WE'RE NOT AS 'FIXED' AS WE THINK
When James Chung came back for his follow-up report in June, 2018, it was a wake-up call for Wichitans. From most perspectives, Wichita was doing well. Businesses and entrepreneurship incubators were popping up left and right — especially downtown. The city also played host to some first-round games in the 2018 NCAA Tournament.
But the research said Wichita was still falling behind its peer cities and the nation as a whole.
Watch James's full presentation here, or check out our breakdown and explainer videos in the outline below.
THE INTERVENTION.
In his follow-up report, James Chung was quick to acknowledge that there had been some progress made, but he didn't mince words when he said it wasn't enough.
Instead, his report was an intervention — a wake-up call — that called for Wichitans to step up their efforts in making this city better. He also pointed out three specific factors that are holding Wichita back: a constrained labor market, an attitude problem and chronic underinvestment in the city's public and private sectors.
I. ZERO GROWTH SINCE 2010
The market has clearly given us all the signals that how we operate this city does not work economically. It's crystal clear.James Chung
James Chung started his presentation on a high note — pointing out the evidence many of us look to as proof of Wichita's resurgence. New jobs in education, health care and manufacturing, as well as Wichita's role in the 2018 NCAA Tournament, are all good things, but are they enough?
Chung does say some facets of Wichita are getting better. But he stresses that now is not the time to become complacent and rest at the first sign of success.
In fact, the data shows that Wichita is in a zero-growth economy and has been since the recession. The growth Wichita experienced since 2010 didn't keep up with the rate of inflation, meaning cities that simply kept the status quo without growing past inflation are now ahead of Wichita.
KEY TAKE AWAYS:
- Since 2010, Wichita's economy has shrunk by 1 percent, going by GDP. Meanwhile, the U.S. has grown by 16 percent.
- Every comparable city in the central U.S. is growing faster than the U.S. average except for Wichita.
- If Wichita had kept up with growth across the country, average income would be $10,000 higher, home prices would be $50,000 higher and average net worth would be $130,000 higher.
WATCH:
Video courtesy of the Wichita Community Foundation.
II. THE THREE FACTORS
We're lagging the rest of the U.S. economy more than ever. ... We have to figure out what we can do about this.James Chung
Chung called out three major factors that contribute to Wichita's lagging economy: an abnormally constrained labor market, an attitudinal problem and chronic underinvestment in all areas.
FACTOR 1: CONSTRAINED LABOR FORCE
While the labor market continues to grow across the country, Wichita's is shrinking, despite having plenty of high-paying jobs. The problem comes into focus when we look at the makeup of our overall population — and the types of people who are leaving.
KEY TAKE AWAYS:
- Despite having 19,000 more adults than Des Moines, Wichita has 17,000 fewer people in the labor market.
- Wichita only attracts 50 percent of WSU graduates, 7.6 percent of K-State graduates and just 3.6 percent of KU graduates.
- While comparable cities are growing rapidly, Wichita lost a net of more than 18,000 people since 2010 — a disproportionate number of which were educated women and minorities.
WATCH:
Video courtesy of the Wichita Community Foundation.
FACTOR 2: ATTITUDE PROBLEM
Wichita's perception challenge has been talked about since the beginning, but it actually goes deeper into the attitudes we hold about the people and institutions that make this city tick.
KEY TAKE AWAYS:
- Some good news: In 2016, more Wichitans said they wanted to leave than stay. In 2018, more people say they want to stay.
- Wichitans are also more optimistic, with 36 percent of people saying they're optimistic about the city's future, compared with 20 percent in 2016.
- Only 33 percent of Wichitans believe colleges and universities have a positive effect on the way things are going today, and only 54 percent see higher education as very important or extremely important for a young person's success, according to survey data from Reach Advisors and the Pew Research Center.
WATCH:
Video courtesy of the Wichita Community Foundation.
FACTOR 3: CHRONIC UNDERINVESTMENT
By every measure, Wichita is under-investing the private sector, the public sector and the city's non-profits. This spans from community foundation donations to venture capital investments.
KEY TAKE AWAYS:
- Wichita attracted $5.4 million in venture capital investment in the past two years. Peer cities Omaha and Des Moines attracted $20.8 million and $130 million, respectively.
- Wichita has invested nearly $100 million in downtown residential development. Comparable cities have invested more than $500 million.
- The Wichita Community Foundation has about $80 million in assets under management. The Omaha Community Foundation has more than $1 billion.
WATCH:
Video courtesy of the Wichita Community Foundation.
III. WHAT'S NEXT?
There are lots of things that need to get done here. Don't wait around. Don't just say you can't do anything about it.James Chung
Wichita has long been a city that says no — to new ideas, to risks and, in some cases, to the data presented by James Chung. If we want this city to succeed, we have to start saying yes.
Waiting for the silver bullet doesn't work. We are the silver bullet — all of us, with our unique ideas, perspectives and capacity to give back and create change. It's time to realize that and get things done.
WATCH:
Video courtesy of the Wichita Community Foundation.