS level were calculated with US industry
employment as a base. The cutoff for LQ was taken as 1.25 (based on previous studies, especially Cortright 2003).
2. Average Wages – Average wages at 6-digit NAICS codes were compared to US average wages. If any industry
has average wages 10% above the US average, it is considered to be a good performing industry.
22
RILEY COUNTY
3. Growth Rate – Growth rates for the employment were calculated over a three year time period from 2003 to 20064;
growth rates above 5% are considered to be an indicator of good industry performance.
Any industry that satisfies one of these three conditions is either a good performing industry or an industry with good
potential for growth. There may or may not be a cluster existing in a region for every good performing industry, but if
there are good performing industries, a cluster may emerge in the near future. (For further details of methodology,
please see Appendix B).
The next table shows the industry sectors satisfying all three of the above stated criteria. These sectors are mostly service
oriented and belong to a mix of local and traded5 industry.
Table 11: 6-Digit NAICS Codes with High Wages, Location Quotients and Growth Differentials
Wages
Average Growth Location
NAICS NAICS Definition Establishments Employment Compared to
Wages Differentials Quotient
Nation
Radio, Television, and Other
443112 12 249 $32,180 13.76% 100.27% 4.71
Electronics Stores
488410 Motor Vehicle Towing 2 33 $43,032 46.85% 20.20% 4.04
Motion Picture Theaters, except
512131 1 49 $18,459 69.92% 6.12% 2.24
Drive-Ins
515112 Radio Stations 2 49 $63,059 36.30% 6.12% 3.38
541921 Photography Studios, Portrait 2 30 $27,605 35.82% 210.72% 2.38
611511 Cosmetology And Barber Schools 2 29 $34,019 29.24% 143.85% 11.44
611512 Flight Training 2 8 $70,240 55.72% 58.74% 2.90
621310 Offices of Chiropractors 10 39 $32,136 19.50% 5.73% 2.02
813410 Civic and Social Organizations 14 217 $18,230 16.03% 30.79% 3.10
Source: ES202 2006 data, IMPLAN MIG Group
4
There were two reasons for selecting the 2003 base year. 1) The numbers were more likely to be free from 9/11 impacts as compared to 2001 or 2002 numbers.
2) NAICS definitions changed in 2002, so it was very difficult to bridge between 2002 & 1997 codes for some industries.
5
Traded industries are defined as the ones exporting their goods and/or services outside their region. Local industries are the ones with all local (within the region)
dealings (Porter 2003).
23
RILEY COUNTY
Most of the industries with high growth rates are traded6 industries in Riley County. The highest growth rate is for the Civic
& Social Organizations except for Business, Professional, Labor & Political Organizations. There are two such
organizations with 290 jobs and a growth rate of 562% approximately. The other high growth industries are mostly service
oriented industries except for NAICS 332439 - Other Metal Container Manufacturing which is a part of the Fabricated
Metal Product Manufacturing Cluster.
Table 12: Top 10 Industries (6-digit NAICS) with Highest Growth Rates
Average Growth
NAICS NAICS Definition Establishments Employment Cluster
Wages Differentials
Other Similar Org (except
813990 Business, Professional, 2 290 $32,038 561.91% Local Community & Civic Organizations
Labor, & Political Org)
721110 Hotels And Motels, except 6 210 $13,455 494.39% Arts, Entertainment, Recreation &
Casino Hotels Visitor Industries
561492 Court Reporting and 1 471 $16,813 328.18% Local Commercial Services
Stenotype Services
621420 Outpatient Mental Health 3 228 $32,433 323.58% Biomedical/Biotechnical (Life Sciences)
Centers
561320 Temporary Help Services 5 70 $22,876 312.13% Local Commercial Services
611310 Colleges, Universities and 2 125 $22,943 296.85% Education & Knowledge Creation
Professional Schools
332439 Other Metal Container 1 453 $27,379 245.33% Fabricated Metal Product Manufacturing
Manufacturing
711510 Independent Artists, Writers, 3 38 $7,062 236.20% Arts, Entertainment, Recreation &
and Performers Visitor Industries
541620 Environmental Consulting 4 34 $42,740 223.96% Business and Financial Services
Services
541921 Photography Studios, 2 30 $27,605 210.72% None
Portrait
Source: ES202 2006 data, IMPLAN MIG Group
6
Traded industries are defined as the ones exporting their goods and/or services outside their region. Local industries are the ones with all local (within the region)
dealings (Porter 2003).
24
RILEY COUNTY
Most of the industries with high LQ are local industries. The sector Court Reporting and Stenotype Services (NAICS
561492) has the highest LQ in Riley County of 223.24. The industries with high LQ all belong to different kinds of clusters,
and there is no one clear cluster that emerges from the analysis.
Table 13: Top 10 Industries (6-digit NAICS) with Highest Location Quotients
Average Location
NAICS NAICS Definition Establishments Employment Cluster
Wages Quotient
Court Reporting and Stenotype
561492 1 471 $16,813 223.24 Local Commercial Services
Services
Other Metal Container Fabricated Metal Product
332439 1 453 $27,379 121.49
Manufacturing Manufacturing
721310 Rooming and Boarding Houses 30 126 $7,325 71.74 Local Hospitality Establishments
451212 News Dealers and Newsstands 1 29 $6,366 19.73 Local Entertainment & Media
Other Similar Organizations
Local Community & Civic
813990 (except Business, Professional, 2 290 $32,038 17.99
Organizations
Labor & Political Organizations)
624210 Community Food Services 1 71 $14,946 16.11 Local Health Services
443111 Household Appliance Stores 2 191 $25,678 15.51 Local Household Goods & Services
722330 Mobile Food Services 1 19 $3,578 14.16 Local Hospitality Establishments
Other Biological Product
325414 1 56 $52,278 12.90 Biomedical/Biotechnical (Life Sciences)
Manufacturing
813211 Grant-Making Foundations 1 93 $50,589 12.90 Local Community & Civic Org
Source: ES202 2006 data, IMPLAN MIG Group
25
RILEY COUNTY
The county’s Professional Employer Organizations (NAICS 561330) have average wages around 116% more than the
national averages. Except for this one sector, all other sectors with wages higher than national averages are traded
industries. There are three sectors out of ten that are a part of the Transportation & Logistics cluster. They are the sectors
– Motor Vehicle Towing (NAICS 488410), Other Support Activities for Road Transportation (NAICS 488490) and Packing
& Crating (NAICS 488991).
Table 14: Top 10 Industries (6-digit NAICS) with Wages Above National Averages
Wages
Average
NAICS NAICS Definition Establishments Employment Compared Cluster
Wages
to Nation7
Professional Employer
561330 1 5 $68,203 116.60% Local Commercial Services
Organizations
Agribusiness, Food Processing and
311811 Retail Bakeries 2 35 $31,668 72.65%
Technology
Motion Picture Theaters, except Arts, Entertainment, Recreation &
512131 1 49 $18,459 69.92%
Drive-Ins Visitor Industries
611512 Flight Training 2 8 $70,240 55.72% Education & Knowledge Creation
611710 Educational Support Services 2 12 $55,795 53.19% Education & Knowledge Creation
488410 Motor Vehicle Towing 2 33 $43,032 46.85% Transportation & Logistics
Other Support Activities for Road
488490 1 3 $42,225 42.58% Transportation & Logistics
Transportation
488991 Packing and Crating 1 1 $41,381 41.03% Transportation & Logistics
519190 All Other Information Services 1 3 $60,744 40.69% Printing and Publishing
Arts, Entertainment, Recreation &
515112 Radio Stations 2 49 $63,059 36.30%
Visitor Industries
Source: ES202 2006 data, IMPLAN MIG Group
7
Wages compared to nation – the difference in county & national average wages for particular industry as percentage of national average
26
RILEY COUNTY
Shift share analysis breaks down changes in employment (growth or decline) over a period of time into three components:
national growth share, industry mix share and local share. This analysis is used to account for the competitiveness of a
region’s industries and to analyze the local economic base8.
The industry with the highest local share in growth is the Court Reporting and Stenotype Services. The employment in the
sector increased by 465, and all of the jobs were due to local growth (Table 15). The second highest growth in
employment was in the Other Metal Container Manufacturing sector. In this industry there was a net growth of 442 jobs,
all of which were attributable to local growth in the region. The next sector with a high share of local growth is Offices of
Physicians. There was an increase of 368 jobs in this sector, of which 360 were attributable to the local growth in the
region.
8
Pennstate (2003) Using Employment data to better understand your local economy.
27
RILEY COUNTY
Table 15: Industries with Highest Local Share of Growth – Shift Share Analysis Riley County
NAICS NAICS Definition Net Growth National Growth Share Industry Mix Share Local Share
561492 Court Reporting and Stenotype Services 465 0.32 -0.22 464.91
332439 Other Metal Container Manufacturing 442 0.58 -1.16 442.58
621111 Offices of Physicians (except Mental Health 368 5.33 1.75 360.92
Specialists)
813990 Other Similar Organizations (except Business, 289 0.05 0.04 288.91
Professional, Labor, and Political Organizations)
561110 Office Administrative Services 267 1.00 2.97 263.03
621420 Outpatient Mental Health Centers 225 0.16 0.15 224.69
722410 Drinking Places (Alcoholic Beverages) 216 1.43 -2.83 217.40
624310 Vocational Rehabilitation Services 215 1.16 -0.90 214.74
443112 Radio, Television, and Other Electronics Stores 218 1.64 5.47 210.89
721110 Hotels and Motels, except Casino Hotels 209 0.05 -0.02 208.96
611310 Colleges, Universities and Professional Schools 123 0.11 0.03 122.86
813410 Civic and Social Organizations 120 5.12 -5.41 120.29
622110 General Medical and Surgical Hospitals 131 32.32 -9.73 108.42
323110 Commercial Lithographic Printing 105 1.95 -5.01 108.05
Electrical Apparatus and Equipment, Wiring
423610 Supplies, and Related Equipment Merchant 105 1.80 -0.62 103.83
Wholesalers
327320 Ready-Mix Concrete Manufacturing 86 0.90 0.68 84.42
561320 Temporary Help Services 69 0.05 0.16 68.79
511120 Periodical Publishers 61 3.54 -6.32 63.78
623110 Nursing Care Facilities 66 28.57 -25.54 62.97
551114 Corporate, Subsidiary, and Regional Managing 56 3.01 1.48 51.51
Offices
Data Source: ES202 data, IMPLAN MIG group
28
RILEY COUNTY
Traded Clusters
A Fabricated Metal Product Manufacturing cluster might exist in the county. This cluster has a growth rate of 227.35% and
an LQ of 1.80, but wages are less than national averages. Also, an Education and Knowledge Creation cluster exists in
Riley County. The cluster has a growth rate of 11.30% and an LQ of 1.81, but wages are less than the national average.
Another cluster that might exist is the Printing & Publishing cluster with a growth rate of approximately 9% and LQ of 1.33;
however, wages are less than the national averages for this cluster as well. Investments into these sectors should be
considered to make them more competitive.
29
RILEY COUNTY
Transportation Advanced
Equip Mfg Materials LQ Agribusiness
1% 1% 4%
Transportation &
Logistics Apparel & Textiles
1% 1% Arts & Entertainment
Primary Metal Mfg 7%
1% Printing &
Mining Publishing
6% 11%
IT & Telecom
2% Biomedical
Glass & 9%
Ceramics Business &
0% Financial Services
6%
Fabricated Metal
Chemicals
Prod Mfg
4%
Forest & Wood 16%
Education &
Products Computer & Elec
Knowledge
2% Prod Mfg
Energy Creation
2%
8% 16%
Defense & Security
2%
31
RILEY COUNTY
32
RILEY COUNTY
Local Clusters
The only cluster with both growth rate & LQ above the criteria minimum value is the Local Real Estate, Construction &
Development cluster with a growth rate of 8.49% and LQ of 1.28. However, wages are less for this cluster as compared to
national averages. The highest growth rate is for the Local Commercial Services cluster, and the Local Community & Civic
Organizations cluster has the highest LQ. None of the clusters have wages higher than national average wages.
33
RILEY COUNTY
34