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For generations, central Kansas has ranked among the most prolific agricultural regions on Earth, making its mark as a leading supplier of beef, grains and other related products.
But McPherson has gone a different route.
Located in the heart of central Kansas atop some of the world’s most fertile soil, McPherson stands out as a hub of industrial manufacturing. In fact, with more than 50 companies spanning at least a dozen industries, this city of 14,000 is arguably the single most industrialized community in the country on a per capita basis. The city’s business lineup includes national names like Hospira, CertainTeed Corporation, Ultrafab, Milacron Marketing, National Cooperative Refinery Association and the Johns Manville Corporation, renowned companies producing everything from hospital supplies to frozen food products. In a region defined by ag production, McPherson is the industrial "odd duck" – but in an entirely good way.
"McPherson’s level of industrialization is remarkable, especially in light of the ag-based economies of most surrounding communities,” said Kansas Department of Commerce Secretary David D. Kerr. "The city is a great example of how major businesses are choosing rural Kansas over better-known metro areas."
How has this self-proclaimed "small community" lured so many big companies to rural Kansas? In large part, with incredibly low electric rates. At 4.0 cents per kilowatt hour, McPherson’s commercial rate is the lowest in Kansas and more than 2.12 cents lower than the Midwest regional average. In fact, McPherson’s rate ranks among the lowest of any community in the country, making the city a legitimate option for any manufacturer looking to relocate or expand.
"You always hear about the low industrial electric rates in southern states," said Bill Graper, a business recruitment specialist with the Kansas Department of Commerce. "But McPherson's rates are competitive with any city anywhere in the country. For site location consultants involved in manufacturing, McPherson has to be on their radar."
McPherson's favorable electric rates can be attributed to the municipally owned McPherson Board of Public Utilities, the city's power supplier. Not only has the BPU developed its own generating capacity, but it has also negotiated favorable long-term purchased-power agreements with neighboring communities. These low rates are stable, too – the current rate schedule was adopted 25 years ago – and a recently renewed interconnect agreement with Westar extends through 2039.
Low and stable electric rates were a huge factor for CertainTeed Corporation, which last year opted to expand its McPherson extrusion plant rather than grow its Texas facility. The decision meant the retention of 45 jobs in McPherson and the addition of dozens more. New York-based Ultrafab also cited low electric costs in its 2006 decision to open a new facility in McPherson and add 20 new jobs.
"Industries love low electric rates," said Marvin ‘Pete’ Peters, Executive Director of McPherson Industrial Development Co. "But they love stability even more. When you look at McPherson’s record of providing consistently low electric rates through long-term interconnect agreements, it’s no wonder so many businesses see McPherson as a great option."
In addition to outstanding utility rates, McPherson offers companies an ideal location and access to various shipping corridors. McPherson is situated near the geographic center of Kansas and of the contiguous United States, which puts it within next-day freight service of nearly 75 percent of the country. It’s only 60 miles from Wichita and 200 miles from Kansas City and Oklahoma City – all of which have major airports – and less than 500 miles from Denver. The city also has its own airport and direct access to K&O Railroad and Union Pacific lines.
"McPherson is a prime location for manufacturers that need to ship to both coasts," Peters said. "Its central location and access to transportation infrastructure mean huge advantages for companies that locate here."
  Another crucial factor in McPherson's industrial success is its workforce, which company executives consistently cite as one of the city's strongest assets. Many of the city's workers are McPherson natives and products of a public school system that ranks higher than the state and national averages. The workforce also benefits from McPherson College and Central Christian College, which produce high-quality graduates whose skill sets dovetail perfectly with the needs of local manufacturers. And while it's impossible to quantify a concept such as pride, business leaders routinely comment on the commitment and dedication of their employees as one of the city's selling points.
"There are obviously hard-working, committed workers across the country," Secretary Kerr said, "but there's something special about workers in rural communities like McPherson. These workers have a stake not only in their company but in their entire community and quality of life. And that's why we're not surprised when businesses comment on the quality of workers they get in McPherson." |
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McPherson is home to more than 50 companies spanning at least a dozen industries, making this city of 14,000 one of the nation’s most industrialized communities. Here’s a look at some of McPherson’s businesses.
CertainTeed
CertainTeed Corporation is a leading North American manufacturer of building materials including roofing, vinyl and fiber cement siding, trim, fence, railing, deck, foundations, insulation, gypsum, ceilings and pipe products. Headquartered in Pennsylvania, CertainTeed has approximately 7,000 employees and 70 facilities throughout the United States and Canada, two of which are in McPherson. In 2008, the company expanded its McPherson facility, retaining 45 jobs and adding dozens more.
Hospira
Hospira is a global specialty pharmaceutical and medication delivery company and McPherson’s largest employer. As the world leader in specialty generic injectable pharmaceuticals, Hospira offers one of the broadest portfolios of generic acute-care and oncology injectables, as well as integrated infusion therapy and medication management solutions. A spinoff company of Abbott Laboratories, the company has created more than 150 new jobs since 2006.
Ultrafab
Ultrafab is a privately held manufacturer of weatherstripping products. Headquartered in New York, the company opened its first out-of-state production facility in McPherson in 2006, adding 20 new jobs.
NCRA
National Cooperative Refinery Association historically ranks as one of the nation's most efficient refiners of gasoline and diesel fuel. It has the largest payroll of any company in McPherson County and has been an anchor for the community since 1943. It is presently owned by three farmers cooperatives in Montana, Minnesota and Missouri. In just the past five years, NCRA has invested hundreds of millions of dollars in capital improvements and continues to expand.
For more information on McPherson's business profile, contact Marvin ‘Pete’ Peters with the McPherson Industrial Development Co. at (620) 245-2521 or marvinp@mcpbpu.com or visit www.mcphersonks.org. |
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