Kentucky Economic Development Guide 2013

kentucky economic development guide businessclimate.com/kentucky

Digital Edition Presented by the Kentucky Cabinet for Economic Development www.thinkkentucky.com

Machine Tooled

State crafts advantage in advanced manufacturing presented by the Kentucky Cabinet for Economic Development | 2013

Carroll County – Kentucky Centrally Located in the Golden Triangle of Louisville, Lexington and Cincinnati

Come join our diversified industrial base.

Why Here?

Available land and existing buildings Willing workforce with strong work ethic

High Quality of Life with Small-Town Charm

Electric rates among the lowest in the nation

Excellent schools, including Jefferson Community and Technical College, Carrollton Campus

Ohio River alluvial aquifer is abundant water source for a dozen industries

Quality hospital with award-winning occupational medicine department

Natural gas service owned by Carrollton Utilities Served by CSX Railroad On I-71, exit 44 Prime location at confluence of Kentucky and Ohio Rivers

Home of General Butler State Resort Park and the Kentucky Veterans Memorial 45 minutes from Louisville International Airport and Cincinnati/Northern Kentucky International Airport Less than 15 miles from Kentucky Speedway

Proactive local government

{

Contact Information: Harold “Shorty” Tomlinson, Carroll County Judge-Executive (502) 732-7000 • ccjudge@bellsouth.net www.carrollcountyky.com • www.carrollcountygov.us

}

30 Workstyle Thoroughbred Economy

18

Kentucky is in the lead in breeding jobs, investment

Not Your Grandfather’s Plant

24

Kentucky’s manufacturing landscape shifts to advanced materials, processes and partnerships

Ahead in the Clouds

34

38

30

State creates ideal climate for data centers

Startup Spirit

34

Kentucky spurs entrepreneurs to commercialize ideas

One State, Many Nations

38

Kentucky speaks the language of international business

Opening Up New Worlds

44

Export program gives Kentucky companies a passport to global markets

Goods and Plenty

48

Wealth of logistical assets draw distribution operations Table of Contents Continued on Page 5

24

On the Cover Kentucky Gov. Steve Beshear at Mazak Corp., one of the state’s advanced manufacturing success stories. Photo by brian mccord

w w w . t h i n kke n t u c k y . c o m

3

n ntown w o D anto St

Kentucky’s

Natural Bridge, Red River Gorge Stanton & Clay City Where Business and Nature Thrive ...

Home to two of the world’s natural rock wonders, Natural Bridge and Red River Gorge, Powell County, Kentucky is also home to rock solid industrial and business development opportunities.

Red River Museum

Drag Str

ip

Area Rock Climbing

Natural Bridge Sky Lift

GROW YOUR BUSINESS TO NEW HEIGHTS •

Choose to locate in a place known for its world-renowned natural beauty.

Located only 40 miles east of Lexington, Ky., Powell County offers easy access via the four-lane I-64 and Mountain Parkway

•

Available land for industrial and business development coupled with Kentucky’s best financial incentives

•

A local airport and UPS hub enhance transportation access

•

A strong rural work ethic and available workforce create a sustainable employment base

Tour of the Red Ridge Gorge

ENJOY WORKING WHERE YOU PLAY

Local Getaways & Homes

LIVE LIFE TO ITS FULLEST

•

A national landmark, the gorge is a 29,000-acre wonderland featuring more than 100 natural arches

•

Small-town charm coupled with natural beauty create an ideal living environment

•

Natural Bridge State Resort Park, a 2,370-acre park featuring a 900-ton natural sandstone arch suspended across a mountainside with more than 85 miles of trails to explore

•

Updated city parks, nice schools and educational opportunities through the Red River Museum and Gladie Learning Center offer children extraordinary opportunities

•

Known as a rock climber’s paradise, the area offers miles and miles of sandstone cliff lines that attract climbers from around the world

•

World-class Bluegrass music, one of the few remaining drive-in movie theaters in the country and an array of local eateries extend unparalleled charm

•

A State Nature Preserve, Kentucky’s only federally designated wild and scenic river, and the Red River Gorge National Scenic Byway make Powell County one of Kentucky’s most wellknown outdoor adventure areas

Where Business and Nature Thrive ...

Powell County Industrial Development Authority • P.O. Box 10 • Stanton, KY 40380 • 606.663.2156

www.visitpowellcounty.com

Insight Transportation 56 Energy 60 Health 64 Education 70

64 70

74

Livability Livability 74 Gallery 80 Economic Profile

87

All or part of this magazine is printed with soy ink on recycled paper containing 10% post-consumer waste.

Please recycle this magazine

56

w w w . t h i n kke n t u c k y . c o m

5

ONLINE

l i f e s t y l e | w o r k s t y l e | d i g g i n g d e e p e r | v i d eo | l i n k t o u s | a d v e r t i s e | c o n ta c t u s | s i t e m a p

CONNECTIONS

An online resource at businessclimate.com/kentucky

digital Magazine >>

Lifestyle Find out what it’s like to live in Kentucky and what makes the state such a special place to be.

Read the magazine on your computer, zoom in on articles and link to advertiser websites. site guide >> Find links to searchable databases of available commercial and industrial properties.

Workstyle We put a spotlight on the innovative companies that call Kentucky home.

success breeds success >> Meet the people who set the pace for business innovation.

Dig Deeper >> Plug into Kentucky with links to local websites and resources to give you a big picture of the region. demographics >> A wealth of demographic and statistical information puts the entire state at your fingertips.

See the Video Our award-winning photographers give you a virtual tour of unique spaces, places and faces.

guide to services >> Links to a cross section of goods and services special to the state

go online

businessclimate.com/kentucky

w w w. t h i n k k e n t u c k y. c o m

7

201 3 Edition , volume 5 Content Director Bill McMeekin business project manager emily McMackin Proofreading Manager Raven Petty Content Coordinator Jessica Walker boehm Staff Writer Kevin Litwin Contributing writers Nan Bauroth, Pamela Coyle, John Fuller, Kim Madlom, Kathryn Royster, Kathie Stamps, Stephanie Vozza Senior Graphic Designers Stacey Allis, Laura Gallagher, Kris Sexton, Jake Shores, Vikki Williams Graphic Designers Kara Leiby, Erica lampley, Kacey Passmore Senior Photographers Jeff Adkins, Brian McCord Staff Photographers Martin B. Cherry, Michael Conti color imaging technician alison hunter Integrated Media Manager jared lane Ad Production Manager Katie Middendorf Ad Traffic Assistants Krystin Lemmon, Patricia Moisan Chairman Greg Thurman President/Publisher Bob Schwartzman Executive Vice President Ray Langen Senior V.P./Sales Todd Potter Senior V.P./Operations Casey Hester Senior V.P./Client Development Jeff Heefner Senior V.P./Agribusiness Publishing kim holmberg V.P./business Development Clay Perry V.P./external communications Teree Caruthers V.P./Visual Content Mark Forester V.P./Content Operations Natasha Lorens V.P./travel publishing susan chappell V.P./Sales Rhonda Graham, Herb Harper, Jarek Swekosky Controller Chris Dudley Senior Accountant Lisa Owens Accounts Payable Coordinator Maria McFarland Accounts Receivable Coordinator Diana Guzman Sales Support Coordinator christina morgan Sales Support project manager sara quint it director Daniel cantrell Web Creative Director Allison Davis Web Content Manager John Hood Web Designer II richard stevens Web Development Lead Yamel Hall Web Developer I Nels noseworthy Photography Director Jeffrey S. Otto Creative Services Director Christina Carden Creative Technology Analyst Becca ary Audience Development Director Deanna Nelson New Media Assistant Alyssa DiCicco Distribution Director Gary Smith Executive Secretary Kristy Duncan Human Resources Manager Peggy Blake Receptionist Linda Bishop

Kentucky Economic Development Guide is published annually

by Journal Communications Inc. and is distributed through the Kentucky Cabinet for Economic Development.

For advertising information or to direct questions or comments about the magazine, contact Journal Communications Inc. at (615) 771-0080 or by email at info@jnlcom.com.

For more information, contact: Kentucky Cabinet for Economic Development Old Capitol Annex, 300 West Broadway • Frankfort, KY 40601 Phone: (502) 564-7670 • Fax: (502) 564-1535 www.thinkkentucky.com

Visit Kentucky Economic Development Guide online at businessclimate.com/kentucky ©Copyright 2013 Journal Communications Inc., 725 Cool Springs Blvd., Suite 400, Franklin, TN 37067, (615) 771-0080. All rights reserved. No portion of this magazine may be reproduced in whole or in part without written consent.

Member Member

The Association of Magazine Media Custom Content Council

Digital Edition Mazak Corp. employs almost 600 people at its Florence facility and plans to add 100,000 square feet to its existing operation.

Not Your Grandfather’s Plant Kentucky’s manufacturing landscape shifts to advanced materials, processes and partnerships

Story by Pamela Coyle • Photography by Michael Conti

A

n algae production facility in Winchester, a machinery maker in Florence and a coal ash recycling plant in Sadieville join big names such as GE, Toyota and Ford in Kentucky’s growing advanced manufacturing sector.

To better meet the needs of advanced manufacturing employers, the state and the administration of Gov. Steve Beshear have aligned economic and educational resources including revamped incentives and a coordinated approach to career and technical education.

24

Workforce training is a big focus, and maintaining a steady pipeline of qualified employees is a priority with government, academia and industry working together.

“Compared to 30 years ago, though, what we are finding is that manufacturing employees need a more applied knowledge base. We need people who have ‘soft skills’ and can take the knowledge, be innovative and work in teams,” says Ken Carroll, vice president of business development at the Kentucky Association of Manufacturers.

GE, FORD, TOYOTA LEAD THE WAY Manufacturing is not an afterthought in Kentucky. A key economic sector, manufacturing accounts for $27 billion, or 17 percent, of Kentucky’s gross domestic product and employs more than 215,000 people.

Nor is it idle. Production in 2012 was nearly at pre-recession levels, and more than half of the companies that responded to the Kentucky Association of Manufacturer’s annual survey planned to hire between one and 19 people in 2013, Carroll says.

KENTUCKY

BUSINESSCLIMATE.COM/KENTUCKY

25

Share with a friend

Easily share an interesting article, stunning photo or advertisement of your business on Facebook, Twitter or via email.

HAVE A BLOG OR WEBSITE?

Embed the digital magazine into your site to add compelling information about the successful businesses located here, what it’s like to work here and why it’s a great place to live.

DO MORE THAN JUST READ ABOUT IT Hear from decision-makers at leading companies, see video of the region’s success stories and find links to useful demographic information and information sources.

businessclimate. com/kentucky

Overview

Kentucky: Where Success Is a Tradition The Bluegrass State puts business in the winner’s circle Momentum is a powerful concept, often difficult to measure, but there is no doubt Kentucky is forging ahead in 2013. With strides in several key areas, including job growth, automotive manufacturing success, record export volumes, new and expanded smallbusiness initiatives, and a boost in foreign direct investment, Kentucky’s business climate is thriving.

Business investment in the manufacturing, service and technology industries in Kentucky totaled nearly $2.7 billion in 2012, with the creation of more than 14,000 new jobs, the third straight year for growth.

Investments like global cosmetics and hair-care manufacturer L’Oréal’s $42.1 million expansion at its Northern Kentucky plant, the decision by Bingham McCutchen to locate its global service center in Lexington creating 250 jobs and a $22.5 million investment, and the relocation of CafePress’ headquarters to Louisville are just a few of the many commitments being made across Kentucky.

It’s my hope that as you browse the 2013 Kentucky Economic Development Guide, you too will see why so many globally competitive companies have chosen to do business in the Bluegrass State.

We think you’ll agree that Kentucky’s business advantages can provide everything your industry needs to succeed. From a Top 10-ranked educational system, to the lowest business costs in the country, to an ideal location within 600 miles of two-thirds of America’s population, Kentucky has it all.

I invite you to tap into Kentucky’s energy. Let us help you write your own success story in the Commonwealth.

Contact the Kentucky Cabinet for Economic Development today at (800) 626-2930 or email econdev@ky.gov. We are confident you’ll find that Kentucky has the winning tradition you’ve been seeking.

Sincerely,

Steven L. Beshear Governor of Kentucky

w w w . t h i n kke n t u c k y . c o m

13

Almanac

Expansion On the Menu Kentucky’s food and beverage industry is setting the table for rapid growth. Preston Farms Popcorn and The Curehouse are among the latest additions to the state’s 260-plus food and beverage-related facilities that together employ more than 42,000 people. Preston Farms Popcorn maintains a 22,000-square-foot facility in Louisville to pack and sell microwaveable popcorn to private-label brands. Additionally, the company plans to make customized popcorn for promotional purposes. The Curehouse acquired a 46,500-square-foot facility in Louisville to process high-quality meat sourced from specially bred and fed animals to create the highest quality products. Combined, the two projects created 61 jobs and generated $5.3 million in investment. For more, go to www.prestonfarms.com and www.woodlandspork.com.

Needles at the Nano Level

Well-Oiled Machine A prime example of Kentucky’s strong and growing advanced manufacturing sector can be found in Boone County, where MAG maintains its regional headquarters and a major manufacturing facility in Hebron. The company, formerly known as Cincinnati Milacron, has since 2005 been a unit of Germany-based machine tools specialist MAG Industrial Automation Systems. MAG has a more than 125-year history of designing and building production machinery. Today, the company, which came to Boone County in 2003, provides advanced manufacturing tools for the aerospace, heavy equipment, energy and general machining markets. MAG employs more than 450 workers and operates out of a 430,000-square-foot facility in Boone County.

14

P r e s e n ted b y t h e K e n t u c k y C a b i n et f o r E c o n o m i c D e v e l o pme n t

One of Kentucky’s many high-tech success stories grew out of research at the University of Louisville’s (UofL) Electro Optics Research Institute and Nanotechnology Center. Louisvillebased NaugaNeedles was formed in 2007, following breakthrough research at UofL by Mehdi Yazdanpanah, who was working on his doctorate in electrical engineering and is now the company’s CEO. NaugaNeedles’ cost-effective nanofabrication technology grows constantdiameter, silver-gallium nanoneedles at any preferred location and orientation. The microscopic nanoneedles, called Needle-Probes, are rods between one and 100 micrometers long that can be used by researchers to measure small forces or to make images of minuscule surfaces. For more on the company, visit www.nauganeedles.com.

One Word: Plastics

Tan and Fit in Elizabethtown The corporate headquarters for a chain of tanning salons and fitness centers is bulking up in Elizabethtown. STC Management Group, which manages Sun Tan City and Planet Fitness businesses, will expand its footprint, adding up to 15 jobs at its headquarters in Elizabethtown.

STC Management Group has been headquartered there since 2004 and supports more than 40 business units for Sun Tan City within Kentucky and more than 170 business units in 17 other states. The headquarters also provides support for Planet Fitness, which has facilities in Kentucky and Indiana. For more on the company, go to www.suntancity.com and www.planetfitness.com.

Kentucky is benefiting from a resurgence in U.S. manufacturing.

Berry Plastics Corp. announced in late 2012 plans to reopen its Madisonville operation, a $96 million investment that will create more than 400 full-time jobs.

Berry Plastics makes injectionmolded plastic packaging, thermoformed products, flexible films and packaging, as well as tapes and corrosion protection products. The company, which has more than 1,000 employees in Kentucky at facilities in Franklin, Danville, Louisville and Bowling Green, plans to reconfigure its Madisonville operation to increase production capacity. Berry acquired the Hopkins County facility during its acquisition of Rexam’s specialty and beverage closures business in August 2011. The company shut the 140-worker facility in early 2012. It now plans to convert the facility to manufacture rigid opentop products. For more on the company, go to www.berryplastics.com.

dotted with promise The ice cream snack of the future is having a pretty good present in Kentucky. Dippin’ Dots LLC is expanding operations in Paducah, creating 30 new jobs and investing more than $3.1 million. Dippin’ Dots currently employs 170 workers, 60 of whom live in Paducah. Operational improvements will include purchasing energy efficient equipment, upgrading processes and renovating the facility.

A legendary Kentucky success story, Dippin’ Dots has produced and distributed its patented ‘tiny beads’ ice cream products since microbiologist Curt Jones invented the cryogenic process in 1988. Dippin’ Dots’ products are distributed in 48 states and 11 countries. For more, go to www.dippindots.com.

w w w . t h i n kke n t u c k y . c o m

15

New Source of Support A major law firm with a staff of more than 1,000 attorneys has selected a site in Lexington to open its global services center. International law firm Bingham McCutchen LLP will invest $22.5 million in the company’s new global services center at the University of Kentucky’s Coldstream Research Campus, a project that will create 250 jobs. The firm is centralizing its U.S. administrative operations, and cited Lexington’s vitality and business-friendly environment as a good fit for the firm’s needs.

Bingham McCutchen has 10 U.S. offices and five international offices, with practice areas that focus on financial services, litigation and corporate law.

The transition of administrative functions to Bingham’s new center in Lexington is scheduled to begin in April 2013 and continue through spring 2014. For more on the firm, go to www.bingham.com.

Chemical Attraction in Calvert City A chemical manufacturer is upping its commitment to its operations in Calvert City. Westlake Chemical Corp. announced in fall 2012 that it was increasing the scope of its investment in Calvert City by $217 million. Westlake Chemical is an international manufacturer and supplier of petrochemicals, polymers and building products for use in making everyday items such as packaging, plastic wrap, tires, PVC pipes, windows and fencing. In December 2011, the company said it would invest $40 million in its Calvert City plant, helping retain 380 jobs. The company invested in a major modification of ethylene furnaces to reduce costs, improve operating efficiency and consume less energy. The most recent announcement includes expanding ethylene production capacity and converting its feedstock from propane to ethane to leverage the low-cost ethane being developed in regional shale gas areas. Additionally, PVC resin capacity will be increased to meet the growing demands of global customers. The projects are expected to be completed by late 2014.

Heating Up in Hopkinsville A manufacturer of heat exchangers for cooling internal combustion engines, architectural HVAC units, batteries and fuel cells sold around the world is expanding its footprint in Kentucky. T.RAD North America Inc. will invest $10.8 million in production upgrades at its Hopkinsville operations, which consists of two plants – an aluminum division and a copper/brass division. The investment will allow the company, one of more than 150 in Kentucky that are Japanese owned, to retain its existing workforce of 410 people. The company opened its Hopkinsville location in 1988. The project includes the purchase of new equipment to increase production capacity and meet the demand for lighter-weight aluminum products. The expansion will also place all administrative staff from both the copper/brass and aluminum divisions in one location. Visit wwww.copar.net for more on the company.

w w w . t h i n kke n t u c k y . c o m

17

Business Climate

Thoroughbred Economy Kentucky is ahead of the field in jobs, investment

Story by John Fuller Photography by Michael Conti

18

S ta ff P h o t o

I

t is only appropriate in a state known for its horses that Kentucky’s economy is running along on a fast track.

Aided by an aggressive economic development strategic plan, the state is attracting jobs and investment from across the nation and around the world, building a reputation as a center of innovation in numerous industries and creating a dynamic $165 billion economy.

The state’s gross domestic product has grown 31 percent in the past decade. The U.S. Bureau of Labor Statistics reported that Kentucky’s net job growth rate from November 2011 to November 2012 was 2.1 percent, among the top 10 in the country and highest in the eastern United States.

Under the leadership of Gov. Steve Beshear, the state’s economic development efforts spurred some $2.7 billion in investment and created 14,075 jobs in Kentucky’s manufacturing, service and

Above: The UPS Worldport in Louisville helps make Kentucky a logistics leader.

Right: CafePress Inc. has relocated its headquarters to Louisville and also operates a fulfillment center in the city.

P r e s e n ted b y t h e K e n t u c k y C a b i n et f o r E c o n o m i c D e v e l o pme n t

w w w . t h i n kke n t u c k y . c o m

19

technology sectors in 2012, the third straight year of job and investment growth for the state.

“Kentucky has a rich tradition of talented, hard-working people, and we think that is a major plus in attracting business,” says Larry Hayes, secretary of the Kentucky Cabinet for Economic Development, the state’s chief economic development agency.

Hayes says the Bluegrass State’s excellent location, competitive utility rates, highly skilled labor pool, f lexible workforce development programs and full suite of incentives have made it a location of choice for companies to locate and expand. attracting new business One of the more recent arrivals is CafePress Inc., which announced in April 2012 that it would invest $16.5 million to expand its existing 140,000-square-foot production facility by an additional 185,000 square feet, creating 592 new fulltime jobs in Kentucky over the next 10 years. The company has also relocated its headquarters to Louisville from California.

CafePress helps individuals, groups and businesses create, buy and sell customized and personalized products online using the company’s proprietary print-on-demand services and e-commerce platform.

Louisville has been CafePress’ main production site since 2005 when Bob Marino, CafePress’ chief executive officer, joined the local team there and helped build the flagship plant.

“We were pleased to move our headquarters to Kentucky, making us the first publicly traded e-commerce company to call Kentucky home,” Marino says.

“This move has cemented our relationship with this great state and its amazing people. Already we’ve doubled the size of our facility and added jobs in Kentucky and look forward to continuing to build on our already great relationship with the state.”

Kentucky is also a destination of choice for corporate headquarters.

Five Fortune 500 companies are based in the state, including Humana, Yum! Brands and Ashland as well as companies,

such as Lexmark, Tempur-Pedic and Alltech, that are known around the world.

FDI in Kentucky The state’s proactive approach to attracting foreign direct investment, including major international economic development trips by Gov. Beshear, is paying dividends.

In 2012, almost 20 percent of new jobs in Kentucky came from foreign direct investment. Internationally based companies employ nearly 80,000 people in the state, according to the Kentucky Cabinet for Economic Development’s database of manufacturing, service and technology companies, and more than 85 percent of those jobs are in manufacturing.

Kentucky is particularly strong in direct investment by Japanese companies, a legacy built on the massive Toyota Motor Manufacturing facility in Georgetown, where the automaker makes a number of popular vehicle models.

European companies also have a significant presence in Kentucky, especially those with German

The CafePress store in Mall St. Matthews in Louisville provides customized clothing and gear such as tote bags, wallets, calendars and bumper stickers. The company recently relocated its headquarters to the area and plans to create 592 new full-time jobs in Kentucky.

20

P r e s e n ted b y t h e K e n t u c k y C a b i n et f o r E c o n o m i c D e v e l o pme n t

ownership. Gov. Beshear recently announced the location of two German-owned companies, iwis and Kemmerich, in Murray, Ky., following his visit to the country in summer 2012.

Blueprint for Success Kentucky has strategically set its agenda for economic

development over the next five years, following extensive input from community leaders, elected officials, partner organizations, Kentucky citizens, companies and government representatives throughout the state.

Economic development efforts are focused on five categories – advanced manufacturing,

sustainable manufacturing, technology, health care and transportation – that include 10 industry targets such as auto manufacturing, advanced battery storage, data centers, renewable energy and life sciences.

Hayes says the state has directed as much focus and resources on keeping existing businesses in the

Kentucky-Based Fortune 500 Companies Company Rank Sales in $ Billion Humana

79

$36.8

Yum! Brands

213

$12.6

Ashland

307

$8.3

General Cable

421

$5.9

Kindred Healthcare

444

$5.5

S ta ff P h o t o

The Humana Tower in downtown Louisville.

Humana is a Fortune 500 company.

22

P r e s e n ted b y t h e K e n t u c k y C a b i n et f o r E c o n o m i c D e v e l o pme n t

state as it has on attracting out-of-state companies.

“In fact, 64 percent of new jobs created in the state have come from our existing businesses,” Hayes says.

Kentucky’s central location and excellent air, rail, highway and waterway assets make it a major distribution hub. Two top air cargo hubs – UPS and DHL – helped the state rank third in the nation in total air cargo shipments.

Area Development magazine awarded Kentucky a Silver Shovel Award, acknowledging its efforts in creating jobs and securing investments in new and expanding facilities in 2011, while Site Selection magazine named Kentucky among its top 10 Governor’s Cup award recipients for 2012 job-creation success. And Business Facilities magazine ranked Kentucky in the top 10 in six of its major categories in economic strength for its 2012 Rankings Report. In addition, Kentucky gained some major exposure in December 2012 when its economic prowess was featured in United Airlines’ Hemispheres magazine, as the publication reaches approximately 12.3 million readers.

A 2012 Tax Foundation report ranks Kentucky as the seventh most business-friendly state in the country for new firms and the sixth-lowest-cost state for new corporate headquarters.

Kentucky’s innovative and progressive tax incentive programs also provide the flexible financial assistance businesses need when considering whether to relocate, expand or reinvest. The programs can help reduce or recover costs related to business investment, and grants, loans and industrial revenue bonds are available, too.

“Today’s competitive environment requires that we tailor our programs to meet the needs of those businesses seeking to relocate or expand, and we think that has made a great deal of difference for us,” Hayes says.

Kentucky Target Industries The following are targeted industries and sectors that will be the focus of the Commonwealth’s economic development efforts over the next five years.

Advanced Manufacturing – Automotive, Batteries and Energy Storage Devices, Value-Added Agriculture and Beverages

Sustainable Manufacturing – EnergyEfficient Lighting, Renewable Energy, Sustainable Packaging Technology – Life Sciences, Data Centers Transportation – Distribution and Logistics Health Care – Health-care Services Source: Kentucky’s Unbridled Future

In MadIson County, Kentucky, our bluegrass means opportunity!

From excellent transportation access and expanding industrial and retail development to exceptional arts, recreational and higher education opportunities, Madison County is waiting for you!

✔ Central loCatIon – bluegrass area; 600 miles of 50% of the u.s. population ✔ MarKet aCCess – Four-lane divided highway with access to I-75 running north/ south through the heart of Madison County; I-64 running east/west just minutes north; executive jet access via Madison airport and close commercial access via lexington, louisville and Cincinnati; rail access via CsX ✔ eduCated, abundant WorKForCe – home to eastern Kentucky university, berea College, national College and Madison County area technology Center; available labor supply of 319,514 in a 13-county regional labor market; Certified Work ready Community in Progress ✔ loW busIness Costs – local wage rates are competitive; Kentucky ranks fourth lowest in the u.s. for industrial electricity costs and 13th for lowest overall business costs ✔ InCentIVes – available for qualified economic development through the Commonwealth of Kentucky (www.thinkkentucky.com) ✔ rooM to groW – 680 acres shovel-ready land, some acreage served by rail ✔ CoMPrehensIVe health Care – served by baptist health richmond and st. Joseph berea hospitals ✔ QualIty oF lIFe – berea is the arts and Crafts Capital of Kentucky; eKu Center for the arts is a new 2,200-seat venue; richmond Centre has premier shopping, dining and entertainment; Madison County school district was selected as one of only 20 districts in the state to receive the “What Parents Want” award, a national award based on parent surveys berea Industrial development tmccay@berea.gov (859) 986-0945

www.eku.edu

rIChMond Industrial development tgoodwin@richmond.ky.us (859) 623-1000 ext. 2004

w w w . t h i n kke n t u c k y . c o m

23

Mazak Corp. employs almost 600 people at its Florence facility and plans to add 100,000 square feet to its existing operation.

24

P r e s e n ted b y t h e K e n t u c k y C a b i n et f o r E c o n o m i c D e v e l o pme n t

Not Your Grandfather’s Plant Kentucky’s manufacturing landscape shifts to advanced materials, processes and partnerships

Story by Pamela Coyle • Photography by Michael Conti

A

n algae production facility in Winchester, a machinery maker in Florence and a coal ash recycling plant in Sadieville join big names such as GE, Toyota and Ford in Kentucky’s growing advanced manufacturing sector.

To better meet the needs of advanced manufacturing employers, the state and the administration of Gov. Steve Beshear have aligned economic and educational resources including revamped incentives and a coordinated approach to career and technical education.

Workforce training is a big focus, and maintaining a steady pipeline of qualified employees is a priority with government, academia and industry working together.

“Compared to 30 years ago, though, what we are finding is that manufacturing employees need a more applied knowledge base. We need people who have ‘soft skills’ and can take the knowledge, be innovative and work in teams,” says Ken Carroll, vice president of business development at the Kentucky Association of Manufacturers.

GE, Ford, Toyota Lead the Way Manufacturing is not an afterthought in Kentucky. A key economic sector, manufacturing accounts for $27 billion, or 17 percent, of Kentucky’s gross domestic product and employs more than 215,000 people.

Nor is it idle. Production in 2012 was nearly at pre-recession levels, and more than half of the companies that responded to the Kentucky Association of Manufacturer’s annual survey planned to hire between one and 19 people in 2013, Carroll says. w w w . t h i n kke n t u c k y . c o m

25

At operations of all sizes, jobs in advanced manufacturing will lead the way. GE makes highly energy efficient water heaters in Louisville. Ford has invested more than $1.2 billion to upgrade its Kentucky assembly plants to stateof-the-art manufacturing facilities.

Toyota is incorporating advanced manufacturing techniques to create more fuel-efficient vehicles.

The proximity of top automakers also laid the foundation for the Kentucky-Argonne Battery Manufacturing Research and Development Center, a $21 million facility administered by the University of Kentucky Center for Applied Energy Research that aims to make Kentucky and the U.S. industry world players in the lithium-ion battery market.

Taking Many Forms Mazak Corp., which makes machining centers, turning centers and multitasking machines that other manufacturers use to fashion precision metal components, is another Kentucky success story.

Mazak employs about 500 people at its Florence campus and is adding another 100,000 square feet in 2013 – bringing its footprint to 800,000 square feet.

Mazak’s machines make components for oil and gas drilling rigs, aerospace engines and landing gear, bearings for MRI machines and other medical devices, and a host of other end products. Precision metal cutting, close tolerances and fine finishes are the common denominators, President Brian Papke says.

“Our customers need to be more energy efficient and more productive than ever before,” Top left: A University of Kentucky student works to create battery pouches for the Kentucky-Argonne Battery Manufacturing Research and Development Center at the Center for Applied Energy Research.

Bottom left: An instructor leads a training seminar on programming a machine at Mazak Corp., which is expanding in Florence.

26

P r e s e n ted b y t h e K e n t u c k y C a b i n et f o r E c o n o m i c D e v e l o pme n t

A lab technician examines a sample at Alltech Algae in Winchester, which has grown to employ more than 55 people.

w w w . t h i n kke n t u c k y . c o m

27

Mazak Corp.’s manufacturing campus in Florence makes machining centers, turning centers and multitasking machines that are used to create precision metal components. The company is the world’s only supplier of certain machines.

emphasis on Manufacturing As current chairman of the Southern Governors’ Association, Kentucky Gov. Steve Beshear has made advanced manufacturing a top priority in 2013. Advanced manufacturing, Beshear says, will improve the competitive position of Southern states because it creates well-paying jobs, drives economic growth and increases exports. The association, founded in 1934, comprises the governors of 16 states plus Puerto Rico and the U.S. Virgin Islands. For more, visit www.southerngovernors.org.

28

Papke says. “We’ve made the transformation into being quite a high-tech company.”

In 2010, sales increased 110 percent over the prior year; in 2011, they jumped another 60 percent year-over-year. Mazak is the only supplier of certain machines in the world.

One of the world’s largest algae production facilities is in Winchester, at Alltech Algae.

Algae are used in food, animal feed, cosmetics, pharmaceuticals and biofuels, as well as for sequestration of carbon dioxide and bioremediation of waste and waste water. The staff has grown from eight to more than 55 since Alltech bought the facility in 2010.

Alltech Algae uses its traditional

P r e s e n ted b y t h e K e n t u c k y C a b i n et f o r E c o n o m i c D e v e l o pme n t

fermentation technologies plus state-of-art automation and analytical instrumentation, says Kevin Perraut, Alltech’s North American operations manager.

“Production starts with a single ounce of a specific algae that rapidly matures and in a few days is then transferred to an eightstory tall production fermentation tank,” Perraut says. “These tanks are fully automated and can be monitored and managed from a central control room.”

LEAN to Green to Sustainable Kentucky is taking the lead, too, in sustainable manufacturing, which views advanced manufacturing as part of a closed-loop system that adds three additional “R’s” (recover,

McCreary County, Kentucky

Mix BusinEss with Pleasure

Growing tourism in the heart of the Daniel Boone National Forest and the Big South Fork National River and Recreation Area. Many business opportunities for outdoor recreation.

Located 20 miles from I-75 at Williamsburg, KY – approximately 100 miles to Lexington, KY and Knoxville, TN. County is bisected by U.S. Hwy. 27.

Low cost of living, low taxes, home to the McCreary Center of Somerset Community College and Pine Knot Job Corps. Publicly owned business park, other land and buildings available for manufacturing, tourism-related businesses, retail or offices.

Short drive to Lake Cumberland and Cumberland Falls.

Located in Louisville, GE Appliance Park houses high-tech manufacturing operations for products such as refrigerators, dishwashers, cooktops, microwaves and water heaters.

redesign and remanufacture) to the industry mantra of “reduce, reuse and recycle.”

UK’s former Center for Manufacturing has evolved into the UK Institute for Sustainable Manufacturing, which is home to two international journals, multidisciplinary research and industry partnerships.

Projects include working with GE on improving turbine blades, with Toyota on sustainable manufacturing of crankshafts and with Lexmark on remanufacturing

copier toner, says I.S. Jawahir, a professor of mechanical engineering and the institute’s director. The goal is sustainable business and industry growth with next-generation products that reduce energy and waste, he says.

NuForm Materials in Sadieville is such a sustainable operation.

It uses discarded coal combustion ash to make composite ceramics for the automotive and aerospace industries that are lighter, stronger and more cost effective than competing materials.

McCreary County Office of Community and Economic Development 1 N. Main St. Whitley City, KY 42653 (606) 376-9711 tel (606) 376-9499 fax www.mccrearycounty.com

w w w . t h i n kke n t u c k y . c o m

29

Ahead in the Clouds Kentucky creates ideal climate for data centers

30

P r e s e n ted b y t h e K e n t u c k y C a b i n et f o r E c o n o m i c D e v e l o pme n t

GE Appliances & Lighting’s data center in Louisville’s Appliance Park has 128 cabinets of high-efficiency servers.

w w w . t h i n kke n t u c k y . c o m

31

Michael Conti

Michael Conti

Left to right: GE Appliances & Lighting’s Louisville data center is the state’s first LEED Platinum data center; Dale Cooper, president and chief sales officer of Xact Communications, created 20 full-time jobs when he established the company’s headquarters in Lexington.

Story by Kathie Stamps

W

ith its highly reliable telecommunications infrastructure and competitive power costs, Kentucky offers major advantages for operators of data and cloud computing centers.

The state is home to 11 co-location facilities as well as dedicated data center operations for a number of major companies.

GE Appliances & Lighting, for example, in 2011 completed a $48 million refurbishing of an existing building to locate a new data center in Louisville’s Appliance Park. GE says it was the first data center in Kentucky to be certified for energy efficiency at the Platinum level of the Leadership in Energy and Environmental Design (LEED) industry standard.

The data center is 34 percent more energy efficient than a typical code-compliant building, despite having servers designed to operate at 18 to 24 kilowatts per cabinet, compared to the industry average of 4 to 7 kilowatts. This lets GE

32

provide additional computing horsepower to meet ever-changing customer demands.

In June 2012, Charlotte-based Peak 10 selected Louisville for its fifth cloud cluster, a facility that stores business-critical applications and data. The company opened three data center facilities in Louisville from 2004 to 2011, choosing the state for its low power costs and tax incentives.

Kentucky is one of seven states served by the Tennessee Valley Authority, which contracted with Deloitte Consulting for a site assessment study to identif y suitable locations for future data center projects. In August 2011, the city of Hopkinsville and Logan County, both in western Kentucky, were certified as primary data center sites.

In addition to excellent accessibility, strong telecom infrastructure and the availability of reliable electric power, other criteria set by the TVA included locations not in proximity to

P r e s e n ted b y t h e K e n t u c k y C a b i n et f o r E c o n o m i c D e v e l o pme n t

potential hazards such as a rail line, major gas line or fault zone. The 315-acre Hopkinsville Data Park is ready for data center development in 2013. The Logan County location is a 109-acre site in Adairville. clouds covered Kentucky native Dale Cooper chose Lexington as the headquarters for Xact Communications, a company he started in summer 2012.

Xact is on the front end of the new wave of cloud-based telephony services, providing business telecommunications and data products nationwide with new carrier-grade switches.

“We don’t have the traditional legacy switches and equipment that the big-name companies have,” he says. “It will take them a dramatically longer time to switch to these new networks.”

Another Kentucky company, Louisville-based ConeXus World, plans to expand its operations in 2013. The company is investing

$1.8 million to add a 7,200-squarefoot technical center to handle support and dispatch operations for customers around the world in the mobile telecommunications industry.

ConeXus’ other services include digital signage technology and maintenance, consulting, integration and management.

Project Bluegrass Eaton is a global power management company producing products and services for the automotive, aerospace, electrical, hydraulics and trucking industries.

In 2011, Eaton opened not one, but two data centers in Kentucky.

The company’s Project Bluegrass Red site is in Louisville and Project Bluegrass Blue site is in nearby Simpsonville. Both centers are LEED Gold certified, and the company expects to realize more than $23 million in energy savings from the new data centers over a 20-year period.

Built into the design of the new centers is an aggressive Power Usage Effectiveness, or PUE, rating. The rating was developed

by The Green Grid, a technology industry consortium dedicated to raising the energy efficiency of data centers. The PUE is an industry-recognized metric designed to ref lect a data center’s power efficiency by dividing the total power entering an IT facility by the total power consumed by the IT equipment located in the building.

“Finding innovative ways to enable our customers to reduce energy costs and to use power more efficiently, effectively and safely is central to Eaton’s mission,” says Alexander M. Cutler, Eaton chairman and CEO.

High-tech higher education kyron keeps kentucky competitive The Kentucky Regional Optical Network connects the Kentucky education community to Internet2, the nation’s next-generation highbandwidth network dedicated to research and education. KyRON (pronounced “kay-ron”) has controlled its own fiber optics since 2007, at significantly faster speeds than the leased capacity of phone companies it had seen in previous years.

KyRON is a partnership between the University of Kentucky (UK), the University of Louisville (UofL) and the state’s Council on Postsecondary Education. The network is designed to assist UK and UofL in qualifying for major federal research grants and reaching their respective goals of being a top 20 research institution and nationally recognized metropolitan research university.

What’s Online Find out more about Kentucky’s many data and technology centers at businessclimate.com/kentucky.

w w w. t h i n k k e n t u c k y. c o m

33

Startup Spirit Kentucky spurs technology commercialization Story by Nan Bauroth Photography by Michael Conti

K

entucky is known for champions that are fast out of the starting gate.

Today, that includes entrepreneurs racing to turn their ideas into commercial reality.

The Bluegrass State is in the forefront of supplying early-stage capital and networking support that enable young companies to transform innovative concepts into prosperous businesses and new jobs.

“We were enticed with monetary compensation and in-kind services by cities in other states, but Louisville and Kentucky topped them,” says

Jenny Corbin, founder of TNG Pharmaceuticals, a startup born after she and fellow MBA students at the University of Louisville’s Forcht Center for Entrepreneurship won the 2011 Global Championship at the Global Venture Labs Investment Competition.

First in Matching Grants Kentucky’s winning support of entrepreneurship is exemplified in its Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs.

Nucleus’ Jefferson Street incubator facility is in downtown Louisville.

34

P r e s e n ted b y t h e K e n t u c k y C a b i n et f o r E c o n o m i c D e v e l o pme n t

“Kentucky is the only state that matches Phase 1 federal SBIR and STTR grants up to $150,000 and Phase 2 up to $500,000 for up to two years,” says Gene Fuqua, executive director of the Kentucky Cabinet for Economic Development’s Office of Commercialization and Innovation. “The program has helped lure 20 companies to relocate to Kentucky from other states.”

Another program, the Commonwealth Seed Capital Fund (CSC), an independent fund established by the state’s Economic Development Partnership Board,

Larry Horn and Jenny Corbin are founders of Louisville-based TNG Pharmaceuticals.

w w w . t h i n kke n t u c k y . c o m

35

has awarded $7.8 million to 21 companies and $14.2 million to 11 funds that leveraged $38.2 million in additional investment in the state.

Another resource for startups is the Kentucky Innovation Network, comprised of 13 innovation and commercialization centers around the state that work to increase statewide knowledge of entrepreneurship, startup processes and investment practices. A program of the Kentucky Cabinet for Economic Development, the network offers free expert advice and services to established and start-up innovationbased businesses.

Nucleus Innovation Parks Nucleus, a subsidiary of the University of Louisville Foundation, is the university’s economic development arm.

Nucleus nurtures entrepreneurs through specialized services and facilities, as well as fostering niche business accelerators.

“Kentucky has programs along the continuum of the company life cycle, offering assistance to businesses to help them through the ‘valley of death’ stage to the other side,” says President and CEO Vickie Yates Brown.

Over the next 20 years, Nucleus Research Parks may receive up

Personalized medicine company PGXL Laboratories operates out of Louisville’s downtown Nucleus facility.

to $2.3 billion from two stateapproved tax increment financing (TIF) districts, making it one of the largest approved TIFs in the country. Nucleus already has four facilities in Louisville, along with a newly renovated co-working space called iHub. The program will also help develop the Belknap Engineering and Applied Sciences Research Park adjacent to the University of Louisville main campus.

Nucleus has been instrumental in the success of startups such as Potentia, an early-stage biotech company acquired by Alcon; Iasis Healthcare, which owns and operates community-focused hospitals; and PGXL, a pioneer in personalized medicine.

Louisville is also home to UPS’ health-care logistics campus, one of the largest in the world, which is an important factor for PGXL and other health companies that Nucleus recruits here, Yates says.

Kick-starting innovation Early-stage tech firms also benefit from the Kentucky Science and Technology Corp. (KSTC), an independent nonprofit that offers a variety of support programs.

“Our systems are geared toward pushing the innovation envelope for entrepreneurs and providing solid business assistance to develop a market, capital base and initial direction,” says KSTC President Kris Kimel.

That support includes the Kentucky Enterprise Fund, a venture capital-type fund that invests up to $250,000 in highgrowth, early-stage companies developing advanced technologies.

“Kentucky has an overall probusiness culture and attitude,” adds Fuqua. “We make every effort to do whatever is necessary for entrepreneurs.”

What’s Online Discover more about Kentucky’s innovative start-up companies at businessclimate.com/kentucky.

36

Presented by the Kentucky Cabinet for Economic Development

What’s the Big Idea?

Student competition promotes innovation, new ventures Growing a unique type of chia seed as an additive to horse feed to help prevent colic and laminitis.

Detecting lung cancer by capturing and analyzing volatile organic compounds in a patient’s breath.

Those are just two of the ideas that have been introduced at Idea State U, a competition held each April in which students from Kentucky’s state universities present business plans and concepts for innovative products or services. Student teams compete for a combined $100,000 in cash prizes and awards, and the prospect that their ideas and innovations could lead to new companies and the creation of high-paying jobs in Kentucky.

Universities represented at past competitions include Eastern Kentucky, Kentucky State, Morehead State, Murray State, Northern Kentucky, University of Kentucky, University of Louisville and Western Kentucky.

“Idea State U is helping promote a culture of innovation and entrepreneurship among our university students,” says Gene Fuqua, executive director of the Office of Innovation and Commercialization within the Kentucky Cabinet for Economic Development. “Many of the teams have gone on to form real companies and create real jobs for Kentuckians.”

energy-efficient and affordable apartments with low daily utility costs of about $1.60.

“The annual competition encourages the students to think outside the box,” Fuqua says.

“They learn how to take calculated risks when choosing a product or technology to promote.”

– Kevin Litwin

butter and black soap imported from Ghana. Importing the ingredients from Ghana also helps improve economic opportunities and the quality of life for the people of that country.

For their EcoVision entry, University of Louisville students planned to create high-quality,

Glasgow-Barren County

A Great IDEA! www.glasgowbarrenidea.com •

One-day drive within 60% of nation’s population

•

Excellent post-secondary education

•

Thriving medical community with community-owned hospital

•

Progressive Farmer’s magazine “Best Place to Live” in rural America

•

200 acres of land available, 25-acre pad-ready sites

•

Robust infrastructure

•

CSX railway access

•

Diverse industry base

Butter Factory and EcoVision DEvelopment The intense two-day event is judged by executives with experience in advising and running startups. The competition emphasizes “ready for the real world” ideas that can translate into high-growth ventures.

For Butter Factory, an entry in the 2012 competition from Kentucky State University, students market natural hair- and skin-care products from premium shea

Glasgow-Barren County Industrial Development Economic Authority Dan Iacconi, Director (270) 651-6314 • (800) 467-6314 diacconi@glasgow-ky.com www.glasgowbarrenidea.com

Smart for Living, Better for Business

w w w . t h i n kke n t u c k y . c o m

37

One State, Many Nations Foreign companies find a home in Kentucky

Story by Stephanie Vozza

FDI investment in Kentucky • All Countries: $2.9B • Japan: $875M • Germany: $544.9M • France: $211.6M • India: $201.7M • Italy: $186.3M • Mexico: $177.4M • Other: $$662.2M (From Dec. 2008 to Dec. 2012 in service, manufacturing or technology industries)

K

entucky has mastered the language of global business.

More than 420 foreign companies call Kentucky home, and under the leadership of Gov. Steve Beshear, the state has made attracting international investment and the jobs that result a top priority.

“We live in a global economy now,” says Erik Dunnigan, commissioner of the Department for Business Development in the Kentucky Cabinet for Economic Development. “It’s no longer about reaching out to border states or even looking at things from a U.S. standpoint.

It’s about looking for international companies that can compete on a global and national scale, and bringing them to

Kentucky to create a more stable business environment.”

A Global Presence To facilitate this initiative, state officials maintain overseas offices that work to recruit companies to Kentucky.

The first was established in Tokyo, and Dunnigan says the primary responsibility of its staff is to maintain relationships with Japanese-owned businesses that already have a Kentucky location.

“When companies have to make decisions on where they want to make an expansion, it’s important to have that strong relationship in place, so they allocate capital to their Kentucky operations,” Dunnigan says.

Toyota Motor Manufacturing in Georgetown heads a list of major Japanese-owned employers in Kentucky.

38

P r e s e n ted b y t h e K e n t u c k y C a b i n et f o r E c o n o m i c D e v e l o pme n t

Je f f A d k i n s

w w w . t h i n kke n t u c k y . c o m

39

Michael Conti

Babybel cheese is produced at the 188,500-square-foot French-owned Bel Brands USA plant in Leitchfield.

40

P r e s e n ted b y t h e K e n t u c k y C a b i n et f o r E c o n o m i c D e v e l o pme n t

Martin B. Cherry

J eff A d k i n s

Above Left: Hitachi Automotive Systems Americas operates a 153,000-square-foot plant on an 85-acre site in Harrodsburg.

Above Right: L’Oreal USA’s Florence manufacturing facility creates a variety of products, such as shampoo and conditioner, for Garnier.

The second responsibility of the international office staff is to get leads for new business. Kentucky also has an international office in Germany that is responsible for maintaining relationships with its nearly 180 Europeanowned businesses.

Importing New Opportunities In November 2012, Gov. Beshear announced that iwis, a German automotive supplier, would open its first U.S. manufacturing facility in Murray, Ky. Dunnigan says iwis’ chairman and CEO chose Kentucky because of the relationship developed through the state’s office in Hamburg.

“He was comfortable with Kentucky and with our ability to create a friendship,” says

Dunnigan. “For their first North American operation, they were looking for a comfort level. Our Hamburg office helps overcome language barriers and provides a person to call – someone in their own time zone.”

Nearly 35 percent of all capital investment and almost 20 percent of all jobs announced in 2012 in the state were a result of foreignowned enterprises. Foreign companies employ nearly 80,000 people in the state, according to the Cabinet for Economic Development’s database of manufacturing, service and technology industries.

The depth and breadth of foreign-owned companies in the state is impressive. Japanese-

owned Toyota Motor Manufacturing, which operates a massive assembly complex in Georgetown, has helped draw dozens of other automotiverelated manufacturers, many of them foreign-owned. More than 150 companies in the state, employing more than 37,000 workers, are Japanese-owned.

In addition to Toyota, foreignowned companies with operations in Kentucky include a wealth of well-known names, from L’Oreal to Bimbo to DHL, Hitachi and Panasonic.

In Northern Kentucky, L’Oreal USA will hire 200 people over the next two years and invest $42 million in a new facility adjacent to its 560,000-square-foot Florence

Major foreign-owned employers in Kentucky Company Location Full-Time Employees Toyota Motor Corp.

Japan

12,028

J&F Participações S/A

Brazil

2,700

Akebono Brake Industry Co. Ltd.

Japan

2,072

ITOCHU Corp.

Japan

1,909

Hitachi Ltd.

Japan

1,815

Source: WISERTrade

w w w . t h i n kke n t u c k y . c o m

41

Bridging the past …

• Attractive incentives for business and industry

• Central location in U.S.

• Industrial park and spec building available

• Award-winning community

• Historic charm

• Charming and relaxing atmosphere – even Mr. and Mrs. C visit

• Easy access

and the future.

Greensburg/Green County Industrial Foundation 110 W. Court St. Greensburg, KY 42743 (270) 932-4298 info@greensburgonline.com www.GreensburgOnline.com

Oldham COunty, KentuCKy Where Businesses Come to Live Just minutes away from: • Louisville, Cincinnati and Lexington • Two major airports (Louisville, Cincinnati) • UPS Worldport • Ford manufacturing plants • Oldham Reserve, a 1,000-acre lifestyle business campus and home to the headquarters of The Rawlings Company, off I-71 • Close access to two major research universities • No occupational tax and business-friendly environment • Nationally recognized school system ranked #1 out of 120 Kentucky county school districts • Educated, experienced workforce • Oldham County ranks first in household income in Kentucky and 48th in the United States

For more information: (502) 222-1635 dekarem@oldhamcountychamber.com www.OldhamCountyChamber.com

42

P r e s e n ted b y t h e K e n t u c k y C a b i n et f o r E c o n o m i c D e v e l o pme n t

Michael Conti

The Bel Brands USA plant in Leitchfield employs more than 400 people.

manufacturing facility. Currently its 240-person workforce makes shampoo, conditioner and styling products for Garnier, L’Oreal Paris and Soft Sheen-Carson.

Long-term Relationships Bel Brands USA, a subsidiary of Paris-based Fromageries Bel, a world leader in branded cheeses, has been producing Laughing Cow brand cheeses in Leitchfield for more than 40 years.

“Our business has more than doubled over the past five years, primarily due to the growth and popularity of the global brands we produce in Leitchfield,” says Bel Brands spokesperson Kimberly Mulcahy. “Bel Brands USA employs approximately 450 employees in Kentucky. Since 2010, we’ve added more than 100 new jobs and invested $16 million in our Leitchfield plant.”

Happy Newcomers India-based Flex Films built its first North American f lexible packaging facility in Elizabethtown in 2011. The investment will eventually total $180 million and create 250 jobs.

Flex Films considered eight states before choosing Kentucky.

“We were inclined towards Kentucky because of its location, and the support they provided to move things quickly,” says Peekay Kasturia, Flex Films vice president. “The people of Kentucky helped this project to be completed on time. We are happy with our decision.”

“We hope industries all across the globe will see these successful ventures and be more inclined to bring manufacturing back to the United States,” Dunnigan says. w w w . t h i n kke n t u c k y . c o m

43

Opening Up Export program gives Kentucky companies an entre to global markets

Canada

$7.3 Billion

2012 Ky Export Volume by Country

Mexico

$1.72 Billion

Brazil

$1.15 Billion

Source: WISERTrade

44

P r e s e n ted b y t h e K e n t u c k y C a b i n et f o r E c o n o m i c D e v e l o pme n t

New Worlds Netherlands

$599 Million

Japan

$1.31 Billion China

$1.05 Billion Germany

$651 Million Republic of Korea

$617.6 Million

United Kingdom

Singapore

$1.52 Billion

$833.4 Million w w w . t h i n kke n t u c k y . c o m

45

Story by Stephanie Vozza

P

art of Kentucky’s global initiative includes growing its export markets. The Kentucky Export Initiative, a consortium of in-state partners that support companies in their efforts to expand into international markets, is working hard to increase the number of small businesses that export. It is doing so through successful programs such as the State Trade and Export Promotion (STEP) program.

STEP is part of a three-year trade and export promotion pilot program authorized by the U.S. Small Business Administration Act of 2010. Companies can apply for grants to help them perform market research, identify international customers, participate in trade shows and

46

even translate websites and marketing materials.

“Kentucky has received a little over $750,000 in funds through the STEP program to date,” says Brad Thomas of the Kentucky Cabinet for Economic Development.

“We are looking for companies interested in beginning exporting, as well as companies seeking to expand into new international markets. Exporting opportunities exist for manufacturers and service providers, both large and small.”

Big Impact for small firms Grants are available to Kentucky companies with fewer than 500 employees that meet U.S. Small Business Administration revenue requirements. As of December 2012, the STEP

P r e s e n ted b y t h e K e n t u c k y C a b i n et f o r E c o n o m i c D e v e l o pme n t

program had made awards to 77 Kentucky companies.

Animal medical instrument manufacturer MILA International Inc. of Erlanger was one of those grant recipients. The company used the funds to attend the International Veterinary Emergency and Critical Care Symposium.

Jason Sansone of MILA says the money enabled him to invite his distributor from Brazil and their MILA sales associate.

“This was valuable because it enabled us to educate, demonstrate and train our Brazilian counterparts,” he says. “Brazil is our second Latin American enterprise in the last two years and we are optimistic it will be as successful as our Mexican venture.”

Restorative Medical Inc., a Brandenburg-based company that designs and manufacturers medical splints and braces, used its grant to attend a trade show in Melbourne, Australia, reaching neurological therapists, physicians and suppliers on the other side of the globe. In addition, automotive supplier Superior Battery Manufacturing Co. of Russell Springs used its grant to establish new global distribution channels. kentucky exports heat up During 2012, Kentucky’s export market increased by more than 10 percent to a record $22.1 billion.

Kentucky ranks 19th in the nation in total exports, and 14th on a per capita basis.

Canada is Kentucky’s largest market, purchasing 33.1 percent of Kentucky’s exports, with Mexico, the United Kingdom, Japan and Brazil completing the top five. In 2012, the largest product category being exported was motor vehicles and parts, valued at $4.4 billion.

Aerospace products were Kentucky’s second-largest export, valued at $3.8 billion.

The state’s export industry supported approximately 45,760 jobs in 2012. The annual average wage for a direct-export-created job was $66,632 in 2012, well above the state’s annual average wage of $39,958.

Companies can apply for a grant each year. Those new to the program can receive up to $7,500 their first year, and companies who have previously received funds can apply for up to $2,500 each subsequent year.

“Adding foreign markets often helps companies to diversify and weather fluctuations in domestic sales,” says Thomas. “It also enables them to potentially add another shift or hire more employees, which is our goal.”

Left and right: Superior Battery Manufacturing Co. in Russell Springs

w w w . t h i n kke n t u c k y . c o m

47

Goods and Plenty Logistical assets draw distribution operations

Story by Kim Madlom Photography by Michael Conti

C

ompanies looking to expand distribution capabilities and boost online sales are increasingly choosing Kentucky – and with good reason.

UPS Worldport in Louisville and DHL Express in Northern Kentucky have helped establish the Bluegrass State as a leader in fulfillment services for some of the biggest names in the shopping/ shipping sector, including Amazon. com, Zappos, Best Buy and rising stars such as Gilt Groupe and Nasty Gal. “E-commerce companies are flocking to Louisville for the same reasons we did,” says Christopher Halkyard, vice president of operations of Gilt Groupe, a members-only e-retailer.

Left and right: Proximity to the UPS Worldport in Louisville is a major advantage for Geek Squad City, which houses a central repair center in Brooks.

48

P r e s e n ted b y t h e K e n t u c k y C a b i n et f o r E c o n o m i c D e v e l o pme n t

w w w . t h i n kke n t u c k y . c o m

49

50

P r e s e n ted b y t h e K e n t u c k y C a b i n et f o r E c o n o m i c D e v e l o pme n t

Left: The UPS Worldport facility at the Louisville International Airport has 70 aircraft docks and 33,496 conveyors.; Above: Retailer Gilt Groupe’s 303,000-square-foot distribution center in Louisville features a state-of-the-art material-handling system.

“Louisville offered some excellent properties in several industrial parks at competitive prices and a strong labor pool of people willing and ready to work.”

UPS Worldport: Moving Lobster Louisville is home to the UPS Worldport, the world’s largest fully automated package handling facility. With more than 20,000 jobs connected to it and a $668 million annual impact on the local economy, Worldport has attracted 141 companies to its supply chain, representing an additional $600 million investment and 10,000 jobs in Kentucky. Worldport processes an average of 1.6 million packages a day.

And that includes lobsters. Some of the nation’s finest restaurants receive their lobsters thanks to Clear Water Fine Foods, which

operates the world’s largest inland lobster tank in Louisville. Nova Scotia lobsters are shipped to the company and kept in two 30-footby-40-foot saltwater tanks at a constant 39 degrees Fahrenheit until they are sent via UPS to restaurants coast to coast.

Gilt Groupe, founded in 2007, typically ships between 20,000 to 30,000 units per day from its Louisville facility – items purchased online at gilt.com by tens of thousands of members who receive daily flash sale emails offering discounted prices on such items as fashion, home decor, artisanal ingredients, activities and travel experiences.

“Being near Worldport makes the pickup time much later in the day, which allows us to finish our orders,” Halkyard says. “Our customers can buy at a later period during the day and still get their

purchases delivered as expected.”

Gilt’s 303,000-square-foot warehouse in Louisville is one of the most advanced distribution centers in the country, with a modern material-handling system that includes robotics. Because the company’s business model is based on f lash sales, Gilt moves large quantities of specific products on a daily basis.

“We need to have some strong technology to speed through and get the products out quickly and accurately,” Halkyard says.

New e-commerce jobs are also being created by companies like Elovations Services Group LLC, which will locate its new 150,000-square-foot center in nearby Boone County and create nearly 700 full-time jobs and a $13.7 million investment.

Online fashion distributor Nasty Gal plans to open a w w w . t h i n kke n t u c k y . c o m

51

Living green starts from the ground up.

Living green is making sure the air in your home is healthy for your family to breathe. Test your home for radon and build radon-resistant. It's easy. That's living healthy and green.

Just call 866-730-green or visit www.epa.gov/radon

52

P r e s e n ted b y t h e K e n t u c k y C a b i n et f o r E c o n o m i c D e v e l o pme n t

527,000-square-foot distribution center in Shepherdsville in 2013, which is expected to generate $18 million in investment and create 300 full-time jobs. The company, started as an eBay store selling vintage clothing in 2006, has expanded its reach with an international customer base for its new and vintage clothing, shoes and accessories.

Good for Geeks Getting items shipped quickly and accurately is also vital to the success of Geek Squad City, a state-of-the art repair and refurbishment center operated by electronics retailer Best Buy that offers a three-day turnaround that reunites customers with their technical gear.

With thousands of computers, televisions and other devices shipping from Geek Squad precincts across the country, the Bullitt County location is a centralized hub with more than 1,000 employees working out of a 240,000-square-foot facility that covers nearly four acres.

Until the founding of Geek Squad City in 2006, broken gadgets had been repaired at multiple sites including Best Buy stores and service centers, thirdparty repair centers and computer manufacturer locations.

“Customer service is important in any industry, and especially when customers have something to be repaired,” says Jeremy Baier, Geek Squad and Best Buy spokesman. “This is a great location for us. It is fantastic for us to be in a place where we can ship in a timely manner.”

Top: Gilt Groupe’s Louisville facility ships 20,000 to 30,000 units each day.

Bottom: A technician repairs a laptop at Geek Squad City in Brooks, where the company employs more than 1,000 workers.

w w w . t h i n kke n t u c k y . c o m

53

P

ulaski County Business Climate • Low utility rates • Interstate access/rail system • Oak Commerce Complex and the Valley Oak Technology Complex

eduCation • Customized training programs for businesses • Work-ready community

P.O. Box 450 • Somerset, KY 42502 • (606) 678-5000 Tel • (606) 678-0624 Fax

Endless Opportunities loCation

• Reach 60% of the U.S. population within a day’s drive

somerset

Quality

of

life

• Health-care center – more than 300 beds • Endless recreation opportunities

www.spcdf.com

Transportation

In Ship Shape Kentucky ports provide efficient distribution advantages Story by Kevin Litwin Photography by Michael Conti

O

pportunity knocks at docks throughout Kentucky, where a strong port system adds to the Commonwealth’s sophisticated and integrated transportation system.

Kentucky has seven operating river ports, and its access to the Mississippi, Ohio, Tennessee and Cumberland rivers provides shipping connections to the Great Lakes as well as the deep-draft

seaports of New Orleans and Mobile along the Gulf of Mexico.

The public ports system in Kentucky was formed in 1976.

The largest facility in tonnage handled, revenue and acreage is the Owensboro Riverport.

“We are ideally situated on the Ohio River, which provides us good access to the Gulf of Mexico, and we receive a lot of products coming up from Mobile and New

Kentucky Ports 1. Hickman-Fulton County Riverport Authority 2. Paducah-McCracken County Riverport Authority 3. Eddyville Riverport and Industrial Development Authority 4. Henderson County Riverport Authority 5. Owensboro Riverport 6. Louisville-Jefferson Riverport International 7. Greenup-Boyd County Riverport Authority

Ohio River

56

P r e s e n ted b y t h e K e n t u c k y C a b i n et f o r E c o n o m i c D e v e l o pme n t

Orleans,” says Ed Riney, president and CEO of the Owensboro Riverport Authority. “Owensboro Riverport is so busy that we are building a second dock in 2013 to prepare for future growth.”

A $250,000 Dividend Owensboro primarily deals in three commodity segments – metals, agricultural products and paper products.

The Owensboro Riverport covers 285 acres and is home to more than 500,000 square feet of warehousing space.

w w w . t h i n kke n t u c k y . c o m

57

S ta ff P h o t o

Kentucky Commercial Airports • Barkley Regional Airport, Paducah (PAH) • Blue Grass Airport, Lexington-Fayette County (LEX) • Cincinnati/Northern Kentucky International Airport (CVG) • Louisville International Airport (SDF) • Owensboro-Daviess County Airport (OWB)

58

“The port handles a lot of aluminum and some steel, along with bulk fertilizer, liquid fertilizer and about 10 million bushels of grain each year,” Riney says.

“We are also a key distribution center for Kimberly-Clark and Domtar Paper. Of the products we handle, 30 percent are agricultural, 30 percent are paper and 40 percent metals.”

Riney adds that Owensboro can accommodate all barge sizes and has a staff of 30 employees.

“We are self-sufficient and actually pay a $250,000 dividend back to the city of Owensboro each year, as opposed to seeking government funds to operate like many ports do,” he says. “We are one of

only two ports in the entire United States to pay back, with the other being Tri-Cities Port in St. Louis.”

Roads, Tracks, Sky Kentucky’s superior transportation system also includes integrated highways, rail and airports. The state’s location in the center of the eastern United States puts its borders within 600 miles of more than 60 percent of the nation’s population.

Kentucky has 79,000 miles of federal, state and local roads, including 10 major interstates: I-75, I-71, I-69, I-65, I-64, I-24, I-264, I-265, I-275 and I-471.

Numerous major U.S. highways and a network of limited-access state parkways also serve the state.

122

148

23

Available business sites in the state within 50 miles of a commercial airport

Available business sites within 10 miles of an interstate highway or parkway

Available business sites are within 10 miles of a public river port

P r e s e n ted b y t h e K e n t u c k y C a b i n et f o r E c o n o m i c D e v e l o pme n t

Left: Tier I carrier CSX serves Kentucky.

Right: Owensboro Riverport

Tier I carriers Canadian National, CSX and Norfolk Southern provide rail service, which is augmented by a local and regional distribution network of shortline railroads and intermodal freight facilities.

This freight transportation structure ensures direct service from Kentucky to the major rail centers of the Great Lakes, Gulf of Mexico, and Atlantic Seaboard.

For air traffic, the state includes five commercial airports, with Cincinnati/ Northern Kentucky International and Louisville International being the two largest. The Northern Kentucky airport handled more than 6 million passengers and Louisville International handled nearly 3.4 million passengers in 2012.

Major air cargo delivery hubs for UPS in Louisville and DHL in Northern Kentucky are based at those airports.

What’s Online Find out more about Kentucky’s transportation system and assets at businessclimate.com/kentucky.

w w w. t h i n k k e n t u c k y. c o m

59

Energy

A Flair for New Energy Research assets, state support power up new ventures Story by Kathryn Royster Photography by Michael Conti

The Kentucky-Argonne Battery Manufacturing Research and Development Center is advancing energy storage technology.

60

P r e s e n ted b y t h e K e n t u c k y C a b i n et f o r E c o n o m i c D e v e l o pme n t

K

entucky is building a reputation as a leading innovator in renewable energy and alternative fuels.

Startups and established companies alike are benefiting from the state’s productive combination of research assets and proactive financial assistance.

One of the state’s major research assets is the Kentucky-Argonne Battery Manufacturing Research and Development Center, which focuses on developing technologies to facilitate the production of energy storage devices, such as advanced lithium-ion batteries for electric vehicles and other applications.

The center was established by a partnership between the state, the University of Kentucky, the University of Louisville and the U.S. Department of Energy’s Argonne National Laboratory. The Lexington-based center is an openaccess facility that permits private industry and institutions to conduct research at the center through cooperative research agreements.

Acting Director Dr. Tony Hancock says one of the center’s main draws is its partnership with Argonne National Laboratory, which facilitates researchers in Kentucky accessing the expertise, equipment and technology at Argonne’s main laboratory complex near Chicago – both in person and by video conference.

The Center for Applied Energy Research at the University of Kentucky in Lexington

Hancock says that the center is focused on increasing the storage capacity of automotive batteries.

Future research may investigate the suitability of employing used electric vehicle batteries for grid energy storage applications.

Driving Innovation Whatever the center’s projects, Hancock is confident that Kentucky will remain a key location for this industry.

“Our government leaders have a vision for energy research, and we have two major universities that are graduating a technically skilled workforce, so it’s an appealing place to work, as well as to live and raise a family. It’s just a good mix,” he says.

Lexington-based Topasol LLC is another key component of Kentucky’s energy research picture. The company specializes in coatings for energy-related materials and other applications.

Topasol has already developed anti-reflective nanocoatings that help increase the output of solar cells. Current projects include carbon-based coatings and membranes for energy storage technologies such as batteries and supercapacitors.

In the future, the company hopes to extend its energy-

related technologies into other fields, such as the automotive and aerospace industries.

“Kentucky offers great opportunities for companies like ours to grow,” says Dr. Uschi Graham, Topasol president. “Aside from low energy costs and easy access to manufacturing, the research campuses in Louisville and Lexington provide avenues for collaborating with companies that are focused on similar areas.”

The state has a number of programs, such as the Kentucky New Energy Ventures Fund, that provide seed-stage capital to support the development and commercialization of alternative fuel and renewable energy products, processes and services.

Louisville-based Advanced Energy Materials received matching funds of $150,000 through the state’s Small Business Innovation Research/Small Business Technology Transfer program (SBIR/STTR) to support developing nanomaterials for use in the anodes of lithium-ion batteries, as well as in solar cells and other photocatalytic applications.

Putting Wasted Energy to Work In Somerset, Wellhead Energy Systems is innovating in an

entirely different way. The company produces electricity using self-contained, onsite generators powered by “stranded” energy assets – such as natural gas from wells in remote areas – that had previously remained untapped.

President and CEO Dave Weddle estimates that Kentucky has more than 6,000 stranded natural gas wells alone, enough to produce about 60 megawatts of electricity. One of the company’s banner projects is a partnership with Jackson Energy Cooperative.

A Wellhead generator is helping the rural cooperative provide reliable power to about 250 customers who had previously suffered regular brownouts.

To date, Wellhead has received $3.25 million in equity investments and tax incentives from the state. But Weddle has been especially impressed by the personal attention he’s received from state officials.

“From the day we opened our doors, we’ve had excellent support,” he says. “The governor himself came to present us with our first $500,000 in state funding. I think it shows that from the highest office in the state, they truly do believe in what energy companies are doing.” w w w . t h i n kke n t u c k y . c o m

61

BallarD COunTy 101 Liberty Dr. Office Complex Kevil, KY

36,000 sq. ft. clearspan with 15,000 sq. ft. developed and remaining available for development

175 Freedom Blvd.

Kevil, KY

A 9,000-square-foot office complex located in the West Kentucky Technology Park • Large Document Center

• • • • •

Two Conference Rooms Break Room Four Restrooms Reception Area Twenty-Eight Offices

Ballard County Economic & Industrial Development Board Take a look at the lands at the confluence of the mighty Mississippi and the Ohio Rivers.

It’s all right here.

Terry Simmons, Pres/CEO 101 Liberty Dr. • Ste. 4 Kevil, KY 42053 (270) 744-3232

62

P r e s e n ted b y t h e K e n t u c k y C a b i n et f o r E c o n o m i c D e v e l o pme n t

Staying Current Center for Applied Energy Research works for new energy discoveries The University of Kentucky’s Center for Applied Energy Research (CAER) is keeping pace with the changing energy landscape, thanks to short- and long-term projects for both fossil and alternative fuels.

Recent fossil fuel projects include the development of a concrete-like substance made using coal byproducts. The quicksetting material is ideal for first responders who are assisting during mine or building collapses.

“We were really proud to see that go out of the lab and into the commercial environment,” says Marybeth McAlister, CAER’s

communications manager.

Another group of researchers is working with Kentucky utilities on reducing carbon dioxide emissions from power plants. The project recently won a $14 million federal grant enabling it to progress to the demonstration stage.

But CAER isn’t just about fossil fuels. In August 2012, the center opened a new building dedicated to renewable energy. Research there currently covers biomass, biofuels and solar, among other renewable energy sources.

Sheila Medina, CAER associate director, is especially proud of Houseboat to Energy Efficient

Residences (HBEER), a program for converting unused houseboats to energy-efficient housing, using primarily Kentucky products and labor. CAER collaborated with faculty and students from the University of Kentucky College of Design to produce the first HBEER prototype, which was presented for ribbon-cutting in January 2012.

“Our advisory board has people on it from all aspects of the energy industry,” Medina says. “We try to listen to everyone and direct our research into areas that are impactful and beneficial for the citizens of Kentucky.”

– Kathryn Royster

University of Kentucky Center for Applied Energy Research in Lexington

w w w . t h i n kke n t u c k y . c o m

63

Health

Innovations in Health Care Award-winning facilities and personnel ensure top health care for Kentucky residents Ephraim McDowell Regional Medical Center in Danville is one of Kentucky’s 131 hospitals. The 222-bed facility serves more than 119,000 residents from six counties. S ta f f P h o t o

64

P r e s e n ted b y t h e K e n t u c k y C a b i n et f o r E c o n o m i c D e v e l o pme n t

Story by Kathie Stamps

O

n Christmas Day in 1809, Dr. Ephraim McDowell performed the world’s first successful abdominal surgery. His name and standards still stand in Danville at Ephraim McDowell Regional Medical Center.

Kentuckians have access to superb health care throughout the state. In addition to numerous clinics and medical facilities, 81

of Kentucky’s 120 counties have a hospital, half of them in rural areas. In many communities the hospital is the largest private employer. Each hospital is a member of the Kentucky Hospital Association (KHA). As an advocacy arm, KHA represents member interests in Washington, D.C., and in Frankfort, the state capital. The organization also

provides education to its members, from quality initiatives to working on trauma designations.

“Kentucky’s 131 hospitals continue to provide an important safety net for health services and programs at a time when economic turmoil and reform of our country’s health-care system are affecting all aspects of our society,” says Michael Rust, KHA president.

w w w . t h i n kke n t u c k y . c o m

65

Michael Conti

Above: Located on a 160-acre campus, Owensboro Health’s new hospital includes 335-square-foot patient rooms, 16 operating room suites, an expanded Neonatal Intensive Care Unit and an electronic medical records system. Right: The 263-bed Kosair Children’s Hospital in Louisville includes a burn unit, a congenital heart center, neurosurgery, emergency services and pediatric psychology.

delivering Economic Impact The value of community benefit programs and services provided by Kentucky hospitals was nearly $1.96 billion in 2011 (the most recent year for statistics), up from $1.67 billion the previous year.

The total includes $457 million in financial assistance and charity care, a 53 percent increase from 2008. Kentucky hospitals generate approximately $4.9 billion in local and regional economic activity from purchases made by the hospitals and their employees.

66

attracting national notice Owensboro Health, a not-forprofit hospital system, serves 11 counties in western Kentucky and southern Indiana. The health system treats 18,000 surgical patients and delivers 1,800 babies each year, and offers a cancer center, nationally recognized orthopedic and heart-care services, and several other specialized services.

In 2012, Truven Health Analytics (formerly Thomson Reuters) recognized the Owensboro facility on its list of 100 Top

P r e s e n ted b y t h e K e n t u c k y C a b i n et f o r E c o n o m i c D e v e l o pme n t

Hospitals in the category of large community hospitals.

Harlan Appalachian Regional Healthcare Hospital, located in eastern Kentucky, also made that list in the Small Community Hospitals”category. combining forces In 2012, KentuckyOne Health was formed with the merger of Louisville’s Jewish Hospital and St. Mary’s HealthCare, plus the nine facilities of Saint Joseph Health System, including Saint Joseph Hospital in Lexington.

Je f f A d k i n s

w w w . t h i n kke n t u c k y . c o m

67

S ta ff P h o t o

68

P r e s e n ted b y t h e K e n t u c k y C a b i n et f o r E c o n o m i c D e v e l o pme n t

KentuckyOne Health is the largest health system in the state, with nearly 14,000 employees.

In fall 2012, the University of Louisville and its University Medical Center announced a partnership with the nonprofit system, which involves a KentuckyOne investment of $543.5 million in the medical center during the first five years.

In early 2013, KentuckyOne selected Louisville for its headquarters, a $5.5 million investment that adds 10 new jobs.

Ruth W. Brinkley, president and CEO of KentuckyOne Health, said downtown Louisville offered several advantages including easy access to other areas in the state.

Children’s Hospitals Kentucky also excels in pediatric medicine and care.

Children’s Hospital in Lexington, part of UK HealthCare, was the first pediatric Level I Trauma Center in Kentucky. In July 2010, it opened the Makenna David Pediatric Emergency Center, with its own entrance for children and their families.

Kosair Children’s Hospital in Louisville, part of Norton Healthcare, is the state’s only free-standing pediatric-care facility for children. Supported by the Children’s Hospital Foundation, Kosair serves as the primary pediatric teaching facility for the University of Louisville School of Medicine.

Left: The Frazier Rehab and Neuroscience Center is home to a 135-bed acute rehab hospital in downtown Louisville.

What’s Online Learn more about Kentucky’s health-care providers and services at businessclimate.com/kentucky.

w w w. t h i n k k e n t u c k y. c o m

69

Education

Ready to Work Certification program deepens Kentucky’s labor pool

MCC’s Brown Badgett Sr. Energy and Advanced Technology Center helps prepare students for the workforce.

70

P r e s e n ted b y t h e K e n t u c k y C a b i n et f o r E c o n o m i c D e v e l o pme n t

Story by Kevin Litwin Photography by Michael Conti

K

entucky is taking skillsready workforce availability to a higher level with a new certification program.

The Kentucky Workforce Investment Board (KWIB), in conjunction with the Kentucky Education and Workforce Development Cabinet, has launched a Work Ready Communities program that certifies counties as Work Ready or Work Ready in Progress.

The certification is based on the quality of a county’s labor force and the community’s commitment to continuous workforce improvement through education.

Eighteen counties have been certified to date and many more are in the process of applying.

A Work Ready community is a measure of the quality of a county’s workforce. It is an assurance to business and industry that the community is committed

MCC students hone their technical skills as they prepare to find jobs in the Hopkins County region. S t a f f P h o t o

w w w . t h i n kke n t u c k y . c o m

71

A student practices her electrical wiring skills in a lab at Madisonville Community College, which has a Workforce Development Department on campus. The college offers various two-year degree programs, as well as several diploma and certificate programs.

72

P r e s e n ted b y t h e K e n t u c k y C a b i n et f o r E c o n o m i c D e v e l o pme n t

to providing the highly skilled workforce required in today’s competitive global economy.

Kentucky’s initiative certifies the quality of the workforce based on six criteria specified by economic developers, site selectors, local officials and business and industry leaders.

Counties must meet goals for high school graduation rates, soft skills development, educational attainment, community involvement, digital literacy and National Career Readiness certificate holders. role-model communities On behalf of Gov. Steve Beshear, the KWIB certifies counties as Work Ready when each of the six criteria are met.

“Work Ready Communities serve as role models for other communities that want to demonstrate a commitment to reaching education, workforce, and economic development goals that make their community a desirable place for business,” says Joseph U. Meyer, secretary of the Kentucky Education and Workforce Development Cabinet.

“Achieving this designation and working toward the Work Ready Community status gives communities an economic advantage when companies are looking for a place to locate and it shows established Kentucky businesses that they will continue to have a strong pipeline of skilled workers in the future,” says Crystal Gibson, chair of the Kentucky Work Ready Communities review panel and vice president of communications and public affairs at Citigroup.

Right: Madisonville Community College has more than 1,700 full-time students, as well as nearly 3,000 part-time students.

The college offers more than 25 academic programs including computer and information technology, mining technology, and business administration systems.

w w w . t h i n kke n t u c k y . c o m

73

Livability

Must Do List Kentucky offers experiences from big city to rural and everything in between

74

P r e s e n ted b y t h e K e n t u c k y C a b i n et f o r E c o n o m i c D e v e l o pme n t

Keeneland, located in Lexington, is home to Thoroughbred racing and also operates as an auction company. P h o t o b y J eff A d k i n s

w w w . t h i n kke n t u c k y . c o m

75

Brian McCord

Louisville’s 21c Museum Hotel includes Proof on Main, which is a top restaurant.

Story by Jessica Walker Boehm

I

n Kentucky, there’s always something to do – and the state is drawing visitors in droves.

Kentucky’s tourism industry, which generates nearly $11.7 billion in economic activity annually, is thriving, thanks to myriad festivals, outdoor destinations, historic sites, cultural attractions and top sports teams, and a strong and strategic incentive program that supports tourism-related development.

“The great thing about Kentucky is people can have both big-city and rural experiences,” says Michael Mangeot, commissioner of the Kentucky Department of Travel

76

and Tourism. “Plus, they’ll never find a friendlier place.”

Kentucky Tourism Development Act The first of its kind in the United States, the Kentucky Tourism Development Act was created in 1996. The act enables new and expanding tourism projects to reclaim up to 25 percent of development costs over a period of 10 years. Projects built on state park, federal park and national forest lands can receive up to 50 percent of development costs over 20 years.

Mangeot says the incentive has been successful, and the proof is

P r e s e n ted b y t h e K e n t u c k y C a b i n et f o r E c o n o m i c D e v e l o pme n t

easy to see. Several of the state’s most popular and successful attractions were created through the act, among them Newport on the Levee, Kentucky Speedway in Sparta, Fourth Street Live! and 21c Museum Hotel in Louisville, and the Jim Beam American Stillhouse and Heaven Hill Bourbon Heritage Center along Kentucky’s renowned Bourbon Trail. a feast of Festivals In Kentucky, there’s always a reason to celebrate, and signature festivals take place year round.

“If you want to come to a festival, come to Kentucky,” Mangeot says.

jeff a d k i n s

s ta ff p h o t o

“During one weekend this year [during 2012], we had 144 festivals going on all over the state.”

One of Kentucky’s biggest festivals is the Kentucky Derby Festival, which Mangeot says he considers “the granddaddy of them all.” Spanning two weeks around horse racing’s most storied competition, the festival includes more than 70 special events, draws 1.5 million people and delivers an economic impact of more than $125 million.

Additional popular festivals in the state include the World Chicken Festival in London,

Top: Stills used to make bourbon are on display at the Woodford Reserve Distillery in Versailles. Bottom: Visitors enjoy the Frozen Niagara tour at Mammoth Cave National Park, which covers more than 52,000 acres and is the world’s longest cave system. w w w . t h i n kke n t u c k y . c o m

77

Brian McCord

Covering about 2,800 acres, Shaker Village of Pleasant Hill is America’s largest restored Shaker community. It is a National Historic Landmark offering tours, music, riverboat rides, dining and an inn with more than 70 guest rooms, suites and cottages.

Kentucky Bourbon Festival in Bardstown and Festival of the Bluegrass in Lexington.

Historic, Cultural GEMS Located in Hodgenville, the Abraham Lincoln Birthplace National Historic Site shows visitors where the 16th president grew up. Honoring Lincoln’s wife, the Mary Todd Lincoln House in downtown Lexington features 14 rooms of family portraits, furnishings and more.

In Harrodsburg, the Shaker Village of Pleasant Hill is the largest restored Shaker community in the United States. The 3,000-acre area, a National Historic Landmark, includes 34 restored buildings.

For a more modern experience, visitors can hit the famous Kentucky Bourbon Trail, or check out a performance at the Kentucky Center for the Performing Arts in Louisville.

78

Adventurous Activities Spelunkers enjoy exploring Mammoth Cave National Park in central Kentucky. The longest known cave system in the world, it covers more than 400 miles.

With more than 90,000 miles of rivers and many recreational lakes, Kentucky is also an ideal spot for water-based recreation such as boating, kayaking, canoeing, swimming and fishing.

“We’ve got more moving water than any state outside of Alaska,” Mangeot says. “We have Land Between the Lakes, Big South Fork and lots of other great destinations.”

Mangeot also notes that zipline operations are growing in the state. Available options include Red River Gorge Zipline in Campton, Black Mountain Thunder Zipline in Evarts and Louisville Mega Cavern, the

P r e s e n ted b y t h e K e n t u c k y C a b i n et f o r E c o n o m i c D e v e l o pme n t

world’s first and only underground zipline tour.

Sports Teams and Events Kentucky is synonymous with horses and horse racing, and two of the sport’s most fabled venues are in the state – Churchill Downs in Louisville and Keeneland in Lexington.

When it comes to NASCAR racing, fans head to the 107,000seat Kentucky Speedway in Sparta, which features a 1.5-mile track.

Basketball is also a major sport in the state, thanks to the University of Kentucky Wildcats and the University of Louisville Cardinals. In 2012, the rivalry between the teams was ranked as one of the top five rivalries in college sports by ESPN’s Dick Vitale.

The Company It Keeps Kentucky communities gain national notice From big cities to small towns, Kentucky offers abundant lifestyle choices. Its high-quality communities are gaining national recognition. Here are just a few examples:

Kentucky Community Rankings 2012

two of the five small-town awards categories: – Most Beautiful: Bardstown (Danville was a runner-up) – Friendliest: Murray Livability.com Top 10 Small Towns: The ranking named Danville one of the nation’s best small

towns, noting its “charming neighborhoods and residents who take great pride in their city.”

National Fourth Economy Index: Warren County ranked eighth on the Community Index’s list of Top 10 Small-Sized Counties for 2012.

CNNmoney.com 25 Best Places to Retire 2012: Louisville and Danville were included on the list of communities. The ranking noted Louisville’s miles of greenway and recreational attractions such as the Kentucky Derby. Danville’s historic district’s microbreweries, restaurants, art galleries and boutiques blend the best of past and present.

• U.S. News & World Report Best Places to Retire for Under $40,000 2012: Louisville’s affordability, particularly in housing costs, was cited.

Bloomberg BusinessWeek: Lexington/Fayette ranks 25th on the list of America’s 50 Best Cities.

“The thoroughbred city has great schools, sprawling parks and a high percentage of college-educated residents,” the ranking says.

America’s Promise Alliance’s 100 Best Communities for Young People: Th e award recognized Mt. Sterling/Montgomery County for its innovative work in addressing the high school dropout crisis and programs such as service opportunities and access to extracurricular activities that make it an outstanding place for youth to live, learn and grow. Mt. Sterling/ Montgomery County is a fourtime 100 Best winner.

Budget Travel: Named Augusta one of the nation’s 11 Greatest Riverfront Towns.

USA Today & Rand McNally Best of the Road: Kentucky communities were winners in

w w w . t h i n kke n t u c k y . c o m

79

Gallery

Newport Aquarium has thousands of species from around the world including various types of sharks.

Staff Photo

80

P r e s e n ted b y t h e K e n t u c k y C a b i n et f o r E c o n o m i c D e v e l o pme n t

w w w . t h i n kke n t u c k y . c o m

81

Paducah, situated at the convergence of the Ohio and Tennessee rivers, is an important transportation center. Staff Photo

82

P r e s e n ted b y t h e K e n t u c k y C a b i n et f o r E c o n o m i c D e v e l o pme n t

Rupp Arena in Lexington, home of the University of Kentucky Wildcats, as well as concerts and special events. Photo by Jeffrey S. Otto

w w w . t h i n kke n t u c k y . c o m

83

Kentucky Center for the Performing Arts on Main Street in Louisville.

Staff Photo

84

P r e s e n ted b y t h e K e n t u c k y C a b i n et f o r E c o n o m i c D e v e l o pme n t

w w w . t h i n kke n t u c k y . c o m

85

Shelby County, Kentucky You

CAN Get There From Here

➠ Location, Location, Location: In the Golden Triangle, on I-64 between Louisville and Lexington, and 30 miles to UPS Hub, Louisville International Airport, Louisville River Port and other smaller airports.

Minutes to I-65 and I-71, and within 600 miles of 50% of the nation’s population. ➠ Available Land/Building: More than 300 acres of zoned appropriate and developed land and available buildings. ➠ Workforce: An available, skilled workforce steeped in traditional agricultural work ethics. ➠ Energy: One of the lowest industrial electric rates in the country. ➠ Incentives: Please visit www.thinkkentucky.com for the most up-to-date information on available incentive packages.

www.scidf.com Shelby County Industrial & Development Foundation 316 Main St. • P.O. Box 335 Shelbyville, KY 40065 (502) 633-5068 email: libby@scidf.com

economic profile BUSINESS CLIMATE

DEMOGRAPHICS Population: 4,380,415 (2012) Occupied Households: 1,681,085 (2011) Per Capita Income: $33,989 (2011) Median Household Income: $42,248 (2011) Labor Force: 2,074,806 (2012)

LARGEST CITIES Louisville-Jefferson: 602,011 Lexington-Fayette: 301,569 Bowling Green: 58,894 Owensboro: 57,605 Covington: 40,811 Richmond: 31,809 Hopkinsville: 31,419 Florence: 30,687 Georgetown: 29,690 Elizabethtown: 29,044

EDUCATIONAL ATTAINMENT High School Graduate: 82.2% Bachelor’s Degree: 20.9%

Kentucky is home to 420 international and thousands more domestic companies. The state’s gross domestic product totaled nearly $165 billion in 2011 and has grown nearly 36 percent in the past decade. The state’s central location puts it within 600 miles of two-thirds of the U.S. population.

MAJOR WORKFORCE SECTORS Trade, Trans & Utilities: 20.8% Education & Health Services: 13.8% Manufacturing: 12.3% Professional & Business Services: 10.8% Public Administration: 5.4% Financial Activities: 4.9% Construction: 3.9%

TRANSPORTATION

Hal Rogers Parkway Bert T. Combs Mountain Parkway William H. Natcher Parkway Edward T. Breathitt Pennyrile Parkway Julian M. Carroll Purchase Parkway Wendell H. Ford Western Kentucky Parkway

Water Seven public riverports operate facilities at Eddyville, Henderson, Hickman, Louisville, Owensboro, Paducah and Wurtland.

Railways

Interstates I-24, I-64, I-65, I-69, I-71, I-75, I-264, I-265, I-275, I-471

state parkways

CSX: www.csx.com Norfolk Southern: www.nscorp.com/nscportal/nscorp Canadian National Railway Co.: www.cn.ca

Audubon Parkway Martha Layne Collins Blue Grass Parkway Louie B. Nunn Cumberland Parkway Daniel Boone Parkway/

Paducah and Louisville Railway: www.bnsf.com

international Airports

What’s Online

Cincinnati/Northern Kentucky International Airport: www.cvgairport.com

For more in-depth demographic, statistical and community information on Kentucky, go to businessclimate.com/kentucky and click on Facts & Stats.

Louisville International Airport: www.flylouisville.com

STAMP OUT BREAST CANCER WITH YOUR FEET.

“From Conception to Completion, We’re Your Road to a Successful Project”

IndustRIal CommeRCIal medICal InstItutIonal Considering a new facility? Plan and save wisely.

Let us perform a logistic and economic feasibility study for you.

• Design/Build Construction • Conventional General Contracting • Complete Engineering/ • Renovations/Conversions/ Architectural/Design Services Expansions • Construction Management Services

Learn more about the Komen Race for the Cure by visiting www.komen.org or calling 1-877 GO KOMEN. This space is provided as a public service. ©2008 Susan G. Komen for the Cure®

2335 Barren River Rd. • Bowling Green, KY 42102 (270) 781-9944 • Fax: (270) 782-2506 www.scottmurphydaniel.com • www.scottandmurphy.com

w w w. t h i n k k e n t u c k y. c o m

87

visit our

advertisers AEP Kentucky Power www.kentuckypower.com Almost Nashville KY www.hopkinsvilleindustry.com Ballard County Economic & Industrial Development Board

Offering a 500-acre industrial park zoned for heavy industry. The site features CSX rail and Ohio River access. Our community offers rural community advantages yet is within the Louisville MSA.

Carroll County Fiscal Court www.carrollcountygov.us City of Monticello www.monticelloky.com Commerce Lexington www.commercelexington.com Denham-Blythe Company www.denhamblythe.com

Elizabethtown/Hardin County Industrial Foundation Inc. www.eifky.org Glasgow – Barren County Industrial Development Economic Authority www.glasgowcbarrenidea.com

Contact us at

(270) 422-5627 (JOBS) or e-mail us at mcbida@bbtel.com.

88

Meade County/Brandenburg Industrial Development Authority www.meadecountyky.com Muhlenberg Alliance for Progress Inc. www.mafp.us Northeast Regional Industrial Park www.boydcountyky.gov Northern Kentucky TRI-ED www.northernkentuckyusa.com Oldham Chamber & Economic Development www.oldhamcountychamber.com Powell County Industrial Development Authority Inc. www.visitpowellcounty.com Richmond Industrial Development www.richmond-industrial.org

Greater Louisville Inc. www.greaterlouisville.com

79 Broadway Brandenburg, KY 40108 www.meadecountyky.com

Marshall County Economic Development www.opportunitymarshall.com McCreary County Fiscal Court www.mccrearycounty.com

Bowling Green Area Chamber of Commerce www.southcentralky.com

East Kentucky Power www.ekpc.coop

Meade County – BrandenBurg IndustrIal developMent authorIty

Logan Economic Alliance for Development www.loganleads.com

Greater Owensboro Economic Development Corporation www.edc.owensboro.com Greensburg/Green County Industrial Foundation www.greensburgonline.com Jeffersontown Economic Development Authority www.jeffersontownky.com Kentucky Cabinet for Economic Development www.thinkkentucky.com

Scott, Murphy & Daniel LLC www.scottmurphydaniel.com Shelby County Industrial & Development Foundation Inc. www.shelbycountyindustrialfoundation.com Somerset-Pulaski County Development Foundation www.spcdf.com Southeast Kentucky Chamber of Commerce www.1eky.com

Kentucky Department of Travel & Tourism www.kentuckytourism.com

Toyota Motor Manufacturing Kentucky www.toyotageorgetown.com

LG&E & KU www.lge-ku.com

UK Coldstream Research Campus www.uky.edu/coldstream

P r e s e n ted b y t h e K e n t u c k y C a b i n et f o r E c o n o m i c D e v e l o pme n t