As Kentucky’s economy continues to thrive, the state's manufacturing sector serves as a clear cornerstone of that success, driving billions of dollars of ongoing investment and thousands of new jobs across the commonwealth.
Since the beginning of his administration, Kentucky Governor Andy Beshear has announced more than 1,000 private sector new location and expansion projects totaling roughly $32 billion in announced investments, creating nearly 55,000 jobs. This is the highest investment figure secured during the tenure of any governor in the commonwealth’s history.
Quite a bit of that success can be credited to Kentucky’s manufacturing industry. Since the beginning of the Beshear administration, the state has announced nearly 730 manufacturing-related projects, totaling over $27 billion and creating more than 35,000 jobs.
“We are setting a new standard for economic growth in Kentucky, and we are doing it with manufacturers from virtually every industry,” Governor Beshear said. “The future is now for Kentucky, and manufacturing is absolutely vital to our long-term vision for the commonwealth. That is reflected in the significant number of Kentuckians employed within the sector. We are positioning Kentucky for economic growth well into the future and manufacturing will continue to be at the center of that effort. I want to thank each and every manufacturer across our state for contributing to our ongoing success.”
Kentucky’s manufacturing sector is incredibly diverse, spanning every industry and touching every corner of the bluegrass. From traditional automotive to EV and hydrogen, metals to aerospace, food and beverage and bourbon to new, high-tech industries, Kentucky has it covered.
One of Kentucky’s largest industries is automotive, a sector that is constantly growing and evolving. During the Beshear administration, the commonwealth has announced over 170 automotive-related projects totaling nearly $14.5 billion in announced investments, creating close to 16,000 jobs.
This includes EV-related announcements like AESC, which in August 2022 broke ground on a $2 billion state-of-the-art gigafactory in Bowling Green. The project came just months after Kentucky’s first game-changing EV battery announcement.
In September 2021, Governor Beshear and executives from Ford Motor Co. and South Korea-based SK On announced the BlueOval SK (BOSK) Battery Park in Hardin County. The $5.8 billion project is the single largest economic development investment in state history and is set to create 5,000 jobs in the heart of the state. The project, which broke ground in October 2022, includes two massive battery manufacturing facilities capable of producing more than 80 gigawatt hours annually. The plants will produce advanced batteries for future Ford and Lincoln EVs.
The automotive industry is not alone in its growth. Kentucky’s metals, aerospace and food and beverage sectors are experiencing this momentum as well.
The state’s continued success in the metals industry is supported by the Metals Innovation Initiative (MI2), a Kentucky-based nonprofit that provides collaborative, industry-led executive leadership to attract and promote advanced research, sustainability commercialization and talent development in Kentucky’s metals industry and, ultimately, for Kentucky to be seen as the preeminent destination for metals innovation.
The organization was formed in 2022 with support from eight Kentucky metals companies — Kobe Aluminum Automotive Products, Logan Aluminum, North American Stainless, Novelis, Nucor, River Metals Recycling, Tri-Arrows Aluminum and Wieland. With a commitment from Governor Beshear and the Cabinet for Economic Development for support, administered through the Kentucky Science and Technology Corporation, the industry is poised for further growth in the future.
Aerospace, which represents Kentucky’s number-one export, has seen nearly 40 announcements since the beginning of the administration, totaling over $578.9 million in investments and 1,200 jobs created. This includes announcements like Safran Landing Systems, which in September 2023 expanded its Boone County facility to produce and refurbish advanced carbon composite brake disks and produce aluminum alloy wheels and brakes for large commercial and military aircraft.
In addition, the food and beverage industry, which includes Kentucky’s signature bourbon and spirits sector, has seen tremendous growth as well. Since the beginning of the administration, the industry has seen over 320 announcements, more than $10.9 billion in investment and nearly 8,810 jobs created.
Companies like Stellar Snacks, a woman-owned pretzel manufacturer that announced the single largest economic development project for West Louisville in over 20 years, and Canada-based Kruger Packaging, which established a state-of-the-art packaging operation in Elizabethtown, are making this growth possible.
Supply Kentucky Helps Manufacturers Stay Connected
Kentucky is also taking steps to ensure its manufacturing supply chain is more connected and supported than ever.
In 2023, Governor Beshear announced the “Supply Kentucky” initiative, a renewed effort to boost job growth, reduce operational costs and provide more security for the supply chains of Kentucky manufacturers. Supply Kentucky aligns the commonwealth and the Kentucky Association of Manufacturers (KAM) to coordinate marketing efforts, provide resources related to workforce and connect Kentucky companies to suppliers throughout the country, as well as foster growth of minority- and female-owned businesses.
At the center of the Supply Kentucky initiative is the rollout of CONNEX Kentucky, a new online platform established through a partnership between the Cabinet for Economic Development and KAM that provides a searchable supply chain database for manufacturers throughout the state. The database is part of the CONNEX Marketplace, a nationwide platform developed to connect the U.S. manufacturing supply chain. Manufacturers and suppliers are now using it across the country to connect with one another and find new business opportunities based on deep data like equipment, certifications, SBA designations, processes, capabilities and other criteria.
Kentucky Programs Powering Skills Training and Ensuring Workforce for Manufacturers
Photo provided by Commonwealth of Kentucky
Kentucky has several workforce-related resources in place for manufacturers across the state to take advantage of, one of which is the Bluegrass State Skills Corp. (BSSC), which oversees programs attached to the Cabinet for Economic Development that help private sector businesses establish industry-specific training incentives.
In fiscal year 2024, the BSSC board of directors approved roughly $19 million in funds and credits for 104 Kentucky facilities to train 42,600-plus workers, the most since 2016. Building on that momentum, the BSSC board approved more than $1.7 million in training funds and credits for over 4,000 trainees across 26 Kentucky facilities during the fiscal year 2025 meetings this August.
Governor Beshear previously announced over $10 million for 115 applicants throughout the state to train nearly 35,000 workers for fiscal year 2023. The state also provided over $8.4 million in funds and credits during fiscal year 2022. Those funds assisted with workforce training for more than 35,400 Kentucky employees.
Employers across the state benefit from BSSC’s Grant-in-Aid (GIA) and Skills Training Investment Credit (STIC) programs. GIA provides cash reimbursements for occupational and skills upgrade training at Kentucky businesses, while STIC offers state income tax credits for companies to offset the costs for approved training programs. Applications for both programs are accepted and considered for approval by the Bluegrass State Skills Corporation Board of Directors.
Types of operations that could qualify for BSSC incentives include manufacturing, agribusiness, nonretail service or technology, headquarters operations, state-licensed hospital operations, coal severing and processing, alternative fuel, gasification, renewable energy production or carbon dioxide transmission pipelines.
Additionally, companies are capitalizing on the resources Kentucky has to offer.
In April 2023, Governor Beshear joined officials from Elizabethtown Community and Technical College (ECTC), BlueOval SK and Ford Motor Co. to officially break ground on the ECTC BlueOval SK Training Center in Glendale.
The 1,500-acre BlueOval SK Battery Park is an all-new battery manufacturing campus that will produce batteries for future Ford and Lincoln vehicles beginning in 2025. BlueOval SK Battery Park will employ 5,000 people who will prepare for these future careers through training at the forthcoming ECTC BlueOval SK Training Center on-site.
The primary curriculum for the training facility will support battery knowledge, roles and skills. BlueOval SK will train employees in SK On’s proprietary technical, quality and manufacturing processes in the ECTC BlueOval SK Training Center’s virtual reality labs, industrial maintenance lab, work simulation lab and ergonomics techniques classrooms.
The ECTC BlueOval SK Training Center is now the first co-branded learning facility within the Kentucky Community and Technical College System.
The commonwealth has long had all the ingredients for its manufacturers to achieve long-term success, and with the diversification of the industry and Kentucky’s ongoing efforts, manufacturers are now more supported than ever.
Team Kentucky helps businesses of all sizes select a location, grow and succeed. Offering low business costs, a central U.S. location and expertise in a range of industries, Kentucky can support any company’s needs. For more information, call 800-626-2930, email econdev@ky.gov or visit CED.ky.gov. T&ID
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