Kansas City Companies Feel the Heat Amid Economic Uncertainty
In the heart of Kansas City, while some industries are nervously checking their thermometers, others are basking in a warm glow of opportunity. Despite recent chatter about an economic slowdown, it seems a number of local companies are thriving, bucking the trend and basking in a bright future.
Construction Sector Soars
Take McCownGordon Construction, for example. With a jaw-dropping $2.6 billion backlog of projects lined up until 2027, the company is confidently predicting a booming couple of years ahead. As CFO Jeff Placek puts it, “We feel pretty strongly that we’re going to start to see an uptick over the next two to four years.” With interest rates finally coming down and federal funds waiting to be spent, developers are getting ready to dive into projects that may have stalled previously.
It’s not just McCownGordon that’s feeling optimistic. During a recent roundtable organized by the Bank of Blue Valley and the Kansas City Business Journal, leaders from many of the city’s top private companies echoed this confidence, sharing insights into their sectors and the challenges they face.
The Quest for Talent
However, it’s not all sunshine and rainbows. One of the biggest hurdles companies are grappling with is finding skilled labor. Employers are becoming more creative in their hiring strategies, working hard to retain existing employees and fill roles with fresh talent. It seems the “war on talent” is very much alive, as many organizations are feeling the crunch. Richard Wetzel, CEO of Centric Construction Group, said it’s a battle just to keep up in a world where many potential workers are choosing college over skilled trades.
Signs of Economic Strength
Despite these challenges, the overall economic landscape appears resilient. The unemployment rate, while creeping up slightly to 4.2%, still hovers near historic lows, and job creation remains strong. Chris Bannister from the Bank of Blue Valley notes that “the phone has started ringing again about projects” that were previously sidelined.
Plus, there’s good news on the inflation front—it’s gradually slowing, giving businesses a bit more breathing room. This positive vibe is echoed by local businesses in construction and infrastructure, such as HNTB Corp. “In our industry, it’s not slowing,” remarked Tirzah Gregory, a leader at HNTB. Thanks to the recent infrastructure bill, there’s plenty of work to be had, even if finding people to do the work is proving tricky.
Challenges in Logistics and Transportation
Now, let’s move to the logistics sector. Adam Hill, CEO of Scarbrough Global, described the past couple of years as “miserable” for logistics providers, especially when customers chose to sell off inventory instead of shipping. But there’s a light at the end of the tunnel, as Hill mentioned there’s been a recent uptick in business. “We just now started to see some of that tick back up in maybe the last 30 days,” he explained.
Creative Solutions in a Tough Market
In the face of adversity, companies are adapting. John Goodbrake, CEO of Master’s Transportation Inc., talked about how his company is “traveling with clients around the country” to expand their reach. He’s also empowered all employees to take on sales responsibilities—encouraging everyone to find new opportunities.
Travel Trends Shift
And what about the travel industry? After a bounce back post-pandemic, there seems to be a hesitance in leisure travel spending, as noted by Craig Compagnone from MMGY Global. However, corporate travel is “set to continue its phenomenal upswing” over the next few years—a silver lining amidst the mixed signals.
Navigating the Future
As these companies press on, they’re not just focused on immediate solutions. Investments in crew development are more important than ever. For instance, Fogel-Anderson Construction is funneling resources into training programs designed to grow their leaders. JoLynne Bartolotta emphasized that they’re not just preparing managers; they’re developing strong leaders who can nurture relationships and drive business growth.
A Calling Beyond the Paycheck
When it comes to attracting new talent, some businesses are getting creative and emphasizing meaningful work. Rogers Strickland, CEO of Strickland Construction, discussed how his team does company-sponsored mission work in Guatemala. This approach not only fosters a sense of community but also draws in potential employees who want their jobs to mean more than just a paycheck.
The Road Ahead
As the dust settles on the current economic climate, Kansas City companies are proving that with a combination of creativity, a focused talent acquisition strategy, and a commitment to quality work, they can ride the waves of uncertainty and emerge stronger on the other side. In the words of Placek, the key is to “stay out in front of it” and make the most of the opportunities that lie ahead.
