kentucky

economic development guide
kyedg.com

What’s online
Take a video tour of the bluegrass State

Proof of Success

Road Scholars
Auto innovation takes the lead in the Commonwealth

Bourbon distillers pour money into facilities

Sitting Tall in the Saddle

Equestrian Games harness equine industry

PReSenTed by The KenTucKy cabineT foR economic develoPmenT | 2010

At the heArt of KentucKy … And the crossroAds of the nAtion.

A nine-county region of vibrant, progressive communities in Central Kentucky strategically positioned between the Louisville and Lexington metro areas with business development assets and advantages that are easily accessible via four major highway corridors (KY 55, US 127, US 150 and US 27) to the Bluegrass Parkway and Interstates 64, 65 and 75. regional population: 186,346 Civilian labor force: 641,246 labor market area: 31 Counties lma population: 1,280,552 total available labor: 47,566

ContaCt one of our partners for more information on Bluegrass south …
Anderson County Boyle County Garrard County Lincoln County Marion County Mercer County Taylor County Washington County George Leamon Jody Lassiter Nathan Mick Arlen Sanders Tom Lund Drew Dennis Ron McMahan Hal Goode George.Leamon@BluegrassSouth.com Jody.Lassiter@BluegrassSouth.com Nathan.Mick@BluegrassSouth.com Arlen.Sanders@BluegrassSouth.com Tom.Lund@BluegrassSouth.com Drew.Dennis@BluegrassSouth.com Ron.McMahan@BluegrassSouth.com Hal.Goode@BluegrassSouth.com

kentucky

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economic development guide

Workstyle
Road Scholars
Kentucky leads in auto innovation and what fuels them.

28 34 40 46 52 56 62 66

Retooled and Ready
Kentucky crafts impressive roster of advanced manufacturers.

Lab Partners

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A booming bioscience sector gets a booster shot from state initiatives.

Sitting Tall in the Saddle
World Equestrian Games harness Kentucky’s equine industry prowess.

Worldwide Appeal
Kentucky companies find global markets are a passport to growth.

Small Business, Big Success
Kentucky programs give a lift to entrepreneurship.

Proof of Success
Bourbon distillers pour new investment dollars into Kentucky.

making Big Waves
Kentucky is awash in water recreation opportunities.
Table of Contents Continued

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on ThE covER Kentucky Gov. Steve Beshear with the 2010 Toyota camry LE, 2010 Gm corvette ZR1 and 2011 Ford Super Duty F250, all made in Kentucky. Photo by brian Mccord

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Insight
overview Business Almanac Business climate Energy/Technology Transportation 17 18 22 76 82 106

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Economic Profile

Livability
health Education ‘You’ll never Want To Leave’ 88 94 100

Special advertising section: Lincoln Trail Workforce Investment Board

94 100

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

Please recycle this magazine

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Discover unlimited Possibilities!
location: • • Within a day’s drive of 60% of the US population Adjacent to US 23 four-lane highway

support: • State incentives • Local incentives • Workforce development

Features: • Low-cost power • Natural gas • Reasonable price • Lower operating cost • Greater profit potential

benefits:

GAteWAY reGioNAl bUsiNess PArK
P.O. Box 186 • Jenkins, KY 41537

606-438-1265
Cabinet for Economic Development

E-mail: joedepriest@msn.com

kentucky
2010 Edition , volum E 2 ProofrEading managEr RAvEn PEtty staff WritEr KEvin litWin ContriButing WritErs PAMElA coylE, JoE MoRRis, AMy stuMPfl

economic development guide
ContEnt dirECtor/BusinEss PuBliCations Bill McMEEKin ContEnt Coordinators JEnnifER GRAvEs, ERicA HinEs CoPy Editors lisA BAttlEs, JoycE cARutHERs, Jill WyAtt

mEdia tEChnology dirECtor cHRistinA cARdEn sEnior graPhiC dEsignErs lAuRA GAllAGHER, JEssicA MAnnER, JAninE MARylAnd, KRis sExton, cAndicE sWEEt, viKKi WilliAMs mEdia tEChnology analysts cHAndRA BRAdsHAW, yAMEl HAll, Alison HuntER, MARcus snydER PhotograPhy dirECtor JEffREy s. otto sEnior PhotograPhErs JEff AdKins, BRiAn MccoRd staff PhotograPhErs todd BEnnEtt, Antony BosHiER WEB ContEnt managErs JoHn Hood, KiM MAdloM WEB dEsign dirECtor fRAnco scARAMuzzA WEB dEsignEr lEiGH GuARin WEB dEvEloPEr JEREMy dicKEns ad ProduCtion managEr KAtiE MiddEndoRf ad traffiC assistants MARciA MillAR, PAtRiciA MoisAn i.t. dirECtor yAncEy Bond i.t. sErviCE tEChniCian RyAn sWEEnEy rEgional salEs managEr cHARlEs sWEEnEy salEs suPPort/Community, BusinEss, Custom RAcHAEl GoldsBERRy sEnior aCCountant lisA oWEns aCCounts PayaBlE Coordinator MARiA McfARlAnd aCCounts rECEivaBlE Coordinator diAnA GuzMAn offiCE managEr/aCCounts rECEivaBlE Coordinator sHElly MillER sEnior intEgratEd mEdia managErs BlAKE PEtit, clAy PERRy salEs suPPort managEr cindy HAll Chairman GREG tHuRMAn PrEsidEnt/PuBlishEr BoB scHWARtzMAn ExECutivE viCE PrEsidEnt RAy lAnGEn sEnior v.P./salEs todd PottER, cARlA tHuRMAn sEnior v.P./oPErations cAsEy HEstER sEnior v.P./CliEnt dEvEloPmEnt JEff HEEfnER v.P./ContEnt dEvEloPmEnt tEREE cARutHERs v.P./Custom PuBlishing KiM nEWsoM v.P./visual ContEnt MARK foREstER v.P./ContEnt oPErations nAtAsHA loREns v.P. salEs cHARlEs fitzGiBBon, HERB HARPER, JAREK sWEKosKy ControllEr cHRis dudlEy ContEnt dirECtor/travEl PuBliCations susAn cHAPPEll markEting CrEativE dirECtor KEitH HARRis distriBution dirECtor GARy sMitH rECruiting/training dirECtor suzy siMPson ExECutivE sECrEtary KRisty duncAn human rEsourCEs managEr PEGGy BlAKE rECEPtionist lindA BisHoP

Advertisements in this publication were purchased from Journal communications and are not endorsements of the cabinet for Economic development or the commonwealth. 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 e-mail 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 kyEdg.Com
©copyright 2010 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 Magazine Publishers of America custom Publishing council

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Big Sandy Regional Industrial Development Authority
Floyd – Johnson – Magoffin – Martin – Pike

The Energy to Move America Forward
• 334-Acre Industrial Park • 54,700-Sq.-Ft. Speculative Building • Easily Accessible to Rte. 3, US 23 and Big Sandy Regional Airport

(606) 886-2374 www.bsrida.org

• Attractive incentives for business and industry • Industrial park and spec building available • Historic charm • Easy access • Central location in US • Award-winning community • Charming and relaxing atmosphere – even Mr. and Mrs. C visit

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

www.GreensburgOnline.com

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COMMuNITY WILL OffER A STRuCTuRED LEASE OR SELL puRCHASE AGREEMENT ON ALL buILDINGS.
HICKMAN, KY
75,000 SQ. FT. BUILDING LOCATED 1/2 MILE FROM THE HICKMAN-FULTON COUNTY RIVER PORT

TENN-KEN SHORTLINE RAIL ROAD CONNECTS TO THE CANADIAN NATIONAL MAINLINE

All buildings are locally controlled and available for immediate possession We are located within one day’s drive from 60% of the US population and close to all major shipping lanes in the US Hickman – Fulton County River port located at mile marker 922 on the Mississippi River Sites served by Mainline service of the Canadian National RR All sites served by TVA Power Great state and local incentives
HIGHWAY DISTANCE TO SELECTED MAJOR MARKETS Atlanta, GA Baltimore, MD Birmingham, AL Boston, MA Buffalo, NY Charlotte, NC Chicago, IL Cincinnati, OH Cleveland, OH Columbus, OH 412 826 361 1200 785 579 416 348 599 455 Dallas, TX Detroit, MI Houston, TX Indianapolis, IN Jacksonville, FL Kansas City, MO Lexington, KY Louisville, KY Memphis, TN Minneapolis, MN 600 594 725 349 762 436 282 245 112 796 Nashville, TN New Orleans, LA New York, NY Norfolk, VA Oklahoma City, OK Omaha, NE Philadelphia, PA Pittsburgh, PA St. Louis, MO Wichita, KS 170 521 986 874 614 614 920 636 218 637

FULTON, KY

EXISTING BUILDING 60,000 SQ. FT. WITH AN EXPANSION OF 40,000 SQ. FT SHOWING A TOTAL OF 100,000 SQ. FT.

55,000 SQ. FT.

CLINTON, KY

HWY. 307N – 1/2 MILE FROM I-69 CORRIDOR RAIL SPUR IN PLACE AND CONNECTS WITHIN 1/4 MILE TO THE CANADIAN NATIONAL MAINLINE

LOCATED ON US HWY. 51 AND WITHIN 12 MILES OF THE PURCHASE PARKWAY I-69 CORRIDOR

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KEnTucKY EconomIc DEvELoPmEnT GuIDE

Eddie Crittendon, Executive Director • (270) 472-2125 • www.westkyeconomic.com

Overview

Revved up for Business
‘Auto Alley’ is in geAr to retAin And AttrAct mAjor businesses
it is a pleasure to present the 2010 Kentucky Economic Development Guide. As you browse this magazine, you will see why many of the world’s most successful companies have discovered that Kentucky is a great place to build their business. We think you will agree that Kentucky has everything your industry needs to succeed, including industrial electricity costs that are consistently among the lowest in the nation, a tax structure that is among the most competitive in the region and an ideal location within 600 miles of two-thirds of America’s population. Kentucky also has some of the most effective and progressive financial incentive programs anywhere, a workforce with a “can-do” attitude and an unsurpassed quality of life. called the new “Auto Alley” for our strong vehicle manufacturing presence, the commonwealth now also offers a burgeoning service sector and an increase of high-tech opportunities. Earning national and international recognition for our hospitable business climate and profitable investment opportunities, Kentucky is home to thousands of domestic companies and nearly 400 international operations, representing 30 countries. We’re especially proud to be home to a bevy of homegrown companies – Humana, lexmark, Papa John’s, Kfc, Ashland inc. and louisville slugger among them – all of which have become household names around the world. We also put a heavy emphasis on our very own exciting cadre of small businesses. Whatever your size, wherever you’re based, no matter your product or service, Kentucky makes it easy to do business. We invite you to explore the many advantages Kentucky offers to new and expanding businesses. if you would like to join what’s happening in the commonwealth, give us a call. We want to help you write your own success story. sincerely,

steven l. Beshear

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Almanac
KEEPInG GooD comPAnY
lexington’s attributes as a place to live and work have earned kudos. in 2009, Children's Health magazine ranked the city no. 6 on its Best Places to Raise a family list. the magazine conducted a statistical analysis to rank 100 select u.s. cities, and weighed more than 30 factors that parents deem important, including crime and safety, education, economics, housing, cultural attractions, and health. lexington also placed sixth on cnn/Money’s 2009 rankings of the best mid-sized markets in which to launch a business. the ranking noted that lexington “puts a unique spin on 4-H: horses, health care, high tech and higher education make up its diversified economy.”

A WInnInG hAnD
the united states Playing card co. manufactures, markets and distributes playing cards, children's card games, collectible tins, puzzles, and card accessories. the company, which produces more than 400,000 decks of cards per day, employs 500 people at its 570,000-square-foot headquarters and manufacturing operations in Boone county, where it moved in 2009 from cincinnati.

BATTER uP!
since 1884, louisville slugger has put prime lumber in the hands of the greatest players in baseball. the family-owned Hillerich & Bradsby co. turns out the bats that have been used by generations of players from little league to Major league Baseball. the company, which makes its bats and operates a museum in downtown louisville, celebrated its 125th anniversary in 2009. the museum includes a wealth of memorabilia and interactive exhibits. for information on visiting the museum, go to www.sluggermuseum.org.

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KEnTucKY EconomIc DEvELoPmEnT GuIDE

WRITE IT DoWn
cynthiana in Harrison county boasts several manufacturing companies making a number of products. Perhaps none is as well known as the 450,000-square-foot 3M plant, which makes some 672 varieties of the familiar Post-it notes, Post-it Easels and other Post-it products. the plant, which employs more than 500 people, also makes scotch-brand packaging and mailing tape.

on A RoLL In BoWLInG GREEn
the Bowling Green Area chamber of commerce is tops in class. the organization was named 2009 chamber of the year in its size category by the American chamber of commerce Executives. to earn the recognition, a chamber must first qualify based on seven criteria related to net income, assets, and partner retention dollars and accounts. only the top-ranked chambers are then invited to complete an application that provides a comprehensive view of their success based on financial and partnership performance, as well as their communication and community programs. the final component of the process, for the three highest ranked chambers, is an interview with a panel of experienced chamber professionals. since 2007, the Bowling Green chamber has participated in 35 industry expansion or new investment projects totaling nearly $139 million and creating 2,091 jobs. for more on the chamber, go to www.bgchamber.com.

BLAnKET KnoWLEDGE
the national Quilt Museum of the united states in Paducah collects, preserves and shares the traditions of quilt making, one square at a time. More than 40,000 visitors tour the museum’s three galleries each year to see traveling exhibits and the permanent collection. Exhibits change regularly, with approximately a dozen new shows annually. the permanent collection includes more than 300 quilts created by more than 333 quilt makers. A key feature of the museum is an extensive collection of miniature quilts, which are no larger than 24 inches by 24 inches. for more, go to www.quiltmuseum.org.

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GETTInG To ThE RooT oF BLuEGRASS
Kentucky puts the bluegrass in music, and its contributions to the uniquely American musical art form can be seen and heard at the international Bluegrass Music Museum in owensboro. the 22,000-square-foot museum includes exhibits on bluegrass pioneer Bill Monroe, historically significant instruments such as Pete seeger’s banjo, a time line of milestones in bluegrass music history and a replica 1950s café that hosts live performances and has a jukebox featuring traditional and contemporary bluegrass songs. for more on the museum, go to www.bluegrassmuseum.org.

REcIPE FoR An ExPAnSIon
Bremner food Group, the nation’s largest supplier of private-label cookies and crackers, is sweet on Princeton in caldwell county, where the company makes everything from saltines and Graham crackers to fig Bars and Animal crackers, and also produces shredded Wheat and a private-label version of triscuits. Bremner, a subsidiary of Ralcorp Holdings, is installing new production lines, relocating production lines from other facilities and increasing its warehouse space to handle increased capacity in a $62.1 million expansion that will add 111 full-time jobs to the current workforce of 600. the company came to Princeton in 1993. the Kentucky Economic development finance Authority preliminarily approved Bremner food Group for tax benefits of up to $5 million under the Kentucky Business investment program to aid the expansion.

unDERGRounD ATTRAcTIon
Mammoth cave national Park includes the longest recorded cave system in the world, with more than 367 miles explored and mapped. the first human is believed to have entered Mammoth cave about 4,000 years ago. the park was established in 1941 to preserve the cave system, including Mammoth cave, the scenic river valleys of the Green and nolin rivers, and a portion of the hilly country of south central Kentucky. several different cave tour packages are available, and the park includes three developed campgrounds and more than a dozen primitive camping sites in the back country and along the Green and nolin rivers. Go to www.nps.gov/maca for more.

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Business Climate

low cost

resources

innovative

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KEnTucKY EconomIc DEvELoPmEnT GuIDE

Sweetening the Pot
incentive program boosts business recruitment, retention

story by Joe Morris Photography by Antony Boshier

elping Kentucky’s businesses thrive is a chief goal of Gov. Steve Beshear and state legislators, and never was that aim more visible than in 2009, when the governor signed the Incentives for a New Kentucky bill into law, increasing the state’s competitive advantages. The legislation updates economic development incentives utilized by the Kentucky Cabinet for Economic Development to attract, expand and retain business. A key component of the legislation streamlines and consolidates four longstanding programs into the new Kentucky Business Investment Program, or KBI, a more flexible program offering income tax credits and wage assessments to new and expanding businesses. Along with numerous other tax benefits, the bill also enhances state

h

assistance through the Kentucky Reinvestment Act, putting a focus on existing manufacturers making a significant capital investment in a Kentucky facility in order to remain competitive. Multiple changes within the restructuring mean Kentucky can compete with any state, region or even country when it comes to business recruitment and development, says state Rep. Tommy Thompson of Owensboro, who sponsored the bill in the Kentucky House of Representatives. “We discerned that our economic development incentives were a bit outdated, and they just weren’t market-tested in terms of being what industries are looking for today in terms of location and investment incentives,” Thompson says. “The governor challenged the cabinet to go

out and survey a lot of different stakeholders about incentives, and also talk to local communities about what they need to attract businesses. That information and research led to this package, which will grow jobs and help us be competitive in the marketplace.” Just as important, Thompson says, the incentives are performance-based, so businesses have to hit specific benchmarks with jobs and revenue before any tax abatement or other financial packages are created. Everything from breaks for retooling machinery and retaining employees have been factored into the new rules and regulations, so existing businesses fare just as well as new companies being lured into an area. That helps the state expand existing industry sectors and maintain a stable workforce, says Larry Hayes, secretary

203
total number of new investment and expansion projects in 2009

$977 million
new business and expansion investment in Kentucky in 2009

6,687
new jobs created in 2009

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Rep. tommy thompson of owensboro sponsored legislation that makes the state more attractive to businesses.

more Insight
Under the newly created Kentucky Business Investment Program (KBI), the state will provide income tax credits and wage assessments to new and existing agribusinesses, regional and national headquarters, manufacturing companies, and nonretail service or technology-related companies that locate or expand operations in Kentucky. The legislation also: • Creates a new sales and use tax refund for companies that are heavy users of computer and telecommunications equipment • Expands the Kentucky Reinvestment Act to benefit existing manufacturers that need to make a significant capital investment in Kentucky facilities in order to remain competitive • Expands the Kentucky Enterprise Initiative Act to include a sales tax refund for the purchase of electronic-processing equipment costing $50,000 or more in addition to the minimum $500,000 project investment For more on the state’s incentives and financial programs, go to thinkkentucky.com.

of the Kentucky Cabinet for Economic Development. “Once you came here, you were part of our happy family and we worked with you, but if you had to make a major investment and update your facility without job creation, we really couldn’t assist you in any great way,” Hayes says. “These new incentives give us the ability to work with our existing companies, help create new opportunities for them and identify new pieces of business for them to get into,” he says. “We can help them with the financing for mergers and acquisitions, so they can bring a product in from somewhere else.” Focusing on bringing in new investment and helping established businesses means the Cabinet for Economic Development will be a major player at every level of Kentucky business, Hayes says. “We’ve always been very enthusiastic about being a good partner in terms of doing business here, but now we have the ability to be a true business partner, and talk to them in a way we haven’t been able to do in the past,” he says.

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A Focus on Jobs and Investment
gov. besheAr: retooled incentives put KentucKy in strong competitive position
Q: As the national economy improves, how do you see these upgraded incentive programs positioning Kentucky for new investment? A: the incentives for a new Kentucky programs give Kentucky a new level of flexibility, allowing us to become a true partner with businesses. in fact, we’re already seeing results. in november 2009, Hitachi Automotive Products (usA) inc. in Harrodsburg announced that it would expand, adding a new advanced fuel system production line to the plant. the expansion adds about 100 new jobs and a more than $20.2 million investment. Additionally, signature HealthcARE recently announced it would relocate its national headquarters from Palm Beach Gardens, fla., to louisville, investing nearly $5.4 million and creating more than 120 jobs. We were also able to assist Akebono Brake corp. in Elizabethtown on its headquarters expansion, adding 70 new professional jobs in the community. these are just some of the many companies currently investing in Kentucky. Q: How do you think these new incentives will be helpful to companies already in the state that might be thinking about expanding or upgrading their facilities? A: one of the most important aspects about this new legislation is that it puts a focus on Kentucky’s existing businesses. companies like curtis Maruyasu America in lebanon, national office furniture in fordsville and the standard Group in Jeffersontown have utilized the Kentucky Reinvestment Act to upgrade their Kentucky facilities, preserving more than 760 jobs. others are utilizing programs such as the Kentucky Business investment program to expand operations in the commonwealth. Recent expansions include Paducah louisville Railway’s headquarters in Paducah, Bremner food Group in Princeton, Polyair corp. in Bardstown and Kentuckiana curb co. in louisville. these projects alone represent new investment of more than $90 million. companies across the Bluegrass are benefiting from Kentucky’s economic development efforts. – Joe Morris

◆ We are located 12 miles from the Georgetown, Kentucky Toyota Plant (the largest in the USA) ◆ Quick access to the I-75 and I-64 interchanges ◆ One-hour drive to the greater Cincinnati/northern Kentucky International Airport ◆ Forty-five-minute drive to Bluegrass Airport in Lexington, Kentucky
Cynthiana/Harrison County Economic Development Authority
2169 US Hwy. 27 N. • Cynthiana, KY 41031 • (859) 588-3000 www.harrisoncountyky.gov

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Road Scholars
Kentucky leads in auto innovation and what fuels them
story by Kevin Litwin

K

entucky is in the driver’s seat to build the next generation of vehicles and develop the new technology that will power them. Long a center of automotive manufacturing, the Bluegrass State was a natural location for a joint federal and state battery manufacturing research center that $39,977 will help develop and commercialize power applications for advanced vehicles, including hybrids. The effort will support President Obama’s goal of having 1 million plug-in, hybrid, electric vehicles on the road by 2015. Argonne, the nation’s lead facility for transportation-related research, is partnering with the Commonwealth, University of Kentucky and University of Louisville to establish the center in

672,277 $44,747 680,424 1,852,654

780,727 1,484,084
vEhIcLE PRoDucTIon BY STATE (2008) Michigan ohio Kentucky Missouri Alabama

$47,644

moRE AT KYEDG.com

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Greg Higdon, president of the Kentucky Association of Manufacturers; Kentucky is generating new investment in auto-related innovation.

Lexington. The Kentucky-Argonne Battery Manufacturing Research and Development Center will facilitate the development of advanced lithium-ion batteries and advanced manufacturing technologies that will reduce battery production costs. The center also will promote collaborations between federal labs, universities, manufacturers, suppliers and end-users, and accelerate the movement of technologies developed at national labs and universities into the marketplace. Initial research will focus on developing and testing lithium-ion batteries, asymmetric capacitors and other advanced electrochemical energy storage systems. The center, which received approval in December 2009, for state funding of up to $3.5 million, will leverage the extensive research facilities and expertise of UK and UofL. “The center will help greatly

increase the amount of federal and private research dollars coming to Kentucky and will lead to additional high-paying, high-tech jobs,” says Larry Hayes, secretary of the Kentucky Cabinet for Economic Development. Other innovations in the automotive sector can be found across Kentucky. Hitachi Automotive Products (USA) Inc., a fixture in the state since 1986, is adding an advanced fuel system production line at its 400,000-squarefoot facility in Harrodsburg, where the company manufactures electromechanical auto parts. The $20.2 million expansion will add 100 new jobs to make components for use in advanced direct injection fuel systems in more fuel-efficient and lower-emission automobile engines. Hitachi is among the 420 autorelated facilities and suppliers in Kentucky that employ more than 65,000 workers. Toyota, Ford and

Antony BosHiER

d Av i d M u d d

By the numbers

65,265
Auto manufacturing-related workforce in Kentucky

18
Percentage of manufacturing workers in Kentucky in autorelated manufacturing

420
Auto-related facilities in the state

$5.9 billion
Gross domestic product of auto manufacturing in Kentucky in 2007
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General Motors each have substantial operations in Kentucky, which is third among states in light vehicle production. Industry analysts point out that Kentucky remains attractive to automakers for a number of reasons, including its central location and availability of low-cost power – the fourth lowest in the nation. “It’s quite amazing how low the energy costs are that Kentucky can provide for these facilities,” says Greg Higdon, president and CEO of the Kentucky Association of Manufacturers. Ford, a fixture in Kentucky since 1912, has two assembly operations in the Louisville area. The automaker has outlined plans for a major retooling

and reinvestment in Louisville, a project that could cost up to $600 million and make the plant capable of assembling multiple types of fuelefficient vehicles. Since 1981, General Motors has manufactured its iconic Corvette in Bowling Green, the only location where the car is produced. In Georgetown, the Toyota plant that began operations in the fall of 1988 has become the automaker’s largest North American facility. The plant produces the Camry and Avalon sedans, Venza crossover and Camry hybrid. Toyota has invested $5.3 billion in recent upgrades in its Georgetown operations. “We became Toyota’s first plant

outside of Japan to build a hybrid product – a high-end Camry that features the absolute latest in technology,” says Rick Hesterberg, assistant manager for external affairs in Georgetown. A total of 6,600 full-time employees work at the massive facility, while another 1,300 work at the automaker’s Erlanger headquarters near the Cincinnati-Northern Kentucky International Airport. The Georgetown plant has the capacity to build 500,000 engines each year plus parts for other Toyota facilities throughout the U.S. “We have 90 direct suppliers in Kentucky and provide them with $2 billion in business annually,” Hesterberg says.

moRE InSIGhT PLAYInG A LEAD RoLE
Kentucky Gov. steve Beshear has been named chairman of an influential public policy think tank that researches and develops economic development policies and provides a forum for collaboration among governors, legislators, business and academic leaders and the economic and community development sectors in the south. Beshear becomes the 40th chairman of the southern Growth Policies Board, following in the footsteps of such southern governors as Bill clinton and Jimmy carter. the governor will host the 2010 chairman’s conference in lexington on June 6-8. the focus of the conference will be on highlighting and strengthening the automotive industry in the south. “Kentucky is the perfect location to host a serious conversation on the south’s emerging leadership in the automotive industry,” Gov. Beshear says. the region is home to 16 automotive manufacturing facilities, producing 36 percent of the nation’s cars and light trucks. the conference, “driving the next 20 years: Maximizing the new Automotive industry in the south,” is being developed as an opportunity to connect industry players across the region to take actions to create additional jobs and investments. Go to www.southerngrowth.com for more on the conference.

Antony BosHiER

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Retooled and Ready
Kentucky crafts impressive roster of advanced manufacturers
story by Pamela Coyle • Photography by Antony Boshier

A

new generation of more advanced manufacturing is helping keep Kentucky competitive, diversify its economy and pump more than $27 billion into the state economy each year. Kentucky’s robust manufacturing base accounts for nearly 20 percent of the state’s GDP, although older factory workers may not recognize some of the plants of today. A core of innovative and technologically advanced companies turn out aerospace components, safety equipment, specialty chemicals, veterinary tools, defense systems, biological research supplies and everything in between. The Kentucky Cabinet for Economic Development has identified more than 740 advanced manufacturing facilities that call Kentucky home, and new projects or expansions come on line every month. Grindmaster-Cecilware is expanding in Louisville, a $1.6 million investment that will create 33 jobs. Blackhawk Composites, a startup manufacturer of advanced aerospace composite parts, is creating 30 jobs in Butler County and investing $1.5 million. Safetran Systems, which makes railroad crossing warning systems, is adding 150 workers as part of a $2.8 million expansion at its facility in Marion. In Greenup County, Price Solutions LLC is expanding its operation to

produce MAC Security Portals and other modular products. That’s another $1.7 million investment and 20 new jobs. Nearly 100,000 people work in Kentucky’s advanced manufacturing facilities. Just under 130 of them are in Lexington, at the Animal Safety and Life Sciences divisions of Neogen Corp. The company is based in Lansing, Mich., but the Kentucky operation includes production of veterinary diagnostics, pharmaceuticals and wound-care products for domestic as well as farm animals. The Neogen division makes research and diagnostic products that include drug detection kits for forensic testing and horse racing, a natural fit for a state where horses and horse racing are major industries. The Lexington operation saw revenues increase 29 percent for the year ending May 31, 2009, for a total of $57.7 million, says Terri Morrical, vice president of animal safety. “We’ve been doing extremely well. Every year we typically add positions,” says Morrical, who started the life sciences company in 1990. Neogen bought it two years later, when the staff numbered 12 people. Spring 2010 brings the launch of additional drug detection kits, plus products that can test for salmonella at food-production sites, she says. Biological science is also the forte of Peptides

conner Means works at Peptides international, located in louisville, creating peptides for industry research.

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IDEA = Industrial Development Economic Authority working to promote the economic development of industrial, agricultural, tourism and small business of Glasgow and Barren County. We work with all federal, state and local agencies, and groups to accomplish these purposes.

A GREAT IDEA!

Glasgow-Barren County

• • • • •

Rich history of agriculture, metalworking, precision machining, fabrication, assembly processes and advanced manufacturing in region Low cost of conducting business, low real estate pricing, low cost of living and low crime rate

• •

Industrial and warehousing facilities available for sale or lease ranging from 5,000 to 343,000 sq. ft. Robust broadband network available to all points in the community, quality low cost, electric, water, sewer and telecommunications Local governments, schools and utilities operate a GIS consortium, which provides constantly updated mapping Excellent postsecondary education facilities located in the community Thriving medical community with community- owned hospital CSX rail service throughout the community Progressive Farmers magazine recently named Barren County “Best Place to Live” in rural America

Centrally located in the Eastern United States within a day’s drive of half the nation’s population • and manufacturing employment New spec building completed (80,000 sq. ft. – • expandable to 120,000 sq. ft., 16-acre lot, 24-ft. ceiling, 320 ft. x 250 ft.) at new Highland Glenn Industrial Park • 300 acres of land available ranging from five-acre to 150-acre tracts at the new Highland Glenn Industrial Park • Spec Building at •

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KEnTucKY EconomIc DEvELoPmEnT GuIDE

Dan Iacconi, Director • (270) 651-6314 or (800) 467-6314 idea@glasgow-ky.com • www.glasgowbarrenidea.com

International, a rapidly growing company that manufactures peptides, amino acids and other biomaterials for pharmaceutical and medical research. “Last year, we sold peptides to 45 countries,” says Bryce Johnson, the company’s president and a former chemistry professor at the University of Louisville. “It’s traditionally been Western Europe and Japan, and now India, South Korea and China are increasing.” Peptides are amino acid chains used in research on cancer, heart disease, obesity and Alzheimer’s. The company’s chemists build them in sequence, as part of Peptide’s thick catalog or, more recently, to precise customer specifications. “A very hot area in obesity research involves processes in the brain that control appetite suppression and such,” Johnson says. The company just launched a new platform with three amino acids for tumor imaging and detection. Another small part of Peptide International’s business involves components for “cosmeseuticals,” in which pharmaceutical development technology is used in cosmetic products such as anti-wrinkle cream. In January 2010, the company began offering customized services to walk clients through Food and Drug Administration approvals and other regulatory processes. “If their research looks like it will go into full drug production, we will help with each step as they qualify,” Johnson says.
some of neogen corp.’s products

ExAmPLES oF mAJoR ADvAncED mAnuFAcTuRERS In KEnTucKY
ToYoTA moToR mAnuFAcTuRInG KEnTucKY (Automotive production) FoRD moToR co. KEnTucKY TRucK PLAnT AnD LouISvILLE ASSEmBLY PLAnT (Automotive production) LExmARK InTERnATIonAL (Printers and information processing supplies, headquarters) L-3 communIcATIonS InTEGRATED SYSTEmS (defense-related support activities) GEnERAL moToRS coRP. (Automotive production) AKEBono BRAKE (Auto disc and drum brakes) BoWLInG GREEn mETALFoRmInG (Automotive parts) huISh DETERGEnTS Inc. (detergents) monTAPLAST oF noRTh AmERIcA (Plastic injection molding for automotive wheel covers, center caps and intake manifolds) RAYThEon co. (naval ship self-defense weapon systems) cATLETTSBuRG REFInInG LLc (Petroleum refining) GE AIRcRAFT EnGInE DIvISIon (Aircraft engines, turbines, blades and vanes) PEPTIDES InTERnATIonAL Inc. (Biological products and supplies for research) SüD-chEmIE Inc. (catalysts & clay products) nEoGEn coRP. (diagnostics, veterinary instruments, veterinary pharmaceuticals, nutritional supplements)

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When you stay with Hampton Inn in Elizabethtown, you’re staying with friends. Our place is yours, whether you’re here for business, a Fort Knox graduation or vacationing with friends or family. We love having you here!

1035 Executive Dr. Elizabethtown, KY 42701 (270) 765-6663 (800) HAMPTON www.elizabethtown.hamptoninn.com

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KEnTucKY EconomIc DEvELoPmEnT GuIDE

GE heats up Appliance Park
new energy-efficient products spArK $150m investment, 800 new jobs
once a candidate for sale, General Electric’s appliance business, headquartered at Appliance Park in louisville, is mounting a major comeback, one that has put it solidly on the front lines of green energy and “smart” products. General Electric is investing $150 million to bring in state-ofthe-art appliance lines and creating more than 800 jobs at a site the company had once considered selling. the sprawling louisville complex will soon produce hybrid-electric water heaters, energy-efficient, frontloading washers and dryers, and several new appliance components. the new hybrid technology will allow GE to be the first u.s. manufacturer to introduce a water heater that meets the new u.s. department of Energy’s EnERGy stAR standard for this new category of hot water heaters. the new washers and dryers represent the latest in efficiency technology and will be designed to meet the expected 2014 EnERGy stAR requirements. And, both new products will contain technology that will enable them to communicate with utilities to take advantage of lower-priced energy in the markets that offer time-of-use pricing. to help make this project possible, the commonwealth showed its support by approving over $20 million in state incentives for the new “smart” product lines. “this is a shining example of how Kentucky aggressively works with existing companies to help them reach their potential here in the Bluegrass,” said Governor steve Beshear. “these investments are yet another piece of evidence that Kentucky has become the home of cutting-edge efficiency in energy consumption.” A city within a city, Appliance Park is the global headquarters for GE Appliances & lighting, spanning 900 acres. the park includes 25 miles of rail line, and even boasts its own ziP code. Each manufacturing building could enclose 15 football fields. one warehouse is as big as six city blocks. the first appliance manufactured at Appliance Park, a dryer, was shipped in 1953. GE estimates the complex produced more than 185 million appliances by the end of 2007. today, GE contributes more than $425 million annually to the louisville economy. – Pamela Coyle

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KEnTucKY EconomIc DEvELoPmEnT GuIDE

Lab Partners
booming bioscience sector gets a booster shot from state initiatives
story by Joe Morris • Photography by Antony Boshier

A

growing core of innovative companies, coupled with internationally known universities and health-care providers, is helping scientists and engineers in Kentucky produce many life science and biotechnology breakthroughs. The Kentucky Cabinet for Economic Development’s Department of Commercialization and Innovation (DCI) is facilitating the process, working with start-up companies and business incubators, as well as large-scale R&D firms, universities and companies across a spectrum of bio-related fields, from drug-discovery research to crop science and cancer treatment. And those in the lab say DCI’s support, plus the sheer volume of technical expertise found in the Bluegrass State, is a winning combination. “In 2009, we created three new companies to increase our portfolio to 16,” says Steve Gailar, president and CEO of MetaCyte Business Lab, a high-tech business accelerator that is a for-profit subsidiary of the University of Louisville Foundation. Two companies located at the lab recently completed closings on financing for more than $2 million, and one company received $270,000 in state matching funds for a $1 million National Institutes of Health award. Since 2002, MetaCyte has secured more than $20 million in funding for its portfolio companies and has created more than 40 high-paying jobs. State assistance has smoothed

the path for much of that expansion, Gailar says. At ApoImmune, the focus is on developing immunotherapies, treatments that regulate the patient’s immune system to fight disease. ApoImmune, one of MetaCyte’s portfolio companies, has two platform technologies: ProtEx, which is designed to aid in transplant therapies, and ApoVax, which will be applied to cancer and infectious-disease vaccines. The company has been aided by state programs, including a forgivable loan tied to hiring goals and investments from Commonwealth Seed Capital and the Kentucky Enterprise Fund. All together, the company has received around $1.3 million in funding to help it grow. “Support from various economic development programs from Kentucky has been instrumental in our growth and development and enabled us to increase our staffing from two employees to 15 employees over the last three years,” said Steven Downey, president and chief executive officer at ApoImmune. BioLOGIC Corp., in Northern Kentucky, has opened a hightech business accelerator in Covington that will serve as its U.S. headquarters. The new facility has already drawn several biotech firms to Kentucky, including PHD Diagnostics, which has developed a simple genetic test that can tell smokers and ex-smokers their likelihood of developing lung cancer. The test is used as part of a smoking cessation program. Other client companies in the facility are developing

Employees at Metacyte Business lab in louisville

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KEnTucKY EconomIc DEvELoPmEnT GuIDE

clockwise from left: BioloGic has opened a high-tech business accelerator in covington; steve Gailar, president/cEo of Metacyte Business lab; Medcenter 3 houses Metacyte.

“We wanted to be in Kentucky, and the assistance we received through [commerce Lexington], our local banks and the state economic development people all made that happen.”
anti-cancer drugs, researching drugs for Alzheimer’s and Parkinson’s diseases, developing technology that can help provide affordable clean water for households in developing countries and over-the-counter natural health products. Naprogenix in Lexington conducts research into the chemical diversity of plants and discovers novel active compounds that are useful in creating pharmaceuticals and agrochemicals. The combination of financing and strong support at the state and regional level has proved beneficial to Laboratory and BioDiagnostics LLC, or LabDx, said Rob Mudd, president of the 31-employee Lexington company that develops technology for the electronic delivery of results from medical diagnostic instruments.

A $250,000 forgivable loan from the Bluegrass Business Development Partnership helped the company get off the ground and stay local, he adds. The partnership is an economic development collaborative of Commerce Lexington, Lexington Fayette Urban County Government and the University of Kentucky’s Office of Commercialization and Economic Development. “We wanted to be in Kentucky, and the assistance we received through [Commerce Lexington], our local banks and the state economic development people all made that happen,” Mudd says. “A lot of people got involved, and they were able to guide us, to get the right doors opened and help us establish strategic objectives and find beneficial relationships.”
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Economic Opportunities Abound on the

Bellevue • Covington • Dayton Ft. Thomas • Ludlow • Newport
Southbank Partners Inc. 421 Monmouth St. • Newport, KY 41071
Partnering with Bellevue, Covington, Dayton, Ft. Thomas, Newport and Ludlow on economic and community development to make the “Southbank” of the Ohio River the most vibrant and livable area in northern Kentucky.

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KEnTucKY EconomIc DEvELoPmEnT GuIDE

The Doctor Is In
uK’s mArKey cAncer center AttrActs highly Accomplished leAder
When the university of Kentucky’s Markey cancer center recruited dr. B. Mark Evers from the university of texas Medical Branch in Galveston in April 2009, it got three professionals all bundled up in one. Evers, 51, a highly regarded gastrointestinal surgeon, scientific investigator and administrator, will direct the center, serve as professor of surgery in the college of Medicine and be physician-inchief of the oncology service line, and hold the endowed Markey cancer foundation chair. Q: What were the major points that drew you to the Markey Cancer Center? A: the center is already extremely strong clinically and in basic science. one of my goals when i took this job was to achieve designation by the national cancer institute within five years. i wouldn’t be here if i didn’t think that was possible. to have a top 20 medical center, you need to have the resources and leadership to attract the best clinicians and researchers to your institution and to support them in their work. We have that leadership, and the commonwealth has made a huge investment in building the academic medical campus of the future today. Q: How do you think the Markey, as well as a growing health-related research community, is positioning Kentucky as a growing hub of bioscience expertise? A: Kentucky has a lot of special challenges in the area of health, and cancer is one of the biggest. the Markey cancer center is uniquely positioned to provide leadership in cancer prevention and treatment. our multidisciplinary, team-based approach combines our strengths in research with state-of-the-art clinical facilities and faculty. Markey can make great strides in translational research – taking discoveries from the laboratory through clinical trials and eventually into clinical practice. – Joe Morris

Rock Solid
BuSineSS oppoRtunitieS ...

poWell countY, kY
Home to two of the world’s natural rock wonders, Natural Bridge and the Red River Gorge, Powell County, Kentucky is also home to rock solid industrial and business development opportunities.
AvAilABle lAnd: Clay City Business Park and Stanton Industrial Parks AcceSS: Powell County, Kentucky is located approximately 40 miles east of Lexington via I-64 and the Mountain Parkway. Located immediately off the four-lane Mountain Parkway, Powell County blends small-town charm with easy access to larger cities. Transportation is further enhanced with a local UPS hub and airport. FinAnciAl incentiveS And WoRkFoRce: Kentucky’s best financial incentive programs along with Powell County’s qualified workforce and strong rural work ethic provide a rock solid basis for business success. contAct: Powell County Economic Development P.O. Box 10 • Stanton, KY 40380 • (606) 663-2156 powellindustrial@bellsouth.net • www.kyrockies.com

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KEnTucKY EconomIc DEvELoPmEnT GuIDE

Sitting Tall in the Saddle
world equestrian games harness Kentucky’s equine industry prowess
story by Joe Morris

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hile Kentucky has long been known for its fast racehorses and high-quality bourbon, the arrival of the 2010 Alltech FEI World Equestrian Games this September will cement Kentucky’s stature as the Horse Capital of the World. From Sept. 25 to Oct. 10, all equestrian focus will be on the Kentucky Horse Park in Lexington. 2010 marks the first time the competition has been held outside Europe, and Kentucky’s winning bid was the result of serious efforts by

local and state officials. Nowhere is that cooperative spirit more evident than at the park, which underwent a multimillion-dollar overhaul just in time for the games. The 1,200-acre working horse farm is home to the International Museum of the Horse, the American Saddlebred Museum as well as the National Horse Center which consists of over thirty national and regional equine association headquarters. Now it also boasts a permanent, 7,300-seat lighted outdoor stadium and 5,500-seat indoor arena, both of which already are drawing

interest – and bookings – from other equine events. That alone has made the investment well worth the effort, says John Nicholson, executive director. “It was revolutionary when we put forth the idea of hosting the games,” Nicholson says. “But the people of the Commonwealth invested in the park, and the FEI realized we had the facilities and infrastructure few places in the world could compete with. It’s just part of what makes Kentucky, Kentucky.” Kentucky First Lady Jane Beshear, who sits on the board for the Kentucky Horse Park Foundation, says another

the World Equestrian Games will come to lexington in fall 2010, the first time they will be held outside Europe. stAff PHoto

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s tA f f P H o t o

benefit is that the games will showcase a wide variety of equine disciplines and activities, further educating the community on how important the horse is to our local and state economies. “Up to this point, Kentucky has largely been known for our thoroughbred racing industry,” Beshear says. “The games will allow us to show the world that we are at the

forefront of the sport-horse industry as well. Racing Thoroughbreds are the minority in Kentucky’s equine population while the vast majority are varied breeds used for sport, such as the disciplines in the games, or used for pleasure activities like trail riding.” For title sponsor Alltech, the games provide a chance to highlight its animal health and nutrition programs and products to a global audience, and

it’s going after the opportunity with unbridled enthusiasm, says Kelly Welker, executive director of Alltech’s G.A.M.E.S. group. “We really don’t do big sponsorships, and this is certainly the first time we’ve invested $10 million in one,” Welker says. “But we are delighted to be working with everyone involved, and we are all aligned to see Kentucky thrive and put on an amazing show.”

clockwise from top: the logo of the Alltech fEi World Equestrian Games; groom shelly Gilbert, from England, grazes Woodfalls inigo Jones at the Kentucky Horse Park, which will host the 2010 Equestrian Games from sept. 25 to oct. 10.

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KEnTucKY EconomIc DEvELoPmEnT GuIDE

hoRSE SEnSE ThE KEnTucKY hoRSE PARK
the venue for the 2010 Alltech fEi World Equestrian Games is a working 1,200-acre horse farm, educational theme park, and equine competition facility in lexington. the park draws 900,000 visitors and 15,000 competition horses each year. KHP showcases dozens of breeds of horses in daily equine presentations, horse-drawn tours, horseback riding, a movie presentation and an array of horse shows and special events throughout the year. the park includes a 7,300-seat lighted outdoor stadium and 5,500-seat indoor arena and a 1,200-seat covered arena for exhibitions and competition. the international Museum of the Horse, an affiliate of the smithsonian institution, the American saddlebred Museum and a gift shop are part of the park complex. the park is also home to the national Horse center, a complex where 35 national, regional and state equine organizations and associations are headquartered.

JEff AdKins

s tA f f P H o t o

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Marshall County

River. Road. Rail.
We can get you there!
Marshall County Economic Development
Josh Tubbs, Director 1101 Main St. • Benton, KY 42025 (270) 527-2009 • Fax: (270) 527-4795

www.opportunitymarshall.com
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KEnTucKY EconomIc DEvELoPmEnT GuIDE

Kentucky
Opportunity Central – for Advanced Manufacturing; Office/Regional Headquarters; Technology

Northern

“The games truly are the jumping-off point for many economic development and tourism opportunities in the Bluegrass Region and beyond.”
888-874-3365

The horse park now has bookings well into 2014, Nicholson says, and overseas owners and breeders are showing interest in relocating to the area. This bodes well not only for creating a more multidimensional equine industry, but also for landing other large-scale events and, perhaps, even a return of the big event itself. As First Lady Beshear puts it: “The games truly are the jumping-off point for many economic development and tourism opportunities in the Bluegrass Region and beyond and will leave a legacy of excellence for Kentucky’s equine industry.”

Alltech FEI World Equestrian Games
Dates: sept. 25 oct. 10, 2010 Location: Kentucky Horse Park, lexington Duration: 16 days Anticipated reserve ticket sales: 600,000 Anticipated economic impact: More than $167 million Number of participating nations: More than 50 Broadcast coverage: 6 ½ hours on nBc
WILD Flavors Toyota Motor Engineering & Manufacturing North America, NA

Gov. steve Beshear and first lady Jane Beshear

www.alltechfeigames.com

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Worldwide Appeal
Kentucky companies find global markets are a passport to growth

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KEnTucKY EconomIc DEvELoPmEnT GuIDE

story by Pamela Coyle Photography by Antony Boshier

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What’s online
Watch an interview with carey Smith, founder and cEo of Big Ass Fans, online at kyedg.com.

entucky manufacturers are expanding their global reach at the same time foreign-owned companies are increasing investment in the Bluegrass State. The state’s exports are approaching $20 billion annually, and Kentucky ranks ninth nationally in exports per capita. Goods sold to other countries support 49,000 direct jobs; major markets are Canada, Mexico, Western Europe, China, Japan, Brazil, Taiwan and Singapore. Primary exports are transportation equipment, chemicals, machinery, and computer and electronics products, a list that belies the diversity of Kentucky’s products and their destinations. BFW Inc. in Louisville sells its fiberoptic headlight systems to hospitals and physicians around the world, and exports now make up about 25 percent of the company’s gross sales, says Lynn Cooper, president. The company is introducing new lamp technology that uses less energy, but extends the device’s life tenfold, from 1,000 hours to 10,000 hours, she says. “This new technology will become a significant driving force in the growth of international sales,” Cooper says. General Cable in Highland Heights designs, makes and ships copper, aluminum and fiber-optic wire and cable products for multiple markets that include communications and

A BAf facility in lexington

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What’s online
BFW President Lynn cooper See an interview with Lynn cooper, president of BFW, online at kyedg.com.

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KEnTucKY EconomIc DEvELoPmEnT GuIDE

energy. It won the 2009 Northern Kentucky International Trade Association Award of Excellence. In Lexington, Big Ass Fans, or BAF, makes fans with diameters up to 25 feet and ships to 50 countries. The firm has added an employee solely dedicated to boosting international sales. Exports account for less than 10 percent of BAF’s sales, but overseas sales in 2009 grew 20 percent over the previous year, says Carey Smith, the company’s founder and president. “It is amazing how many people see them outside the country,” Smith says. Sightings of Big Ass Fans – the Lexington company name is stamped on the blades – often take place in airports in tropical destinations that don’t use air conditioning. The company has industrial and commercial product lines. “We make everything in Kentucky, and all the components are made within 150 miles of where we are,” Smith says. Some companies, including Paducah-based PEBCO Inc., are benefiting from increased industrialization in countries that include China, India, Colombia and South Africa. PEBCO makes dry-bulk handling equipment used in the mining and basic materials industries. Rick Ladt, the company’s president, says patented chute systems allow automated and accurate loading onto trucks and trains, and dust-free loading of dry bulk materials is especially popular. “In the last few years, export has become a larger and larger portion of our business,” he says.

moRE InSIGhT
foreign investment is the other part of the trade equation, and Kentucky is adding new projects almost monthly. A february 2010 directory published by the Kentucky cabinet for Economic development lists more than 390 foreign-owned manufacturing and/ or supportive service firms in the state, employing more than 71,600 full-time workers. direct foreign investment neared $30 billion at the end of 2006, with Japan and Germany contributing more than two-thirds of the total. And the bottom line continues to grow. infAc corp., a south Korean company that makes mechanical cables and electronic components for the automotive industry, announced an expansion of its taylor county distribution and sales center in october 2009. A month later, Hitachi Automotive Products (usA), inc. announced it would spend $20.2 million to expand its operation in Harrodsburg. india-based chandra Proteco ltd., in december 2009, said it will start manufacturing in Morgantown as Kentucky copper inc., a $32 million investment.

KEnTucKY ExPoRTS In 2008
canada france Mexico united Kingdom Japan Germany netherlands taiwan china Brazil All countries
SOURCE: Kentucky Cabinet for Economic Development

$5.9 billion $1.9 billion $1.2 billion $1.2 billion $840 million $752 million $644 million $625 million $604 million $557 million $19.1 billion
moRE AT KYEDG.com
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Pine Ridge Regional Industrial
Where the Past, Present and Future come together and volunteerism is a way of life … 128 Acre Industrial Park
Located at the Quillen Chapel Interchange of the Bert T. Combs Mountain Parkway, near Campton.

“The Gateway to the Mountains”

Low Utility Rates
Hard working, dedicated workforce from five counties. Eastern/central section of Kentucky. One hour from Lexington Airport. Minutes away from Wendell Ford Regional Airpot and Stanton Airport.

No other part of the state can match this area’s scenery. Natural Bridge State Park – Red River Gorge. Hundreds of natural arches, five rivers, countless smaller streams and small lakes. The Shawnee once called the region “the playground of the gods.”

Where tradition and technology go hand-in-hand. Good roads and modern utilities allow area residents to enjoy the charm of small-town life and the 56 K E n T u cconvenienceE ofLthe Emodern world. KY EconomIc D vE oPm nT GuIDE

Authority and Business Park
Wolfe • Lee • Powell • Owsley • Breathitt Counties
The region offers good schools, highly rated academics and sports programs, five golf courses, libraries and museums, churches, Hazard Community College/Lees College Campus, Kentucky Area Technology Center – Lee County Campus.

Each of the five counties offer smaller industrial parks suitable for satellite businesses. Each county offers outstanding annual festivals including the Woolly Worm Festival – one of Kentucky’s top 10 tourism events. Daniel Boone National Forest. Community parks and playgrounds, rock climbing, large populations of deer and turkey, and some of the best fishing and hunting in the country.

More species of wildflowers than anywhere else in the world. BoB Smith (606) 464-2888 forktrt@bellsouth.net Steve hale (606) 663-2283 shale@whitakerbank.com

Outstanding fire departments and civic groups.

Largest oil and gas fields east of the Mississippi River.

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Small Business, Big Success
Kentucky programs give a lift to entrepreneurship

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KEnTucKY EconomIc DEvELoPmEnT GuIDE

A co2 laser cuts sheet metal at Boneal, a small manufacturing firm in eastern Kentucky that has won contracts with the u.s. Postal service, u.s. department of defense and u.s. Air force.

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story by Joe Morris • Photography by Antony Boshier

hile Kentucky’s largest employers are grabbing headlines for plowing millions into facilities that create hundreds of jobs, the state is working diligently to aid small business and encourage entrepreneurship. From a microloan program for loans up to $35,000 to classroom-style training sessions to outreach events and mentorship programs, the state has embraced small business. In 2009, the Cabinet for Economic Development’s Small Business Services Division hosted eight small business forums across the state, showcasing a particular region or area development district and offering fledgling entrepreneurs the chance to learn about the key components that turn an idea into a solid business plan. “We want to make sure people get assistance, whether that’s financial support, help making connections, finding out about contract opportunities or even attending some workshops,” says John E. Cole III, director of the Kentucky Small Business Services Division. Mammoth Designs Inc., a Flemingsburg-based manufacturer of cab enclosures, canopy tops and accessories for utility terrain vehicles, was founded in 2005 by fatherson team, Matt and David Oldham. What started as a business being run out of the younger Oldham’s basement has grown into a substantial operation,

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aided in part by consultation from state small business experts, who offered advice on streamlining operations, increasing efficiencies and boosting profits. (Some of the company’s UTV equipment was featured in the movie Tropic Thunder.) The company’s growth also has been helped by loans from the Kentucky Economic Development Finance Authority and the Mountain Association for Community Economic Development. “Whenever you expand, you need more capital,” David Oldham says. “We’re working so that we can make our business less cyclical, and growing daily, and so these sources of capital have been very helpful to us.” The company is exploring the government-contract market, and having resources available from the state to help it do so has been a key to its success in that effort, Oldham says. At 30-year-old Boneal Inc., a prime-contract manufacturer for government agencies and the private sector, being in a Small Business Administration-certified HUBZone – a historically underutilized business district – has been beneficial in landing government business. Consultants from the Kentucky Procurement Assistance Program (KPAP), also housed in the Cabinet for Economic Development, worked with Boneal when the company

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KEnTucKY EconomIc DEvELoPmEnT GuIDE

more Insight
Kentucky offers a number of programs that assist small companies. The Kentucky Economic Development Finance Authority, for example, offers a loan program to eligible businesses with fewer than 50 employees engaged in manufacturing, agribusiness, or service and technology. Loans of $15,000 to $100,000 are available for such things as acquiring land and buildings, buying and installing machinery and equipment, or for working capital. For more on the program and other programs that assist small business in Kentucky, go to www.thinkkentucky.com.

Entrepreneur helper
ArrAy of resources Aid KentucKy stArtups
A wide range of public funding and business support programs also help Kentucky create and grow hundreds of new high-tech ventures each year. from pre-seed, seed and commercialization funds, to tax incentives and other programs, Kentucky has the resources and infrastructure in place to help innovators and entrepreneurs succeed at every stage of developing their technologies. A statewide network of innovation and commercialization centers offers entrepreneurs advice and help in starting a high-tech company and finding funding. since 2001, the cabinet for Economic development, through its department of commercialization and innovation (dci), has invested more than $150 million in high-tech companies, initiatives and projects that have created thousands of high-paying, high-tech jobs statewide. Kentucky has an amazing range of resources to assist high-tech start-up companies,” says dci commissioner deborah clayton. “our state programs are especially valuable to innovative entrepreneurs as the funding is usually provided in the form of forgivable loans and grants.” to help cultivate a strong entrepreneurial spirit among Kentucky’s young innovators and entrepreneurs, the cabinet hosts an annual business plan competition, idea state u, which is open to all eight of Kentucky’s public universities. More than $100,000 in combined prizes and awards make the event one of the nation’s largest state-sponsored business plan competitions. dci offers a variety of other programs that encourage small business growth, including Kentucky’s unique small Business innovation Research (sBiR) and small Business technology transfer (sttR) Matching funds program, which has drawn national attention. it matches both Phase 1 and Phase 2 federal awards received by Kentucky’s early-stage, high-tech businesses. Enabling Kentucky companies to undertake research, development and commercialization in the fields of alternative fuels and renewable energy, as well as helping build research-intensive industries in the state and investing seed capital in promising hightech companies are also priorities for state efforts. for more on the programs that assist small business in Kentucky, go to www.ThinkKentucky.com. – Joe Morris
KYEDG.com

began to explore the government market, helped them get HUBZone certification and provided information about government specifications and pricing history. Boneal has subsequently won contracts with the U.S. Postal Service, U.S. Department of Defense and the U.S. Air Force. Boneal continues to utilize KPAP’s bid match service to identify government contracting opportunities, and participates in many KPAP training/networking events to aggressively seek out new marketing contacts. “In Kentucky, there are a number of programs that help businesses help themselves,” says David Ledford, Boneal president. “We got a lot of guidance when we were learning about government contracting and were able to get access to a lot of data and research that was out there, as well as some helpful introductions. We have always found the Cabinet for Economic Development staff have a genuine interest in what we’re doing.”

From left: father-and-son partners Matt, left, and david oldham own Mammoth designs, which specializes in aftermarket utility terrain vehicle accessories; david ledford, president of manufacturer Boneal inc. in Means, Ky.

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Proof of Success
bourbon distillers pour new investment dollars into Kentucky
story by Joe Morris

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entucky’s horse industry is internationally known, but those who prefer sips to saddles have ensured that its Bourbons are a popular Bluegrass State export as well. The numbers are certainly there: $3 billion in gross product, 10,000 direct and spin-off jobs with $442 million in annual payroll. Kentucky produces

95 percent of the world’s supply of Bourbon, with nearly 5 million barrels currently aging in the Commonwealth. And with more than $100 million in planned and active capital investment, it’s an industry that’s ramping up to be even bigger. Among those increasing their production and operations in the state:

Rare Breed Distilling is building a 20,000-space barrel storage warehouse at its Wild Turkey distillery in Lawrenceburg. The $2.3 million project will add to Wild Turkey’s storage capacity for its maturing whiskey products. Sazerac North America is planning a combined $28 million expansion at

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BRiAn MccoRd

more Insight
The Kentucky Bourbon Trail® links six of the state’s historic distilleries: Brown Forman’s Woodford Reserve, Four Roses, Heaven Hill, Jim Beam, Maker’s Mark and Wild Turkey, and allows visitors to explore the more than 200-year history of America’s Official Native Spirit. For more on the Kentucky Bourbon Trail®, go to www. kybourbontrail.com.

JEff adkins

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its Owensboro distillery and the Buffalo Trace Distillery in Frankfort. The projects will add nearly 90 new full-time jobs in the Commonwealth. Beam Global Spirits & Wine, which operates the Jim Beam distilleries in Frankfort and Clermont, will begin production in Frankfort of DeKuyper cordials and other spirits currently bottled outside of Kentucky. The move will result in the addition of about 120 new jobs and more than $28 million in technology upgrades at the Frankfort distillery over a two-year period. “The $28 million plant upgrade in Frankfort is part of a current consolidation of our North American locations, but we have been continually expanding in Kentucky for the past three or four years,” says Jeff Conder, vice president of Americas operations for Beam Global. “We have invested about $70 million in warehousing and distillation capacity, increasing our Bourbon-making capacity in Kentucky by 50 percent.”

Beam has gone from 1.2 million barrels in storage to almost 2 million, much of which is dedicated to Bourbons requiring more time in the barrel, so it has ramped up production for both its four-year products, as well as those that require more aging. “Kentucky is the nexus of our network, not only because we have increased capacity for Bourbon, but also because we’ve been able to bring into our facilities some of the products from recent acquisitions to be produced here as well,” Conder says. Many of the state’s new and existing distilleries have become tourist sites, as well as manufacturing centers, allowing the state’s signature industry to become an increasingly visible destination as well as an economic development juggernaut. September in Kentucky is Bourbon Heritage Month, and the Kentucky Bourbon Trail® marked its 10th anniversary in 2009 with more visitors to its historic distilleries than ever

before. “In the past 10 years, Bourbon production has increased by more than 75 percent, and that has had an effect on tourism as well,” says Eric Gregory, president of the Kentucky Distillers’ Association. “And many of these distillers have spent millions to upgrade the visitors’ experience.” As an example, he points to Maker’s Mark and its $3 million upgrade to their distillery experience that included a gourmet café and upgraded gift shop at its Loretto distillery. “A lot of the expansion is geared around the tourism component, which has been skyrocketing,” Gregory says. “Since we opened the Kentucky Bourbon Trail, attendance has never gone down, and in 2009, we had more than 350,000 visits to the sites on the trail, with more than 3,000 people visiting all distilleries.” The state’s willingness to pitch in with marketing and promotion has helped enormously, and Gregory

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A Barrel Full of Fun
PHotos By JEff AdKins

city celebrAtes its spirit with bourbon festivAl
With more than 95 percent of the world’s supply being distilled in Kentucky, the Bluegrass state will get few arguments about its dominance in the Bourbon industry. the state celebrates its Bourbon-producing heritage each september at the Kentucky Bourbon festival in Bardstown, the Bourbon capital of the World. Bourbon has been produced in Bardstown since 1776, giving the community a true revolutionary spirit. About 70 percent of Kentucky’s Bourbon is produced in the region that includes Bardstown. the festival is a five-day extravaganza filled with food, live music, entertainment, a host of events for adults and families, seminars, tours and, of course, Bourbon. the 2009 event, for example, included events ranging from the ancient craft of barrel making to a cooking class using Bourbon recipes to seminars by master distillers to Bourbon tastings to tours of historic Bardstown and Bootleggers & Bushwhackers train Robbery, a ride on a steam locomotive where bandits came after its cargo of liquid gold. Begun in 1992 as a Bourbon tasting and dinner, the festival grew to more than 45,000 visitors from 43 states and 13 countries in 2009. it has been named one of the top events by southeast tourism society, the American Bus Association and the Kentucky tourism council. the dates for the 2010 festival are sept. 14-19. festival events are open to the public and while many are free, some require reservations and tickets. for more on the festival and for event and ticket information, go to www.kybourbonfestival.com.
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credits economic development officials at all levels of government for capitalizing on the boom. “Bourbon and Kentucky have been linked for centuries, and it’s known all around the world,” he says. “We’re growing jobs in the distilleries and in the related tourism industry and are having a tremendous financial impact.”

Shot of Success

$3 billion
value of gross product of Kentucky distilleries number of direct and spin-off jobs at Kentucky distilleries

10,000 $442 million

Annual payroll at Kentucky distilleries and spin-off industries clockwise from left: the Woodford Reserve distillery in versailles; master distiller Jim Rutledge sniffs a Bourbon sample during the distilling process at four Roses distillery in lawrenceburg; the Kentucky Bourbon trail includes a number of worldfamous distillers

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Percent of world’s Bourbon supply that comes from Kentucky

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making Big Waves
Kentucky is awash in water recreation opportunities

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JEff adkins

story by Amy Stumpfl

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ith more than 1,000 miles of navigable waterways, the Bluegrass State offers virtually unlimited opportunities for outdoor recreation. In fact, Kentucky boasts more miles of running water than any state other than Alaska. From boating and fishing to historic river towns and museums, the state’s many waterways capture the hearts of residents and visitors alike. “People are often surprised when they start looking at the sheer numbers,” says Elaine Wilson, executive director of Adventure Tourism for the Tourism, Arts & Heritage Cabinet. “Louisa May Alcott’s father said it best, ‘The less routine, the more life.’ So, chuck the routine and plan some outings with family and friends.” Water activities and attractions abound the state, including the Belle of Louisville, a century old sternwheel steamboat that transports passengers up and down the Ohio River. Newport’s Ride the Ducks features amphibious vessels modeled after World War II landing craft, and Lost River Cave in Bowling Green hosts the state’s only underground boat tour. During a full moon at Cumberland Falls near Williamsburg, visitors can see a beautiful and rare phenomenon, a moonbow – a rainbow produced by light

reflected off the surface of the moon rather than from direct sunlight – one of only two found in the Western Hemisphere. Nestled in the heart of the Cumberland Plateau, Big South Fork National River and Recreation Area also is a popular destination for water recreation, whether it’s fishing or whitewater paddling. Comprising more than 125,000 acres of rugged scenery – including dramatic gorges and sandstone arches – the park averages 675,000 visitors annually. “Some areas are pretty rugged, while others are more manageable,” says Howard Duncan, park ranger. “Hiking and horseback riding also are popular activities, and a great way to appreciate the scenery.” For those looking for a more relaxed pace, the Big South Fork Scenic Railway provides spectacular views along with an inside look at the park’s rich history and culture. On the shoreline, an array of interesting museums and attractions augments the waterway experience, from the Kentucky River Museum in Boonesborough to the McAlpine Lock and Dam in Louisville to Covington’s BehringerCrawford Museum and its riverboat memorabilia. The River Discovery Center in Paducah honors the unique heritage and culture related to the state’s waterways.

From left: A water skiier takes in a sunset over Herrington lake in eastern Boyle county; the Belle of louisville on the ohio River

Antony BosHiER

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From top: visitors at the River discovery center try out the Pilothouse simulator; Big south fork national River is popular with kayakers.

Established in 2003, the center uses interactive exhibits and state-of-the-art technology to explore the region’s rivers and river industry. For example, the Pilothouse Simulator allows visitors to captain their own boat, maneuvering through various obstacles and challenges. “The simulator is the first of its kind in a museum setting,” says Julie Harris, center executive director. “It’s great fun for both children and adults, providing a very realistic experience. In fact, it’s so real that we’ve even had a few people get seasick.” Other exhibits include Hidden Highways, which explores the vast inland waterways throughout the eastern United States, complete with changing elevations. And 24 Hours on the River provides a bird’s-eye view of river traffic at the confluence of the Ohio and Tennessee rivers at Owens Island. The River Discovery Center offers a number of educational programs throughout the year, as well as summer day camps for children ages 8-12. Harris says the center is gearing up for a major expansion, which will include new facilities, exhibits and even aquariums. “We welcomed 17,000 visitors in 2009 – up 30 percent over 2008 – so we are really excited about the expansion,” she says. “Our exhibits touch on all aspects of the rivers, educating people in a fun, entertaining way.” For vacation ideas on land and water in Kentucky, go to www.kentuckytourism.com.

BRiAn MccoRd

Antony BosHiER

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hollywood in the Bluegrass
stAte stArs with incentive progrAm for film production
in a state that is synonymous with horses, it’s fitting that a movie about legendary triple crown winner secretariat would be filmed in Kentucky. the path from the track to the silver screen was made easier by a $1.2 million tax credit for the disney studios subsidiary making the movie, the life story of Penny chenery, secretariat’s owner. the credit was the first given under a new state program designed to draw more film production to the state. the incentives, administered by the tourism, Arts and Heritage cabinet, were signed into law by Gov. steve Beshear as part of his incentives for a new Kentucky legislation passed during the 2009 special session of the Kentucky General Assembly. film and television projects that spend at least $500,000 in the state are eligible for a 20 percent refundable tax credit for production and post-production expenses. the credit is also available for commercial productions that spend at least $200,000 and documentary filmmakers and Broadway productions that spend at least $50,000 in the state. “this is a great way to kick off Kentucky’s new film incentive package,” Gov. Beshear says. “i think it’s appropriate that a state known for thoroughbred racing be a part of a film about one of the most well-known horses in racing history.” the production company spent about two weeks filming in the state in fall 2009, infusing around $6 million into the Kentucky economy for expenditures such as salaries for extras and hotel stays. state officials had been trying to land the project for three years and were told the film would be shot in louisiana until disney learned of Kentucky’s incentives. “films like Secretariat will offer Kentucky communities and small businesses a great opportunity when it comes to film production,” says Kentucky first lady Jane Beshear. “i’m hopeful that the incentives we offer will prompt more filmmakers to follow and help us promote Kentucky’s beauty and economic development opportunities.” Besides Secretariat, expected to be released in late 2010, the incentives are luring other projects, including an independent film to be shot in Anderson county and the surrounding area. – Bill McMeekin

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Building a Regional Economy

Elizabethtown & Louisville Metro Areas:

Looking Beyond Boundaries

Wired65: Talent, Innovation & Place

Special Advertising Section

Wired65: Building A Regional Economy

Regional Collaboration
Regional collaboration brings economic prosperity to Kentucky’s heartland
n Kentucky’s heartland, an economic development initiative known as Wired65 is allowing civic leaders in 26 counties to look beyond the physical and political boundaries that organize them, and devote their time, passion and expertise to regional collaboration. Initiated by the Lincoln Trail Area Development District Workforce Investment Board through a federal grant, the $5 million Wired65 program began as a workforce development strategy covering 15 Kentucky counties, primarily to address the Fort Knox workforce expansion under BRAC. It soon became evident to area leaders that the regional boundaries needed to be enlarged in order to realize their vision of an area that could compete globally in a wide range of economic areas. “It wasn’t a 26-county focus when we first started,” says Kim Huston, Wired65 co-chair and president of the Nelson County Economic Development Agency. “But once we got into it, we knew we needed to bring the larger Louisville metro area, which meant including southern Indiana and also moving southward to Green County. Now, we have six area development districts that are involved, covering 26 counties.” Working in such a large region has its advantages and its challenges,

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Huston says, but because community leaders understand that economic prosperity and innovation occur when regional assets are linked, working in a larger region offers greater rewards. “We have large cities and small towns involved in this effort,” she says. “Not all the opportunities and challenges these communities have or face are the same. We went through a comprehensive process, evaluating our region’s strengths and weaknesses, to develop programs and projects that are transferable from urban to rural areas.” Globalization is changing economic boundaries; regions are recognized as the most important economic geographies in today’s economy. By looking at individual economic resources through the lens of regionalism, leaders envision a cluster of prosperous communities driven by talent, competing together as one in a global marketplace. Leaders have discussed workforce needs, industry trends, education services and quality of life attributes. They’ve spent a significant amount of time focusing on young professionals and what they seek when choosing an area to live and work. Extensive research shows Kentucky’s heartland as a great place to raise a family, one where family and friends are a high priority. People in the area also value opportunities for social, educational,

recreational and cultural experiences. The numerous area colleges and universities provide a powerful economic engine. Schools are pursuing new ways to integrate education with industry so that students graduate with the workforce skills that employers need. They are looking at what’s working in the career pipeline, expanding upon those models and preparing for 21st-century jobs. Health care and logistics are strong industry segments today. Some of the region’s greatest opportunities lie in energy, manufacturing, information technology, tourism, agriculture, human resources and entrepreneurship. The U.S. Army is transferring its Human Resource Command to Fort

www.wired65.org

Jeff Adkins

Elizabethtown & Louisville Metro Areas

Setting Priorities
Five regional priorities form core of Wired65 work program

Regional leaders collaborated for

18 months, utilizing the services of two organizations – TIP Strategies and Next Generation Consulting – to assess the strengths and weaknesses of the 26-county Wired65 region. After surveying hundreds of people and meeting with multiple focus groups across Kentucky’s heartland, they identified five major regional priorities that have formed the core of Wired65’s work program: • Fix the Education Pipeline – Focus on smoothing transition points within the P-20 education system. Make learning relevant to growth industries and make the connection between education, income and prospects for the future.

Knox over the next few years, bringing thousands of white-collar jobs to the area. Those jobs will be filled by people who will enjoy Kentucky’s scenic beauty, bourbon, horses and vast opportunities for adventure tourism. Wired65 is funded by a federal grant from the Department of Labor that requires that funds be used to support sustainable changes in industries and workforce development. The Wired65 region includes 26 counties (19 in Kentucky and seven in Indiana), the Louisville and Elizabethtown metropolitan areas, and portions of six workforce investment areas. – Betsy Williams
Left: A welder fixes a trailer hitch; Kentucky-based companies are creating breakthroughs in all areas of health care, including the processing of MRI images Above: The Kentucky Derby; Kentucky Center for the Performing Arts; St. Catharine College; pumpkin patch
This special section is published for Lincoln Trail Area Development District by Journal Communications Inc.

• Prepare for 21st-Century Jobs – Provide cutting-edge vocational training in high school and better align postsecondary programs with the needs of local businesses. • Create a Talent Magnet – Promote the region as a world-class destination for 21st-century talent by highlighting the region’s educational, innovation and research assets. • Invest in Priority Sectors – Invest in economic and workforce development projects that strengthen the region’s priority sectors: health care, life sciences, logistics, human resource management, energy technologies, advanced manufacturing, agriculture, entrepreneurship, and tourism. • Focus on Quality of Place – Take a regional view and use the region’s quality of place as a recruitment and retention tool for knowledge workers.

For more information, contact: Lincoln Trail Area Development District P.O. Box 604 • 613 College Street Rd. • Elizabethtown, KY 42701 (270) 769-2393 • (270) 769-2993 Fax (800) 247-2510 TDD • www.ltadd.com
©

Copyright 2010 Journal Communications Inc. 725 Cool Springs Blvd., Suite 400 Franklin, TN 37067, (615) 771-0080

All rights reserved. No portion of this special advertising section may be reproduced in whole or in part without written consent. On the cover: UPS is a major presence in the region and the state.

The Kentucky Education and Workforce Development Cabinet and Wired65 have awarded one Quantum grant of $2.5 million and 10 Catalytic grants totaling $853,000 to fund programs addressing these five regional priorities. – Betsy Williams

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Wired65: Building A Regional Economy

PASSINg INSPECtIoN
Fort Knox gains 5,000 jobs under BRAC realignment as Army’s international HR headquarters

Fort Knox BRAC by the Numbers
• Total projected employment impact is 7,800 jobs, including spinoff jobs • As many as 13,000 new residents (employees and family members) • $322 million plus in new payroll; $1.5 billion total payroll post-BRAC • More than $750 million in construction projects on Fort Knox since 2006 • A sustained 40 percent increase in state and local tax revenues • From 2007-2012, the total projected state tax revenue generated from Fort Knox operations will exceed $385 million, representing a $96 million increase in new state tax revenue • Projected annual state tax revenue generated postBRAC from Fort Knox operations is approximately $75 million • The Commonwealth of Kentucky has committed $100 million to transportation and infrastructure improvements to prepare for increased demand by new residents

ort Knox is transforming into the human resources department for one of the largest organizations in the world, the U.S. Army. Current figures show a net increase of 5,000 permanent positions at the post, including approximately 2,500 civilian jobs largely in human resource management and information technology. This boost to the region’s knowledge-based economy is causing quite a stir. “The region could see as many as 13,000 new residents over a period of three to four years,” says Brad Richardson, executive director of One Knox, the organization serving as the liaison between Fort Knox and the region’s communities. “Our charge is to help the communities with all of the changes that are occurring and help them deal with the growth issues.” The growth will have a huge impact on the region’s workforce programs, schools, infrastructure and housing. One Knox, which is funded by the Office of Economic Adjustment of the Department of Defense and the participating counties, assists by coordinating studies and planning, soliciting funding for community capital projects, and serves as the single point of contact for the local communities in their coordination with the military, Army civilians and defense contractors. To assess the projected economic impact on the surrounding communities, the Lincoln Trail Area Development District engaged consultants to produce a regional economic impact analysis. The consulting team predicts the Base Realignment and Closure (BRAC) will have a significant economic impact on both the nine-county study area and the Commonwealth of Kentucky. The study estimates that for every two new jobs on post, one will be created off post. BRAC could result in more than $322 million in new payroll from new direct jobs, construction jobs, and spinoff employment. It may also produce a sustained 40 percent increase in local and state tax revenues.
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Opening in June 2010 is the Human Resource Center of Excellence, which will house the international headquarters for the U.S. Army Human Resources Command and Army Accessions Command. When fully populated, approximately 4,500 people will be working in the mammoth 900,000-square-foot structure. While many of the new job openings will be either Army human resource specialists or assistants, there will also be many opportunities for information technology experts, administrative workers and a wide variety of other disciplines. Salaries will range from approximately $25,000 to upwards of $140,000. “There are lots of great things happening,” Richardson says. – Betsy Williams

Elizabethtown & Louisville Metro Areas

From gRAIN to goLd
The Derby Region’s rich Bourbon history contributes to a robust regional economy
luegrass and Bourbon blend together in Kentucky’s heartland, creating a dynamic hospitality industry that is rich in scenery, history and tradition. For more than 200 years, Kentucky distillers have crafted distinguished Bourbons, which account for 95 percent of the world’s Bourbon production. Today, distilleries help create about 10,000 jobs in the state, generating an annual payroll of $442 million and $125 million in taxes, according to a study released by the Kentucky Distillers’ Association. Brands like Jim Beam, Maker’s Mark and Heaven Hill dot the region’s landscape, making Bourbon a signature Kentucky commodity and the largest export category of all U.S. spirits. Other distillers on the legendary Kentucky Bourbon Trail® include Four Roses, Wild Turkey and Brown-Forman’s Woodford Reserve; together they manufacture the amber liquid of fermented grains and limestone water that is marketed under dozens of different names. Brown-Forman, located in Louisville, is among the top 10 largest global spirits companies, with more than 25 brands in its portfolio and sales in more than 135 countries. “People want to savor the Kentucky Bourbon experience,” says Dawn Przystal, vice president of tourism expansion and marketing for the Bardstown-Nelson County Tourist & Convention Commission and a member of Team Bourbon, a regional marketing effort. “The creation of the Kentucky Bourbon Trail® in 1999 has encouraged the distilleries to enhance the visitor experience. Each distillery is unique – some are modern facilities, others are historic landmarks – and the experience is an extension of their brand.” Distilleries have received more than 1.5 million visits in the last five years, as Bourbon enthusiasts view the process and then taste the result. And 2009 marked a 400 percent increase in Kentucky Bourbon Trail® Passport participants – those who visited all distilleries. More than 50,000 people attend the annual Kentucky Bourbon Festival held September in Bardstown. The event has grown from a

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celebratory dinner to a weeklong event featuring concerts, fine arts and, of course, Bourbon tastings. Those visitor numbers continue to generate new investment and additional jobs in the hospitality industry, with the creation of new hotels and restaurants and the adaptive reuse of historic buildings as quaint lodging and retail establishments. A lively entrepreneurial spirit is evident throughout the region, with restaurants and cooking schools centering on Bourbonbased delicacies – all served amid Kentucky’s breathtaking scenery. “You can’t find the Bourbon experience anywhere else in the world,” says Bardstown’s Przystal. “It’s led people here – it’s the hook – and then they discover the many other great things to see and do in our region.” After a day in the countryside visiting distilleries, take a trip into Louisville for a stop on the Urban Bourbon Trail. Louisville has been home to many distillers since Evan Williams marketed his first whiskey in the city in 1780. The establishments on the Urban Bourbon Trail vary from historic hotel properties to cosmopolitan bars and include Proof on Main, part of the 21c Museum and Hotel. This 90-room boutique hotel nestled in the heart of Museum Row in historic downtown Louisville offers an authentic, luxurious Southern experience in an art-filled setting. Founders Laura Lee Brown and Steve Wilson launched the museum, hotel and awardwinning restaurant in 2006 to support Louisville’s downtown revitalization and engage the public with contemporary art. – Betsy Williams

About Kentucky’s Bourbon Industry
Distillers of Bourbon and other spirits pump hundreds of millions of dollars into Kentucky’s economy each year, according to a Kentucky Distillers’ Association study. Other findings: • Kentucky hosts 43 percent of all U.S. distilling jobs • The distilling industry has a job multiplier of 3.29, creating more spin-off jobs than other industries such as tobacco farming, horse farms and coal mining • Distilling ranks fourth out of 244 Kentucky manufacturing industries in total employment and job multiplier • Distillery operations generate $9 million annually in taxes on aging barrels and property

Special Advertising Section

Wired65: Building A Regional Economy

Investing in Regional Talent
Wired65 grants champion projects that will develop a new workforce generation

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he Kentucky Education and Workforce Development Cabinet and Wired65 awarded more than $853,000 in grants to 10 organizations that will champion projects that offer new ways to develop, retain and recruit the next generation of talent. These forward-thinking ventures will emphasize workforce development efforts that cater to employers in the 26-county region.

needed to enhance education transitions.
Venture Building the Regional Food Economy –

Phase I Implementation
Champion Louisville/Jefferson County Metro Government,

Venture Junior Achievement Career Planning for

Economic Development Department
mission This project funds a public interest broker to serve as a

High School Students
Champion Junior Achievement of Kentuckiana mission JAKY is bringing business people and volunteers into the

classroom to guide young people through their career and college planning process with the JA Real Jobs, Real World program. “The work we are doing will help students remain motivated to stay in school and achieve the career of their dreams,” says Debra Hoffer, president of JAKY, which has expanded its service area in order to serve more than 3,000 students throughout the 26-county region. Career planning programs are being delivered in 120 classrooms, establishing links between students and postsecondary education institutions. “The teachers are ecstatic to place a real businessperson in their classes to help students achieve their goals,” Hoffer says. “And this has captured the attention and support of the business community because they see as individuals that they can do something that has a deep impact on creating the workforce of the future.”
Venture

liaison between regional farmers and Louisville’s food market. The broker is also charged with implementing strategies to grow the region’s food economy, educating farmers about marketing and sales opportunities and focusing on the next generation of farmers. “The city of Louisville and surrounding communities have been working for a number of years to build a sustainable farm economy,” says John Logan Brent, Henry County judge executive. The broker is meeting with area hospitals, restaurants, food distribution companies and emergency feeding organizations to find those product opportunities, then coordinating delivery with farmers. Leaders are discussing the creation of a permanent retail setting, a farmer’s market that would include a processing place where consumers could take their green beans and corn for canning and freezing. Nearby restaurants would use the locally grown food to gain critical mass, thus creating a cycle of profitability. “People love to drive out from the urban areas and look at well-maintained farms and countryside,” says Brent, a Henry County native. “But it doesn’t come that way without some profitability, which comes about when you connect the producer with the consumer.”
Venture School At Work® “Building a Career Ladder in

Fix the Pipeline: Improving High School Transitions
Champion Greater Louisville Inc. and Louisville/Jefferson County

Metro Government
mission Three components will be implemented to increase the

Healthcare”
Champion Catalyst Learning Co. mission Adults employed in entry-level jobs at four hospitals in

number of students who graduate from high school, submit college applications and enroll in college. The components include a Close the Deal campaign to create a strong collegegoing culture by involving elected officials, holding regional workshops to increase college familiarity and implementing a KnowHow2Go marketing campaign to promote the tools

the Wired65 region will participate in School At Work (SAW) from September 2009 to June 2010. SAW has been

www.wired65.org

Elizabethtown & Louisville Metro Areas mission The Family Scholar House is a

residential program that provides support to single-parent students working toward a four-year college degree. Innovative technology and outreach support will maximize the Family Scholar House’s new Academic Services Center. Funding will provide the new center with an outreach coordinator and technology for training.
Venture Invention Fair Champion Western Kentucky Research

Foundation, WKU
mission Invention Fair is a regional event

used successfully by Norton Healthcare and Floyd Memorial since 2005 to advance employees. By refreshing essential skills and completing individual career plans, SAW helps employees prepare for local colleges and move up the career ladder.
Venture Inspiring Student Entrepreneurs to Spark Business

that will showcasethe creative ideas and inventions of high school students. Winners of county invention fairs will advance to participate in the 26-county Invention Fair in the spring of 2010, with potential feed into an existing college competition, IdeaU.
Venture One-Stops as Talent Development Portal Champion WorkOne – The Region 10 Workforce Board Inc. mission The project works to refocus the existing

Activity in Their Communities
Champion Kentucky Council on Economic Education mission A new high school entrepreneurship study designed for

career and technical classes will be demonstrated to high schools in 15 counties in the Wired65 region. A teacher/ leader will be designated to each county. Students will be pre- and post-tested and participate in a virtual entrepreneurship program.
Venture HIRE Education Forum Regional Internship Program Champion The HIRE Education Forum mission This region-wide college internship program will employ

perception of One-Stops as an unemployment office and transition its market brand as a “talent development” portal. Funding will be used to promote the new identity to different business and industry sectors and assist the incumbent workforce in improving information and computer technology occupations.
Venture Regional Visioning and Leadership

Development Campaign
Champion Regional Leadership Coalition mission This campaign will create a compelling, shared

college students as interns in an effort to fill workforce shortages, provide on-the-job training and create a talented pool of individuals for future workforce needs. HIRE is a collaborative of 31 accredited colleges and universities spanning the 26-county region.
Venture Innovative Technology and Outreach Program Champion Family Scholar House Inc.

vision of the region’s future that will speak to the community and sustain regional cooperation. It will also look toward regional economic aspirations in the global marketplace and each unique community. County chambers, young professionals, leadership organizations and educational institutions will participate in the campaign. – Betsy Williams

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This workforce solution was funded by a grant awarded under Workforce Innovation in Regional Economic Development (WIRED) as implemented by the U.S. Department of Labor’s Employment and Training Administration. The solution was created by the grantee and does not necessarily reflect the official position of the U.S. Department of Labor. The Department of Labor makes no guarantees, warranties, or assurances of any kind, express or implied, with respect to such information, including any information on linked sites and including, but not limited to, accuracy of the information or its completeness, timeliness, usefulness, adequacy, continued availability, or ownership. This solution is copyrighted by the institution that created it. Internal use by an organization and/or personal use by an individual for non-commercial purposes is permissible. All other uses require the prior authorization of the copyright owner.

Gallery

horse farms and miles of fences line the countryside in Lexington, which bills itself as the horse capital of the World. Photo by Jeffrey S. otto

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A cyclist crosses the chenault Bridge in Danville. Photo by Jeff Adkins

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The Lincoln memorial in Waterfront Park in downtown Louisville. Photo by Antony Boshier

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A canon stands in front of the visitors center at Leslie W. morris Park on Fort hill. Photo by Jeff Adkins

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The clock tower atop the historic Barren county courthouse is reflected in the mirrored modern windows of the citizens First Bank Building on the town square in Glasgow. Staff photo

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Energy/Technology

They Know nano
Kentucky researchers make big breakthroughs on a tiny scale

story by Pamela Coyle Photography by Antony Boshier

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entucky is making a big splash in a field that manipulates molecular particles into products with applications in the aerospace, cancer research, solar power and across virtually every other field of technology. Lexington-based Topasol is working with the U.S. Navy on “smart” coatings for military aircraft that turn one color to show impact damage and another color to show heat stress. In Louisville, NaugaNeedles makes minute probes that are 1/1000th the width of a human hair for research in medicine, fluid sciences and thermal vibrations. And at the University of Louisville, a 10,000 square-foot clean room is a key feature of the $42 million Science

and Technology Research Center. Nanotechnology is the common denominator. “We are probing smaller worlds that we had no clue about and needed a smaller tool to go there,” said David Mudd, sales and marketing director for NaugaNeedles, a University of Louisville spinoff based on the research of Mehdi M. Yazdanpanah. Researchers who use atomic force microscopes use the needles to probe the liquid environments and make highly sensitive measurements within living cells. NaugaNeedles are more flexible and harder to break than other nanoprobes, and unlike some of their competitors, are conductive, he said. These unique properties make them useful in studies in fields that range

A technician works in the university of louisville Micro/nano technology cleanroom.

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A technician with a central processing unit in the university of louisville Micro/nano technology cleanroom; Right: Jose Rivera, manufacturing engineer, inspects a nauganeedles product under a microscope.

more Insight
Kentucky companies developing alternative energy technologies have a new source of potential financing – their state government. Kentucky New Energy Ventures is a $5 million state fund, managed by DCI, that makes both equity investments and direct grants to firms with promising ideas for alternative and renewable energy technologies. Applications are accepted on a regular basis. For more information, go to www. startupkentucky.com.

from cancer research to lithium ion batteries. “To study something, you have to disturb it and not just hit it with light,” Mudd says. Uschi Graham, a chemistry professor at the University of Kentucky, founded Topasol – short for topical solutions. The company’s super-sensitive aircraft coating will help engineers pinpoint damage before it develops into more serious problems, possibly grounding the aircraft longer for repairs. “New advanced composite structures for aircraft bodies are extremely strong and durable and lightweight,” she said. “But even at low velocities, a bird strike can cause delamination, but you cannot tell by looking at the structure.” The patent-pending technology, which the university licensed to Topasol, is still in development. So are other nanocoatings to reduce reflection and glare, allowing solar cells to absorb more of the incoming energy, though the company owns that technology outright, says Graham, the company’s president and CEO. At the University of Louisville, scientists and engineers from multiple disciplines are

using the Micro/Nano Technology Cleanroom, trying to make very small things that address very big problems. Some work in nanotechnology; others work in MEMS, or microelectromechanical systems, devices and structures. In MEMS, scientists place microcomponents on wafers and etch away particles they don’t need. Combined with radio frequency technology, the approach at UofL has created an implantable wireless sensor for glaucoma management and a sensor than can detect whether patients are healing properly after spinal fusion surgery. Other UofL groups are working on scavenging energy from vibrations in wind and traffic, and even electrochemical energy from trees. The Micro/Nano lab also is leading an effort to link all of Kentucky’s university and private nanotech efforts together. Mudd likened the field to Horton Hears a Who! In the Dr. Seuss classic book, Horton, a large elephant, realizes a speck of dust is an entire planet populated by microscopic inhabitants no one can see.

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Start It up
KentucKy universities spin reseArch into new compAnies
Polite company for years shied away from using the words commercialization and academia in the same sentence, but don’t tell the university of Kentucky. uK stands out among its benchmark institutions nationally in licensing revenue and faculty-related start-up companies, ranking 17th and sixth, respectively. Even more impressive – it ranks first among its benchmarks in startups per $10 million of research expenditures. “you wouldn’t think a small, quiet town would be so successful,” says len Heller, uK vice president for commercialization and economic development. Kentucky’s flagship university in lexington takes development of intellectual property seriously. it holds more than 300 active patents, with a strong portfolio in drug development and design, plant biotech, equine health and materials for medical devices and drug delivery systems. “the president and college deans look for faculty who have an entrepreneurial spirit,” Heller says. “commercializing our innovations and creating new companies and jobs is at the heart of our economic development mission.” the numbers show it. According to the lexington venture club, early stage companies in the Bluegrass area attracted $47.5 million in venture funding last year. companies affiliated with uK

accounted for 52 percent of the funding and paid higher salaries than the other area companies. success stories include Allylix, which modifies yeast genes to make flavors and fragrances, and Mersive technologies, a leading display technology company. Alltranz is working to improve drug delivery through transdermal patches, and tolera therapeutics, founded by the cleveland clinic, uses an antibody developed at uK to prevent the acute rejection of organ transplants. Bioscience also is a big source of commercialization at the university of louisville. Metacyte Business lab, a business accelerator owned by the university of louisville foundation, has helped launch 16 companies. the facility’s staff act as a business team, helping the new firms get started and obtain financing. Metacyte has raised $20 million so far to support its companies. “our goal is to have professional financing at the earliest rounds,” says steve Gailar, Metacyte’s president and cEo. Pradama inc. is among the beneficiaries. the company uses research by William Pierce Jr., a uofl professor of pharmacology and toxicology, to develop drugs to prevent and treat bone disease. Pierce is now the university’s acting executive vice president for research. – Pamela Coyle
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antony BoshiEr

Transportation

overnight Sensation
dhl’s relocation adds to Kentucky’s superior logistic advantages

story by Kevin Litwin

K

entucky’s numerous transportation infrastructure advantages make it a natural for distribution operations. Located in the center of eastern United States industrial and consumer markets, Kentucky is within a day’s truck drive of 60 percent of the nation’s population, personal income and manufacturing output. Five interstates, several key U.S. routes and a network of limitedaccess state parkways serve the state. Kentucky’s intermodal transportation systems, including rail and riverway barges, provide efficient and costeffective ways to move goods and receive materials. Already home to UPS’ mammoth World Port logistics and distribution hub in Louisville, a key in attraction

From left: the William H. natcher Bridge; a dHl aircraft is loaded with containers.

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five interstates, several key u.s. routes and a network of limited-access parkways go through Kentucky. stAff PHoto

for logistics-dependent businesses, Kentucky scored another major coup in August 2009, bringing DHL Express back to Cincinnati/Northern Kentucky International Airport (CVG). Executives with the international package movement company say Cincinnati/Northern Kentucky International is ideal for a distribution headquarters because of the close proximity to Interstates 71 and 75, making it easy for DHL trucks to access the airport. DHL Express spent $50 million on the operations center, and in 2010 is scheduling more than 65 flights per day to and from the airport hub with a fleet of Boeing 767s and B747-400s and McDonnell Douglas DC-8-73s. The center employs 1,600 DHL staffers who are sorters, engineers, flight operators and compliance personnel. The huge DHL hub and gateway at CVG has 15 miles of conveyor belts, with thousands of letters and packages sorted every night. “The U.S. is an important part of

DHL’s overall Express network, and the hub in Cincinnati helps us connect our customers to over 220 countries and territories worldwide,” says Robert Mintz, DHL Express public relations manager. “Our new stateof-the-art fully automated facility is within a five-hour flight time between major trade lanes and is ideal for serving shippers that need to be connected to the global marketplace.” Besides DHL, thousands of other companies have specifically chosen to base all or part of their operations in Kentucky, thanks in large part to the state’s efficient transportation network. Kentucky’s central location and logistical assets appealed to Chegg.com, which in February 2010 selected a 611,000square-foot facility in Shepherdsville, Bullitt County, as the site for a warehousing and distribution operation. Chegg, the nation’s leading online college textbook rental company, will invest $27.3 million in the project and create 109 full-time jobs and up to 1,200 part-time seasonal jobs. The

Kentucky Transportation by the numbers

122
Business sites in Kentucky within 50 miles of a commercial airport

70
Sites with rail service possible

148
Sites within 10 miles of an interstate highway or parkway

23
Sites within 10 miles of a public riverport
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C R O U N S E C O R P O R AT I O N
R I V E R T R A N S P O R TAT I O N

Your Carrier of Choic e Sinc e 19 4 8

In October of 2008, Crounse Corporation celebrated its 60th anniversary by moving into its new headquarters at 400 Marine Way, Paducah, Kentucky. Today, Crounse Corporation employs over 300 people, and with a fleet of 35 towboats and 948 barges it transports more than 30 million tons of cargo each year along the US inland waterways. Crounse has become one of the largest carriers of coal on the inland river system with a reputation for superior service to its customers.

400 Marine Way • Paducah, KY 42003 • (270) 444-9611 • (270) 444-9615 fax • www.crounse.com 86 K E n T u c K Y E c o n o m I c D E v E L o P m E n T G u I D E

Kentucky’s logistical advantages make it a distribution hub. PHoto By JEff AdKins

Kentucky Economic Development Finance Authority preliminarily approved Chegg for up to $1.5 million in tax benefits through the Kentucky Business Investment program. “Everyone at Chegg is thrilled to be expanding operations and bringing additional jobs to Bullitt County,” says Aayush Phumbhra, co-founder and senior vice president of operations at Chegg. “Kentucky, and Shepherdsville in particular, makes a great home for Chegg’s textbook fulfillment center.” Top transportation companies and organizations are taking notice of the state’s distribution advantages, including Chicago Consulting, whose business it is to recommend relocation cities and counties for manufacturers, distributors and retailers. In 2009, Chicago Consulting named Henderson County in northwest Kentucky as the best place in the nation to have a warehouse distribution center. “Logistics and transportation are key reasons why we are ideal for a distribution company to establish a facility,” says Kevin Sheilley, president of Northwest Kentucky Forward, an economic development group that represents the counties of Henderson, McLean, Union and Webster. “In addition, as more of the central U.S population continues moving to the midwest and the south, Kentucky becomes even more strategic for distribution companies.” Sheilley adds that northwest Kentucky is especially perfect for transportation companies because it is located on the new I-69 corridor and the CSX main north-south line runs through the middle of the region. “Also, the Henderson river port is one of the busiest on the central U.S. inland river system, with a lot of heavy tonnage going through,” he says. “Yes, good transportation is a vital asset for us in northwest Kentucky.” “Logistics and transportation are key reasons why we are ideal for a distribution company to establish a headquarters.”
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Health

The Doctors Are In
story by dave raiford Photography by ???????

Kentucky is a magnet for medical experts

story by Dave Raiford • Photography by Antony Boshier

A

s Kentucky’s leading medical institutions, such as UK HealthCare in Lexington and the University of Louisville and Jewish Hospital in Louisville, increase their research efforts and add more topflight talent, providers in the rural areas of the state are benefiting from the enhanced medical care they provide. “It brings a lot more specialists into the state, and through telemedicine programs, rural hospitals have access to specialists they may not otherwise have had,” says Mike Rust, president of the Kentucky Hospital Association. The University of Kentucky and UK HealthCare have two missions from a clinical point of view, says Dr. Michael

Karpf, University of Kentucky vice president of health affairs. One is to develop top specialty-care programs that keep patients in the state for treatment. The other is to stress the inclusion of rural providers through such means as outreach programs, telemedicine and rotating specialists into outlying hospitals. “It has allowed us to develop more robust research programs and to develop exceptional medical education programs,” he says. The programs have enabled partner facilities to treat patients locally who would have sought treatment elsewhere, preserving much needed lines of revenue for rural hospitals.

university Health services, left, and the Wethington Allied Health Building on the university of Kentucky campus in lexington

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The state’s major medical centers have accomplished a long list of medical firsts. Jewish Hospital, through its partnership with the University of Louisville School of Medicine, performed the first hand transplant in the nation in 1999, and has since developed the Jewish Hospital Hand Care Center.

In July 2009, Jewish Hospital and University of Louisville physicians conducted the world’s first Phase One, Food and Drug Administrationapproved clinical trial using cardiac stem cells to treat heart disease. Researchers at the University of Kentucky’s Markey Cancer Center are investigating the ability of a protein

that allows maintenance of healthy levels of stem cells in bone marrow during chemotherapy. Among efforts to connect rural providers with the specialists and researchers, UofL Health Care (which includes the University of Louisville Health Sciences Center, University of Louisville Hospital and University

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uK Healthcare

Physicians Associates) has developed a remote-physician presence robot network. The system allows UofL doctors to provide remote patient consultations with patients in rural hospitals by using a robot (standing 5 feet 6 inches tall) connected via a secured connection. Through its UK Center for Excellence in Rural Health, in Hazard, the university works to increase the number of physicians practicing in rural areas. Eighty percent of the

medical professionals graduating from the center’s programs are practicing in rural areas. UK HealthCare specialists have regular rotations at rural hospitals. Clinical volumes at the medical center in Lexington have grown from 19,000 discharges in 2003 to a projected 34,000 in the 2010. National Institutes of Health funding for the center’s research has grown from $50 million in 2003 to $80 million in 2009, and the system’s payroll has increased from $365 million in 2004 to a

projected $638 million for 2010. As patients throughout the state remain in their communities longer to receive treatment and then transfer to medical centers in Lexington or Louisville for more complex treatment, the benefits continue to multiply. “Those are dollars that are kept in state. As we help those regional providers, they send the complex patients to us and that is one of the reasons we’ve grown so dramatically,” he says.

moRE InSIGhT KEnTucKY RAnKS hIGh In hEALTh cARE
thomson Reuters released its annual study in March 2009 identifying the 100 top u.s. hospitals based on their overall organizational performance. Kentucky hospitals on the list and their categories were: TEAchInG hoSPITALS st. Elizabeth Medical center, Edgewood LARGE communITY hoSPITALS King’s daughters Medical center, Ashland Baptist Hospital East, louisville mEDIum communITY hoSPITALS saint Joseph East, lexington SmALL communITY hoSPITALS saint Joseph-london, london

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Education

may the Workforce Be With You
strong college network, programs keep skilled labor pool filled

story by Kevin Litwin

o

ne of Kentucky’s significant advantages as a place to live and work is its strong network of colleges and universities. From major research centers such as the University of Kentucky and University of Louisville, four-year private and public universities across the state, and community and technical colleges, Kentucky provides a ready supply of skilled and knowledgebased workers. The Kentucky Community and Technical College System (KCTCS) encompasses 16 colleges at 68 campuses strategically located across the state that offer dozens of credit and certificate courses in a range of careers and disciplines. Many of the courses are offered in the evening or

From left: Jesse d. Jones Hall at Murray state university; the campus of the university of Kentucky in lexington PHoto By Antony BosHiER

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From left: Kentucky’s colleges, such as Elizabethtown community & technical college, provide an array of workforce and skills development programs; centre college in danville is one of Kentucky’s numerous high-quality private universities.

online to appeal to people already in the workforce. Tuition throughout the Kentucky Community and Technical College System is much less than what is charged at four-year universities, with a credit hour at KCTCS schools costing as little as $125. Often working in concert with the state colleges is the Bluegrass State Skills Corp. (BSSC), which provides millions of dollars in training grants each year to manufacturers, hospitals or companies that have an economic development impact on Kentucky. BSSC is attached to the Cabinet for Economic Development in recognition of the relationship between economic development and workforce training. Its grants help companies train their employees so they can operate in the

most efficient and productive manner possible and stay competitive. In its 2008-09 fiscal year, the division provided workforce training grants to companies and organizations that included 3M, Baptist Healthcare System, Citi Group, Ford Motor Co., Ingersoll Rand, Kimberly-Clark, Papa John’s, Raytheon and Sherwin-Williams. “And it’s not just big companies,” says Robert Curry, Bluegrass State Skills Corp. executive director. “We also annually assist companies that are considered small businesses. Overall, the grants we approve range from $2,500 to nearly $200,000, depending on the scope of the training project.” BSSC was established in 1984 to stimulate economic development, specifically by customizing advanced skills training programs for business

and industry. In fiscal year 2008-09, the BSSC Board of Directors approved more than 225 annual grants totaling almost $8 million to train more than 32,000 Kentucky workers. Besides the monetary grants, BSSC also provides $2.5 million in annual tax credits to businesses that partake in employee training initiatives. “There is still a strong demand for BSSC grants and tax credits even in this tough economy, which is encouraging, because it shows that companies are still interested in upgrading and moving their workforces forward,” Curry says. “These are the Kentucky companies that will be much better prepared once the economy turns around, reaping the rewards of having a highly skilled, globally competitive workforce.”

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KEnTucKY PRIvATE coLLEGES AnD unIvERSITIES
Alice lloyd college Asbury college Bellarmine university Berea college Brescia university campbellsville university centre college Georgetown college Kentucky christian university Kentucky Wesleyan college lindsey Wilson college Mid-continent university Midway college Pikeville college saint catharine college spalding university sullivan university thomas More college transylvania university union college
JEff AdKins

KEnTucKY’S PuBLIc unIvERSITIES
university of Kentucky www.uky.edu Enrollment: 27,000 university of louisville www.louisville.edu Enrollment: 22,000 Western Kentucky university www.wku.edu Enrollment: 19,300 Eastern Kentucky university www.eku.edu Enrollment: 15,800 northern Kentucky university www.nku.edu Enrollment: 14,800 Murray state university www.murraystate.edu Enrollment: 10,200 Morehead state university www.morehead-st.edu Enrollment: 9,100 Kentucky state university www.kysu.edu Enrollment: 2,700

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Solving the math Problem
AcAdemy turns out stem sKills Achievers
the stereotype that girls don’t like math and science has been squashed at the carol Martin Gatton Academy of Mathematics and science in Kentucky. the state-sponsored high school was established in 2007 on the campus of Western Kentucky university in Bowling Green as a way for top high school juniors and seniors to take college-credit courses in the stEM disciplines – science, technology, engineering and mathematics. A total of 60 high school students – 30 girls and 30 boys – are chosen from a statewide application process to enroll as juniors at the academy each August. “We have about 200 students apply each year for the 60 open spots, and more girls apply than boys,” says corey Alderdice, Gatton Academy assistant director of admissions and public relations. “that helps to dispel the notion that girls aren’t interested in math and science.” the 60 students who will ultimately graduate as seniors from the academy not only receive their high school diploma, but have also earned 60 to 70 college credits during their two years on campus. “While enrolled during their two years at Gatton, students take their usual required high school classes along with four college courses in college math, five in science and three stEM electives,” Alderdice says. “the average Act score for students who attend Gatton is 28.8 out of 36.” Gatton Academy students are housed in a separate building on the WKu campus, with all tuition, housing and meals provided at no cost. in 2009, Newsweek magazine named Gatton one of the 16 elite public high schools in the united states. – Kevin Litwin

the Gatton Academy of Mathematics and science opened for high school juniors and seniors in fall 2007

Antony BosHiER

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Livability

‘You’ll never Want To Leave’
charm, sophistication make a welcome home for newcomers
story by Amy Stumpfl Photography by Antony Bosier

rom the smallest community to the most sophisticated city, Kentucky offers a wealth of resources sure to fit just about any lifestyle. From world-class galleries and museums to scenic waterways and state parks, the Bluegrass State has a knack for turning visitors into full-time residents. Best of all, newcomers find a unique brand of Southern hospitality that makes them feel right at home. Take J. J. DiUbaldi for example. After graduating from Vanderbilt University and spending 10 years in Nashville, this single professional was looking for a change of scenery when he moved to Louisville in August 2009. An avid outdoorsman, DiUbaldi has enjoyed exploring his new hometown – especially the city’s extensive park system. “Cherokee Park in the Highlands area was built by Frederick Law Olmstead – the same person who designed New York’s Central Park,” he says. “There are miles of paved
From left: Kentucky lets you get close to the water; Miles of trails and greenways provide endless outdoor recreation opportunities.

F

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s tA f f P H o t o

and unpaved walking and biking trails there. Portions of the Louisville Loop – a paved, 100-mile, multiuse trail – also have been completed. The RiverWalk and park are conveniently located, and you’ll see many downtown lunchwalkers and picnickers there.” In terms of nightlife, DiUbaldi has found plenty of great clubs and restaurants. “You never have to go more than a mile to find a good local bar in Louisville, and most of them serve

BRiAn MccoRd

food late, too. I’ve been pleased to find several vegan, vegetarian and organicfood establishments, with many restaurants buying from local growers whenever possible.” In the case of Maria and Dave Russell, a 2008 move to Hopkinsville represented an opportunity to put down roots near family. The couple – which spent about three years traveling in their RV after Hurricane Katrina – originally planned to spend just a month in Hopkinsville.

“Our son-in-law is in the Army and was in Afghanistan while our daughter was pregnant with their second child,” Maria says. “We arrived in our RV, intending to stay for a month to help with the little ones. On the way to her house one day, I spotted a house that had just been put up for sale. By 5 p.m. that day we had a contract.” The Russells found the cost of living much lower than other places they have lived, including Washington, D.C., North Palm Beach, Fla., and San

clockwise from top left: vibrant restaurants, like the Atomic cafe in lexington, are a signature of Kentucky’s communities; lobby of the Muhammad Ali center in louisville; Kentucky has an abundance of courses to challenge any golfer; the fourth street live entertainment district has bars, restaurants and shopping in the heart of downtown louisville.

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Diego, Calif. The median home price is less than $100,000. Russell says she enjoys the community’s convenient location and ready access to state parks and recreation. “Boating is one of our passions, so we love being close to Land Between the Lakes. There are a number of public boat launches nearby, and we can have our 13-foot Boston Whaler launched on Lake

Barkley in less than an hour,” she says. Marilyn and Steve Thore also have enjoyed traveling around their adopted home state since relocating to Hopkinsville from Newberg, Ore., in summer 2009. The Thores have discovered a bevy of scenic and historic sites, and museums, such as Fort Donelson, the Audubon Museum in Henderson, Lake Barkley State Resort Park and Lexington’s many attractions. Among

the highlights have been a visit to Berea with its art and crafts center, and Paducah’s historic downtown. “We certainly have loved all the sites visited, but most of all, we have enjoyed the wonderfully warm Southern culture and the people of Kentucky,” Marilyn Thore says. “The slower pace and delightful people, coupled with the natural beauty of Kentucky, make it a place that once here, you might never want to leave.”

Whether it’s boating, fishing or just relaxing, Kentucky waterways are a natural attraction. PHoto couRtEsy of WWW.KEntucKytouRisM.coM

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Getting To Know Kentucky culture
commonweAlth hAs rich offerings of Art, culture, history
Kentucky boasts a deep pool of arts, cultural, historic and recreational opportunities. Here is just a small sample: churchill Downs www.churchilldowns.com it’s hard to think about the Bluegrass state without thinking of the Kentucky derby. the state has six racetracks, but perhaps none more famous than churchill downs in louisville, where the “most exciting two minutes in sports” is held the first saturday in May. the track hosts a series of race dates in spring and fall. churchill downs includes the Kentucky derby Museum, two floors of interactive, horse racing-related exhibits, a 360-degree high-definition video presentation and a walking tour of the track complex. Abraham Lincoln Birthplace national historic Site www.nps.gov/abli/index.htm Kentucky lays claim as the birthplace of the 16th u.s. president and is in the midst of a celebration of the 200th anniversary of Abraham lincoln’s birth. the state is home to a number of lincoln-related historic attractions, including the Abraham lincoln Birthplace national Historic site in Hodgenville. owensboro museum of Fine Art www.omfa.museum/ Housed in two structures listed on the national Register of Historic sites, the museum’s permanent exhibits includes a stained-glass gallery of late 19th-century German stained glass, a major collection of American folk Art, with an emphasis on 20th-century Appalachian art, and works for sale by regional artists and craftspeople. Appalachian Artisan center www.artisancenter.net the Appalachian Artisan center in Hindman showcases the works of artists from 49 counties in eastern Kentucky and helps preserve and promote the artistic and cultural heritage of the region. More than 150 juried members display and sell their work in the gallery. the center also operates a studio program to help artists create and grow their own small businesses. headley-Whitney museum www.headley-whitney.org founded in lexington in 1968 by noted jewelry designer George Headley, the museum includes a diverse and eclectic permanent collection of jewels and artifacts, as well as international and regional exhibitions.

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American Saddlebred Capital of the World

Shelby County, Kentucky

Shel•by Coun•ty Ken•tuck•y
| SHELL-bee | ‘kounte | ken’teke | noun
• Over 300 acres of zoned appropriate, developed land and available buildings • Located on I-64 between Louisville and Lexington • One of the lowest industrial electric rates in the country • Labor market of 1,430,161 in 2008 • Harley Davidson’s number ONE alternative site selection • Future home of Eaton Corporation’s data center

We’re more than just beautiful horses.

www.scidf.com

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EconomIc PRoFILE
BuSInESS SnAPShoT

TRAnSPoRTATIon
InTERSTATES
i-24, i-64, i-65, i-71, i-75, i-264, i-265, i-275, i-471 state Parkways (nine total) Audubon Parkway Martha layne collins Blue Grass Parkway louie B. nunn cumberland Parkway daniel Boone Parkway/ 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

Kentucky boasts industrial electricity costs that are consistently among the lowest in the nation, a tax structure that’s among the most competitive in the region and an ideal location within 600 miles of two-thirds of the u.s. population. the commonwealth is home to nearly 400 international companies and thousands more domestic companies. thirteen of the fortune 25 largest u.s. corporations and nine fortune 25 largest global corporations operate out of Kentucky. in addition, Kentucky ranks third in total light-vehicle production in the country.

RAILRoADS
csx, www.csx.com norfolk southern, www.nscorp. com/nscportal/nscorp canadian national Railway company, www.cn.ca Paducah and louisville Railway www.palrr.com

EDucATIonAL ATTAInmEnT

525,607
Some college

198,819
Associates

commERcIAL AIRPoRTS
cincinnati/northern Kentucky international Airport www.cvgairport.com Blue Grass Airport www.bluegrassairport.com louisville Regional Airport Authority www.flylouisville.com owensboro-daviess county Regional Airport, www.owb.net Barkley Regional Airport www.barkleyregional.com

352,092
Bachelors

245,450
Graduate
Source: Onboard Informatics

WATER
seven public riverports operate facilities at Henderson, Hickman, louisville, lyon county, owensboro, Paducah and Wurtland.

uTILITIES
Electric power is distributed by four investor-owned electric utilities, 30 municipal electric systems, the tennessee valley Authority and 21 rural electric cooperatives. natural gas is available from 30 gas-distribution companies, 42 intrastate pipeline gas companies,

What’s online
for more in-depth demographic, statistical and community information about Kentucky, go to KYEDG.com and click on economic profile.

Ballard County Economic & Industrial Development Board
Terry Simmons, Pres/CEO
101 Liberty Dr., Ste. 4 Kevil, KY 42053 (270) 744-3232

Hwy. 286 Wickliffe, KY
36,000 sq. ft. clearspan with 24 ft. eave height available for development

Take a look at the lands at the confluence of the mighty Mississippi and the Ohio Rivers. It’s all right here.

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172 municipal, college or housing authority providers and one gas and water district operated locally at the county level.

employment by major inDuStry by place of WorK (2008)
industry All Industries Agriculture, Forestry, Fishing & Hunting Mining Construction Manufacturing Trade, Transportation & Utilities Information Financial Activities Services Public Administration Other
Source:U.S. Department of Labor, Bureau of Labor Statistics

number of employees 1,791,017 8,119 23,462 84,438 245,207 394,152 32,268 91,302 813,464 91,706 2,680

population

4,258,739
total population

1,393,212
age 0-24

860,286
age 25-39

1,210,484
age 40-59

Western Kentucky University

719,142
age 60+

36.82
median age
Source: Onboard Informatics

income

$41,538 $52,800
taXeS
State Sales Tax – 6%

median Household income

average Household income
U.S. Census Bureau, 2008 American Community Survey

State Income Tax – Net income for Kentucky individual income taxes is gross income minus either the standard deduction or allowable itemized deductions. Property Tax – Combined state and local rates average $1.05 per $100 valuation in urban areas and $0.82 per $100 in rural areas. Occupational license tax – 0.08%2.5% (not in entire state)

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Appalachian Industrial Development Authority Atmos Energy www.atmosenergy.com Ballard County Economic & Industrial Development Board Baptist Heathcare System www.bhsi.com Big Sandy Regional Industrial Development Authority www.bsrida.org Bluegrass Crossings Business www.bluegrasscrossings.com Booneville-Owsley County www.owsleycountykentucky.org Bowling Green Area Chamber of Commerce www.southcentralky.com City of Greensburg www.greensburgonline.com Columbia-Adair County Industrial Development Authority Inc. www.columbia-adaircounty.com Commerce Lexington www.commercelexington.com Community Ventures Corporation www.cvcky.org Corbin Economic Development Agency www.sekbp.com Crounse Corporation www.crounse.com Cynthiana/Harrison County Economic Development www.harrisoncounty.ky.gov Danville Economic Development Partnership www.betterindanville.com E-On U.S. LLC www.site-selection.com Elizabethtown/Hardin County Industrial Foundation Inc. www.eifky.org Fleming County Industrial Development Authority www.flemingcountyky.com Franklin-Simpson Industrial Authority www.f-sindustry.com Fulton County-Hickman County Economic Development Partnership www.westkyeconomic.com Glasgow/Barren County Industrial Development Economic Authority www.glasgow-ky.com Greater Louisville Inc. www.greaterlouisville.com Greater Owensboro Economic Development Corporation www.edc.owensboro.com Greater Paducah Economic Development Council www.gpedc.com Hampton Inn www.hamptoninn.com Hopkinsville Christian County Economic Development Council www.hopkinsvilleindustry.com Jeffersontown Economic Development Authority www.jeffersontownky.com Keeneland www.keeneland.com Kentucky Cabinet for Economic Development www.thinkkentucky.com Kentucky Community & Technical College System www.kctcs.edu Kentucky Department of Travel www.kentuckytourism.com Lake Barkley Partnership Leitchfield-Grayson County Industrial Development Corporation Inc. www.growgrayson.com Lincoln Trail Workforce Investment Board Logan Economic Alliance for Development www.loganleads.com Louisville Water Company www.lwcky.com Marshall County Economic Development www.opportunitymarshall.com Morehead-Rowan County Economic Development www.edc-eky.com Murray-Calloway County Economic Development Corporation www.thinkmurray.com Northern Kentucky TRI-ED www.northernkentuckyusa.com Northwest Kentucky Forward www.northwestky.com Paducah & Louisville Railway www.palrr.com Paradise Park/MIDC www.paradisebusinesspark.com Pine Ridge Regional Industrial Authority Powell County Industrial Development Authority Inc. Publishers Printing Company www.pubpress.com Purchase Region Industrial Park www.prpindustrialpark.com RR Donnelley www.rrdonnelley.com Scott & Murphy & Daniel LLC www.scottmurphydaniel.com Shelby County Industrial & Development Foundation Inc. www.shelbycountyindustrialfoundation.com Southbank Partners Inc. www.southbankpartners.com University of Kentucky Commercialization & Economic Development www.econdev.uky.edu University of Louisville www.louisville.edu

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Ad Index
10 AppAlAchiAn industriAl development Authority 80 Atmos energy 107 BAllArd county economic & industriAl development BoArd 91 BAptist heAthcAre system 12 Big sAndy regionAl industriAl development Authority 30 BluegrAss crossings Business c3 Booneville-owsley county 1 Bowling green AreA chAmBer of commerce 13 city of greensBurg 81 columBiA-AdAir county industriAl development Authority inc. 70 commerce lexington 68 community ventures corporAtion 2 corBin economic development Agency 86 crounse corporAtion 27 cynthiAnA/hArrison county economic development 6 dAnville economic development pArtnership 50 e-on u.s. llc 105 elizABethtown/hArdin county industriAl foundAtion inc.

Ad Index (cont.)
44 fleming county industriAl development Authority 20 frAnklin-simpson industriAl Authority 16 fulton county-hickmAn county economic development pArtnership 36 glAsgow/BArren county industriAl development economic Authority 39 greAter louisville inc. 4 greAter owensBoro economic development corporAtion 50 mArshAll county economic development c2 moreheAd-rowAn county economic development 14 murrAy-cAllowAy county economic development corporAtion 51 northern kentucky tri-ed 8 northwest kentucky forwArd 84 pAducAh & louisville rAilwAy 26 pArAdise pArk/midc 56 pine ridge regionAl industriAl Authority

38 greAter pAducAh economic development council 38 hAmpton inn 44 hopkinsville christiAn county economic development council 68 Jeffersontown economic development Authority 50 keenelAnd c4 kentucky cABinet for economic development 98 kentucky community & technicAl college system 112 kentucky depArtment of trAvel 42 lAke BArkley pArtnership 111 leitchfield-grAyson county industriAl development corporAtion inc. 99 logAn economic AlliAnce for development 108 louisville wAter compAny

Ad Index (cont.)
45 powell county industriAl development Authority inc. 15 puBlishers printing compAny 32 purchAse region industriAl pArk 110 rr donnelley 110 scott & murphy & dAniel llc 106 shelBy county industriAl & development foundAtion inc. 44 southBAnk pArtners inc. 11 university of kentucky commerciAlizAtion & economic development 92 university of louisville

112

KEnTucKY EconomIc DEvELoPmEnT GuIDE

Experience
the Owsley Count y Adventure

Available Land

Pioneer Village
• Livable Community • Available Workforce • Available Business Property • Recreational Opportunities • Scenic Beauty • ATV Trails Connecting with Multi-Co. Area • Fall/Spring Horse Trail Ride • Abraham Lincoln Statue

Sag Hollow Golf Course

(606) 593-6800 • (606) 593-7296 • www.owsleycountykentucky.org
City of Booneville & Owsley County Fiscal Court
P.O. Box 1 Booneville, KY 41314 (606) 593-6800 (606) 593-5151 (606) 593-6268 (606) 593-GOLF www.saghollow.com

Booneville-Owsley Industrial Authority
(606) 593-6800

wolf creek metal
(606) 593-7080

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