Sunday, May 29, 2005

Two Sides of Dependence

Being 35 miles away from an economic powerhouse is both a blessing and a curse. I witnessed the impact of Wichita upon Wellington (Sumner County) during a tour this week. Known internationally as the “Air Capital of the World”, Wichita is home to many airplane manufacturers and their many suppliers. It has some generated some of the highest paying jobs in the state of Kansas.

The blessing for Wellington is that it is close enough to Wichita that a number of its residents can commute into Wichita. Of the 11,535 workers who live in Sumner County, 4,836 are working outside, a very high 41%. But, this commuting pattern is one of the main reasons that the county has the 18th highest median household income in the state (out of 105 counties).

The downside is that those commuters tend to spend a big percentage of their paycheck where they are earning it. Debra Teufel, economic developer for the county, told me, “We only capture about 47% of the retail sales of our residents.”

The headline in The Wichita Eagle newspaper when I was there was “NOW WHAT?” Boeing had tentatively sold its commercial aircraft division in Wichita to Onex, a Canadian company. Onex notified 800 machinists on Saturday that they would no longer have a job and asked the remaining 4,500 employees to vote on a package of wage cuts, health care premium increases, stock ownership and a bonus plan. It was rejected by a 57 to 43% margin. There is concern that this major employer will close its doors, dramatically impacting the entire region.

Wellington and Sumner County are in a trap because of their dependence upon the Wichita economy and large manufacturers there, like Boeing. I hope that they are able to diversify their own industrial base and become less dependent upon their neighbor to the north.

No comments: