Washington KS
Washington KS
Washington KS
2008
Washington County
ROUGH DRAFT
Section I
Overview of Washington County
Washington
County is one of
105 counties of the
sunflower state
located in the north
central part of
Kansas. The county
seat is the City of
Washington.
2
WASHINGTON COUNTY
Population Estimates
Washington County has a population of 5,840 as of July 1, 2007 (US Census Bureau).
The population decreased by 9.92% from the year 2000 to 2007. As per the 2000
census survey, the population of the county was 6,483 with a median age of 43.6 years.
In 2000, Washington County had 19.1% of its population under the age of 15 years,
18.9% in the age group 15 to 34 years, 32% in the age group 35 years to 59 years and
30.1% of the population above 60 years of age.
3
WASHINGTON COUNTY
3,000,000
2,500,000
2,000,000
Kansas
1,500,000
1,000,000
500,000
25,000
20,000
Washington
15,000
10,000
5,000
0
1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000
Source: US Census Bureau
4
WASHINGTON COUNTY
Household Income
Median household income for Washington County is $31,770 (2005) which is about
25% less than the state median income. The median household income had declined by
7.7% from 2000 to 2005, but that rate is far less than the rate state median income has
declined at 9.9%
$60,000
$47,622
$50,000 $42,861
$40,000 $31,770 $34,421
$30,000 Washington
$20,000
Kansas
$10,000
$0
Median household income in 2005 Median household income in 1999
Poverty Rates
The current poverty rate for Washington County is slightly less than that of the state. In
2000, Washington County’s poverty rate was 10.1 which increased to 11.4 in 2005. 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
WASHINGTON COUNTY
Labor Force
Washington County’s current unemployment rate is 3.3% which is less than the state
rate of 4.1%. The total labor force for the county declined by 4.4% in the last five years
and by 4.2% in the last ten years, but along with that the unemployed labor force also
declined by 10.6% in the last five years.
3%
Employed
Unemployed
97%
6
WASHINGTON COUNTY
Educational Attainment
About eighty-one percent of the population above the age of 25 has at least a high
school degree. Twenty-three percent of the population above the age of twenty five has
some college education, and 20.1% hold some kind of college degree.
7
WASHINGTON COUNTY
More than seventy-two percent of the labor force works in the county itself. The
maximum outflow of workers from Washington County is to Marshall County (about 286
workers i.e. 9.05% of workers commute to Marshall County for work).
8
WASHINGTON COUNTY
9
WASHINGTON COUNTY
The maximum inflow of workers to Washington County is from Marshall County. Eighty-
eight workers commute to Washington County from Marshall County for work, and 81
come from Clay County. In total around 395 workers commute to Washington County
for work.
10
WASHINGTON COUNTY
11
WASHINGTON COUNTY
Section – II
Industry Analysis
12
WASHINGTON COUNTY
Industry Analysis
Industry employment increased by 8.61% from 1990 to 2007 in Washington County. Average pay (after adjusting for
inflation) has increased by 14.99%, and the number of establishments in the same period increased by 3.82%. This is a
good indicator of growing industry in the county as population in the county has been declining every decade since 1990
(Figure 1).
Table 9: Annual Covered Employment & Wages2 over Time (NAICS) – Washington County
Average Pay in Terms of
Year Establishments Employment Average Annual Pay
20073 Dollars (adj*)
1990 262 2056 $11,571 $18,356
1991 279 2091 $11,858 $18,052
1992 291 2179 $11,854 $17,518
1993 291 2162 $12,521 $17,966
1994 282 2183 $12,875 $18,013
1995 279 2198 $13,131 $17,865
1996 284 2224 $13,566 $17,927
1997 277 2268 $14,157 $18,289
1998 283 2253 $14,719 $18,723
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).
13
WASHINGTON COUNTY
14
WASHINGTON COUNTY
Establishments
300
291
291
284
283
282
290
280
279
279
278
277
276
274
272
272
280
265
262
270
261
259
260
250
240
Employment
2306
2400
2268
2253
2244
2242
2233
2233
2227
2224
2219
2217
2198
2197
2300
2183
2179
2162
2200
2091
2056
2100
2000
1900
Average Pay (Adjusted)
$21,107
$20,638
$20,482
$20,407
$20,154
$19,699
$19,494
$19,244
$19,186
$18,723
$18,356
$18,289
$18,052
$18,013
$17,966
$17,927
$17,865
$17,518
$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
15
WASHINGTON COUNTY
The Construction sector has the maximum number of establishments in Washington County. The maximum number of
jobs is in the Public Administration sector. The highest paid sector is the Wholesale Trade sector with annual average
wages of $30,590. Other high wage paying sectors are: Transportation and Warehousing (annual average wages of
$29,769) and Professional, Scientific and Technical Services (annual average wages of $28,591).
Table 10: Industry Distribution of Establishments, Jobs, and Average Wages – Washington County
Industry Distribution of Establishments, Jobs & Average Wages (2007) Establishments Jobs Annual Average Wage
Total Covered Employment and Wages 272 2233 $21,107
Private 194 1443 $21,398
Agriculture, Forestry, Fishing and Hunting 22 N N
Mining 2 N N
Utilities 3 N N
Construction 41 117 $18,731
Manufacturing 8 190 $22,638
Wholesale Trade 9 167 $30,590
Retail Trade 36 196 $13,527
Transportation and Warehousing 23 N $29,769
Information 4 N N
Finance and Insurance 12 N N
Real Estate and Rental and Leasing 6 8 $11,302
Professional, Scientific, and Technical Services 11 36 $28,591
Management of Companies and Enterprises 1 N N
Administrative and Support and Waste Management and Remediation 4 9 $16,781
S i
Educational Services 5 N N
Health Care and Social Assistance 18 190 $16,111
Arts, Entertainment, and Recreation 1 N N
Accommodation and Food Services 15 N N
Other Services (except Public Administration) 25 65 $17,765
Public Administration 29 276 $16,381
Source: US Bureau of Labor Statistics (BLS) N – Non-disclosed, NA- Not Applicable
16
WASHINGTON COUNTY
Establishments Employment
Agriculture Mining
Utilities Construction
Manufacturing Wholesale Trade
Retail Trade Transportation & Warehousing
Information Finance and Insurance
Real Estate Professional & Technical Services
Management of Companies Waste Management
Educational Services Health Care & Social Assistance
Arts, Entertainment, and Recreation Accommodation and Food Services
Other Services (except Public Administration) Public Administration
17
WASHINGTON COUNTY
Agriculture
Average Annual Pay
Mining
$30,590
Utilities
$29,769
$35,000
$28,591
Construction
Manufacturing
$30,000
Wholesale Trade
$22,638
Retail Trade
$25,000 Transportation & Warehousing
$18,731
$17,765
Information
$16,781
$16,381
$16,111
$20,000 Finance and Insurance
$13,527
Real Estate
$11,302
Professional & Technical Services
$15,000 Management of Companies
Waste Management
$10,000 Educational Services
Health Care & Social Assistance
$5,000 Arts, Entertainment, and Recreation
Accommodation and Food Services
$0
$0
$0
$0
$0
$0
$0
$0
$0
Other Services (except Public Administration)
$0 Public Administration
18
WASHINGTON COUNTY
Key Industries
Washington 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.
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 industry satisfying all three of the above stated criteria is the Crop Production industry (NAICS 111). This sector has
grown by approximately 38% over the last three years, and the wages are 37.82% more than the national average. The
location quotient for the sector is 5.42 (Table 11).
Table 11: 6-Digit NAICS Codes with High Wages, Location Quotients and Growth Differentials
Higher Wages Growth Location
NAICS NAICS Definition Establishments Employment Average Wages
than Nation Differentials Quotient
111 Crop Production 5 37 $31,412 37.82% 38.26% 5.42
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.
19
WASHINGTON COUNTY
Most of the industries with high growth rates are local instead of traded5 industries in Washington County. The highest
growth rate is for Nursing Care Facilities (312.13%) and Commercial and Industrial Machinery and Equipment Repair and
Maintenance (135.13%).
Table 12: Top 10 Industries (6-digit NAICS) with Highest Growth Rates
Average Growth
NAICS NAICS Definition Establishments Employment Cluster
Wages Differentials
Biomedical/Biotechnical (Life
623110 Nursing Care Facilities 1 70 $16,059 312.13%
Sciences)
Commercial and Industrial Machinery
and Equipment (except Automotive Local Personal Services (Non-
811310 2 13 $22,835 135.13%
and Electronic) Repair and Medical)
Maintenance
812210 Funeral Homes and Funeral Services 1 8 $17,214 100.00% Local Health Services
812910 Pet Care (except Veterinary) Services 1 6 $12,921 81.71% None
Drinking Places (Alcoholic Local Hospitality
722410 2 11 $3,066 76.52%
Beverages) Establishments
Agribusiness, Food Processing
311222 Soybean Processing 1 32 $13,529 74.72%
and Technology
Business and Financial
523120 Securities Brokerage 1 13 $15,005 63.03%
Services
541940 Veterinary Services 2 17 $21,410 61.98% None
Local Personal Services (Non-
624410 Child Day Care Services 1 4 $13,675 58.74%
Medical)
Local Food and Beverages
445210 Meat Markets 1 11 $10,717 54.20%
Processing & Distribution
Source: ES202 2006 data, IMPLAN MIG Group
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).
20
WASHINGTON COUNTY
The Soybean Processing sector (NAICS 311222) has the highest LQ in Washington County (its LQ is 219.84). Out of the
top ten sectors with high LQ, three are a part of the Agribusiness, Food Processing and Technology cluster and two are a
part of the Machinery Manufacturing cluster. The sectors with high LQ that belong to the Agribusiness, Food Processing
and Technology cluster are Soybean Processing (NAICS 311222), Livestock Wholesale (NAICS 424520) and Grain and
Field Bean Wholesalers (NAICS 424510). The sectors with high LQ that are a part of the Machinery Manufacturing cluster
are Farm Machinery and Equipment Manufacturing (NAICS 333111) and Photographic and Photocopying Equipment
Manufacturing (NAICS 33315). This is a good indicator that these two clusters may be emerging or exist in Washington
County.
Table 13: Top 10 Industries (6-digit NAICS) with highest Location Quotients
Establish- Average Location
NAICS NAICS Definition Employment Cluster
ments Wages Quotient
Agribusiness, Food Processing and
311222 Soybean Processing 1 32 $13,529 219.84
Technology
486210 Pipeline Transportation of Natural Gas 1 62 $50,434 188.32 Transportation & Logistics
Agribusiness, Food Processing and
424520 Livestock Wholesalers 1 27 $8,238 103.97
Technology
624210 Community Food Services 5 31 $14,022 94.01 Local Health Services
Agribusiness, Food Processing and
424510 Grain and Field Bean Wholesalers 1 47 $34,223 87.35
Technology
Ornamental and Architectural Metal Work Fabricated Metal Product
332323 1 45 $17,785 86.66
Manufacturing Manufacturing
Transportation Equipment
336214 Travel Trailer and Camper Manufacturing 1 45 $32,704 73.08
Manufacturing
Farm Machinery and Equipment
333111 1 45 $20,049 61.82 Machinery Manufacturing
Manufacturing
Photographic and Photocopying
333315 1 9 $30,658 57.76 Machinery Manufacturing
Equipment Manufacturing
Other Miscellaneous Nondurable Goods
424990 1 58 $32,137 50.46 Local Household Goods & Services
Merchant Wholesalers
Source: ES202 2006 data, IMPLAN MIG Group
21
WASHINGTON COUNTY
The county’s Home Centers sector (NAICS 444110) has average wages around 51% above the national averages. This
may be because of two reasons – this sector is a well performing industry with higher profits and they pay higher wages,
or there is shortage of labor so to retain employees they have to pay higher wages. The other sector with wages above
the national average is Crop Production (NAICS 111).
Table 14: Top 10 Industries (6-Digit NAICS) with Wages Above National Averages
Wages
Average
NAICS NAICS Definition Establishments Employment Compared Cluster
Wages
to Nation6
444110 Home Centers 1 6 $40,042 51.83% Local Household Goods & Services
Agribusiness, Food Processing and
111 Crop Production 5 37 $31,412 37.82%
Technology
Source: ES202 2006 data, IMPLAN MIG Group
6
Wages compared to nation – the difference in county & national average wages for a particular industry as a percentage of the national average.
22
WASHINGTON 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 base7.
Local Share
This is the share of growth (decline) in employment in a region that can be attributed to the competitiveness of a
region.
Local Share = Employment in base year *(Region’s industry growth rate – National Industry growth rate)
The industry with the highest local share in growth is Nursing Care Facilities. The employment in the sector increased by
69, and all of the jobs were due to local growth (Table 15). The second highest growth in employment was in Pipeline
Transportation of Natural Gas. In this industry there was a net growth of 39 jobs, all of which were attributable to local
growth in the region.
7
Pennstate (2003) Using Employment data to better understand your local economy.
23
WASHINGTON COUNTY
Table 15: Industries with Highest Local Share of Growth – Shift Share Analysis Washington County
NAICS NAICS Definition Net Growth National Growth Share Industry Mix Share Local Share
623110 Nursing Care Facilities 69 0.05 -0.05 68.99
486210 Pipeline Transportation of Natural Gas 39 1.21 -2.68 40.47
311222 Soybean Processing 26 0.32 0.04 25.64
111 Crop Production 23 0.74 -1.12 23.38
424510 Grain and Field Bean Wholesalers 13 1.80 -2.03 13.24
541940 Veterinary Services 13 0.21 0.25 12.54
Commercial and Industrial Machinery and
811310 Equipment (except Automotive and Electronic) 12 0.05 0.10 11.85
Repair and Maintenance
523120 Securities Brokerage 10 0.16 -0.09 9.93
238910 Site Preparation Contractors 12 0.48 1.72 9.80
722410 Drinking Places (Alcoholic Beverages) 9 0.11 -0.21 9.10
445210 Meat Markets 8 0.16 -0.20 8.05
813410 Civic and Social Organizations 8 0.53 -0.56 8.03
621210 Offices of Dentists 8 0.16 0.01 7.83
812210 Funeral Homes and Funeral Services 7 0.05 -0.05 7.00
447190 Other Gasoline Stations 6 0.42 -1.29 6.86
441310 Automotive Parts and Accessories Stores 7 0.53 -0.36 6.83
484220 Other Specialized Trucking, Local 6 0.53 0.24 5.23
812910 Pet Care (except Veterinary) Services 5 0.05 0.25 4.70
811121 Automotive Body, Paint, and Interior Repair and 4 0.48 -0.54 4.06
Maintenance
442210 Floor Covering Stores 4 0.26 -0.24 3.98
Data Source: ES202 data, IMPLAN MIG group
24
WASHINGTON COUNTY
Traded Clusters
The cluster with a high growth rate is the Transportation and Logistics cluster with a growth rate of 22.78%. The highest
LQ is for the Agribusiness, Food Processing and Technology cluster. This cluster has a LQ of 8.26 and a low but positive
growth rate of 3.83%. However, it has considerably lower wages than the rest of the nation. Other clusters with high LQ
are the Machinery Manufacturing cluster (LQ of 3.63) and Fabricated Metal Product Manufacturing (LQ of 2.37).
Investments into these sectors should be considered to make them more competitive.
25
WASHINGTON COUNTY
Transportation
Equip Mfg
2.03
Transportation
& Logistics
1.73
Printing & Publishing
0.1
Mining Agribusiness
0.25 8.26
Machinery Mfg
3.63
Fabricated Apparel & Textiles
Metal Prod 0.06
IT & Telecom Mfg Arts & Entertainment
0.31 Energy
2.37 Biomedical 0.08
1.8
0.61
Business & Financial
Education & Defense & Chemicals Services
Knowledge Creation Security 0.03 0.39
0.07 0.04
26
WASHINGTON COUNTY
27
WASHINGTON COUNTY
28
WASHINGTON COUNTY
Local Clusters
The local cluster with the highest growth is the Local Personal Services (Non-Medical) cluster. The cluster has a growth
rate of 29.07% and an LQ of 1.46, but wages are considerably lower than the national averages. The Local Utilities cluster
also has a high growth rate of 8.20% and an LQ of 3.68, but its wages are also lower than the national average. The other
clusters with high LQ are Local Community & Civic Organization (LQ of 2.74), Local Health Services (LQ of 1.78) and
Local Household Goods & Services (LQ of 1.59).
29
WASHINGTON COUNTY
30