Kansas: A Business-Friendly State with Unique Advantages
When discussing top business destinations, Texas often steals the spotlight due to its zero corporate income tax, massive workforce, and global connectivity. However, FDI in Kansas holds distinct advantages that make it an attractive location for specific industries.
With a central location, lower operating costs, and a strong workforce in key sectors, Kansas is an underrated business powerhouse for companies looking to establish operations in the Midwest.
So, which industries flourish in Kansas? And what types of businesses should consider starting up or expanding here?
1. Key Industries Where Kansas Excels
While Kansas may not have Texas’ tax-free status or large urban hubs, it has a strong foundation in several key industries that thrive due to its location, workforce, and economic incentives.
Aerospace & Aviation: The Air Capital of the World
✈️ Why Kansas?
Kansas has a long history in aerospace and aviation, with Wichita earning the title of “Air Capital of the World.” It is home to major aircraft manufacturers, an experienced workforce, and world-class aviation training programs.
🏢 Companies that thrive in Kansas aerospace:
✅ Spirit AeroSystems – Largest aerostructures manufacturer in the U.S.
✅ Textron Aviation (Cessna, Beechcraft, Hawker) – Business jet and private aircraft manufacturing.
✅ Bombardier (Learjet division) – Engineering and aircraft maintenance.
📌 Site Selection Advantage:
✔️ Existing aerospace ecosystem with suppliers, engineers, and manufacturing infrastructure.
✔️ Strong technical workforce from universities and aviation training programs.
✔️ Kansas Aviation Tax Credits to reduce business costs.
Best business fits:
- Aircraft component manufacturers
- Aerospace R&D firms
- MRO (Maintenance, Repair, Overhaul) companies
FDI in Kansas’ deep aerospace roots make it a top destination for aviation startups and suppliers.
Agribusiness & Food Processing: A Farming & AgTech Powerhouse
🌾 Why Kansas?
Kansas is an agricultural leader, ranking among the top U.S. states for wheat, cattle, and grain production. With vast farmland, strong processing capabilities, and a growing agritech sector, it’s an ideal location for food production and agricultural innovation.
🏢 Companies that thrive in Kansas agribusiness:
✅ Cargill Protein – One of the largest beef processing facilities in the U.S.
✅ Dairy Farmers of America – A major cooperative headquartered in Kansas City.
✅ Hostess Brands – Makers of Twinkies and snack cakes, with major operations in Kansas.
📌 Site Selection Advantage:
✔️ Abundant natural resources (water, land, agricultural output).
✔️ Close proximity to major distribution routes (interstate highways and rail).
✔️ State-funded agribusiness incentives and tax credits for food production facilities.
Best business fits:
- Food processing & packaging companies
- AgTech startups focused on precision farming & automation
- Cold storage & distribution centers
Kansas’ combination of agriculture and logistics infrastructure makes it a prime location for FDI agribusiness expansion.
Logistics, Warehousing & E-Commerce Fulfillment
🚚 Why Kansas?
Kansas is centrally located in the U.S., making it a strategic hub for supply chain and logistics companies. With major interstate highways, railway networks, and growing e-commerce activity, the state is a cost-effective alternative to crowded logistics markets like Texas and California.
🏢 Companies that thrive in Kansas logistics:
✅ Amazon – Massive fulfillment center operations in Kansas City.
✅ Walmart Distribution Centers – Multiple warehousing and transportation hubs.
✅ BNSF Railway & Union Pacific – Major rail freight operations.
📌 Site Selection Advantage:
✔️ Strategic Midwest location – Reach both coasts within two-day shipping.
✔️ Lower land & warehousing costs than major metro areas.
✔️ Strong workforce pipeline from local logistics training programs.
Best business fits:
- E-commerce fulfillment centers
- Third-party logistics (3PL) providers
- Warehousing & distribution companies
FDI in Kansas benefits from cost advantages and strategic positioning, it’s an undervalued gem for logistics-heavy industries.
Advanced Manufacturing: High-Tech Growth in the Heartland
🏭 Why Kansas?
Kansas is emerging as a hub for advanced manufacturing, particularly in industrial machinery, automotive components, and electronics assembly. The state’s lower business costs and skilled workforce provide an ideal environment for precision manufacturing.
🏢 Companies that thrive in Kansas manufacturing:
✅ Garmin – Consumer electronics and navigation systems.
✅ Goodyear Tire & Rubber – Tire production facilities.
✅ General Motors (Fairfax Plant) – Automotive assembly.
📌 Site Selection Advantage:
✔️ Lower energy & labor costs compared to high-cost states.
✔️ Skilled workforce in mechanical & industrial engineering.
✔️ State tax incentives for capital investment & job creation.
Best business fits:
- Automotive supply chain manufacturers
- Electronics and consumer goods production
- Precision machining & fabrication companies
Kansas provides a cost-effective, business-friendly environment for high-tech manufacturing.
What Makes Kansas an Attractive Alternative to Texas?
While Texas is the dominant force in business attraction, Kansas offers compelling advantages for companies that prioritize:
💰 Lower business costs – Real estate, wages, and operating expenses are significantly lower.
📍 Strategic central location – Ideal for supply chain efficiency and national distribution.
👷 Skilled workforce – Aerospace, agribusiness, logistics, and manufacturing talent pools.
🚀 Targeted state incentives – Programs supporting key industries (PEAK, HPIP).
For companies looking to expand operations without the high costs of Texas, Kansas offers a practical, growth-friendly alternative.
Should Businesses Consider Kansas?
While Texas attracts the largest share of business investments, Kansas excels in aerospace, agribusiness, logistics, and manufacturing. The right businesses can thrive in Kansas, especially those that value low operating costs, central U.S. access, and a skilled workforce.
If Kansas continues to strengthen its incentive programs, invest in workforce training, and expand infrastructure, it could position itself as a top alternative to Texas for targeted industries.
🚀 Is your business considering a Midwest expansion? FDI in Kansas might be the perfect fit.
