The Janus Forum hosted its first-ever State Directors Forum at Lake Rabun, Ga., on June 8. Economic development leaders from several states participated in this roundtable discussion, which yielded considerable take-home value for all involved.
One of those who participated was Mandy Lambert, Commissioner of the Kentucky Cabinet for Economic Development. Janus Reporter editor Ron Starner conducted the following interview with her.
JANUS REPORTER: What has been Kentucky’s biggest economic development wins of 2014, year to date?
MANDY LAMBERT: Kentucky continues to have great momentum in the auto industry. In January, Ford announced plans to boost production capacity at the Kentucky Truck Plant, in Louisville, to meet surging demand for F-Series Super Duty trucks. The increase will create 350 new jobs and an $80 million investment. The expansion will allow Ford to boost F-Series Super Duty production capacity by an estimated 15 percent.
The Commonwealth is also taking further steps to strengthen Kentucky’s auto industry. Last month, Governor Steve Beshear launched the Kentucky Auto Industry Association. The association will bring together Kentucky auto manufacturers, suppliers and supporting entities to create a unified voice for an industry. The association will play a vital role in addressing industry challenges, solutions and opportunities. It will also allow us to highlight successes and elevate the state’s contributions to the global automotive industry.
Aside from automotive developments, the demand for Kentucky bourbon is also growing at a record pace. Several of our major distillers have celebrated expansions this year, investing more than $200 million combined. The world is truly gaining a strong taste for one of our most signature products. In fact, there are more aging barrels of bourbon (4.9 million) in Kentucky than people (4.4 million).
JR: The Kentucky Derby in early May is a huge showcase for your state. How does the Kentucky Cabinet use that event to foster business growth in Kentucky?
LAMBERT: The Derby puts a spotlight on us like no other. This is an event that, around the world, is on almost everyone’s bucket list. When you invite people to the Derby, they rarely say no.
We key in on that as our top economic development attraction event for the year. Typically, we host several dozen economic development guests from around the world. It’s a great opportunity to show them Kentucky’s rich heritage and share our traditions and customs. The efforts pay off as many of these folks come back and bring jobs to our area.
We also have another unique opportunity to showcase the Commonwealth this summer when the PGA Championship comes to the famous Valhalla Golf Club in Louisville (August 4-10). We held a similar event when Valhalla hosted the Ryder Cup in 2008. The event was very successful, and we expect more success this year.
JR: What is the one industry sector that is Kentucky’s best-kept secret?
LAMBERT: The industry that is our best-kept secret is actually our largest: aerospace. Most people think of Kentucky as just bourbon and horses, and perhaps vehicles—they have no idea that aerospace makes up a significant part of our economy.
Last year, Kentucky exported $5.6 billion in aerospace products and parts—more than automobiles or any other product. Our success in aerospace exports was instrumental in Kentucky’s record export growth. In 2013, the Commonwealth exported a record $25 billion to nearly 200 countries around the world.
Some of the most cutting-edge aerospace technology is being developed in our state. Morehead State University in eastern Kentucky, for example, specializes in designing and building micro and nano-satellites; extremely small satellites—ranging in size from toaster ovens to dish washers—that orbit Earth in formations. These satellites perform intricate tasks like scanning warehouse inventory from outer space and surveying natural disasters in real-time. Developers even have plans to send a satellite to the moon to search for water.
JR: How is the BEAM Partnership helping drive business growth in the Lexington-Louisville Corridor?
LAMBERT: Kentucky’s two largest cities are significant drivers of the state’s economy. Louisville and Lexington account for $92 billion a year in GDP—more than half the state’s total—and nearly 50 percent of the Commonwealth’s population.
In many cases, large cities find themselves in competition for new industries, businesses and jobs. Instead, area leaders are working together to elevate central Kentucky’s advanced manufacturing industries to world-class heights. Through BEAM (Bluegrass Economic Advancements Movement), we’re working together on workforce development, export expansion and creating a better economy for the whole region.
By building up the areas and creating an advanced manufacturing hub, central Kentucky will be a place where more businesses will want to invest and bring jobs. As a result, Louisville, Lexington and everywhere in between will reap the benefits.
JR: What are the most significant transportation infrastructure improvements that are either under way or planned in Kentucky?
LAMBERT: The $2.3-billion Louisville-Southern Indiana Ohio River Bridges project is the largest single construction project in Kentucky history. The project consists of building two bridges—one in downtown Louisville and one in east Louisville—and reworking the traffic-snarled interchange of Interstates 65, 71 and 64, known as “Spaghetti Junction.” The project will be completed in 2016, and will help modernize Kentucky’s largest city. These improvements should attract industry and other development to the area.
We’re also making other major improvements to our interstates and highways. Construction to build I-69 through western Kentucky is well underway. In the past decade, Kentucky transportation has expanded most of I-65 from Louisville to the Tennessee line and the majority of I-64 from Louisville to Lexington from four lanes to six. Road improvements in eastern Kentucky are also opening up that region to new economic development opportunities.
JR: Since winning the Lexus ES sedan production at your Toyota plant in Kentucky, how has that landmark project affected the perception of your state as an advanced manufacturing hub?
LAMBERT: Kentucky has been very proactive in the auto industry. We have great relationships with our OEMs—Ford, GM and Toyota— as well as our strong supplier base, and are constantly looking at ways to help them grow. Toyota’s announcement to build the Lexus ES 350 in Georgetown shows just how important Kentucky is to the industry. It also shows the company’s confidence in the quality of Kentucky-made products. Our businesses and workforce are known for quality and reliability, and now the manufacturing world is taking notice.
These investments have had a significant ripple effect that can be seen in the expansion and location of suppliers all across the Commonwealth. Kentucky is now home to more the 460 auto suppliers and manufacturers that employ more than 82,000 people. We’re the third-largest producer of light vehicles in the nation and number in vehicle production per capita.
With Toyota’s addition—coupled with major expansions by our Ford plants in Louisville and General Motors facility in Bowling Green—Kentucky is becoming the place to build the vehicles of today and tomorrow.
JR: What is your state doing to address the workforce training and development challenges of the 21st century?
LAMBERT: A qualified workforce is the single most important factor in economic development. It’s at the top of every site selector’s checklist. We are making great strides to prepare and train our workers through more integrated efforts by our workforce training partners across the state.
Earlier this year, Governor Beshear announced the Kentucky Skills Network. In the past, Kentucky employers sought workforce assistance from various agencies and resources throughout the state, making the process of finding and training qualified workers confusing and disjointed. The Kentucky Skills Network has created a statewide team of professionals to assist companies in identifying specific workforce needs, customizing flexible recruitment and training solutions and implementing quality services in a timely fashion.
Last year, the Kentucky workforce partners provided training for nearly 83,000 Kentuckians from a variety of industry sectors. In addition, pre-employment services were provided to more than 92,000 individuals and 2,600 companies in the Commonwealth. With the Kentucky Skills Network, we expect to increase our customer service reach by providing efficient services and client specific resources to companies throughout Kentucky.
While customized and effective training programs are essential to growing and maintaining a qualified workforce, we also realize that creating a pipeline of qualified workers is essential for Kentucky’s long-term economic success. In March 2014, Kentucky teamed up with the German Embassy to launch the Skills Initiative, a partnership focused on developing high school and college apprenticeship-type training programs to introduce students to highly technical career pathways.
Our current model for the Skills Initiative is the Advanced Manufacturing Technician (AMT) program. Through the partnership with Bluegrass Community and Technical College, Toyota leads an industry partnership of several area employers to implement a work-study program aimed to develop the skilled workforce of the future. The program offers students the opportunity to learn in a real work environment while also providing the chance for students to immediately apply what they learn to their job. Upon successful completion of the AMT program, students are provided the opportunity to move into full time employment with their sponsoring company.
Wild Turkey Distillery opened its new visitor center in Lawrenceburg, Ky., on April 15. The newly christened facility is part of a $100-million plant investment by Gruppo Campari at the site.
Photo courtesy of Wild Turkey Distillery
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