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FAST LANE - May
2005
3B S.p.A, an Italian company that specializes in the production of kitchen, bath and living room furniture components, was the first to announce its plans with news that it will locate its first North American operations in Boyle County. In mid-April, Aircraft Braking Systems Corporation (ABSC) released its plans to build a 45,000-sq.-ft. plant in the John Hill Bailey Industrial Park. The 3B project represents an investment of $17 million and is expected to create 100 full-time jobs in the first two years of operation. The project is the result of a meeting Gov. Ernie Fletcher and Cabinet for Economic Development Secretary Gene Strong held with 3B officials last September on an economic development trip to Europe to discuss the company's growth and plans to establish North American operations to better serve its customer base. The company is now negotiating to acquire an existing 150,000-sq.-ft. facility located on 20 acres in Danville. ABSC, which has its headquarters in Akron, Ohio, manufactures braking systems for customers such as Airbus, Boeing, Lear and Lockheed. ABSC expects to invest approximately $30 million to build its Danville facility, where it will produce a patented new material that will enhance the brake discs produced by the company. The factory is expected to open in 2006 and will employ 46 employees within two years. STATE A new institute has been formed with the goal of improving the health of Kentuckians by providing objective, evidence-based advice to policy makers, professionals and the public. “Kentucky needs a ‘think tank’ of individuals that can serve in an unbiased, advisory role about the health care concerns of the people – health care access, the uninsured, Medicaid funding, medical liability and other issues,” Wilson said. “What the Pritchard Committee is for education, the institute will be for health care… a group that will establish policy and recommendations to improve the health of Kentuckians.” The founding group consists of 45 members who represent all aspects of health care, as well as other disciplines. Members will be limited to about 100 and may serve two five-year terms. To bring a broad perspective in addressing complex public issues, at least 20 percent of the membership will be selected from professions other than those related to health care. Those selected as members cannot advocate for any particular discipline or position or represent the organizations with which they may be affiliated. For more information about the institute, call Linda Asher at (859) 323-5567. ANNVILLE After suffering a devastating fire at its Annville plant in January, Mid-South Electronics is rebounding in a big way, landing a $15 million contract to assemble airport baggage screening systems. The contract calls for Mid-South to assemble approximately 100 explosive detection machines, a new type of device that represents a new generation of baggage scanning systems. U.S. Representative Hal Rogers (R-Somerset), who is chairman for the House Homeland Security Appropriations Subcommittee, noted that the work “puts Kentuckians right in the middle of national homeland security efforts.” In addition, Rogers said, the new scanning system will mean “passengers will spend less time standing in line at airport checkpoints, the government will spend less money on unnecessary screeners, and aviation security will improve dramatically." Despite the blow dealt the company by the January fire (for which a Mid-South employee has recently been charged with arson and wanton endangerment), Mid-South has returned to its full level of production, operating out of three buildings in the Jackson County Industrial Park and a converted warehouse in Manchester. With the return to full production, the company has also returned to nearly full employment and is hiring more workers to add to its current staff of around 700. In addition to its new contract, Mid-South will continue to assemble circuit boards and plastic-injection molding used for refrigerators. STATE
Louisville-based Humana Inc. was the largest of the Kentucky companies, ranking 162 based on its 2004 revenue of $13.1 billion. Other Kentucky companies included Yum Brands, Inc. (#249), Ashland, Inc. (#252), Lexmark International Inc. (#370), Omnicare, Inc. (#459), and Kindred Healthcare Inc. (#499). STATE
This increased winning has led to an increase in sales. Scratch-off tickets – which enjoyed record-breaking sales during the last fiscal year – are seeing a sales increase 5.2 percent ahead of last year’s mark. However, the lack of a significant Powerball jackpot in recent months and competition from Tennessee – which recently implemented its own lottery – have caused that game to be down $38.5 million from where it was at this point in the last fiscal year. NORTHERN KENTUCKY
As a result of the Join Hands program, the convention bureau has seen a 33 percent increase in room nights booked for religious groups, said Barbara Dozier, vice president of sales and marketing for the convention bureau. “We believe more religious meeting planners are considering and booking Northern Kentucky because Join Hands is driving this new interest,” Dozier said. “Once the planners review the program and consider our central location (within one day’s drive and a two-hour flight of two-thirds of the U.S. population) and the commitment from our hotel and attraction community, we expect to see the market to continue to grow for us.” Several local hotels have also benefited not only from booking guests but hosting groups on their properties. One has reported a 268 percent increase in sales in 2004 compared to 2003. Another saw a 12 percent boost in sales. More information on the program is available at http://staynky.com/meeting/religious/joinhands.html. FLORENCE Titan Propane, a leading distributor of retail propane, has selected a site in Florence to serve as the company’s new headquarters. The California-based company, which recently emerged from Chapter 11 bankruptcy and reorganized from a public company to a private firm, was formerly known as CornerStone Propane Operating LLC. The company operates 144 retail distribution facilities in 33 states under various trade names. In Northern Kentucky, the company operates as Empire Gas. The Florence headquarter facility will employ approximately 60 people and will house the company’s executive offices, marketing and sales, information technology and some accounting functions. Titan’s administrative and human resources facility will remain in Lebanon, Missouri. Titan CEO Bill Corbin said the company was attracted to the Northern Kentucky area due to its central location and “a relatively low-cost operating environment.” ASHLAND International Coal Group Inc., a company that was formed to acquire the principal operations of bankrupt Horizon Natural Resources, has entered into agreements to acquire Anker Coal Group, Inc. and CoalQuest Development LLC for $275 million in stock. In addition, Anker plans to open Sycamore Mine No. 2 near Clarksburg, West Virginia this year and is expected to achieve annual production of 1.2 million tons of steam coal production per year by 2006. Another property, the Hillman reserve, is scheduled to begin operations within three years and achieve full production in a three-mine complex by 2010, subject to regulatory approvals. At full production, the Hillman property is expected to have an annual rate of production of nine million tons per year. ICG has also issued a statement announcing that it plans to file a registration statement with the Securities and Exchange Commission to publicly offer common shares of the company. CENTRAL KENTUCKY
FLORENCE
The new facility, which represents an investment of $30 million, is a 133,000-sq.-ft. structure. Overall, the 23-acre site now encompasses approximately 285,000 square feet of office, laboratory and manufacturing space. The move brings Ticona’s administrative, marketing, customer service, and product and application development functions - which involves some 280 employees - together under one roof. "Consolidating and relocating our headquarters to Florence is a strategic step that will drive growth, productivity and speed,” said Executive Vice President of Celanese Corporation and Ticona President Lyndon Cole. Ticona’s Americas headquarters and R&D was previously located in New Jersey. (The company’s parent, Celanese, is headquartered in Germany.) The company was attracted to Northern Kentucky by the area’s quality of life – including good school systems, professional sports teams, high-quality public services and a lower cost of living, compared to New Jersey. The Center for Applied Research in Economics at the University of Cincinnati estimates the initial economic impact of both direct and indirect operations and construction activities related to the facility to be in excess of $170 million. The manufacturing portion of the site compounds the company’s engineering resins with custom colors and performance additives, many of which are created on site. The facility’s Advanced Color Development Laboratory formulates colors for use in autos, consumer goods, packaging, appliances and other applications. LOUISVILLE
Woodford Reserve Stables has already purchased its first Thoroughbred, a three-year-old filly acquired from racing legend Steve Cauthen. The filly, as yet unnamed, will be trained by veteran trainer Paul McGee and stabled at Churchill Downs. The horse is expected to make its first race by late this summer. Brown-Forman is also launching the Woodford Reserve Thoroughbred Society, an Internet-based Web site and program that will allow registered consumers to become on-line “owners” of the Woodford Reserve Stables, experiencing the highs and lows of virtual Thoroughbred ownership and racing. Members of the Woodford Reserve Thoroughbred Society will have the on-line opportunity to select the name of the filly and vote for the design of the jockey silks to be used for the stables. Members of the society will vote on the following names, each of which has already been registered with The Jockey Club: LOUISVILLE Ventas, a Louisville health care real estate company, will add 68 assisted living facilities to its portfolio as a result of a merger agreement to acquire all of the outstanding common shares of Provident Senior Living Trust. The transaction is valued at $1.2 billion. The two principal tenants of these properties are subsidiaries of Brookdale Living Communities, Inc. and Alterra Healthcare Corporation. With the acquisition, Ventas officials say that over one-third of the company’s total annual revenues will be derived from private-pay independent and assisted living facilities. That issue is significant, as Ventas’ current profile is heavily weighted with nursing homes and long-term-care hospitals, both of which are dependent on Medicare and Medicaid programs. LOUISVILLE
Soon to follow the wireless fidelity trend – “Wi-Fi” for short – will be Fourth Street and Jefferson Square. “We’re really focusing on open public spaces where people commune, where people hang out, where people want to be," Rebecca Fleischaker told the Louisville Courier-Journal. Fleischaker is among those coordinating the drive to make Louisville a “wireless city.” "We want to create as many wireless spaces in our community as we can," noted Deana Epperly Karem, director of the Louisville Technology Network, which has helped organize the project along with Metro Louisville government, Friends of the Louisville Free Public Library and Greater Louisville Inc. "When you have wireless throughout your community, it really creates an economic development buzz. People want to come to cities that have cool things going on." LOUISVILLE
After scaling back its name to KFC in recent years – taking the emphasis off of the politically incorrect “fried” – the company has now decided the Kentucky Fried Chicken brand is simply too strong to ignore. As a result, the new store will proudly display those words, as well as other nostalgic slogans that remain engrained in the public’s mind, such as “Finger Lickin’ Good” and "11 Secret Herbs and Spices." The outside of the building is adorned with paintings by famed African American artist Charly (Carlos) Palmer, who took KFC's historical icons and gave them an updated, modern look. These paintings are also part of the interior. The new look also includes new Southern-inspired menu items such as seasoned collard greens, hot cinnamon apples, buttermilk popcorn shrimp, sweet and spicy candy apple wings, and sweet potato pie. "This new Kentucky Fried Chicken restaurant is part of a plan to open another 50 restaurants this year (corporate and franchisee), to see how to best serve our many different customer bases,” KFC President and Chief Concept Officer Gregg Dedrick said. “The groundwork phase is complete and the testing phase is in progress." LEXINGTON
The issue of local vs. foreign ownership has been hotly debated in Lexington since Kentucky American was acquired by German utility conglomerate RWE in 2002. Those debates have spurred the formation of organizations on both sides of the issue: the anti-condemnation group, Coalition Against a Government Takeover, and Bluegrass FLOW, whose name represented For Local Ownership of Water. Under Mayor Isaac, who favors local ownership, the city has spent more than $1.1 million on issues related to the condemnation lawsuit. Anti-condemnation proponents maintain that was money that could have been better spent on other issues, such as increasing pay for the city’s police and firefighting forces. In exchange for dropping the lawsuit, Kentucky American Water Company has agreed to drop two countersuits and will give the city deed to a park and golf course located on land it currently owns in 2011. The city presently leases Jacobson Park and Lakeside Golf Course from Kentucky American; the lease is set to expire in 2018. Those in favor of local ownership, however, have vowed that the council’s vote does not bring an end to the issue. One citizen group, Let Us Vote Lexington, is already circulating petitions in hopes of getting the issue up for vote and says it is quickly approaching the 18,000-plus signatures needed to do so. LEXINGTON
In fact, an ongoing study of the ordinance being conducted by the University of Kentucky concludes that Fayette County’s restaurant and bar business has remained stable. Furthermore, one economic indicator for the restaurant business is improving, according to the study. The study found that since the law was enacted last year, restaurant employment has increased and the average number of bar workers as remained stable. Moreover, data from the Lexington-Fayette County Health Department from July 2000 through February 2005, demonstrated no significant change in openings or closings in restaurants in Fayette County in the 10 months after the smoke-free law went into effect. “Our analysis to date has found that the smoke-free law has not had a significant impact on overall employment, business closures or openings, or payroll withholding taxes in the restaurant or bar industries”, said Eric Thompson, co-investigator on the study and director of the Bureau Business Research in the Department of Economics at the University of Nebraska-Lincoln. LEXINGTON
As a NASA affiliate, KSTC will continue to work with Kentucky businesses in identifying NASA technologies for commercial development, finding the appropriate NASA technology opportunities that best suit their product development needs, and guiding companies through the NASA technology transfer process. In addition, KSTC will continue to bring to the attention of Kentucky businesses and entrepreneurs funding opportunities through the NASA Small Business Innovation Research, Small Business Technology Transfer Research and related programs. As a part of the particular agreement, KSTC will also continue to work closely with Kennedy Space Center, Stennis Space Center and Marshall Space and Flight Center. Additionally, KSTC has close ties with NASA Langley Research Center in Virginia and a partnership agreement with NASA Ames Research Center in Mountain View, California to further the Vision for Space Exploration through research collaborations between Kentucky research scientists, engineers and entrepreneurs and NASA researchers. LEXINGTON In an effort to reach rural portions of the state and develop local artisans, the University of Kentucky has launched the nation’s first Cooperative Extension Service program focusing on the fine arts. The university has pooled the resources of its College of Agriculture and College of Fine Arts to create an innovative program designed to strengthen the arts in rural communities, which often lack arts programs due to the absence of central organizations to support the fine arts. The program is being started in Pike County, where community leaders were seeking a way to expand and promote an already thriving arts community while leveraging the arts' potential to enhance the area's economy. Previously, despite a large population of artists and a population eager for cultural events and activities, there was no central organization to bring everything together. “As far as we know, Stephanie Richards is the first County Extension Agent in the United States with a fine arts focus. She will function in a manner no different than the traditional Extension agents, but will address quality of life issues of the county’s citizens through the fine arts,” said Robert Shay, dean of UK’s College of Fine Arts. LEXINGTON
LumaCore’s 10th Annual Worldwide Luminary Series garnered the two awards in different categories for outstanding leadership development production and programming. The Luminary series, which features leading experts in business, management, finance and leadership, was among winners and finalists chosen from over 10,000 entries from all 50 states and around the globe. Among the numerous expert presents featured in the series are Jack Welch, Rudy Giuliani, Dr. Stephen Covey, Dr. Steve Lundin and numerous Fortune 500 CEOs. The Telly is the largest and most prestigious award of its kind and for 26 years has been recognizing outstanding local, regional, and cable TV commercials and programs, as well as highly acclaimed video and film productions. Work is judged by the relevance of its content and the extent to which that content is effective in its business arena. LumaCore serves consumers, universities, businesses and other organizations in more than 60 countries worldwide. OHIO The University of Cincinnati and TechSolve have received a $1.88 million grant from the Ohio Department of Development to lead a two-year pilot program to improve product development for Ohio’s small and medium-sized manufacturers (SMEs). The Partnership for Lean Product Development and Innovation program incorporates Lean Manufacturing methods and tools to create new products and innovative ideas in less time, and with greater chance for success in the market. “The lifeblood of small manufacturers is their ability to introduce new, innovative products and be first to market with them,” said Gary N. Conley, president of TechSolve, leading experts in Lean Manufacturing. “We’re talking about significant benefits to Ohio companies in increased revenue and profit, enhanced brand equity, long-term growth and vitality.” “Innovation requires an ability to effectively integrate the product development process. The Fortune 500 companies know how to do this. Our goal is to bring this approach to small and medium size business in Ohio,” said Craig M. Vogel, director of UC’s Center for Design, Research and Innovation (CDRI). The CDRI will provide a “high-touch, high-tech” Innovation Lab and physical resources such as rapid prototyping, 2-D and 3-D scanners, video conferencing and more that would otherwise be cost prohibitive for participating companies. TechSolve will provide the general oversight of the program. The pilot will begin this month, providing expertise to a select group of 11 Greater Cincinnati area manufacturers. In the pilot’s second year, 20 more manufacturers will enter the partnership. INDIANA
The announcement is part of the bankrupt company’s reorganization plan, which also includes closing plants in Bowling Green, Kentucky and Belcamp, Maryland. In addition, as a result of the changes in Corydon, the Michigan-based company will reduce its headcount at its facility in Granite City, Illinois. All total, the actions will affect some 800 employees. The Corydon area has already been hit hard by layoffs in recent months, losing 400 jobs as a result of the shut-down of the Keller Furniture factory last year. Tower is the community’s largest industrial employer.”
Business Briefs ANDERSON COUNTY
ASHLAND
BOONE COUNTY
CADIZ
FLORENCE
FRANKLIN
GARRARD COUNTY
KNOX COUNTY
MADISON COUNTY
MANCHESTER
MASON COUNTY
OLDHAM COUNTY
SOMERSET
SPARTA
WESTERN KENTUCKY
WURTLAND
STATE
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TENNESSEE
WEST VIRGINIA
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Copyright 1996-2005, by Kentucky Business Online. All rights reserved. Editorial content
is copyright 2005, Lane Communications Group The Lane Report is a trademark of Lane Communications Group. All other trademarks are the property of their respective owners. |
April turned out to be a banner month for Danville, as not one but two companies announced plans to build new manufacturing plants. 
The Kentucky Economic Development Finance Authority has granted preliminary approval for $1.4 million in tax incentives under the Kentucky Industrial Development Act (KIDA), a program aimed at increasing employment in the Commonwealth.
The Kentucky Institute of Medicine was organized by Dr. Emery Wilson, director of the UK Office of Health Research and Development and the former dean of UK’s College of Medicine. Wilson brought forth the idea after observing the success of the National Institute of Medicine. The Kentucky Institute of Medicine is based on a similar organization in North Carolina, which was formed in 1983. 
Fortune magazine’s 2005 list of the nation’s 500 largest publicly held companies includes six firms headquartered in Kentucky. 
The Kentucky Lottery Corporation sales for Fiscal Year 2005 through February 28 have come in $17. 5 million – 3.9 percent ahead of budget. However, strong winnings by lottery players have had a negative impact on the corporation’s bottom line, said KLC officials. “We’re in the luck business – sometimes it’s on our side and other times it’s on the player’s side,” KLC President and CEO Arch Gleason said. “While our players are certainly enjoying this unprecedented run of good luck, the increased prize payments are affecting our ability to meet projections for what we will turn over to the Commonwealth this year. Our games will return to their statistical norm at some point, so now we just have to ride out this unexpected run of high prize payments.”
The Northern Kentucky Convention and Visitors Bureau is seeing encouraging results from a program developed last year that targets religious meeting groups and organizers. 
Together, Anker and CoalQuest have planned 2005 shipments of 6.5 million tons of low sulfur steam and metallurgical coal from mines located principally in West Virginia and Maryland. The mines have an estimated 385 million tons of proven and probable reserves of steam and metallurgical coal.
Ticona, the technical polymers business of the Celanese Corporation, has officially opened its new Americas headquarters and associated research and development center in Florence. 
Brown-Forman has created a new Thoroughbred horse stable to promote its Woodford Reserve bourbon. 
Angel's Share, Distill My Heart, Distiller's Girl, and Woodford Miss. Consumers can join the Woodford Reserve Thoroughbred Society by registering online at www.Woodfordreservestables.com, the society's Web address. Members of the society will receive a membership certificate, lapel pin, photograph of the filly and premium access to special events sponsored by Woodford Reserve and Churchill Downs. Members will also receive regular updates related to the Woodford Reserve Stables, including pedigree details, training session updates and briefings from the trainers. There is no cost for member registration. 
Provident is a senior living real estate investment trust ("REIT") that owns independent and assisted living properties in 19 states. The properties derive substantially all of their revenues from private-pay sources. 
In an effort to make the city more attractive to residents and visitors alike, Louisville is now offering free wireless Internet service at Waterfront Park, a popular downtown spot that overlooks the Ohio River.
KFC has opened the doors to its new “vision store” in Louisville, displaying a new design that is part of the company’s brand evolution that is now moving into high gear.
The Lexington-Fayette Urban County Council has voted 9-6 to override Mayor Teresa Isaac’s veto of a January resolution that ordered the end to a condemnation lawsuit against Kentucky American Water.
Contrary to ominous predictions otherwise, Lexington’s bars and restaurants have not been hit in the wallet by the city’s smoke-free ordinance, according to a new economic impact study.
The Kentucky Science and Technology Corporation (KSTC) has signed a continuation agreement to serve as the Kentucky affiliate to the NASA Southeast Regional Technology Transfer Center.
LumaCore, a Lexington firm that specializes in leadership training and corporate programming, has been awarded the coveted Telly award in two Broadcast Film/Video categories in the 26th annual presentation of the honor. 
Approximately 600 people will be out of work by the end of next month with the announcement that Tower Automotive will close its plant in Corydon, Indiana.
Sixty jobs are being eliminated at the Wild Turkey distillery near Lawrenceburg as a result of a consolidation plan by the company’s parent firm, Pernod Ricard USA. The company will be moving its bottling operations to the Seagram distillery in southeast Indiana, which is one of the largest distillery operations in the world. With a staff of more than 600, the Lawrenceburg, Indiana plant will be able to handle the Wild Turkey operations more efficiently, according to Pernod Ricard officials. The Kentucky facility employs approximately 120. A company spokesperson said the whiskey will continue to be warehoused in Anderson County and noted that the company is investing millions to build new aging warehouses and improve its still house in Anderson County.
Outokumpu has announced plans to sell its copper tubing plant in Franklin as part of the Finnish company’s plans to focus on its stainless steel and technology segments. The 225,000-sq.-ft. Franklin facility, which primarily manufactures copper tubing for the air conditioning and refrigeration industries, is being acquired by Nordic Capital of Sweden, a private equity firm. The transaction is expected to close next month, but the plant will continue to operate under the Outokumpu Copper name during the transition period, which could take up to a year. The Franklin plant’s 310 employees will continue in their existing positions. 
The National Association of Woman Business Owners has selected Greater Louisville Inc. (GLI) President and CEO Steve Higdon as its 2005 Business Advocate of the Year. The award, presented annually, is given to a business or community leader who works to promote women-owned businesses and support their causes. 
Lexington-based NetGain Technologies, one of the region's largest information technology providers, has expanded its range of services with the acquisition of TransDigital. Also headquartered in Lexington, TransDigital has a staff of 20 employees and brings expertise on application development, Web hosting and development, and technical consulting services. Financial details of the transaction were not disclosed. 
The University of Kentucky Hospital has been designated by the Joint Commission on Accreditation of Healthcare Organizations as a primary stroke center, becoming the first health care facility in central and eastern Kentucky to earn that distinction. “A key element in our successful quest to become a Primary Stroke Center was the opening of the hospital’s Stroke Intermediate Care Unit this past November,” said Dr. Creed Pettigrew, professor of neurology in the UK College of Medicine and director of UK’s Stroke Program. As a Primary Stroke Center, UK Hospital has specially trained doctors and support staff on hand for 24-hours a day, seven days a week. 
What do professional sports teams add to a community? According to a study conducted by the University of Cincinnati’s Economics Center, the Cincinnati Reds infuse an estimated $253 million into the Greater Cincinnati economy. In addition to creating more than 3,900 jobs, the Major League Baseball team generates spending by the team and fans as well as visiting teams and media.