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Automobile manufacturing plays a major role in Kentucky's economy. The state ranks fourth in the nation in auto production.

Researchers at the University of Kentucky and the Massachusetts Institute of Technology have partnered to study how increased use of aluminum in automobiles could increase fuel efficiency and reduce emissions contributing to climate change.

The grant was awarded to UK’s Sloan Center for the Sustainability of the Aluminum Industry (CSAI) and MIT’s Materials System Laboratory. Also partnering in the research is the International Motor Vehicle Program at MIT and the Wharton School at the University of Pennsylvania; the Aluminum Association’s Automotive Light Truck Group in Arlington, Va.; and Secat Inc., a for-profit company with ties to UK.

“This research is especially critical in Kentucky, which ranks fourth in the nation in automobile manufacturing and third in truck manufacturing, and where aluminum represents the state’s sixth largest employer,” said Subodh Das, executive director of UK’s CSAI and president and CEO of Secat.

The project, funded by the Alfred P. Sloan Foundation, aims to help sustain the viability of the automobile manufacturing industry at a time it faces increasing resource, economic and environmental challenges.

Das predicts that consumers will become more focused on the components of automobile construction as awareness of climate change and fuel efficiency grows. The fact that light metals increase fuel efficiency should prompt manufacturers to use more aluminum in their products.

A soybean processing facility proposed by Kentucky Specialty Grains would have the capacity to process up to 150 tons of soybeans per day.

Kentucky Specialty Grains, LLC is moving forward with its plans to construct a soybean processing facility in Simpson County.

KSG has been approved for $500,000 in state funding by the Kentucky Agricultural Development Board and has also been approved for a $1 million loan through the Kentucky Agricultural Finance Corp. In addition, seven area counties have put up funds ranging from $1,000 to $89,510 to support the project.

The proposed plant would produce a non-transfat cooking oil for use in the food service industry as well as by-product meal that could be used as livestock feed.

KSG is now working to get commitments from producers – the KAFC agreement requires a minimum of 20 producers and $2.2 million in seed money – as well as investors.

KSG President Chris Kummer has said that if all goes as planned, he hopes to begin construction on the 150,000-square-foot facility by this summer and begin operations by Fall 2008.

PharMerica's institutional pharmacy services will primarily involve pharmaceutical services to residents of nursing centers and assisted living facilities.

A new pharmaceutical company formed through the merger of Kindred Health Care and AmerisourceBergen’s pharmacy units will be headquartered in Louisville.

The newly formed entity, which will operate as PharMerica Corporation, will be the second largest institutional pharmacy services market in the nation, with revenues of approximately $1.9 billion and a customer base of 330,000 licensed beds in 41 states.

The establishment of PharMerica Corporation’s corporate headquarters in Louisville will entail the merger of Kindred Pharmacy Services’ corporate office staff, currently located in Louisville, into the new headquarters facility.

An additional 200 jobs, with an average annual salary in excess of $77,000, will be created to complete the staffing.

Landing the corporate headquarters for PharMerica is a major win for Kentucky, which had been competing for the headquarters location with Tampa, Fla., home to AmerisourceBergen’s pharmacy unit. Company officials said Kentucky’s incentives – the Kentucky Economic Development Finance Authority granted approval for $8 million in tax incentives for up to 10 years – played a major role in their decision to locate its headquarters in Louisville. A customer support center for the new company will be based in Tampa.

Gregory S. Weishar has been selected to head the new company. Weishar previously served as chief executive officer and president of PharmaCare Management Services, Inc., a subsidiary of CVS Corporation. Weishar founded PharmaCare in 1994. Under his leadership, PharmaCare has grown into the fourth largest operation in its industry, with revenues in excess of $3 billion.

A study conducted by the University of Kentucky College of Nursing reports that the number of adult smokers in the Lexington area has decreased by 31.9 percent since the city’s ban on smoking went into effect in April 2004.

Dr. Ellen Hahn, a professor in UK’s College of Nursing and College of Public Health, and colleagues Dr. Mary Kay Rayens and Mei Zhang evaluated Behavioral Risk Factor Surveillance Survey data from 2001 to 2005 to test whether adult smoking rates changed significantly in Fayette County from the pre- to post-law period. These data were compared to five Kentucky counties with similar demographic characteristics during the same timeframe.

The smoking rate for Fayette County pre-law was 25.7 percent, which declined to 17.5 percent post-law, a decrease of 31.9 percent. In the five control counties without a law, rates at pre-law and post-law were 27.6 percent respectively, indicating no change.

“Smoke-free laws change the societal norm and make it easier for smokers to quit. Lexington’s smoke-free law has not only helped residents lead healthier lives, but it also has the potential to increase workplace productivity, saving employers money,” said Dr. Hahn.

According to the Centers for Disease Control and Prevention, cigarette smoking remains the leading preventable cause of death in the United States, accounting for approximately one out of every five deaths each year. Kentucky has the highest state estimate for adult cigarette smoking at 28.7 percent, the highest estimates for smoking among men at 30.6 percent and the highest estimates for smoking among women at 26.9 percent. The state spends an estimated $1.17 billion per year to treat sick smokers.

Brown Badgett Sr. recently presented a $1 million check to Madisonville Community College President Judith Rhoads. The funds have been designated for the school's planned technology building.

Madisonville Community College has received a $1 million contribution from Western Kentucky businessman Brown Badgett Sr., who has designated that the gift be used for the school’s planned technology building. Construction on the 70,000-square-foot Brown Badgett, Sr. Energy and Advanced Technology Center is expected to begin this spring and will be complete by Fall 2008.

“With the coal mining industry seeing renewed vigor, and the need for trained miners to meet energy needs, the Advanced Technology Center is vital to the economic interest of Muhlenberg, Hopkins, and Webster Counties,” Badgett said. “Our whole economic community will benefit, and I wanted to make sure we had the necessary infrastructure to be successful.”

In addition to training workers for the mining industry, the center will also house other applied technology programs such as industrial maintenance, heating and air technology, and electronics, as well as a workforce development area for retraining workers.

Bowling Green's Fountain Square Park

The city of Bowling Green is receiving national attention after being named by a California State University geographer as one of the top 10 “value towns” in the United States for retirees.

Geographer Warren Bland, PhD., the author of Retire in Style: 60 Outstanding Places Across the USA and Canada, maintains that “not all great retirement towns come with a high price tag.”

In compiling his list of the top 10 value towns, Bland use 12 criteria to rank communities: landscape, climate, quality of life, cost of living, transportation, retail services, health care, community services, cultural activities, recreational activities, work/volunteer activities and crime.

The state is hoping to develop an 18-hole golf course at Cumberland Falls State Park similar to the Wasioto Winds course at Pine Mountain State Park.

The Kentucky Department of Parks is seeking interest in developing a golf course for Cumberland Falls State Resort Park near Corbin.

A “request for expression of interest” has been issued asking private developers for information about financing, designing, building and operating an 18-hole course similar to the Wasioto Winds golf course at Pine Mountain State Resort Park in Pineville and Dale Hollow Lake State Resort Park golf course near Burkesville.

Parks Commissioner J.T. Miller said public-private partnerships such as this are the best way to leverage scarce capital dollars and obtain the best return on the taxpayers’ investment. Because the proposed course would not be located on park property or Daniel Boone National Forest property, developers are being asked to identify potential sites for the project.

The deadline for submitting a response expressing interest is Feb. 28, 2007. For details, visit https://eprocurement.ky.gov. This process is strictly for information-gathering purposes.

Ford Motor Company’s Kentucky Truck Plant in Louisville has commenced production on the new 2008 F-Series Super Duty truck, which is being billed by the company as its “most capable and refined pickup ever.” The Kentucky Truck Plant received a $65 million investment for a new trim line to assemble the 2008 Super Duty truck’s new “tough luxury” interior. The trim line includes a doors-off process, in which the doors are removed from the body after being painted, making it easier to install seats and instrument panels. Kentucky Truck Plant opened in 1969 and is exclusively responsible for building the Super Duty line, which includes the F-250 to F-550.

Weyerhaeuser has indefinitely curtailed production at its East Kentucky Trus Joist plant in Hazard, citing a dramatic decline in demand for engineered wood products. The company expects the curtailment to last for all of 2007, affecting about 40 hourly and salaried positions at the site.

Company officials have also notified employees at the East Kentucky TimberStrand operation in nearby Chavies (Perry County) that it is one of several North American locations where an “extended intermittent downtime” plan is being implemented. During the intermittent downtimes, 100 employees at the Chavies plant will be temporarily laid off. However, employees have been told that while they will not receive any severance pay during the downtimes because of the temporary nature of the lay-offs, they will continue to receive medical, dental and disability benefits. They can also seek unemployment benefits during those times.

In addition to its locations in Hazard and Chavies, Weyerhaeuser also operates a service center in Louisville, a containerboard site in Henderson and packaging sites in Bowling Green, Richmond and Louisville, as well as a paper-converting site in Owensboro and a cellulose fibers and fine paper site in Hawesville. The company employs approximately 1,350 people in Kentucky.

The Kentucky Department of Parks has purchased a 90-acre tract of property along the Kentucky River in Garrard County that will eventually be developed into a state park.

Parks Commissioner J.T. Miller said the property location made it attractive for a park because it’s adjacent to a state nature preserve, near the palisades corridor of the river, and is just a few miles from Camp Nelson, a site important in Civil War and African American heritage.

Camp Nelson, across the Kentucky River in Jessamine County, was a recruitment camp for African-American soldiers during the Civil War. Many recruits brought their families with them and the Army set up a refugee camp. There is also a 30-acre national cemetery at Camp Nelson Heritage Park as well as an interpretive center and museum.

“This is an ideal location because of the great natural beauty and historic sites in the area,” Miller said. The property was purchased for $405,000.

The Department of Parks will ask the Transportation Cabinet to evaluate area roads for access. The department is considering asking if there are any private developers interested in building a lodge on the new property or nearby. If no lodge is built, other options include a campground or cottages.

The Kentucky Nature Preserves Commission has been asked to study linking trails at the 818-acre Tom Dorman State Nature Preserve to the state park property, Miller said.

Inplast USA, a company that produces plastic injected-molded components for the automotive and medical markets, has selected a site in Grayson Co. for its newest production facility.

Inplast USA, LLC is a joint venture being formed between two California-based companies, Plastikon Industries and Injex Industries. Both businesses were established more than 20 years ago and specialize in plastic injection-molding and assembly for the automotive, medical and diagnostic industries.

Inplast has acquired an existing 63,5000-square-foot building in Leitchfield with plans to renovate the facility to accommodate the injection-molding operation. The building will include a clean room for the production of medical diagnostic plastic components.

The new Inplast facility represents an investment of $4.7 million and will bring 110 new jobs to the Leitchfield community.

The company has been granted preliminary approval by the Kentucky Economic Development Finance Authority for tax benefits up to $2.75 million.

Henderson-based Pact Resources LLC has applied for permits for an underground mine near Sebree, according to a release issued by Northwestern Kentucky Forward, a regional economic development organization.

The mine was operated by Peabody Coal during the ’70s but was later closed due to adverse mining conditions, according to local reports. Since then, however, technology has made it more feasible to operate the mine in a more cost-effective manner, Northwest Kentucky Forward President and CEO Kevin Sheilley said.

Construction is expected to begin with the coming year, with production slated to take place in 2009. The mine will serve the electric utility industry and could employ as many as 140 miners.

Pact Resources is headed by Ron Siler, former chairman and president of the Western Kentucky Coal Association. Over the years, Siler has worked for Peabody Coal and Mapco and was president of the former Costain Coal Company in Webster County.

Gannett Co., Inc., a global news and information company that owns 90 daily newspapers, including the Louisville Courier-Journal, has announced plans to locate a customer call center in Louisville.

The McLean, Va.-based company plans to consolidate its existing 62 customer centers into three or four “centers of excellence” to handle customer calls, both inbound and outbound, for a variety of GCI publications. In addition to the Louisville site, Gannett has selected Greenville, S.C., as another center of excellence. Locations in Arizona, Iowa and Utah are being considered for a third site.

The Louisville operation, which will consist of a 14,732- square-foot expansion to an existing customer care center located in the Courier-Journal building, will be the company’s second such facility and will provide services for 33 Gannett-owned newspapers. 

The call center will create 217 jobs with an estimated annual payroll of $6.4 million.

The company has received preliminary approval from the Kentucky Economic Development Finance Authority for tax benefits up to $3.25 million under the Kentucky Jobs Development Act (KJDA), an incentive program designed to increase service- and technology-related employment in the state.

Mountain Tarp, a Middlesboro-based company that manufactures tarp systems for the waste and construction industry, has been acquired by Wastequip, Inc., a Cleveland company that produces a diverse line of waste handling, recycling and material handing equipment.

Financial details of the agreement were not disclosed.

Founded in 1987, Mountain Tarp currently employs 120 full-time employees. In addition to its headquarters in Middlesboro, the company also has mounting facilities in Louisa, Ky., and Ravenna and Monroe, Ohio.

Jeff Bowling, founder and president and Mountain Tarp, said the acquisition will enable the company to growth both nationally and internationally and will offer employees improved benefits.

In talking to the Middlesboro Daily News about the acquisition, Bowling – who was named the 2003 recipient of Eastern Kentucky University’s Excellence in Entrepreneurship Award – predicted that as many as 50 new jobs will be added in Middlesboro within the next six months.

Wastequip will retain the Mountain Tarp brand name and plans to grow the company in the months and years ahead. Wastequip currently has 28 manufacturing facilities and more than 1,600 employees.

Hendrickson USA, LLC, a supplier of heavy-duty transportation equipment, has broken ground for a new manufacturing facility in Somerset. Hendrickson will occupy a 160,000-square-foot facility located on 19 acres in Somerset’s Valley Oak Industrial Park, where it will produce trailer axles and trailer air suspensions for the heavy-duty transportation industry.

The new facility will create 120 new jobs and is expected to be operational by this summer.

Somerset will be Hendrickson’s second facility in Kentucky: The company’s Truck Suspension Systems division opened a plant in Lebanon in 1998.

The Somerset plant becomes the sixth manufacturing plant for Hendrickson Trailer Suspension Systems, which is headquartered in Canton, Ohio and is a business unit of Illinois-based Hendrickson. Other trailer suspension facilities include a plant and research and development center at Canton; plants in Mitchell, S.D.; Lebanon, Ind.; Clarksville, Tenn.; and Lugoff, S.C.; and distribution centers in Canada and Mexico.

Founded in 1913, the Hendrickson operation employs a total of more than 3,000 at 21 facilities around the world. The company is a major supplier to virtually every North American heavy-duty truck and trailer original equipment manufacturer, as well as many manufacturers in Europe, Australia, Mexico, Japan and Latin America.

A new statewide Science, Technology, Engineering and Mathematics (STEM) Task Force convened by the Council on Postsecondary Education recently held its inaugural meeting in Frankfort with the goal developing a strategic action plan to accelerate Kentucky’s performance within those disciplines, beginning in preschool and continuing through graduate school.

“While Kentucky has several exemplary programs and initiatives within the STEM disciplines, statewide collaboration across various sectors is necessary to ensure that Kentucky develops the ‘talent force’ that drives knowledge-economy jobs,” said Tom Layzell, president of the Council on Postsecondary Education. “At the state level, more needs to be done to strengthen the STEM pipeline and encourage a greater number of postsecondary graduates in STEM-related fields,” Layzell added.

The task force is chaired by Dr. Lee Todd, president of the University of Kentucky, and is comprised of representatives from state government, postsecondary and K-12 education, professionals within the STEM disciplines and the business community. The four groups (government, business, K-12, higher education) will meet separately to prepare sector reports that will form the basis of a final report.

The task force will also explore the critical relationship between STEM production and the knowledge economy of Kentucky. The task force will meet through March 2007 to finalize a report expected to be released during the 2007 legislative session that will include recommendations and accountability measures.

“We recognize that other states and countries are aggressively pursuing attainment within the STEM disciplines,” Todd said. “Kentucky must increase its productivity in these areas to remain competitive in the global economy.”

Kentucky continues to rank in the bottom third of the nation when it comes to economic competitiveness, according to the State Competitiveness Report 2006, an annual study conducted by The Beacon Hill Institute. The Beacon Hill Institute is a learning and research center located at Suffolk University in Massachusetts that develops and performs economic and statistical analyses of current and emerging public policy issues.

In compiling the data, the institute assigned 42 variables to eight categories – government and fiscal policy, security, infrastructure, human resources, technology, business incubation, openness to the rest of the world (based on the level of exports and the percentage of population born abroad), and environmental policy. The study then combined these eight measures into a single “competitiveness index.”

Kentucky’s competitiveness index ranked 39th among the 50 states in the 2006 report. The commonwealth scored highest in security (9th) and openness (20th). The state ranked 30th in business incubation, 32nd in infrastructure, 36th in environmental policy, 39th in government and fiscal policy, 41st in human resources, and 45th in technology.

While Kentucky retained the same ranking in the 2006 report as it did the previous year, the state’s level of competitiveness has declined in the six years the report has been compiled. Kentucky garnered a ranking of 36 in the initial 2000 report. Between 2001 and 2004, the state received respective rankings of 38, 37, 35 and 38.

Still, Kentucky received a higher rank in the 2006 report than did surrounding states. The 2006 report ranked Tennessee 41st, Ohio 44th, Indiana 45th and West Virginia 49th.