2024 KCADC Annual Meeting highlights $1.8B of new investment across the region

The Kansas City Area Development Council (KCADC) hosted its 2024 Annual Meeting last week, drawing over 2,000 civic and business leaders to celebrate a year of robust regional growth and strategic industry advancements. Under the theme “FLEX,” the event underscored the region’s adaptability as a cornerstone of its success. It highlighted achievements in the Kansas City metro area, including 18 counties across Kansas and Missouri.

Record-Breaking Investments and Job Creation

This year, KCADC and its partners secured commitments from 16 companies, resulting in $1.8 billion in capital investments, nearly 1,500 new jobs, $104.7 million in wages, and 2.3 million SF of new development. These milestones reflect Kansas City’s growing prominence as a hub for innovation and opportunity.

Google’s $1 billion data center in Kansas City, Mo., was among the most notable investments in 2024. Alongside its infrastructure project, Google committed to advancing sustainability by adding 400 megawatts of carbon-free energy to the grid. The company also demonstrated a strong community focus, contributing $100,000 to the North Kansas City School District’s STEM initiatives and announcing an additional $120,000 investment to strengthen STEM programs in Kansas City Public Schools.

Strengthening Global Recognition

Increased media attention has bolstered Kansas City’s growing reputation. Over 630 stories spotlight its economic wins and quality-of-life benefits, reaching an estimated 1.25 billion people globally and enhancing the region’s visibility on the international stage.

KCADC President and CEO Tim Cowden emphasized the importance of leveraging this momentum for future growth, attributing the success to a unified regional vision.

Keynote and Awards

Lisa Bodell, CEO of FutureThink and a best-selling author, delivered the keynote address, offering actionable insights into how simplification can drive efficiency and amplify impact. Her message resonated with attendees, providing tools to help businesses streamline operations and focus on meaningful work.

KCADC has also received accolades for its efforts to promote the region. The organization earned two gold medals from the International Economic Development Council, recognizing its KC Options Magazine and the “KC Design Draft” campaign for excellence in economic development marketing.

Building for the Future

As Kansas City continues to grow, leaders across industries remain focused on fostering a resilient and inclusive economy. From groundbreaking investments in infrastructure and education to enhanced global recognition, the region is poised for sustained success.

The KCADC Annual Meeting reinforced the importance of flexibility and collaboration in shaping the future, ensuring Kansas City remains a leader in innovation and a magnet for talent and investment.

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Header image: Board of Directors incoming co-chair and Evergy President/CEO, David Campbell speaks at the 2024 KCADC Annual Meeting. Image courtesy of the Kansas City Area Development Council

Sustainable, resilient, and tech-driven: ESS on the future of heavy civil construction

MetroWire Media recently sat down with Sean Washakta, Assistant Vice President at Emery Sapp & Sons (ESS), to explore the future of heavy civil construction. Washakta highlighted key trends that ESS predicts will shape the next decade, including innovative delivery methods, workforce development, and evolving policies driving the industry forward.

Q: What emerging trends do you foresee shaping the future of heavy civil construction in the next decade?

The shift toward deeper collaboration and the adoption of Integrated Project Delivery (IPD) and Alternative Delivery Methods will continue to grow, fostering stronger teamwork between owners, contractors and designers. This trend is expected to drive better project outcomes, as these methods emphasize early involvement, risk-sharing and shared goals.

There will also be an accelerated push towards sustainability in the heavy civil sector. This includes a focus on green building practices, energy-efficient materials and recycled materials. More sustainable designs will be prioritized to reduce the environmental footprint of construction projects. Adopting prefabricated construction methods will streamline the building process, reducing waste and improving efficiency.

Lastly, skilled labor shortages and workforce development will remain central issues. There will be a growing need for training programs and education initiatives to attract new talent into the industry and retain existing workers. As the industry becomes more technology-driven, there will be an increasing demand for a workforce skilled in both traditional construction methods and new technologies. Emery Sapp & Sons has identified this need and instilled training and development programs across the company. These programs range from technical training for roles such as heavy equipment operators to soft skills training built for supervisors. A continued focus on developing our workforce will help our industry grow.

The heavy civil construction industry is poised for significant transformation, with an emphasis on efficiency, sustainability and technological advancement. These trends will not only improve the way we build infrastructure but will also make construction safer, more resilient and better aligned with the needs of future generations.

Q: How do you think technological advancements, such as automation and AI, will impact project delivery in heavy civil construction?

One of the key drivers of change will be digital transformation and the increasing integration of advanced technologies. Tools like augmented reality (AR), artificial intelligence (AI), Building Information Modeling (BIM), and drones will enhance project planning and execution. At ESS, we’ve improved our driver safety practices through Samsara AI technology. We can now identify, gauge and correct unsafe driving through safety scores generated by the new resource. These technologies are expected to become even more prevalent, improving safety, streamlining communication among stakeholders, and helping to identify risks and cost-saving opportunities earlier in the project lifecycle. 

Another significant trend will be the growing role of automation and robotics. Automation in construction processes and integrating smart infrastructure, will revolutionize how we design, build and maintain public works. Smart sensors will allow for real-time monitoring of infrastructure like bridges and roads, enabling them to self-assess their conditions and provide data-driven insights for maintenance, leading to safer and more resilient infrastructure.

Q: How do you anticipate changes in government policies and funding will affect large-scale infrastructure development? 

Government policies and funding changes will impact large-scale infrastructure development, with a growing focus on climate resilience and environmental sustainability. As extreme weather events become more frequent, governments will likely update regulations and design standards to ensure that infrastructure can withstand these challenges. This will lead to a greater emphasis on using durable materials, adaptive designs, and technologies that prioritize long-term resilience. Governments will also likely incentivize sustainable practices by directing funding toward projects that meet green standards, such as energy-efficient materials.

Funding mechanisms may shift toward supporting climate-conscious infrastructure. These funding structures will encourage projects that not only address immediate needs but also focus on reducing environmental impact. As governments push for measurable environmental outcomes, infrastructure projects will need to demonstrate sustainability and climate resilience to secure public funding, reshaping how large-scale projects are planned and executed moving forward.

Q: What innovations in materials and construction techniques do you believe will revolutionize heavy civil construction in the coming years?

Adopting more energy-efficient designs and materials, such as recycled aggregates and biodegradable composites, will help reduce waste and minimize the environmental impact of projects. These materials will not only be more sustainable but also cost-effective in the long run, aligning with the growing demand for eco-friendly construction practices.

Additionally, advances in High-Performance Concrete (HPC) will play a key role in enhancing the durability and longevity of infrastructure, reducing the need for frequent maintenance and repairs. This will enable the construction of structures that can withstand extreme weather conditions and heavy usage while supporting more innovative designs. Beyond these developments, new, groundbreaking materials will likely emerge, offering even more opportunities to improve both the environmental and performance standards of heavy civil projects. These innovations will lead to safer, more resilient infrastructure with a lower environmental footprint.

Q: What skills do you believe will be most in demand for future heavy civil construction projects, and how is your company preparing for this shift?

The future of heavy civil construction will require a diverse set of skills to keep pace with emerging technologies, sustainability goals and evolving project delivery methods. Key high-demand skills include digital literacy, especially proficiency in tools like Building Information Modeling (BIM) and data analytics. These are becoming essential for effective project planning, collaboration and decision-making. Automation and robotics knowledge, including experience with automated machinery and drones, will also be critical as these technologies become more integrated into construction workflows. Project management skills focused on Integrated Project Delivery (IPD) and other collaborative methods will be essential for managing complex projects with diverse stakeholders.

In addition to technical knowledge, adaptability will be a crucial skill, as the construction industry will continue to evolve rapidly with the introduction of new technologies and unforeseen challenges. Workers will need to be flexible and able to learn and apply new tools and methods quickly. Effective communication will also ensure strong coordination across diverse teams and stakeholders for project success. Safety and risk management skills will remain a priority.

ESS is taking proactive steps to develop skills within our employee-owners. This includes investing in ongoing training to keep employees up to date with the latest technology and industry best practices. We’ve also fostered a culture of innovation by collaborating with tech and machinery companies to stay at the forefront of construction advancements. Training sessions directly with these companies at the field level support our culture of owning our work. Recruiting a diverse workforce will help us bring fresh ideas and perspectives to all aspects of a project. 

Collaboration with educational institutions will ensure training aligns with industry demands. ESS works closely with vocational schools, universities and trade programs to help shape the next generation of construction professionals. Support from The ESS Foundation, the company’s charitable organization committed to providing opportunities in the industry, helps equip the next generation with skills necessary for future projects. At ESS, we are committed to building an adaptable, skilled workforce by focusing on continuous learning, fostering innovation and preparing for the challenges ahead. As we look to the future, we plan to remain competitive and capable in the rapidly changing world of heavy civil construction.

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Header image courtesy of Emery Sapp & Sons

Kansas City's vision for South Loop Park becomes reality

Work on a transformative project that's been envisioned for Kansas City for 30 years or more will begin early next year.

"The South Loop Project is building a cap over I-670, which has long been the disdain of many leaders in the region, from the federal and state highway system, city leaders, and even to business owners and residents in the area. So, we are going to create a tunnel that will create a cap, and we are going to put a park on top of that cap," said Ann Holliday, VP of strategic initiatives at Downtown Council of Kansas City.

Panelists Tirzah Gregory, VP and group director at HNTB Corporation; Mark Neibling, AIA, associate principal, architecture at BNIM; and Mario Vasquez, assistant city manager and city planning director at City of Kansas City, Missouri, joined Holliday at a lunch event last week hosted by CREW KC. Meredith Hoenes, director of communications at Port KC, moderated.

Port KC, the Downtown Council, and the City of Kansas City are partners in the project.

"This is the biggest reclamation project that we have going on in the city. We're creating something out of nothing. Something that's been sort of a chasm Downtown. We're putting something there," said Vasquez.

Vasquez addressed why it has taken so long to start this project since it was first proposed in the 1990s. Back then, he said, not much was happening Downtown, and it was a struggle to put things together.

"Today, Downtown is dynamic. It makes sense now to build this amenity that can continue the momentum that we have Downtown," Vasquez said.

The first phase of the project involves constructing a tunnel through which traffic will flow. This project presents many challenges.

"At the end of the day, we are dealing with an infrastructure that is almost 60 years old and all that has to be replaced," said Vasquez.

According to Gregory, constructing a structure over a highway is like remodeling or adding onto an old house.

"You've got existing infrastructure to deal with, including some of the bridges that cross over the highway . . . so you can imagine the complexity of having some of

the old systems work with the new systems. . . . The structure is going to be carrying some heavy loads. . . .  We have to build these foundations without impeding the right of way, making sure the highway stays at the same capacity that it is now," said Gregory.

One of the issues to solve is utilities. The Downtown area is riddled with utilities crossing every which direction, Gregory said.

"We are working with 15 different utility companies right now to coordinate. Some of them cross along Truman Road. Some of them cross over the highway. Some of them go under the highway, so that adds a lot complexity. They don't want any interruptions, of course, to the service that they provide," she said.

Another issue is drainage. The Downtown area slopes toward the planned park.

"A lot of the water coming across from Downtown goes at a low point across our park at Walnut Street. We have to make sure that we don't make anything worse," Gregory said.

There is a proposed rain garden to help collect some of the drainage, Hoenes said.

Above: Moderator Meredith Hoenes of Port KC next to the panelists at last week's CREW KC lunch event from left to right: Meredith Hoenes; Mario Vasquez; Ann Holliday, Tirzah Gregory; and Mark Neibling. Photo credit: Elizabeth (Liz) Wampler

The KC Streetcar is a consideration as well. The project must proceed with minimal impact on the streetcar service.

With respect to the tunnel itself, life safety systems will be crucial, including fire suppression, lighting, egress, ADA compliance and signage.

"That was kind of a new thing because we don't have tunnels around here," Gregory said.

Once the tunnel is complete, a park will be installed on top of it. OJB has been retained as the landscape architect.

Neibling said the park will feature a series of terraces "that are moments of art, areas of respite with this kind of welcoming approach from the west," and the buildings within the park will be responsive to the landscape.

According to Neibling, the design of buildings in the park will be focused on zero carbon. Plans include a food hall, a performance pavilion, a dog park and play areas.

"I look forward to when that space is so inviting and the whole community is down and enjoying it. They're sitting under these large trees. They're rolling in the grass. They're enjoying the environment in Downtown Kansas City," said Holliday.

The project will be a public-private partnership. According to Holliday, public monies to date include approximately $30 million in federal funds and $50 million in state funds. In addition, the City of Kansas City has committed $10 million and also is investigating a $65 million loan under the Transportation Infrastructure Finance and Innovation Act (TIFIA) and may apply for additional federal funds via grant projects. Approximately half of private sector funds' $50 million goal has been raised.

"We're talking to some other government entities in the area and working on some cost share arrangements with the Missouri Department of Transportation (MoDOT). . . . That's for funding for how we build it," Holliday said.

She said the city will own the park and plans to contract with a private, non-profit-based organization to manage it, similar to arrangements with the Kansas City Zoo & Aquarium and Starlight Theater.

"The goal then would be sponsorships, other philanthropy, revenue-generating opportunities within the park so that it would be self-funded for now and then capital endowments and things for maintenance in the future," Holliday said.

A general contractor has been selected, with details being finalized, and an announcement forthcoming next month, Vasquez said. Hoenes said the name of the project could be announced in January.

Vasquez said activity on the project will begin in the first quarter of 2025, and he expects to shut down I-670 mid-summer of 2025. He said the tunnel may be complete in 2027, but the contractor ultimately will address the timing issue. In addition, all construction activity in the public rights of way will cease on May 1, 2026, in preparation for the FIFA World Cup activities.

"So whatever work we can get done by that time is what's going to be done. Keep things open; diminish the disruption," Vasquez said.

"We're not going to hold a groundbreaking ceremony. We're going to hold a ground making ceremony, because that's what we're doing. We're making a whole new space," said Holliday.

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Header image: A rendering of South Loop Park that will cap a four-block stretch of Interstate I-670 between downtown Kansas City and the Crossroads Arts District. Image credit: BNIM

Kansas City industrial experts tackle land scarcity, utility access and market opportunities

There may be a perception that land is scarce for industrial projects, but according to Morgan Mutert, director of business development and governmental affairs at Hunt Midwest, land is available. Still, it may not be development-ready to meet the tight timelines demanded by users.

Mutert, a panelist at MetroWire Media’s Kansas City Industrial Summit held last week, was joined by Michael Dustman, senior project manager at SCS Engineers; Kurt Jensen, SIOR, principal/industrial brokerage at Kessinger Hunter; Sam Stahnke, P.E., vice president at ARCO National Construction; and Sean Washatka, assistant vice president at Emery Sapp & Sons, Inc., to discuss the state of the industrial market and its challenges and opportunities. Joe Perry, vice president of real estate at Port KC, moderated.

“I think the users that we are seeing are really focused on speed to market. A lot of the projects that we’ve seen in the last year, two years, maybe even before that, when we receive the request, they want to be operational within 12 to 18 months, so they’re really looking for sites that check the box and that have the utilities and meet the labor force requirement. . . . Being able to meet their timeline is incredibly important,” Mutert said.

Mutert said projects used to be led by the availability of the labor force. While that remains a top requirement when users look for industrial sites, the availability of utilities is also vitally important.

“Utilities have become a big factor for any client right now. With some of the utilities, especially in Kansas City, having certain areas where they’re stretched as far as capacity is concerned, that becomes a big issue,” said Stahnke.

Jensen agreed that the availability of utilities is key to landing new industrial projects.

“I think utility nationally is really the conversation, and Kansas City, I think, can be well positioned to accommodate that. I think that as long as we can keep getting heavy power and the proper water to facilities, we’re going to see a lot of good activity in the next handful of years,” he said.

Mutert said if a site does not support the utility demand, it could add three years to the development timeline, which the project does not have.

According to Dustman, alternative power sources like solar could help solve utility shortages.

“We are putting solar on top of landfills. We are cleaning that solar and selling it back to the grid. . . . I think solar and utility usage is a big player, and we just need to find the sites,” Dustman said.

Above: Moderator Joe Perry of Port KC addresses the 2024 MWM Industrial Summit KC panelists at JCCC in Overland Park, Kan. Panelists from left to right: Sean Washakta, Kurt Jensen, Morgan Mutert, Sam Stahnke, and Michael Dustman. Photo credit: Jacia Phillips | Arch Photo KC

Another big factor in the site selection process for an industrial project is the availability of incentives, Mutert said.

Perry said that in the second quarter of 2024, there was a hyper-supply of industrial products with 2.3 million SF on the market in Kansas City. By the third quarter, that shrank to 700,000 SF.

Although industrial development projects have slowed down this year, Jensen said that has protected the Kansas City market from skyrocketing vacancies.

According to Jensen, demand from smaller operators in Kansas City remains strong.

“We’re starting to see a lot of clients who want to go to a building that’s just for them, so that becomes that 100,000, 150,000, maybe up to 300,000 SF building,” said Stahanke.

Perry said Kansas City currently has approximately 10.6 million SF under construction, with more than nine million of that being build to suit.

“It’s all preleased. So, we’re not really bringing a lot for next year. We just talked about 2.3 million SF hitting the market in Q2. Next year, we may only have 1 million SF for the whole year,” said Perry.

Reshoring nationally will be a big emphasis for the industrial market, especially in Kansas City, Jensen said.

Perry said in the last three years, manufacturing construction in the United States due to reshoring has nearly tripled from $100 billion in 2022 to just shy of $240 billion by the end of this year.

“We are genuinely just at the cusp [of reshoring]. We aren’t even prepared for what’s going to come in the next three, five, 10 years. So there’s a lot of opportunity out there, but also a lot of pressure to be able to deliver and make sure that we can reshore and bring things home. . . . I’m optimistic we’re headed toward a healthy 2025 where we’re going to see a lot of activity from reshoring, and a lot of build to suit activity will maintain that,” said Jensen.

Dustman said developers might look at repurposing existing buildings to create industrial space, citing a St. Louis client taking steps to convert an old 14-story health department building into a data center.

“The property sits at the juncture where the power comes in. . . . Maybe developers doing a little bit of utility research up front where those resources are already laid will expedite a little bit of timing,” he said.

Washatka said construction costs on industrial projects have not increased substantially in at least the last 12 months.

“I’ve got a feeling that 2025 is going to be about a flat year as far as growth in construction costs. So if lease rates are moving, it’s a good time to build, in my opinion,” Stahnke said.

Perry said that year over year, the industrial market is looking at an approximately five percent rent growth for the last quarter of this year.

“That’s pretty healthy,” said Perry.

New industrial projects create new jobs but can also result in a housing shortage. If there is increased residential construction activity in Kansas City and other markets, that could negatively impact available resources and drive

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Header image: MWM Industrial Summit KC attendees listen in on discussions related to the Kansas City Industrial sector landscape. Image credit: Jacia Phillips | Arch Photo KC

Karats Jewelers breaks ground on new 20,000 SF headquarters

Karats Jewelers, a prominent family-owned business in Kansas City, officially broke ground on its new headquarters on October 23, marking a new chapter for the six-generation jewelry brand.

Founded by Akshay Anand in 2005, Karats has built a strong reputation in the Kansas City community as a trusted destination for bridal and luxury jewelry, as well as a curated selection of high-end wristwatches.

The new location, designed by Davidson Architects & Engineering, will cover 20,000 SF and is situated at 12260 Blue Valley Pkwy., just five miles from the current store on W. 135th St. in Overland Park, Kan. The new headquarters represents both a continuation of the Anand family legacy and an opportunity to evolve with customer needs.

“KARATS is a six-generation family business, and we have truly harnessed our growth in the Kansas City community because of the support of this city,” Anand said.

Partnering with local builder Miller Stauch Construction, the new Karats facility is designed to enhance the customer experience and meet the growing demand for a more comprehensive array of jewelry options.

“It is a dream of a lifetime, and we are glad to have partnered with Miller Stauch.” Anand said.

The new location’s layout will be carefully planned to support Karats’ core business in engagement rings and bridal jewelry, with Anand envisioning a more immersive, personalized experience for couples shopping for engagement rings and wedding bands.

Above: A rendering of the new Karats Jewelers 20,000 SF headquarters designed to bring a personalized shopping experience for all customers. Image credit: Davidson Architecture & Engineering.

Beyond bridal jewelry, Karats is renowned for its extensive selection of luxury wristwatches and fine jewelry, showcasing top brands like Tacori and Verragio alongside over 35 sought-after watch brands.

“KARATS is focused on bringing the best selection of luxury goods to the Kansas City metro,” Anand said.

With its expanded space, Karats will now cater to new and longtime customers across all price ranges to create a shopping experience inclusive of all budgets and preferences.

Anand aims to attract younger generations who value a blend of tradition and contemporary style in their jewelry shopping experience. The store will offer custom engagement ring design services, allowing clients to collaborate with Karats' specialists to create unique, personalized rings. Shoppers can also explore an extensive in-store collection, catering to a wide range of tastes and styles.

With a grand opening date yet to be set, the new Karats Jewelers headquarters is designed not just as a store but as a destination for jewelry and watch enthusiasts across Kansas City and beyond. Anand is optimistic that the expansion will strengthen Karats’ role in the community, offering a space where Kansas City customers can trust the Anand family’s expertise and commitment to service for generations to come.

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Header image: A groundbreaking ceremony celebrating the new Karats Jewelers headquarters to be built at 12260 Blue Valley Pkwy. Image credit: Clapp Real Estate Photography