A Look Back at
2006
Last year proved to be yet another successful year for the
bluegrass state in economic development opportunities. The commonwealth
experienced remarkable job growth in 2006, resulting in more than 18,500
announced new jobs in the manufacturing and supportive-service industries. This
growth represented a projected investment of more than $3.4 billion in the
state's economy, doubling the total for 2005.
While there were nearly 400 location or expansion projects in
all, several sizable developments helped contribute to this phenomenal boost,
including the state's largest investment of the year by UPS.
Receiving worldwide media attention, UPS thrust Kentucky into
the international spotlight with the announcement of its second $1 billion
expansion at the Worldport hub in Louisville. The project will add 1.1 million
square feet to the company's vast sorting complex and increase the hub's
sorting capacity by 60% in the next five years to more than 487,000 packages
per hour.
An economic impact study, performed by the Cabinet for Economic
Development's Division of Research and Information Technology, shows the direct
annual economic impact of the 1,284 new full- and 3,787 part-time jobs alone
will be approximately $344.8 million. Indirect and induced jobs will add just
more than another $400 million, for a total annual economic impact of
approximately $745 million.
The presence of UPS has been a catalyst for luring more than 90
companies to either locate or expand their operations in the state over the
past five years, investing more than $1.2 billion and bringing more than 13,300
new jobs. One such company is Geek Squad, the nation's leading computer support
task force and Best Buy subsidiary.
The company's new Bullitt County facility, called Geek Squad
City, is expected to create up to 550 new full-time jobs. The community's
spirit and heritage, coupled with access to overnight air service and a
population that is large enough to support the facility's technical labor needs
played major roles in Geek Squad's decision to locate in Bullitt County.
The company also desired real estate that could support its growing operations.
Also building on Kentucky's logistical advantages was GSI
Commerce, a leading provider of e-commerce solutions, who announced it would
open its fifth Kentucky fulfillment center - this time in Boone
County. GSI Commerce enables approximately 60 retailers, branded
manufacturers, entertainment companies and professional sports organizations to
operate e-commerce businesses. The project will result in the addition of 500
new full-time jobs for Kentuckians over the next three years. The company's
other facilities are located in Louisville and Shepherdsville.
Several global companies decided to expand or locate their
corporate headquarter operations in Kentucky this past year. One of the world's
fastest-growing technology companies, Exstream Software, expanded its Lexington
headquarters operations, relocating to the University of Kentucky's Coldstream
Research Campus to accommodate its growth. The company, which develops, sells
and supports enterprise document creation software for Fortune 1000 companies
around the world, will increase its employment base to approximately 250 in the
next few years.
Akebono Corporation, a leading global supplier of friction
materials and brake products to the automotive industry, also chose Kentucky
for its North American headquarters. The new operation, which will be based in
Elizabethtown, will create 75 new jobs in the commonwealth. Akebono's
presence in Kentucky also includes all of its manufacturing facilities with a
total employee base of a little more than 2,000 Kentuckians.
Metal Sales Manufacturing Corporation, one of the largest and
fastest growing manufacturers of metal roofing and siding materials in the
country, will move its corporate headquarters back to Louisville. The project
is expected to create 40 new Kentucky jobs at an average annual wage of nearly
$60,000. Its new 20,000 square-foot headquarters location in downtown
Louisville will offer significant room for future growth.
The food products industry incurred significant growth in 2006.
Hart County alone experienced two major industrial projects last year with the
expansion of Dart Container Corporation and the location of Sister Schubert's
Homemade Rolls. Dart Container, which manufactures disposable food service
products, will add 412 new jobs. The company also has a facility in Owensboro.
This expansion will bring its total Kentucky employment base to more than
1,400.
While celebrating the grand opening of T. Marzetti Company's
new facility in Hart County in September, the company also announced the
addition of its Sister Schubert's Homemade Rolls facility to the community,
creating 298 new jobs and investing $35 million in the commonwealth. Sister
Schubert's Homemade Rolls, a manufacturer of yeast rolls, frozen dinner rolls,
and other bread products for retail and food service markets, will construct a
new 105,000 square-foot facility adjacent to the T. Marzetti operation and is
expected to be operational by Summer 2007.
Gourmet Express, whose products can be found in major
supermarkets across the country, chose Muhlenberg County for its $7.3 million
investment. The company, which manufactures and markets skillet meals under the
Gourmet Dining label, will employ 200 Kentuckians at its 312,000 square-foot
facility.
Projects announced or reported in 2006 that involved the
addition of 100 or more employees or an investment of $35 million or more can
be viewed by clicking on the link below.
http://www.thinkkentucky.com/kyedc/kpdf/MajorN&E2006Announcements.pdf
|
