The Kansas City area ranks No. 1 for business growth in a nationwide survey of businesses conducted by The Wendover Corporation. The study surveyed more than 600,000 businesses across the country in Q3 2016.
The Wendover Corporation surveyed businesses about upcoming plans to grow - whether that is expansion, relocation, or opening new locations. Wendover found that the top reasons companies relocate are: a need for more space, to expand territory with new locations, upgraded space, better location, or unhappy with previous landlord. Of those businesses that did relocate, 79 percent saw growth, 14 percent saw no change, and 7 percent were moving in order to downsize.
When looking at the Growth Index Comparison chart, Kansas City ranked No. 1 in both 2015 and 2016. This chart compares business growth rates with staffing, employee benefits, and financial health all being considered in that growth category. The U.S. average business growth index rose approximately 10 percent from the 2015 average through Q3 2016. Kansas City had the highest increase from 2015 to 2016, outranking other large, powerful cities such as Dallas, Chicago, and New York. Although tied with Phoenix for the largest increase in relative business growth rates, Kansas City ranked higher than the U.S. as a whole in that category at 24 percent.
Looking at the “Industry Breakdown” section, manufacturing and transportation saw the largest increases from 2015 to 2016. The 20 percent increase in manufacturing is due to more favorable U.S. policies, while the transportation increase is owed in large part to the high demand of eCommerce that is driving growth and increasing innovation in that sector.
Kansas City’s growth index score increase shows it is not just home to high-growth companies. The companies in the region have continued to increase their rates of growth, and more fast-growing companies have also been attracted to the city.
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