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FAST LANE - April
2006
Sullivan University has announced plans to add a pharmacy program to help address the country’s growing need for more pharmacists. The announcement comes after nearly two years of research and planning on the part of Sullivan University’s board of directors. The U.S. Department of Labor projects that through the year 2012, the number of degrees granted in pharmacy will be less than the number of job openings created by employment growth and the need to replace pharmacists who retire or leave the occupation. Currently, the University of Kentucky is the only university in the commonwealth to offer a Doctor of Pharmacy program. Sullivan’s Doctor of Pharmacy (PharmD) program is slated to begin in approximately two years. A search for a dean of the College of Pharmacy is already underway. The pharmacy program will be the first program beyond the master’s level at Sullivan, elevating the university from a master’s degree-granting institution to a doctorate degree-granting institution. The university will seek accreditation from the Accrediting Council for Pharmacy Education, the national agency charged with accrediting professional degree programs in pharmacy and providers of continuing pharmacy education. ELIZABETHTOWN Akebono Corporation, a supplier of brake products and friction materials, has announced it will be relocating its North American headquarters from Farmington Hills, Mich. to Elizabethtown by this fall. The move will bring 75 new white-collar jobs to Hardin County. Akebono Corp., owned by Akebono Brake Industry Co. Ltd., of Japan, also operates AMAK Brake in Glasgow and AMTEC in Springfield. Its automotive customers include Audi, DaimlerChrysler, Ford, General Motors, Honda and Toyota. Construction is slated to begin in Elizabethtown this spring on a 10,000-square-foot facility that will be located next to the 348,000-square-foot Ambrake plant. Construction costs are estimated at $1.1 million, with another $700,000 allocated for installing telephone and computer systems and furnishings. The corporate president for Akebono North America and his staff, legal counsel and the corporation’s finance group will work from the new Elizabethtown facility, Lay said, while 200 Akebono employees will remain in Farmington Hills in research and development capacities. The corporation has received preliminary approval from the Kentucky Economic Development Finance Authority for $1.35 million in tax benefits under the Kentucky Jobs Development Act. Elizabethtown/Hardin County Industrial Foundation President Rick Games said Akebono has shown a longstanding commitment to Kentucky by locating three of its facilities here, and is evidently comfortable with the quality of life, workforce availability, and positive relationship with local governments and industrial foundation officials in Hardin County. “I think they did their homework before they decided to make this move and I think it says a lot for our community,” he said. STATE The Kentucky Office of Energy Policy has awarded grants totaling $295,000 for energy research and development in the areas of renewable energy and energy efficiency. The awards will yield $1.13 million in federal matching funds from the Kentucky Rural Energy Consortium (KREC). UK president Lee T. Todd Jr. said the project will position Kentucky as a leader in cutting-edge, environmentally-friendly energy research. NORTHERN KENTUCKY
The CoreNet awards recognize best practices, leadership and innovation in economic development. Finalists were named in two categories: leadership and innovation, and major projects/deals. Northern Kentucky Tri-ED was the only group to be recognized in both categories. In the leadership and innovation category, Northern Kentucky Tri-ED was recognized in large part because the region – which consists of Boone, Campbell and Kenton counties – is home to approximately 8 percent of Kentucky’s population and 18 percent of the Cincinnati area, yet accounted for 26 percent of the capital investment generated for the entire state and 28 percent for the Cincinnati metropolitan area last year. It also exceeded the expected wage level for new primary jobs by 26 percent with a $54,965 average salary in 2004 based on a study conducted by the POLICOM Corporation, an independent economic research firm. Recognition in the Major Projects category was earned for Tri-ED’s high-profile deals involving Fidelity, Lafarge, SSE Manufacturing and Eagle Manufacturing, among others. STATE The University of Kentucky Chandler Medical Center’s Markey Cancer Center has formalized a network affiliation agreement with three Kentucky hospitals that will create a collaborative provider network and keep cancer patients closer to home for treatment. Participating in the Markey Cancer Center Affiliate Network are St. Claire Regional Medical Center in Morehead, Rockcastle Hospital and Respiratory Care Center in Mt. Vernon, and Harrison Memorial in Cynthiana. “Our goal is to foster the growth of robust, community-based cancer programs that focus on the health care needs of rural Kentucky,” said Dr. Kevin McDonagh, Markey Cancer Center deputy director and Markey Foundation chair in oncology research. The network will support a statewide collaborative relationship between local health care providers and Markey Center clinicians and scientists. Patients also will have access to Markey Cancer Center research programs. STATE A recently released listing in Site Selection magazine ranks Kentucky third in the nation for the highest number of micropolitan areas in the top 100. The Micropolitan Awards – formerly called Top Small Towns – is an annual program designed to honor communities with populations of 50,000 or fewer for their ability to secure new and expanded corporate facility projects. Finishing in the Top 100 Micropolitan areas were: Paducah, Glasgow, Danville, Richmond, Somerset, Corbin, Frankfort, Mount Sterling, Murray, and the Union City, Tenn.-Ky. region. “Having 10 of Kentucky’s small communities finish so well in new and expanding business activity for 2005 is quite an accomplishment,” Gov. Ernie Fletcher said. “It speaks highly of the number of quality small towns we have in this state and their ability to compete in a global marketplace.” “Finishing in the top three states for the number of micropolitans says that the whole state is doing something right, not just a couple of communities,” said Mark Arend, editor of Site Selection. “It says that a significant number of companies want to be in Kentucky and that they are choosing small city locations in addition to the major metros.” In addition to the Top Micropolitan Area Awards, Kentucky also finished 11th in the country in Site Selection’s tally for the annual Governor’s Cup Award, which is awarded to states based on total number of qualified projects in the previous calendar year. Kentucky has had a strong presence over the years in the publication’s other annual awards as well. The annual Competitiveness Award, released each May, has placed Kentucky in the Top 10 since the award’s debut in 2003 and its annual Business Climate Ranking, released in November, ranked Kentucky 9th in 2005. GEORGETOWN
In announcing the new KCTCS Center for Excellence in Automotive Manufacturing, KCTCS President Michael B. McCall and TMMK President Gary Convis said the new facility will help create a nationally recognized model for workforce education and training in the automotive industry. While the training partnership will initially be inside the Toyota plant in Georgetown, McCall said the KCTCS goal is to expand the programs and services of Bluegrass Community and Technical College in Scott County to assist other manufacturers, suppliers and companies with technology education and training. The endeavor will “ensure a pipeline of new workers ready to utilize high-value, advanced manufacturing techniques,” McCall said. “This advanced technology center will be an innovative, flexible space that recreates the look and feel of a manufacturing facility, rather than the traditional classroom,” explained Dr. Jim Kerley, president and CEO of Bluegrass Community and Technical College. “Working collaboratively with industries, secondary school systems, economic development officials and workforce investment boards, we will enhance our capabilities to meet the needs of companies like Toyota, and to expand our services to other businesses and industries that must utilize advanced manufacturing techniques to remain competitive in the global marketplace.” OWENSBORO Midline Air Freight Inc., an on-demand passenger charter and cargo operation, is planning to establish operations at the Owensboro-Daviess County Regional Airport. The Springfield, Ky.-based company expects to begin its Owensboro operation in June with approximately 15 employees, which will include pilots, mechanics and dispatchers. That figure could grow to around 25 within two years, according to officials for the company, which is owned by Georgia-based CorpJet. Owensboro leaders are hoping Midline’s presence will give the area more visibility in the air cargo industry, which in turn could lead to more economic development possibilities. The Owensboro airport is currently in the midst of a $12 million expansion, which will extend the airport’s north-south runway to 8,000 feet. The expansion project is slated to be complete by 2007. STATE
The Solucient “100 Top Hospitals National Benchmark for Success 2005” awards are the result of a study that measured hospitals in the following areas: clinical outcomes, patient safety, operational efficiency, financial stability and growth. The hospitals named to the Top Hospitals list displayed balanced organizational performance and an ability to provide sustainable and reliable health care services to their communities. The data for the 2005 study was collected from a number of public sources, including federal Medicare statistics. Solucient compared each hospital to peer hospitals in five categories: major teaching hospitals, teaching hospitals, large community hospitals, medium community hospitals, and small community hospitals. Twenty hospitals were selected in each category. King’s Daughters Medical Center and Baptist Hospital East were selected in the large community hospital category. Saint Joseph East and Flaget Memorial Hospital were named to the medium community and small community listings, respectively. Solucient is a health care business intelligence company that provides information resources to hospitals, pharmaceutical manufacturers and insurers. LOUISVILLE Louisville stands to gain 297 new jobs and more than $16 million in new annual payroll with the announcement that three companies plan to expand their existing facilities in the region. For First Residential Mortgage Network, an Internet-based mortgage banking business, the announcement represents the company’s third expansion in Louisville in the past four years. First Residential currently employs approximately 400 workers and expects to add 273 new jobs that will have an average annual salary of $59,647. The company will lease 50,000 square feet of space in order to accommodate the additional staff. The Kentucky Economic Development Finance Authority (KEDFA) has approved up to $2.5 million in incentives for First Residential for up to 10 years. Premier Packaging, a company that specializes in the manufacture of custom-made corrugated boxes, is planning to relocate to a new location in Louisville, having outgrown its facility at Jefferson Riverport International. The company is moving to the former International Paper Co. plant, which closed last year, and is investing nearly $500,000 in its new facility. Premier anticipates adding nine new jobs with a total annual payroll of $220,000. The company currently has 175 employees. KEDFA has approved Premier for up to $14,400 in state credits, refundable upon completion of the expansion. Unipak, a contract packaging company that specializes in single-serve packages of cleaning products, is planning to add a new manufacturing area for food-related products to its current facility. The 30,000-square-foot expansion represents an investment of $1.3 million. The company expects to add 15 new jobs over the next three years and more than $355,000 in new payroll. The authority approved Unipak for $300,000 in state incentives for up to 10 years and $42,000 in credits due upon completion of the project. BOWLING GREEN
The award is presented each year to communities that offer outstanding natural, historic, aesthetic, recreational and cultural experiences. To be considered for the award, each location must possess a dynamic downtown, a commitment to historic preservation, interesting architecture, cultural diversity, an economic base of locally-owned small businesses and walking access for residents and visitors. Bowling Green is the first city in Kentucky to be chosen for the honor, and is in the company of past winners that include Key West, Fla., and Galveston, Texas. PIKEVILLE After several years of financial difficulties, Zebulon Gas Association has officially ceased operations. Last month, the Kentucky Public Service Commission began notifying customers that the Pike County utility would begin disconnecting service on April 1. Jefferson Gas has been operating the Zebulon system under contract since 2001. At that time, Zebulon was $379,000 in debt to its natural gas supplier, Columbia Gas Transmission Co., and the system was in need of extensive repair. With the aid of the PSC and Jefferson, Zebulon negotiated an agreement to reduce the debt and set up a payment schedule. A loan from the state Gas System Restoration Fund paid for the replacement of nearly all of the Zebulon system’s gas mains. However, in 2004, faced with Zebulon’s ongoing financial losses, Jefferson notified the PSC that it was no longer willing to continue as the operator. The PSC has been seeking another operator for the past 18 months – while Jefferson continued on a voluntary basis – but has been unable to find a qualified operator. Zebulon Gas Association was incorporated in 1956, but began experiencing business difficulties in the mid-90s. By the beginning of 2006, Zebulon had fewer than 40 remaining customers and nearly $300,000 in debt. LEXINGTON/LOUISVILLE
The listing is based on the responses of executives, directors and analysts at more than 600 companies, who were asked to rate companies in their own industry on eight different criteria, ranging from investment value to social responsibility. In order to make the “most admired” list, a company’s score must have ranked in the top half of its industry survey. Lexmark, which develops, manufactures and supplies printers and printing-related products for laser and inkjet printers, earned a third-spot ranking in the computer peripherals category. Yum Brands, the parent company of Pizza Hut Inc., KFC Corp., Taco Bell Corp., Long John Silver’s Restaurants Inc. and A & W Restaurants Inc., was ranked No. 5 in the food service industry. In a separate survey, Lexmark CEO Paul Curlander and Yum CEO David Novak were recently identified by Institutional Investor as two of the nation’s best chief executive officers. NORTHERN KENTUCKY The Northern Kentucky University Office for Economic Initiatives has announced a partnership with a Covington knowledge-solutions provider to form the Risk Management Institute. The collaboration with TiER 1 Performance Solutions, LLC will focus on developing technology tools that provide value in the area of risk assessment and management. NKU will provide faculty and student research expertise as well as administrative support for the project. TiER 1, one of the area’s fastest-growing companies, will provide its Performance1 software as the foundation for the technology tools and consulting services to create a scalable solution to businesses across the nation. “Forming the Risk Management Institute demonstrates a genuine partnership between academic and private sector organizations, which is vital to the economic development and job creation here in Northern Kentucky,” said Normand G. Desmarais, chairman and founding partner of TiER 1. “The synergies that are captured in this project, along with the market potential for its products, present a unique opportunity for regional business development, job creation, student and faculty opportunities and applied research delivered by NKU,” Robert Farrell, associate provost for Economic Initiatives at NKU, said. The partnership has received seed funding from the Kentucky Department of Commercialization and Innovation. RICHMOND
The company is one of only seven remaining in contention for the award, selected from a group of 60 nominees. The companies were evaluated based on excellence in financial performance, business history, staff training and motivation, community involvement, customer service and business planning. Among the reasons the company stood out was its response several years ago when faced with a sluggish economy and employee embezzlement. At that time, Buggies Unlimited made the decision to change its business focus to capitalize on the growing use of the Internet and increased private ownership of golf carts. As a result, the company increased sales 700 percent between 2002 and 2005. In 2005, the company was named as Commerce Lexington’s Small Business of the Year. This year, it was selected as one of Kentucky’s “Best Places to Work.” The U.S. Chamber award will be announced next month during the organization’s annual small-business conference. STATE The University of Kentucky has received more than $1.8 million as part of National Science Foundation grant that will be utilized to enrich mathematical skills and content knowledge of students in Bath and Powell counties. The grant, known as Algebra Cubed, will fund 10 science, math or engineering graduate students (fellows) each year for three years as math specialists in the counties, as well as 10 teachers who will serve as mentors to the fellows. “The fellows will work with teachers to introduce new ways of understanding mathematics and its usefulness to students,” said Richard Millman, professor in the UK Department of Mathematics and principal investigator of the grant. “The fellows will also learn teaching skills first-hand from the mentors.” Bath and Powell counties were selected for the grant because of their low percentage of high school graduates who go on to earn bachelor’s degrees, and the desire of teachers and administrators in those districts to improve mathematics learning there. The counties fall behind Kentucky’s high school graduation rate, which was 74 percent in 2000, with 17 percent earning a bachelor’s degree. According to Millman, Kentucky ranks third in the U.S. in need for rural education attention and improvement.
INDIANA
The production will take place at Subaru of Indiana Automotive, Inc. (SIA), where Toyota will invest some $230 million to install Camry manufacturing processes in an existing SIA line. The news is part of a collaborative agreement between Toyota and SIA’s parent company, Fuji Heavy Industries Ltd. Toyota is a stakeholder in Fuji. Camry production in Indiana will replace the company’s vehicles imported from Japan. Toyota Motor Manufacturing, Kentucky (TMMK), which builds Camry, will support SIA by providing training on Camry processes. Parts and materials for the Indiana-built Camry will be sourced and procured by Toyota. Currently, SIA builds the Subaru B9 Tribeca, Outback, Legacy and Baja. The Subaru B9 Tribeca will move to the production line where the Outback, Legacy and Baja are currently built to make room for the Camry. Camry production at SIA is slated to begin next spring. With the additional capacity in Indiana and other expansions underway, Toyota’s annual production capacity in North America will be approximately two million vehicles by 2008. OHIO General Motors has announced that it will invest $500 million in its Toledo, Ohio transmission plant to produce a new six-speed, rear-wheel-drive automatic transmission for full-size SUVs and trucks. In announcing the expansion, GM officials noted that six-speed transmissions are gaining market popularity because of their improved performance and fuel economy. The investment will help transition approximately 900 current employees from four-speed to six-speed transmission work. It includes partial facility renovation and a 400,000-square-foot expansion, as well as new machinery, equipment and tooling to support new processes. In addition to the $500 million facility investment, GM will invest an additional $100 million for vendor tooling, containers and investments at other locations necessary to support the Toledo operations. Construction is set to begin in July, with production scheduled to begin in late 2008. Though the expansion will not create new jobs, it does protect existing positions and secures the Toledo plant’s position with the company. GM has already announced plans to cut 30,000 jobs and will close 12 of its North American facilities over the next two years.
Business Briefs ALLEN COUNTY
BATH COUNTY
BOWLING GREEN
BURNSIDE
CAMPBELLSVILLE
CARROLL COUNTY
CASEY COUNTY
COVINGTON
EDMONSON COUNTY
FLORENCE
FRANKFORT
GREENSBURG
GREENVILLE
HARDIN COUNTY
HENDERSON
HOPKINSVILLE
LEXINGTON
LOUISVILLE
MOREHEAD
NICHOLASVILLE
OWEN COUNTY
OWENSBORO
PINEVILLE
RICHMOND
TRIMBLE COUNTY
STATE
INDIANA
OHIO
TENNESSEE
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Copyright 1996-2006, by Kentucky Business Online. All rights reserved. Editorial content
is copyright 2006, Lane Communications Group The Lane Report is a trademark of Lane Communications Group. All other trademarks are the property of their respective owners. |
“Advancing in high-need career fields continues to be one of Sullivan’s top priorities,” said Tom Davisson, senior vice president of the Sullivan University System. “The strong national need for pharmacists supports the decision to start a College of Pharmacy at Sullivan University.”
Akebono’s largest manufacturing facility, Ambrake Manufacturing Ltd., opened in Elizabethtown in 1988 and is already the county’s largest industrial employer, with 1,235 employees. Of Akebono North America’s 2,000 associates, some 1,800 are either in Elizabethtown or within a 50-mile radius, said Carl Lay, vice president of corporate relations for Akebono North America. 
Seven research projects will be conducted by faculty from the University of Louisville and the University of Kentucky. The projects include improving the use of corn stalks as an ethanol feedstock, researching solar heating systems, adapting bacteria to improve ethanol production, improving production of fuels and high-value chemicals from biomass, developing nanomaterials to produce electricity and hydrogen from water and the sun, developing an economical process to produce biomass briquettes for industrial boilers, and developing a residential ventilation system that reduces energy use and improves indoor air quality. 
The Northern Kentucky Tri-County Economic Development Corporation (Tri-ED) has been named one of 12 national finalists for the 2006 Economic Development Awards presented by CoreNet Global, a professional association of corporate real estate executives. Tri-ED serves as the primary economic development marketing agency for Boone, Kenton and Campbell counties in Northern Kentucky. 
The ranking is based on a community’s total number of qualified projects as tracked by Conway Data Inc.’s New Plant database. Qualified projects include those that involve a capital investment of at least $1 million, create 50 or more jobs or involve new floor space of at least 20,000 square feet. 
The Kentucky Community and Technical College System and Toyota Motor Manufacturing North America, Inc. have partnered to develop a multi-faceted workforce development training program. 
A nationwide study has ranked Baptist Hospital East in Louisville, Flaget Memorial Hospital in Bardstown, Saint Joseph Hospital East in Lexington and King’s Daughters Medical Center in Ashland among the top 100 hospitals in the nation.
The City of Bowling Green has been selected as one of the country’s Dozen Distinctive Destinations for 2006, an award sponsored by the National Trust of Historic Preservation.
Louisville-based Yum Brands and Lexmark International, headquartered in Lexington, have been named to Fortune magazine’s 2006 listing of the nation’s most admired companies. 
Buggies Unlimited, a Richmond company that specializes in golf cart accessories and parts, has been selected as a finalist for the U.S. Chamber of Commerce Small Business of the Year Award. 
Toyota Motor Corporation has announced that it will begin producing its popular Camry model in Lafayette, Ind., creating about 1,000 new jobs.
Ashland Inc. has acquired the assets of a Chinese water treatment business as part of the company’s strategy to further invest in the rapidly expanding Chinese market. Ashland has formed a new company, Ashland (Nanjing) Chemical Co. Ltd., which will integrate Nanjing Clear Environment Protection Co.’s with Ashland’s existing water technologies business in China. The company will manufacture products for water, wastewater and environmental protection, and also manufacture feed, control and monitoring equipment in Nanjing.
Citing declining sales figures, Papa John’s International, Inc. has sold its Perfect Pizza brand in the United Kingdom to Smartfirst Limited for $13 million. The transaction included the sale of all franchise rights and leases related to 110 franchised Perfect Pizza units, as well as a distribution facility. The Louisville-based company will continue to franchise and operate the Papa John’s brand in the U.K., where it has 89 stores and plans to open up to 20 more locations in 2006. The company has also sold all of its 39 franchised operations in Mexico.
PNC Bank has announced a lending goal of $4 billion to qualifying women-owned businesses over the next five years. The endeavor is part of the company’s commitment to support the growth and expansion of a business segment that is seeing solid growth. The number of women-owned businesses has grown by 20 percent in recent years, according to data released in January by the U.S. Census Bureau, while the number of all private businesses grew 10 percent during the same time period. The $4 billion lending goal follows the completion of PNC’s commitment to loan more than $1 billion to women-owned businesses from 2000-05. The first initiative resulted in thousands of women-owned businesses, defined as those in which women own 51 percent or more of the interest or stock, receiving loans with an average amount of $60,000. The loans, issued to businesses across PNC’s retail banking region of eight states and the District of Columbia, were used for business start-ups, expansion, capital needs and assistance with cash flow.