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Built to Last

by Lindsay Lopp

While Kentucky has won multiple significant manufacturing investments over the last three years, the Bluegrass State’s prowess in this sector is certainly nothing new.

For decades, small businesses and industry giants alike have thrived in Kentucky, producing many of America’s most popular products. Post-it Notes, Pop-tarts, Hot Pockets, Airheads, Mentos, Tiffany engagement rings, GE appliances and a litany of other household staples and luxury goods are made in Kentucky. 

Approximately 6,000 manufacturing facilities are located throughout the state, developing products for several key industries including automotive and EV, aerospace, distribution and logistics, metals, health care, food and beverage, agritech and more. These companies contribute $46 billion annually to the state’s gross domestic product and employ approximately 250,000 employees, 12.5% of the state’s workforce — nearly 4.5% higher than the national average, according to the National Association of Manufacturers. 

 

MANUFACTURING KENTUCKY-1

Kentucky Aluminum Automotive Products manufactures lightweight aluminum parts in Bowling Green.

Photo courtesy of KAAP

 

This robust network of suppliers and global brands paired with the state’s low business costs, strategic location, logistics capabilities, skilled workforce, various incentive packages and resources such as the Kentucky Association of Manufacturers (KAM) has helped establish Kentucky as a national leader for manufacturing. 

As the state’s central advocate for promoting economic growth through manufacturing, KAM has played a significant role in ushering in droves of investments that have taken Kentucky’s economy to the next level. In 2022, manufacturing brought $8.3 billion in new investments and over 8,900 new jobs, making up 79% of all corporate investments and almost 56% of job creation that year. 

In 2023, 113 manufacturing projects were announced, totaling $3.7 billion in new investments, and creating approximately 5,800 full-time jobs. Significant projects from the last year include the expansion of Safran Landing Systems’ Boone County facility; Aerospace Composites Solutions’ (ACS, formerly known as Blackhawk Composites) $16.8 million relocation to Morgantown; Ahlstrom’s $68 million investment in Madisonville; a new $240 million manufacturing facility in Bowling Green from O-I Glass; and the grand opening of Nucor Corporation’s $1.7 billion steel plate manufacturing mill in Brandenberg. 

 

“State leaders have demonstrated a commitment to making sure we have the necessary workforce talent, intentional planning and support of infrastructure and a regulatory environment centered on a partnership finding solutions.”

— Johnny Jacobs, Vice President & General Manager, Nucor Steel Brandenburg

 

“Our presence and growth in Kentucky are attributable to the positive business climate. Our state leaders have clearly recognized that manufacturing provides great careers and is critical to the overall economy,” said Johnny Jacobs, Nucor Steel Brandenburg vice president and general manager, in a press release. “State leaders have demonstrated a commitment to making sure we have the necessary workforce talent, intentional planning and support of infrastructure and a regulatory environment centered on a partnership finding solutions.”

Supply Kentucky

As Jacobs stated, Team Kentucky’s emphasis on fostering partnerships is integral to the state’s widespread success. Many of the incentives and unique resources available to Kentucky-based companies were built with this strategy in mind. 

Incited by the state’s “Supply Kentucky” initiative to boost job growth, reduce costs and provide more security in the supply chains, KAM and the Kentucky Cabinet for Economic Development partnered in March 2023 to launch CONNEX Kentucky, a new online platform that provides a searchable supply chain database for Kentucky manufacturers. The free-to-register site links businesses with 140,000 local and national manufacturers, allowing companies to find Kentucky partners to satisfy their supply chain needs, increase reliability and decrease transportation costs. 

“As we grow our state’s already incredible manufacturing presence, it is crucial we continue to provide companies in every corner of the state with the resources they need to support new good-paying jobs,” Gov. Beshear said in a press release. “This new statewide platform fills a critical void in that effort and ensures Kentucky will continue to meet the needs of growing companies. Thank you to the Kentucky Association of Manufacturers for their partnership in making the commonwealth the best place to do business.”

The platform provides and OEMs with the ability to:

  • Quickly find the perfect qualified U.S. supplier;
  • Access manufacturing-only data (no service providers);
  • Post RFPs/RFQs/RFIs and send them to matching suppliers;
  • View all U.S. supplier data in one location;
  • Filter suppliers by location, certifications, SBA designations, materials, equipment, processes and more;
  • Access blacklisted-supplier alerts;
  • Use supply chain risk visualization; and
  • Communicate with potential suppliers directly in the platform.
  • Kentucky suppliers can use it to: 
  • Find ideal contracts with less effort;
  • Receive RFPs/RFQs/RFIs directly from buyers (no broker listings);
  • Find alternate sourcing for parts and materials;
  • Discover new contract opportunities within new industries;
  • Showcase all capabilities, certifications, SBA designations, equipment and more in one location for buyers to see; and
  • Connect with and respond directly to OEM/PRIME buyers within the platform.

Supply Kentucky also coordinates marketing efforts, provides resources related to the workforce and connects Kentucky companies to suppliers throughout the country, as well as fosters the growth of minority- and female-owned businesses.

“Thanks to this important new partnership between the Kentucky Association of Manufacturers and the Kentucky Cabinet for Economic Development, Kentucky’s manufacturers and countless other companies will have access to one of the best tools in the marketplace to help grow their revenue, strengthen their supply chains and enhance the job security of their employees,” said Frank Jemley, president and CEO of KAM. “We are grateful to Governor Beshear, Secretary Jeff Noel and the great team at the Cabinet for Economic Development for this collaboration that will create new opportunities for the Kentuckians who make world-class products.” 


Something Worth Celebrating 

While the rest of America was carving pumpkins and hanging up Halloween decorations, Kentucky was celebrating an integral pillar of its economy: manufacturing. 

Last October, Gov. Andy Beshear designated the 10th month of the year Manufacturing Month, honoring the sector that continues to be at the epicenter of the state’s unprecedented growth.  

“Manufacturing Month offers all of us an opportunity to celebrate and thank the quarter-million Kentuckians at the 3,000-plus manufacturing companies around the commonwealth whose dedication and innovation are the reasons Kentucky has become a top location to make world-class products,” said Frank Jemley, president and CEO of the Kentucky Association of Manufacturers (KAM). “Through their hard work and creativity, those 250,000 Kentuckians are creating even more opportunities for the citizens of our great state, since manufacturing is the bedrock of every aspect of our economy and therefore every Kentucky community, big and small.”

“We could not have the tremendous economic success we’ve had these past three years if not for our expansive manufacturing network,” Gov. Beshear said last October. “From our diverse food and beverage industry to primary metals to the automotive and electric vehicle market that is reaching new heights every year, manufacturing is at the center of our recent success and that will continue to be true for decades to come. Thank you to every manufacturer creating great jobs for Kentuckians and distributing Kentucky-made products around the globe.”

Investment Profile

Built to Last

by Alexis Elmore

When McKesson Group, Kimberly-Clark and Celanese located their Fortune 500 HQs in Irving-Las Colinas, Texas, they were planning for the long term. 

It’s a concept that has attracted a plethora of life sciences, biotechnology and animal health companies to cluster in and around the region. With over 38.5 million sq. ft. of office space, over 19 million sq. ft. of Class A space and several shovel-ready sites at hand, officials in Irving-Las Colinas are looking to welcome and cater to new health innovation.

“Human pharmaceuticals and biotechnology leaders McKesson and Abbott Laboratories, and Zoetis, a leading animal health provider, call Irving-Las Colinas home,” says Irving-Las Colinas Chamber of Commerce President and CEO Beth Bowman. “But it’s not just large companies — smaller organizations like MEDNA Scientific are thriving in Irving. Our evolving city and its changing skyline are due in part to the investments these and other companies in this sector are making in Irving-Las Colinas.”

Vickie Tu, founder and CEO of biotechnology company MEDNA Scientific, came to Irving in 2018, when very few life sciences companies were operating in the city. 

Regardless, MEDNA Scientific had found its home. 

“Irving has a convenient location being close to the Dallas-Fort Worth International Airport and located toward the center of the United States,” says Tu. “Additionally, Irving has very reasonable business operation costs compared to cities like San Francisco and Boston.”

According to Tu, MEDNA’s original 180,000-sq.-ft. facility in Irving didn’t receive any local incentives. She says that experienced entrepreneurs will find biotech businesses are growing here, in part to Irving-Las Colinas’ business-friendly environment and great resources. 

It’s also the reason the company’s growth is on the uptick. In 2022, MEDNA moved to a new 200,000-sq.-ft. site within Irving, just five minutes from the DFW airport.

“MEDNA moved to a large manufacturing facility last year and we’re very happy with its convenient location, great size and the support received from the city,” says Tu. “I am very positive about MEDNA’s growth potential, as we anticipate more hiring and rapid growth capabilities in 2023 and beyond.”  

Additional space at the new facility will support R&D and manufacturing of the company’s information technology and automation systems for the biopharmaceutical industry. The site will contain the company’s warehousing, office space, laboratories and a conference center. MEDNA technologies support all site operations while showcasing its AI and automation products in action, including security robots which the company hopes to integrate into the DFW Airport. 

“Our city offers life sciences companies the conditions and infrastructure to succeed, and workers the conditions to thrive,” says Bowman. “We attribute the success of these companies to our talent pool, location, real estate, and business-friendly regulatory and tax environment, a winning combination only Irving-Las Colinas can offer.”


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From startups to well-known names, Irving-Las Colinas would be glad to welcome more life sciences companies home to Irving.” 

— Irving-Las Colinas Chamber of Commerce President and CEO Beth A. Bowman

 


Advancing an Ecosystem

As a state, Texas has risen as a leader within the life sciences industry. Dallas-Fort Worth is just one of the state’s larger metros that caters to a burgeoning life sciences market. For businesses looking at the region, Irving-Las Colinas’ central location just outside of the Dallas metro has brought in leading companies like Zoetis, Abbott Laboratories and Progressive Laboratories among other life science businesses looking to develop innovative products. 

In doing so, these biotech and life science giants have drawn top talent to the region. Of the 248,970 active workers in Irving-Las Colinas, 16,000 work in the city’s biotechnology industry. Representing the highest concentration of workers across all of the city’s industries, 13% of workers fall within professional, scientific and technology services, according to the U.S. Census Bureau.

To continue the development of the city and region’s life sciences sector, the Chamber is working with local high schools, institutions, other area chambers and organizations in North Texas to provide STEM education opportunities to strengthen the next generation of workers. Key players in the city include Irving’s Independent School District and University of Texas Southwestern Medical Center, who have partnered on a biomedical science program that resulted in 2,500 participants.

10-Minute City Outside the Hustle and Bustle

Irving-Las Colinas has the luxury of being located within the ever-growing Dallas-Fort Worth-Arlington area, ranked No. 1 among South Central metro areas for the second year in a row in Site Selection’s March 2023 Top Metros rankings by number of corporate facility investment projects.

As one of the most sought-after suburbs in the region, home to 10 Fortune 500 companies, the city still possesses a 10-minute lifestyle. A 6 a.m. flight can afford one last snooze button push, as the city is located within 10 miles of both Dallas Fort Worth International Airport and Dallas Love Field Airport.

Niche’s Best Places to Live 2022 rankings put Irving in the top 50 out of 228 U.S. cities for: most diverse (12th); best city to buy a house (33rd); best city to live (40th); best city to raise a family (40th); best city for young professionals (48th); and best public schools (50th). 

Irving-Las Colinas is home to over 254,000 residents, according to 2022 U.S. Census estimates. Young professionals are finding themselves in an urban setting boasting a median age of 32, yet outside the hustle and bustle of Dallas. 

“This way of life helps companies in Irving-Las Colinas move beyond the standard benefits and offer employees, particularly younger team members who prioritize work-life balance, an array of amenities all within easy reach,” say Bowman. 


This Investment Profile was written under the auspices of the Irving-Las Colinas Chamber of Commerce. For more information, visit irvingchamber.com.

Built to Last

by Savannah King

Washington state is at once a bastion of innovation and tradition. Longtime industries, like the state’s robust forestry industry continue to develop new technologies that promise to improve the way we construct facilities and better the environment. 

Washington is heavily wooded with nearly 23 million forested acres — or more than half of the state. 

Approximately, 4 million acres of those acres are privately owned and account for 70% of the state’s timber harvest. The forest products industry supports more than 42,000 workers across more than 1,700 businesses in the state. 

While the forest products industry itself is tried and true, new products are always being developed. One such technology, a new and innovative wood product called cross-laminated timber (CLT) is quickly gaining steam as an eco-friendly building material. 
CLT is an engineered wood product produced from multiple layers of lumber and adhesive; each layer laid up with its grain running perpendicular to the layer adjacent and pressed under heat to create large, high strength panels. The panels are modified by automated CNC machines to incorporate custom window, plumbing, electrical and fastening elements in accordance with the precise architectural specifications of the designer. The finished panels are then assembled in situ at the construction site.

CLT is principally used for commercial and residential building construction. Europe is currently the leading market for CLT design and the market in North America is growing. CLT designed construction is attractive for its speed of construction, its low carbon footprint when compared to traditional building methods and its aesthetics. Contemporary building codes acknowledge its strength, fire resistance and carbon sink characteristics which have made it a leading construction method for many of the world’s LEED-certified buildings; many of which are over 20 stories in height.

In August, Mercer International Inc., a Canadian timber company, acquired a recently constructed, state-of-the-art CLT manufacturing facility in Spokane Valley for $50 million. The facility was formerly occupied by Katerra, which completed the construction of The Catalyst building in Spokane ­— the largest CLT building west of Arkansas. The CLT manufacturing facility is equipped with state-of-the-art extensive automation technologies, including one of the largest CLT presses in the world. 

“Darrington has deep roots in the timber industry going back for generations.” 
­—  Darrington Mayor Dan Rankin.

Located on 54 acres, the 270,000-sq.-ft. facility has the capacity to produce 13 million sq. ft. of 5-ply panels annually. Additionally, the facility represents about 30% of the current North American mass timber manufacturing capacity. 

“We are very pleased with our impending acquisition of the facility,” David Gandossi, CEO of Mercer, said. “It represents an attractive entry point for us into the CLT business with a near new state-of-the-art facility. It fits well with our strategy to expand in the solid wood products space and aligns with a core value to provide sustainable and carbon reducing alternatives for a warming planet.”

Innovation in Timber Town

In the small mountain town of Darrington, in the North Cascade mountains, the timber industry is the region’s primary economic driver. In 2020, the city announced plans to develop the Darrington Wood Innovation Center. As a partnership between the town and Forterra, a Washington-based land conservation nonprofit, the innovation center’s campus will house and attract new wood fiber-based innovation and manufacturing companies. The Center will include companies building or manufacturing mass timber, CLT and modular housing.

This development addresses town officials’ long-term goals to reinvigorate the local economy after a tragic mudslide in 2014 and bring innovative wood technology jobs to the community, affirming its identity as a timber town.

“Darrington has deep roots in the timber industry going back for generations,” said Darrington Mayor Dan Rankin. “Wood has been an integral part of our community and through mass timber will continue to be part of our future. The Darrington Wood Innovation Center will create new, innovative jobs that embody the spirit of our community. By bringing mass timber and CLT production to Darrington, the new Center will continue to make possible a livelihood that allows folks to live, work and play in this incredible place we call home.”