Commonwealth of Kentucky
Cabinet for Economic Development

KENTUCKY’S ECONOMIC DEVELOPMENT EFFORTS RECEIVE HIGH MARKS ONCE AGAIN

Frankfort, Ky. - Site Selection (http://www.siteselection.com/ ), a leading international economic development publication, has ranked Kentucky 4^th in the United States in its 2005 Annual Competitiveness Award. The benchmark that measures state economic development agencies' competitiveness -- the most important factor in an agency's ability to attract capital investment and expand economic activity in the state -- is regarded by corporate real estate analysts as "the industry scoreboard".

"An environment that promotes new and expanding business is essential for Kentucky's future," Governor Ernie Fletcher said. "Site Selection's recognition of our state's competitiveness is a tribute to our productive workforce, good location and low energy prices. With our JOBS for Kentucky tax modernization plan, which removes onerous taxes and lowers the corporate income tax rate, our competitiveness will improve even more in the future."

Open only to state-level economic development agencies, the states were ranked according to an indexing system based on 10 criteria for measuring business-expansion activity that took place in the previous calendar year.

"I am thrilled that Kentucky continues to be recognized as a national leader in its ability to compete for new location and expansion projects, creating jobs and opportunities for the citizens of the Commonwealth," stated Secretary Gene Strong, Kentucky Cabinet for Economic Development. "The passage of Governor Fletcher's JOBS for Kentucky initiative will make Kentucky even more attractive to companies looking to locate or expand their business."

Categories include per capita jobs and investment numbers for 2004, the number of top metros and micropolitans in Site Selection's 2004 rankings, rates of growth in new and expanded facilities and ranking in the annual business climate survey. The indexing system for determining the state rankings is set up to ensure that all states have the same opportunity at competing for the award.

"A state finishing in the top 10 most competitive states list year after year indicates a high degree of competitiveness," said Mark Arend, editor of Site Selection. "Kentucky economic development officials should recognize this performance as evidence of a well managed and effective business recruitment plan."

Kentucky has consistently ranked in the Top 10 since the inception of the Award in 2003. During 2004, 360 manufacturing and or supportive/service companies located or expanded in Kentucky resulting in over 16,500 net new jobs created. Investment was estimated at nearly $2.3 billion; an increase of more than 50 percent over 2003.

The Kentucky Cabinet for Economic Development is the primary state agency in Kentucky responsible for creating new jobs and new investment in the state. New business investment in Kentucky in 2004 totaled nearly $2.3 billion with the creation of just over 16,500 new jobs. Information on available development sites, workforce training, incentive programs, community profiles, small business development and other resources is available at http://www.thinkkentucky.com/.