Kentucky Building Partnerships With Business

Two international air cargo hubs – the newly enlarged UPS Worldport in Louisville, above, and the expanding DHL Worldwide Express U.S. hub in Erlanger – give Kentucky a logistics edge.

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n Kentucky, we understand that government doesn't create wealth, it is business that creates wealth. Recognizing this, we try to foster an atmosphere and environment that is conducive to our economic development objectives. Our central location with a network of five interstate highways and two international air cargo hubs allows for easy access to markets and raw materials. Kentucky boasts the seventh lowest overall cost of doing business in the U.S. and has the nation's lowest industrial electric rates. Our work force perennially is more productive than the national average.
        But beyond the objective factors that business considers when deciding to expand or select a new location, we feel that the relationships and trust that are esta blished between business and government is the primary factor in the decision-making process. And it is our record of building partnerships with business that has had the biggest impact on our economic development success. In Kentucky, companies will find a state government that understands and is responsive to the needs of the business community. Several programs have been enacted that allow companies that locate or expand in the Commonwealth the ability to maximize their profits.
        One example of our efforts to nurture strong business alliances is our continued support of our Far East office in Tokyo. Opened in 1983 and operating continuously since then, this office has allowed us to build and maintain relationships with hundreds of Japanese companies. The result has been that over 133 Japanese companies have located in Kentucky. Delegations from Kentucky regularly visit Asia to maintain and expand these relationships, which is an additional indication that in Kentucky, we service after the sale.
        Perhaps the best example of our efforts to nurture Asian relationships came in 1988 with the opening of Toyota's Georgetown, Kentucky production facility, where the Camry and now the Avalon sedans are manufactured. Since the original facility opened, the operation has been expanded several times. Toyota also selected Erlanger, Kentucky as the location for its North American Manufacturing headquarters and the company's employment in the Commonwealth is now approximately 9,000.

Kentucky Fast Facts • Lowest industrial electric rates in U.S. • Cost of doing business is 7th lowest in U.S. • First state with 100% of school districts online to an integrated voice, video and data network • Community and site information is available at www.thinkkentucky.com/edis • For business location assistance, call Chuck Willis at 800-626-2930 or email chuck.willis@mail.state.ky.us

        However, our efforts exceed just the Asian market. Kentucky is the fourth largest producer of light vehicles in the U.S. thanks in large part to two Ford facilities in Louisville and the 10,000 employees at these locations. Kentucky recently approved incentives that will assist Ford in expanding its Louisville Assembly Plant and increase production of the Ford Explorer, the world's best-selling sport utility vehicle. In fact, nearly 500 automotive-related companies have joined Ford and Toyota in Kentucky, including industry leaders like Dana, Webasto, Akebono, Sachs Automotive and Johnson Controls.
        Beyond automotive and manufacturing, we are also creating highly innovative partnerships that will enable the new economy to thrive in Kentucky. Alliances between workforce development, our universities and Kentucky's burgeoning medical community are resulting in greater investment in research and development. Six Innovation and Commercialization Centers (ICC's) have been opened to help forge a climate of entrepreneurial success today and for years to come. Through an exciting initiative called Seeding Technology, we are starting as early as kindergarten to interest children and their parents in science, engineering and entrepreneurship.
        The combination of Kentucky's natural advantages and pro-business approach is producing solid results. Recent investment in Kentucky includes:
        • Pella Window Corporation, production facility & district headquarters in Murray
        • Perot Systems, healthcare receivables center in Bowling Green
        • Republic Airlines, America's newest start-up airline locating its maintenance and headquarters operation in Louisville
        • J.H. Smuckers Company, opening its second major Kentucky facility in Scottsville
        • Kyosan Denso, joint manufacturing company formed by Kyosan Denki America and Denso International America in Mount Sterling.
        The Kentucky Cabinet for Economic Development works closely with a network of local economic development officials to provide a team of professionals who understand the needs of business and has the ability to meet those needs.