Officials: Kansas economy on a slow upswing

Growing, but not as fast as region or nation

? Kansas’ economy is improving but lags behind in some important areas, a state official testified Wednesday.

“We’re growing but not as well as the region or the nation,” said Stan Ahlerich, president of Kansas Inc., an economic development research arm of the state.

Ahlerich also noted that while Kansas does measures up well on some economic indicators, that could change quickly because of the state’s reliance on business sectors that experience tremendous swings.

“We have a wonderful opportunity to build on what we have,” he told the Senate Commerce Committee. “We should do it now instead of when we hit the next down cycle.”

In Kansas, non-farm employment increased 0.3 percent last year compared with 1.3 percent in the region and nation.

Private sector employment decreased in Kansas 0.2 percent while increasing 1.3 percent regionally and nationally.

Kansas saw a slight increase in manufacturing employment, while the rest of the region and nation saw a decline.

And Kansas’ percentage increase in gross state product last year was more than the region and nation.

Ahlerich said Kansas’ positive performance areas are largely the result of upswings in aircraft manufacturing, oil and gas and agriculture.

He cautioned that those sectors are “highly sensitive to markets and cyclical in nature.”

Another concern was that the state is trailing the region and nation in population growth.

Members of the commerce committee said the information would assist them when working on tax and business issues this session.

Co-chair Sen. Nick Jordan, R-Shawnee, said the state’s recent investment in bioscience industries would help Kansas diversify its economic base.