As a freight-based economic development organization focused on attracting manufacturers and distribution centers to the bi-state, 18-county greater Kansas City region, our clients in 2017 will be focused on three drivers to making a location decision: transportation, labor and development costs. In 2017, the transportation piece will continue to focus on network optimization, but will also focus on mode, equipment availability, uncertainty in ocean shipping and innovation. All of these factors are changing at a record pace and making companies understand their total cost in the supply chain.
Labor will be one of the most significant decision factors any company will have in looking at expanding their footprint of facilities and operations. This is a national issue and will continue to challenge companies and economic development organizations. Two areas of proactive activity are underway in Kansas City and many other regions. The first is a focus on awareness of supply chain careers at the middle school and high school levels. This is focused on students, teachers, counselors, and, most importantly, parents. Supply chain careers are well paid, highly skilled and offer opportunities for advancement. The second is a focus on supply chain education that meets the demand of the jobs being filled. High school programs, community college efforts with certificates and other training, and four-year and graduate programs in universities are all necessary to support the complete labor needs of supply chain companies. In addition, groups such as the Council of Supply Chain Management Professionals, APICS and Institute for Supply Management have specific training programs for their professionals.
2017 will continue to see growth of new supply chain operations, specifically in e-commerce, regional distribution, intermodal, and advance manufacturing. The right strategy to understand total cost with a focus on transportation and labor will make the difference.