Kentucky Economic Development Guide

In Kentucky’s heartland, an economic development initiative known as Wired65 is allowing civic leaders in 26 counties to look beyond the physical and political boundaries that organize them, and devote their time, passion and expertise to regional collaboration.

Initiated by the Lincoln Trail Area Development District Workforce Investment Board through a federal grant, the $5 million Wired65 program began as a workforce development strategy covering 15 Kentucky counties, primarily to address the Fort Knox workforce expansion under BRAC. It soon became evident to area leaders that the regional boundaries needed to be enlarged in order to realize their vision of an area that could compete globally in a wide range of economic areas.

“It wasn’t a 26-county focus when we first started,” says Kim Huston, Wired65 co-chair and president of the Nelson County Economic Development Agency. “But once we got into it, we knew we needed to bring the larger Louisville metro area, which meant including southern Indiana and also moving southward to Green County. Now, we have six area development districts that are involved, covering
26 counties.”

Working in such a large region has its advantages and its challenges, Huston says, but because community leaders understand that economic prosperity and innovation occur when regional assets are linked, working in a larger region offers greater rewards.

“We have large cities and small towns involved in this effort,” she says. “Not all the opportunities and challenges these communities have or face are the same. We went through a comprehensive process, evaluating our region’s strengths and weaknesses, to develop programs and projects that are transferable from urban to rural areas.”

Globalization is changing economic boundaries; regions are recognized as the most important economic geographies in today’s economy. By looking at individual economic resources through the lens of regionalism, leaders envision a cluster of prosperous communities driven by talent, competing together as one in a global marketplace.

Leaders have discussed workforce needs, industry trends, education services and quality of life attributes. They’ve spent a significant amount of time focusing on young professionals and what they seek when choosing an area to live and work. Extensive research shows Kentucky’s heartland as a great place to raise a family, one where family and friends are a high priority. People in the area also value opportunities for social, educational, recreational and cultural experiences.

The numerous area colleges and universities provide a powerful economic engine. Schools are pursuing new ways to integrate education with industry so that students graduate with the workforce skills that employers need. They are looking at what’s working in the career pipeline, expanding upon those models and preparing for 21st-century jobs.

Health care and logistics are strong industry segments today. Some of the region’s greatest opportunities lie in energy, manufacturing, information technology, tourism, agriculture, human resources and entrepreneurship. The U.S. Army is transferring its Human Resource Command to Fort Knox over the next few years, bringing thousands of white-collar jobs to the area. Those jobs will be filled by people who will enjoy Kentucky’s scenic beauty, bourbon, horses and vast opportunities for adventure tourism. 

Wired65 is funded by a federal grant from the Department of Labor that requires that funds be used to support sustainable changes in industries and workforce development. The Wired65 region includes 26 counties (19 in Kentucky and seven in Indiana), the Louisville and Elizabethtown metropolitan areas, and portions of six workforce investment areas.

Regional leaders collaborated for 18 months, utilizing the services of two organizations – TIP Strategies and Next Generation Consulting – to assess the strengths and weaknesses of the 26-county Wired65 region. After surveying hundreds of people and meeting with multiple focus groups across Kentucky’s heartland, they identified five major regional priorities that have formed the core of Wired65’s work program:

• Fix the Education Pipeline – Focus on smoothing transition points within the P-20 education system. Make learning relevant to growth industries and make the connection between education, income and prospects for the future.
• Prepare for 21st-Century Jobs – Provide cutting-edge vocational training in high school and better align postsecondary programs with the needs of local businesses.
• Create a Talent Magnet – Promote the region as a world-class destination for 21st-century talent by highlighting the region’s educational, innovation and research assets.

• Invest in Priority Sectors – Invest in economic and workforce development projects that strengthen the region’s priority sectors: health care, life sciences, logistics, human resource management, energy technologies, advanced manufacturing, agriculture, entrepreneurship, and tourism.
• Focus on Quality of Place – Take a regional view and use the region’s quality of place as a recruitment and retention tool for knowledge workers.

The Kentucky Education and Workforce Development Cabinet and Wired65 have awarded one Quantum grant of $2.5 million and 10 Catalytic grants totaling $853,000 to fund programs addressing these five regional priorities.

Fort Knox is transforming into the human resources department for one of the largest organizations in the world, the U.S. Army.

Current figures show a net increase of 5,000 permanent positions at the post, including approximately 2,500 civilian jobs largely in human resource management and information technology. This boost to the region’s knowledge-based economy is causing quite a stir.

“The region could see as many as 13,000 new residents over a period of three to four years,” says Brad Richardson, executive director of One Knox, the organization serving as the liaison between Fort Knox and the region’s communities. “Our charge is to help the communities with all of the changes that are occurring and help them deal with the growth issues.”

The growth will have a huge impact on the region’s workforce programs, schools, infrastructure and housing. One Knox, which is funded by the Office of Economic Adjustment of the Department of Defense and the participating counties, assists by coordinating studies and planning, soliciting funding for community capital projects, and serves as the single point of contact for the local communities in their coordination with the military, Army civilians and defense contractors.

To assess the projected economic impact on the surrounding communities, the Lincoln Trail Area Development District engaged consultants to produce a regional economic impact analysis. The consulting team predicts the Base Realignment and Closure (BRAC) will have a significant economic impact on both the nine-county study area and the Commonwealth of Kentucky.

The study estimates that for every two new jobs on post, one will be created off post.

BRAC could result in more than $322 million in new payroll from new direct jobs, construction jobs, and spinoff employment.

It may also produce a sustained 40 percent increase in local and state tax revenues.

Opening in June 2010 is the Human Resource Center of Excellence, which will house the international headquarters for the U.S. Army Human Resources Command and Army Accessions Command. When fully populated, approximately 4,500 people will be working in the mammoth 900,000-square-foot structure.

While many of the new job openings will be either Army human resource specialists or assistants, there will also be many opportunities for information technology experts, administrative workers and a wide variety of other disciplines. Salaries will range from approximately $25,000 to upwards of $140,000.

“There are lots of great things happening,” Richardson says.

Bluegrass and Bourbon blend together in Kentucky’s heartland, creating a dynamic hospitality industry that is rich in scenery, history and tradition.

For more than 200 years, Kentucky distillers have crafted distinguished Bourbons, which account for 95 percent of the world’s Bourbon production. Today, distilleries help create about 10,000 jobs in the state, generating an annual payroll of $442 million and $125 million in taxes, according to a study released by the Kentucky Distillers’ Association.

Brands like Jim Beam, Maker’s Mark and Heaven Hill dot the region’s landscape, making Bourbon a signature Kentucky commodity and the largest export category of all U.S. spirits. Other distillers on the legendary Kentucky Bourbon Trail® include Four Roses, Wild Turkey and Brown-Forman’s Woodford Reserve; together they manufacture the amber liquid of fermented grains and limestone water that is marketed under dozens of different names. Brown-Forman, located in Louisville, is among the top 10 largest global spirits companies, with more than 25 brands in its portfolio and sales in more than 135 countries.

“People want to savor the Kentucky Bourbon experience,” says Dawn Przystal, vice president of tourism expansion and marketing for the Bardstown-Nelson County Tourist & Convention Commission and a member of Team Bourbon, a regional marketing effort. “The creation of the Kentucky Bourbon Trail® in 1999 has encouraged the distilleries to enhance the visitor experience. Each distillery is unique – some are modern facilities, others are historic landmarks – and the experience is an extension of their brand.”

Distilleries have received more than 1.5 million visits in the last five years, as Bourbon enthusiasts view the process and then taste the result. And 2009 marked a 400 percent increase in Kentucky Bourbon Trail® Passport participants – those who visited all distilleries.

More than 50,000 people attend the annual Kentucky Bourbon Festival held September in Bardstown. The event has grown from a celebratory dinner to a weeklong event featuring concerts, fine arts and, of course, Bourbon tastings.

Those visitor numbers continue to generate new investment and additional jobs in the hospitality industry, with the creation of new hotels and restaurants and the adaptive reuse of historic buildings as quaint lodging and retail establishments. A lively entrepreneurial spirit is evident throughout the region, with restaurants and cooking schools centering on Bourbon-based delicacies – all served amid Kentucky’s breathtaking scenery.

“You can’t find the Bourbon experience anywhere else in the world,” says Bardstown’s Przystal. “It’s led people here – it’s the hook – and then they discover the many other great things to see and do in our region.”

After a day in the countryside visiting distilleries, take a trip into Louisville for a stop on the Urban Bourbon Trail. Louisville has been home to many distillers since Evan Williams marketed his first whiskey in the city in 1780. The establishments on the Urban Bourbon Trail vary from historic hotel properties to cosmopolitan bars and include Proof on Main, part of the 21c Museum and Hotel.

This 90-room boutique hotel nestled in the heart of Museum Row in historic downtown Louisville offers an authentic, luxurious Southern experience in an art-filled setting.

Founders Laura Lee Brown and Steve Wilson launched the museum, hotel and award-winning restaurant in 2006 to support Louisville’s downtown revitalization and engage the public with contemporary art.

The Kentucky Education and Workforce Development Cabinet and Wired65 awarded more than $853,000 in grants to 10 organizations that will champion projects that offer new ways to develop, retain and recruit the next generation of talent. These forward-thinking ventures will emphasize workforce development efforts that cater to employers in the 26-county region.

Venture
Junior Achievement Career Planning for High School Students

Champion
Junior Achievement of Kentuckiana

Mission
JAKY is bringing business people and volunteers into the classroom to guide young people through their career and college planning process with the JA Real Jobs, Real World program.

“The work we are doing will help students remain motivated to stay in school and achieve the career of their dreams,” says Debra Hoffer, president of JAKY, which has expanded its service area in order to serve more than 3,000 students throughout the 26-county region. Career planning programs are being delivered in 120 classrooms, establishing links between students and postsecondary education institutions.

“The teachers are ecstatic to place a real businessperson in their classes to help students achieve their goals,” Hoffer says. “And this has captured the attention and support of the business community because they see as individuals that they can do something that has a deep impact on creating the workforce of the future.”

Venture
Fix the Pipeline: Improving High School Transitions

Champion
Greater Louisville Inc. and Louisville/Jefferson County Metro Government

Mission
Three components will be implemented to increase the number of students who graduate from high school, submit college applications and enroll in college. The components include a Close the Deal campaign to create a strong college-going culture by involving elected officials, holding regional workshops to increase college familiarity and implementing a KnowHow2Go marketing campaign to promote the tools needed to enhance education transitions.

Venture
Building the Regional Food Economy – Phase I Implementation

Champion
Louisville/Jefferson County Metro Government, Economic Development Department

Mission
This project funds a public interest broker to serve as a liaison between regional farmers and Louisville’s food market. The broker is also charged with implementing strategies to grow the region’s food economy, educating farmers about marketing and sales opportunities and focusing on the next generation of farmers.

“The city of Louisville and surrounding communities have been working for a number of years to build a sustainable farm economy,” says John Logan Brent, Henry County judge executive.

The broker is meeting with area hospitals, restaurants, food distribution companies and emergency feeding organizations to find those product opportunities, then coordinating delivery with farmers.

Leaders are discussing the creation of a permanent retail setting, a farmer’s market that would include a processing place where consumers could take their green beans and corn for canning and freezing. Nearby restaurants would use the locally grown food to gain critical mass, thus creating a cycle of profitability.

“People love to drive out from the urban areas and look at well-maintained farms and countryside,” says Brent, a Henry County native. “But it doesn’t come that way without some profitability, which comes about when you connect the producer with the consumer.”

Venture
School At Work® “Building a Career Ladder in Healthcare”

Champion
Catalyst Learning Co.

Mission
Adults employed in entry-level jobs at four hospitals in the Wired65 region will participate in School At Work (SAW) from September 2009 to June 2010. SAW has been used successfully by Norton Healthcare and Floyd Memorial since 2005 to advance employees.  By refreshing essential skills and completing individual career plans, SAW helps employees prepare for local colleges and move up the career ladder.

Venture
Inspiring Student Entrepreneurs to Spark Business Activity in Their Communities

Champion
Kentucky Council on Economic Education

Mission
A new high school entrepreneurship study designed for career and technical classes will be demonstrated to high schools in 15 counties in the Wired65 region. A teacher/leader will be designated to each county. Students will be pre- and post-tested and participate in a virtual entrepreneurship program.

Venture
HIRE Education Forum Regional Internship Program

Champion
The HIRE Education Forum

Mission
This region-wide college internship program will employ college students as interns in an effort to fill workforce shortages, provide on-the-job training and create a talented pool of individuals for future workforce needs. HIRE is a collaborative of 31 accredited colleges and universities spanning the 26-county region.

Venture
Innovative Technology and Outreach Program

Champion
Family Scholar House Inc.

Mission
The Family Scholar House is a residential program that provides support to single-parent students working toward a four-year college degree. Innovative technology and outreach support will maximize the Family Scholar House’s new Academic Services Center. Funding will provide the new center with an outreach coordinator and technology for training.

Venture
Invention Fair

Champion
Western Kentucky Research Foundation, WKU

Mission
Invention Fair is a regional event that will showcasethe creative ideas and inventions of high school students. Winners of county invention fairs will advance to participate in the 26-county Invention Fair in the spring of 2010, with potential feed into an existing college competition, IdeaU.

Venture
One-Stops as Talent Development Portal

Champion
WorkOne – The Region 10 Workforce Board Inc.

Mission
The project works to refocus the existing perception of One-Stops as an unemployment office and transition its market brand as a “talent development” portal. Funding will be used to promote the new identity to different business and industry sectors and assist the incumbent workforce in improving information and computer technology occupations. 

Venture
Regional Visioning and Leadership Development Campaign

Champion
Regional Leadership Coalition

Mission
This campaign will create a compelling, shared vision of the region’s future that will speak to the community and sustain regional cooperation. It will also look toward regional economic aspirations in the global marketplace and each unique community. County chambers, young professionals, leadership organizations and educational institutions will participate in the campaign. 

This workforce solution was funded by a grant awarded under Workforce Innovation in Regional Economic Development (WIRED) as implemented by the U.S. Department of Labor’s Employment and Training Administration. The solution was created by the grantee and does not necessarily reflect the official position of the U.S. Department of Labor. The Department of Labor makes no guarantees, warranties, or assurances of any kind, express or implied, with respect to such information, including any information on linked sites and including, but not limited to, accuracy of the information or its completeness, timeliness, usefulness, adequacy, continued availability, or ownership. This solution is copyrighted by the institution that created it. Internal use by an organization and/or personal use by an individual for non-commercial purposes is permissible. All other uses require the prior authorization of the copyright owner.