Kansas Economy: Aerospace, Agriculture, and the Wind Belt

Kansas is a mid-sized state economy, usually ranked in the lower-middle of U.S. states by GDP — the dollar value of everything a place makes and sells in a year. The Kansas economy runs on aerospace manufacturing, agriculture, energy, and a deep logistics base across the eastern part of the state, with one of the highest wind-power shares in the country.

This is a plain-English tour. For the national picture, see The State of the U.S. Economy and the Economy hub.

How big is the Kansas economy?

For example, recent state GDP for Kansas has run around $210 billion, according to the Bureau of Economic Analysis. Population is roughly 2.9 million, per the U.S. Census Bureau. The Kansas City suburbs (Johnson and Wyandotte counties), Wichita, Topeka, and Lawrence anchor the state's main regional economies.

The biggest industries

Kansas has a manufacturing- and agriculture-heavy industry mix. The main pillars are:

• Aerospace — Wichita is one of the largest general aviation manufacturing hubs in the world, home to Spirit AeroSystems, Textron Aviation (Cessna and Beechcraft), Bombardier Learjet, and a deep base of aerospace suppliers.
• Agriculture — Kansas is the top wheat-producing state in the country in most years, and a major producer of cattle, sorghum, and corn. Beef processing plants in Garden City, Dodge City, and Liberal are large employers.
• Energy — Kansas has long-running oil and natural gas production, and is one of the leading states for installed wind power.
• Logistics — the BNSF intermodal facility in Edgerton is one of the largest inland ports in the country; Kansas City's logistics economy spills across the state line.
• Animal health — the I-70 corridor between Manhattan, Kansas, and Columbia, Missouri is known as the "Animal Health Corridor" and includes a major federal lab (NBAF) at Kansas State University.
• Education and government — the University of Kansas (Lawrence), Kansas State (Manhattan), Wichita State, and the state capital in Topeka are major employers.

Jobs and wages

Kansas labor data is published by the Kansas Department of Labor, with national-level numbers from the Bureau of Labor Statistics. For example, the Kansas unemployment rate has typically run below the national average, with the Kansas City suburbs and Manhattan often the tightest labor markets in the state.

The Kansas minimum wage is tied to the federal floor of $7.25 per hour. Many large Kansas employers — Spirit AeroSystems, Textron, beef processors, and large hospital systems — pay well above that on their own.

Taxes in Kansas

Kansas has a graduated state income tax with relatively low top rates. The legislature has periodically debated flatter or lower rates.

The state sales tax rate is 6.5%, with local add-ons that push the combined rate to about 8-10% in many cities. The state has been phasing down the sales tax on groceries. State tax forms and rules live at the Kansas Department of Revenue. You can read more about how sales tax works in our glossary.

Cost of living

Cost of living in Kansas is below the national average. The Kansas City suburbs are the priciest part of the state; Wichita, Topeka, and rural areas remain very affordable. The federal government tracks region-specific Consumer Price Index data through the BLS Mountain-Plains region, and HUD publishes Fair Market Rents for every county at HUD User.

Wichita's aerospace cluster

Wichita has been one of the world's largest aircraft manufacturing centers for almost a century. Spirit AeroSystems builds large fuselage sections for Boeing and Airbus; Textron Aviation builds the Cessna Citation business jet line and Beechcraft turboprops; Bombardier Learjet has long had a significant Wichita footprint. Together with hundreds of suppliers, the cluster employs tens of thousands and gives the metro a manufacturing-export profile that is unusual for a city its size.

Wheat and cattle

Western Kansas is dominated by wheat, sorghum, and cattle. Beef processing plants concentrated around Garden City, Dodge City, Liberal, and Holcomb together process millions of cattle a year and are among the largest private-sector employers in their counties. Drought, water access from the Ogallala Aquifer, and global commodity prices all weigh on the rural economy.

The Kansas City suburbs and the wind belt

Johnson County, on the Kansas side of the Kansas City metro, is one of the wealthier counties in the Midwest, with deep employer bases in finance, telecom (Sprint's legacy operations are now part of T-Mobile), and engineering. Out west, Kansas has installed enough wind turbines to make wind one of the leading sources of in-state electricity, with major manufacturing facilities like the Siemens Gamesa nacelle plant in Hutchinson.

How does the Kansas economy fit into the national picture?

Kansas is more concentrated in aerospace, agriculture, and wind energy than the national average, and less concentrated in finance and tech. Population growth has been modest, with most gains in Johnson County, the Manhattan area, and Wichita.

A note on the numbers

Numbers in this article change every quarter — always check the latest from BEA, BLS, and the Kansas Department of Revenue for the most current data.