Major Growth in 2005 Sets Stage For
an Exciting 2006
The Cabinet for Economic Development is excited and optimistic
about the economic opportunities awaiting Kentucky in 2006. The
commonwealth experienced tremendous job growth in 2005, resulting in more than
17,100 new jobs in the manufacturing and supportive-service industries.
This growth represented an investment of nearly $1.7 billion in the state's
economy.
Fidelity Investments, located in Covington, is a prime example
of the economic development success Kentucky generated last year. The company
announced in June 2005 that it would consolidate its Midwest operations and
expand entirely on the Covington campus creating 1,500 jobs and investing more
than $120 million in the commonwealth.
"Kentucky prides itself on building and maintaining
long-standing business relationships with our existing industries and Fidelity
Investments is one of Kentucky's finest," said Economic Development Cabinet
Secretary Gene Strong during the announcement. "We are proud to have 'the most
trusted provider of lifetime financial solutions' in Kentucky, providing over
4,000 high quality jobs."
Other big companies announcing major expansions in Kentucky in
2005 included Humana, UPS and Toyota.
Humana said in June that it would add 1,100 jobs to its
Louisville operations and another 200 in Northern Kentucky. Jeff Bringardner,
president of Humana Kentucky, said the health-benefits giant didn't choose
Kentucky simply because it is based in Louisville.
A variety of factors played a role, from Kentucky's central
location to the quality of its workforce to the improvements the state has made
in its public schools, said Bringardner, who grew up in Ohio. Bringardner also
said Humana would have been far less likely to choose Kentucky had the state
not offered the company a sizable tax credit under the Kentucky Jobs
Development Act.
Humana also liked the area's affordable air travel, its good
entertainment options, the rebirth of downtown Louisville, the city's growing
reputation as a biotech center, and strong leadership within the Cabinet for
Economic Development and the Kentucky Chamber of Commerce.
"Kentucky has really become a very progressive, innovative
state," Bringardner said. Humana's revenues have grown from $2.3 billion to $14
billion in a decade, he said, and he anticipates further growth in the years to
come, as baby boomers continue to age and enter the Medicare market.
UPS benefited from the same tax incentive program that helped
persuade Humana to expand - the Kentucky Jobs Development Act, or KJDA. In
February the Kentucky Economic Development Finance Authority, which is part of
the state Cabinet for Economic Development, approved UPS for credits of up to
$20 million in KJDA funds to allow the company to build an air freight
servicing hub here.
UPS, which has grown its Louisville operations from a small
ground-only facility in 1964 to the massive global air hub that it is today,
said the $82.5 million expansion would add 1,000 new jobs. UPS is currently the
state's largest employer, with more than 20,000 on its payroll. In addition,
nearly 80 other companies have either located in Kentucky or expanded their
operations in the past five years because of the presence of UPS, investing
more than $300 million and bringing more than 7,000 new jobs to the state.
"We've been extremely pleased with the relationship we've had
with the state of Kentucky," said John Hindman, Vice President of Public
Affairs for UPS Airlines. "We've helped the state and the community grow by
attracting new companies to the state, and the state has made it more
attractive for us to stay here and grow."
Toyota made a major announcement in 2005 that bodes well for
the auto maker's commitment to Kentucky: The new hybrid version of its
hot-selling Camry will be made at the Georgetown plant. This next-generation
technology means that new suppliers will be needed here, and it also means the
Kentucky workforce will be equipped with the latest car-production skills.
Toyota's decision had its genesis in Governor Fletcher's tax
modernization bill, which included financial incentives for companies that make
environmentally friendly products, such as cars powered by hybrid engines.
"Maybe they had us in mind when they drafted it," said Jim
Wiseman, Vice President for Corporate Affairs for Toyota Motor Manufacturing
North America. Putting that incentive in the bill really gave Kentucky a leg
up, he said.
"Kentucky's in the upper tier when it comes to looking for ways
to suit the customer," Wiseman said. "Not all states do that so well. There's
not a big learning curve required for Kentucky."
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