Statistical Summary of Activity and
Comparison with Prior Years
Foreign Trade Zone No. 15 (Missouri) and No. 17 (Kansas)
Fiscal Year Ending September 30, 2009
In FYE September, 2009, the value of goods and merchandise processed in Foreign Trade Zones (FTZ) in the greater Kansas City area increased 31% over FYE 2008 reaching a record high of $1 billion dollars. Growth occurred in General Purpose FTZ warehousing operations (line 4 – 56% increase) as well as manufacturing and processing Foreign Trade Subzones. The increase in General Purpose warehousing use is largely attributable to the addition of Zorrel International Inc. in Grandview, Missouri and Pure Fishing, Inc in Kansas City Missouri which had active FTZ operations for the entire fiscal year 09 adding 200 new warehouse and fulfillment jobs in the area. The level of gains in these areas was offset somewhat by the deactivation of FTZ status for General Purpose warehousing operations in St. Joseph, Missouri. In addition, the deactivation and closing-out the FTZ inventory at Sony’s North American Parts Distribution Warehouse at Airworld Center in October, 2009, may negatively impact FTZ operating results in 2010.
Over $57 million of goods forwarded from General Purpose warehouse FTZ’s were exported to other countries while $217 million were entered into the US marketplace.
Kansas City area based manufacturing and processing Subzones experience continued growth in input and output values of merchandise in 2009. The total value of goods and merchandise received into FTZ Subzones for processing and other value added work increased by 33% over 2008. Input values from domestic sources into manufacturing and processing operations in Zone 15 and 17 increased 18.5% over the previous year while input values of foreign sources of goods and merchandise in FTZ manufacturing and processing operations increased by 45%. This continues the historical trend of Foreign Trade Zones on a nation wide basis to attract additional domestic sourced parts and components in manufacturing and processing operations of Subzones when increases in foreign sourced goods occur as well.
Output value from Subzones reached $723.5 million at the close of fiscal year 2009 , a 23.5% increase over the previous year. In 2009, the Greater Kansas City area had 4 activated Foreign Trade Subzones that provided over $200 million payroll/benefits. This contrasts with a high of $293 million in 2006 when Subzone operations for Pfizer and Yuhshin USA Ltd., d/b/a Ortech were, along with current Subzones, active FTZ operators in the Greater Kansas City area. Although 2009 payroll and benefits from Subzone operations have decline 15% over last year, additional growth in jobs in General Purpose Zones offsets the loss.
Greater Kansas City area Foreign Trade Zones have experienced significant growth over the past 10 years, in terms of both volume of merchandise and payroll due to their strategic location in the center of North America, the truck, rail, and air transportation assets available in the area, and the recognition of area leaders of the positive impact that trade and transportation will have on the area in a global economy.
