Kansas City Companies Ride the Wave of Economic Resilience
In the heart of the Midwest, Kansas City is buzzing with activity as local businesses, despite the whispers of a cooling economy, report steady growth and robust demand for their services. Yes, you heard that right! While some sectors are feeling the pinch, others are thriving, with companies like McCownGordon Construction leading the charge.
A Backlog that Keeps on Giving
McCownGordon Construction is not just keeping its head above water; it’s floating on a sea of opportunity with a jaw-dropping $2.6 billion in backlog work that will keep them busy until 2027. As interest rates ease up, businesses are feeling encouraged to open their wallets and invest in new projects. CFO Jeff Placek is optimistic. “We feel pretty strongly that we’re going to start to see an uptick over the next two to four years as this money starts to get redeployed,” he explains. This sentiment of positivity seems to echo across various sectors in Kansas City.
Local Businesses Stay Bullish
During a lively discussion with leaders from Kansas City’s top 150 private companies hosted by Bank of Blue Valley, it was clear that the reality is multifaceted. While some areas are facing bumps in the road, many businesses are still looking forward with high hopes.
Yet, the big question everyone is grappling with is employment. “Getting creative about hiring” is the name of the game, as companies learn how to harness the potential of their current employees while also brainstorming new ways to attract talent. Many businesses are pouring energy into innovation as they try to bridge the staffing gap.
Job Market Holds Strong
Despite economists speculating about a looming recession, the job market has held its ground. August saw the unemployment rate inch up to 4.2%, compared to 3.7% earlier in the year, according to the U.S. Bureau of Labor Statistics. However, even with a few up-and-down indicators, employers are still on the lookout to fill new roles. Chris Bannister, head of commercial banking at Bank of Blue Valley, pointed out that growth might be slowing but it remains steady. “The phone has started ringing again about projects that didn’t pencil out before,” he noted, a clear sign that optimism is still in the air.
Sectors Feeling the Heat Differently
In contrast, some sectors like logistics have taken a hit. Adam Hill, CEO of Scarbrough Global, describes the last two years as a challenging uphill battle. Shipping prices dropped significantly as businesses sold off excess inventory. However, he sees a light at the end of the tunnel. “We just now started to see some of that tick back up,” he said, hinting at a potential comeback for the logistics industry.
Coping with the Labor Shortage
However, the battle for talent continues to be a hot topic. McCownGordon’s Placek pointed out that the “war on talent is very real.” With many workers desiring remote positions, industries that can’t offer that flexibility are finding it tough to attract and retain staff. Adding to the mix, high school students are often recommended college instead of considering the promising careers in skilled trades.
Looking Ahead: Strategies for Growth
In the face of these challenges, Kansas City companies are rolling out creative strategies to adapt and grow. For instance, some businesses are getting serious about employee development, extending beyond just training for roles. JoLynne Bartolotta from Fogel-Anderson Construction explained, “We’re really investing more into people’s actual development—making them take ownership of client relationships.” This proactive approach not only helps the company succeed but also invests in the future of its workforce.
A Family Vibe at Work
Other companies are fostering a family-like atmosphere to attract talent. Rogers Strickland, CEO of Strickland Construction, shared how the company engages employees in meaningful missions and company events, hoping to create a workplace where everyone feels they belong. “This trade you have is not just about making money; it’s about serving others,” he stated, emphasizing the heart behind their operations.
Conclusion: Navigating the Future
Kansas City businesses are tackling the challenges head-on with enthusiasm and determination. They’re not just surviving but are finding new paths in a world that seems uncertain. Whether through innovative hiring practices, employee development, or creating a culture that attracts talent, Kansas City isn’t just holding its breath – it’s gearing up for a future filled with possibilities.
