< Previous50 KENTUCKY ECONOMIC DEVELOPMENT GUIDE can also cross-train as Ford’s huge 5,000- job joint venture with SK — BlueOval SK or “BOSK” — continues to ramp up along I-65 to the south in Glendale. “Then when BOSK is fully functional,” Yoder said, “their workforce is ready to go.” “Ready” also is the operative word in a more recently launched program: Ready for Industry, supported by $5 million in funding awarded to the Education and Labor Cabinet through a federal Quality Jobs, Equity, Strategy and Training (QUEST) grant. Each Ready for Industry course is 15-20 hours of instruction designed to help jobseekers understand what it’s like to work in several high-demand industries, including manufacturing, health care, information technology, transportation, distribution and logistics, and architecture and construction. Kentucky is one of only five states in the nation to provide free, statewide access to the program, which responds to something Yoder said his colleagues were hearing more and more from employers: “We can train people to do what we need them to do. But we need them to have the skills at the level that makes them trainable.” The BOSK project, meanwhile — part of an $11 billion investment across locations in Kentucky and Tennessee that will create 11,000 jobs in all — also benefits from a unique training relationship with Elizabethtown Community and Technical College (ECTC), which in June 2024 opened the ECTC BlueOval SK Training Center to begin providing onboarding and training to BlueOval SK employees. Between July 2023 and that date, ECTC already had provided training for more than 1,000 employees that will work at the battery plant in Glendale. “ECTC has provided the majority of BlueOval SK’s onboarding and training at our main campus,” said ECTC Chief Workforce Officer Darrin Powell. “With the training center open, we can continue to offer high-quality curriculum for these high-demand careers, right next door to BlueOval SK Battery Park.” The state invested $25 million in the advanced battery manufacturing training center. In addition to other training programs, ECTC also has provided customized training services under the Kentucky Community and Technical BlueOval SK partnered with Elizabethtown Community and Technical College to establish a training center for the company’s 5,000 projected workers that opened in 2024. Photo courtesy of the Office of the GovernorKENTUCKY ECONOMIC DEVELOPMENT GUIDE 51 College System’s TRAINS program, which since its creation in 2014 has assisted growing companies with 1,184 projects involving more than 87,300 enrollments, including 668 projects in manufacturing that have attracted $14.5 million in TRAINS investment. “It’s a sister program to BSSC,” Yoder explained, typically conducted at the college. “If a business has particular training needed and a college has a certification or can customize a plan, KCTCS will incentivize that. ECTC with BlueOval is an example. For BOSK we can do both BSSC and TRAIN commitments to get them off the ground.” It’s recommended that BSSC grant recipients consider becoming a part of Kentucky’s registered apprenticeship program, which has its own momentum going, including such areas as early “ The key differentiator is it’s not a specialized training program. It’s companies investing in their employees and doing so in a way that is beneficial for their industries. ” — Mike Yoder, Interim Commissioner, Kentucky Department of Workforce Development, on the value of Bluegrass State Skills Corporation52 KENTUCKY ECONOMIC DEVELOPMENT GUIDE childhood education and child care, backed by Gov. Beshear’s push to fund universal Pre-K for all four-year-olds in the state. Apprenticeships for the electric vehicle industry, meanwhile, aren’t happening only in EV manufacturing plants, but throughout the entire EV supply chain. Overall numbers are breaking records: In recognizing National Apprenticeship Week in November 2024, the Kentucky Center for Statistics (KYSTATS) and the Office of Employer and Apprenticeship Services showed Kentucky logged 6,639 active apprentices during federal fiscal year 2023, a record high for a single year. “That number exceeds the previous year’s total by 15% and more than doubles the number of active apprentices recorded a decade earlier,” the state announced. In fiscal year 2024, the BSSC board of directors approved roughly $19 million in funds and credits for 104 Kentucky facilities to train 42,600-plus workers, the most since 2016. Moreover, the board approved more than $1.7 million in training funds and credits for over 4,000 trainees across 26 Kentucky facilities during the first of four fiscal year 2025 meetings. The board approved 76 grant-in-aid (GIA) applications for companies and training consortia to provide training for 35,213 Kentucky resident employees. Meanwhile, GIA net disbursements for skills training projects during FY24 totaled $2,435,034 for the benefit of 40 company locations and consortia organizations to provide training to 27,363 Kentucky-resident employees. Among those benefiting was longtime Kentucky employer Ford Motor Co., which received $500,000 in grant-in- aid in three installments to train 7,485 employees in Louisville. Others receiving a $75,000 grant-in-aid included Buffalo Trace Distillery in Frankfort (352 employees in Frankfort); automotive supplier Mubea (350 employees in Florence); and Toyotetsu (590 employees in Owensboro). The board also approved tax credit applications for 33 companies to provide support to train 7,363 Kentucky- resident employees through its Skills Training Investment Credit (STIC). In FY24, STIC benefits were issued for $1,315,898 to 30 companies for 2,890 trainees, including 1,124 at North American Stainless, Inc., in Ghent and 231 trainees at Carmeuse Lime & Stone, Inc., in Butler. Last but not least, the BSSC approved its 14th Metropolitan College Tax Credit to United Parcel Service during FY24 in the amount of $3,869,527 for training provided to 1,681 students as part of the “Metropolitan College Agreement” first formed in 2009 to provide educational opportunities alongside employment via a partnership among UPS, the University of Louisville and Jefferson Community and Technical College. Businesses involved in manufacturing, agribusiness, non-retail service or technology, headquarters operations, hospital operations, coal severing and processing, alternative fuel, gasification, renewable energy production or carbon dioxide transmission pipelines may be eligible for BSSC incentives. Training In Kentucky, the median starting wage for those who complete a registered apprenticeship program is $55,366 IN THE FIRST YEAR OF EMPLOYMENT, increasing to $71,295 IN THE 10TH YEAR OF EMPLOYMENT.KENTUCKY ECONOMIC DEVELOPMENT GUIDE 53 consortia may also qualify for the GIA program. The beneficiaries are among the many Kentucky employers found on the Cabinet’s 2024 list of active incentives projects, which number 1,540 across all incentive programs. By Your Side If it sounds like a lot of departments at work on workforce, it’s a topic Yoder and colleagues are addressing to better integrate the cabinets and how they collaborate. Sort of like the companies receiving BSSC incentives integrate training into their daily operations. A council, known as the Statewide Workforce and Talent Team (SWATT), has been created across state agencies and various industry associations to streamline efforts in addressing business needs. In support of this initiative, the Governor has committed Workforce Talent Project Managers, all in the name of responding to the needs of business. “The big overarching theme that bleeds into the work we’re doing is the commitment by the governor to say, ‘We are here to help companies in Kentucky and help Kentuckians,’ ” said Yoder. “How does a business see their talent life cycle, and how do we bring agencies and partners into the life cycle with concierge support.” It’s not enough to say, “Here’s a good site with electricity and roads, and here’s a workforce for that industry,” Yoder added. “We’re going to walk alongside you. We have a plan to sustain companies. We want to be a concierge and good steward. We want this to continue to be their Kentucky home.” 54 KENTUCKY ECONOMIC DEVELOPMENT GUIDE METALS M etal production is at the epicenter of Kentucky’s economy. Automotive. Aerospace. Food and Beverage. Manufacturing. You name it, almost half of the state’s major industries rely on the vital products this sector generates. From steel to aluminum and copper, Kentucky’s robust pipeline for these resources provides unparalleled access to materials that are globally in high demand. is symbiotic relationship between metal production and various industries has built a unique cluster in Kentucky that is growing at an impressive rate. Since , more than metal- related announcements have contributed to over $ billion in investment and approximately , full-time jobs. It Takes a Team to Rise to the Top e Metals Industry Initiative (MI ), a non-profi t, industry-led collaborative, is determined to keep this momentum going. With representation from aluminum, automotive and rechargeable battery industries, as well as partnerships with higher education and government associations, MI strives to take this combined expertise to support dominance in emerging industries like electric vehicles and battery production. Launched in with support from Gov. Andy Beshear and the Kentucky Cabinet for Economic Development, the coalition’s focus on promoting research, commercialization, talent development and other initiatives designed to grow Kentucky’s metals industry is swi ly by: LINDSAY LOPP Built on The metals industry employs over 35,000 Kentuckians. Photo courtesy of North American Stainless Kentucky’s metals companies are working together to ensure continued successKENTUCKY ECONOMIC DEVELOPMENT GUIDE 55 making a significant and lasting impact on the state’s industrial future. As of last year, MI2 collectively represents over $34.2 billion in annual revenue. Vijay Kamineni, the former CEO and current chief innovation officer of MI2, spoke at the Kentucky Legislative Research Commission’s Interim Joint Committee on Economic Development and Workforce Investment meeting in November 2024, highlighting what MI2 and its partners have achieved, and the areas the organization is working to strengthen. “Our state has become and has more potential to grow as a top supplier in these high-growth sectors,” said Kamineni during the live stream. “We are fortunate to have a supportive state government that actively attracts and retains metals investments into Kentucky. This has been instrumental in helping our industry thrive. Of course, challenges remain, including international competition and supply chain pressures, but our commitment to growth and innovation is clear.” Worker challenges is another area of concern Kamineni mentioned, sharing examples of how MI2, Gov. Beshear and Kentucky legislators and its industry partners are actively mitigating this issue. “Despite high wages in the metals industry, young workers often overlook these roles, influenced by outdated perceptions of the industry,” he explained. “To address these issues, companies are partnering with Kentucky Community and Technical Colleges to create training pipelines. The incentives to attract younger and diverse talent — including apprenticeships, on-the-job training, job placement programs — are proving effective.” Promising Partnerships MI2’s collaborations with academic institutions in the state are not only building a talent pipeline but engineering next-generation technologies and industry practices. MI2 is a collaborating partner of Generate Advanced Manufacturing Excellence for Change (GAME Change), a University of Kentucky-led coalition to create economic, societal and technological advancement in the Southeastern Commerce Corridor (SCC) of Kentucky and Tennessee. In 2023, the initiative received one of the first-ever U.S. National Science Foundation’s Regional Innovation Engine Development Awards (NSF Engines). With the $1 million the team received, it is developing circular economy- enabling technologies for sustainable advanced manufacturing and supply chain resilience. This approach is set to influence further collaboration and the adoption of sustainable practices through sharing, leasing, reusing, repairing, refurbishing and recycling of existing materials and products. To support this strategy, GAME Change is investing in technology scaling infrastructure that will provide dedicated space for startups, researchers and collaborations. Known as the GAME Change Technology & Talent Scale Centers (TTSCs), these locations are anticipated to include flex space capable for technology development and demonstration projects, workforce training, startup incubation activities and networking events. Locations have already been identified in existing spaces in Lexington, Louisville, Knoxville and Nashville for future TTSCs. Forging Ahead By fostering sustainable practices and advancing cutting-edge technologies, the state is meeting today’s demands while preparing for tomorrow’s challenges. As Kentucky continues to grow its supply chain, attract talent and support strategic initiatives, the state remains on track to lead the nation in metals production for years to come. Photos by Charity Hedges courtesy of Kentucky Cabinet for Economic DevelopmentG ermany, Switzerland, Japan and South Korea were among the destinations Governor Andy Beshear visited in . During these visits he met with Kentucky companies doing business in those countries and made the case that the Bluegrass State is an ideal location for companies based overseas. More than foreign-owned facilities operate in Kentucky representing nations. Combined they employ more than , Kentuckians, according to the Kentucky Cabinet for Economic Development. e governor also attended the World Economic Forum in January, in Davos, Switzerland. “Despite being new to the event, we had one of the busiest schedules,” noted the governor in a January statement recapping the trip. “In two and a half days, we had meetings with company executives. Ten were with foreign owned companies that already employ over , Kentuckians. e other meetings were with potential investors from multiple continents that have announced plans to invest in the United States. From L’Oreal to Suntory, DHL, Schneider Electric, Henkel, Pinterest and more, the lineup was full, and the meetings were promising. by MARK AREND Kentucky’s Chief Salesman Courts Businesses Globally 56 KENTUCKY ECONOMIC DEVELOPMENT GUIDE FOREIGN DIRECT INVESTMENT Governor Andy Beshear visits South Korea in 2024, signing a driver’s reciprocity agreement to support job growth. Photo courtesy of the Offi ce of the Governor“In between making these pitches,” the governor continued, “I attended multiple events. At each one, I’d interact with top executives as well as presidents and prime ministers. No matter the meeting or event, at the heart of each discussion was Kentucky, our workforce and our bright future. And everyone with an operation in our commonwealth sung our praises and talked about being one of their best years ever.” A Busy Winter for Foreign Investment In December alone, several foreign- owned companies announced new operations in Kentucky. Netherlands- based Bosch Berries opened a new greenhouse in Somerset, Pulaski County ($ . million investment, jobs), where it will grow and distribute strawberries. Toyota Motor Manufacturing Kentucky (TMMK) announced a $ million investment to build a new advanced paint facility at its Georgetown plant, the largest capital investment project in the commonwealth in . In February , TMMK said it would increase a previous EV-related investment in the facility to $. billion. And Cinis Fertilizer, based in Sweden, announced plans to invest $ million in a production plant in Christian County that will create new full-time jobs. As for so far, foreign investment in Kentucky remains robust. In January, Nitto, a Japanese producer of products for the automotive, electronics, aerospace and other industries, said it will open a facility in Frankfort where it will create jobs. And Murakami Manufacturing USA, Inc., a division of Japan’s Murakami Corporation announced a $. million investment in its Campbellsville facility, where it makes side-view exterior mirrors and other parts for auto manufacturers. ese and the hundreds of other international companies doing business in Kentucky benefi t from logistics assets that are hard to beat. ey include , miles of railroad track, more than , miles of navigable waterways and major air cargo hubs operated by UPS, DHL and Amazon. FedEx also has operations in Paducah and London, in eastern Kentucky. KENTUCKY ECONOMIC DEVELOPMENT GUIDE 57 115,000+ Kentuckians employed by international companies. 530+ Kentucky facilities are internationally owned. 33 nations have Kentucky-based facilities. 8.8% of private-sector jobs are supported by international companies No.3 highest concentration of FDI Jobs in U.S. Japan, Canada and Germany support the most FDI jobs in the state.Next >