Kentucky is moving the nation. And Northern Kentucky is at the heart of the action.
It's not just the big companies, like Toyota Motor Engineering and Manufacturing, with its North American headquarters in Erlanger, its Parts Logistics Division in Hebron, and its largest manufacturing facility outside Japan in Georgetown. Or Ford Motor Company, which opened its first office in Kentucky in 1912, and today operates the high-volume Louisville Assembly and Kentucky Truck Plants in Louisville.
Geographically, Northern Kentucky is the center of domestic automotive production in the country. Motor vehicle-related industries and enterprises -- everything from physically putting cars together to logistics services, data processing, sales and distribution, technology and product development -- provide thousands of high-wage jobs to Kentuckians and contribute to the state's economy in a huge way.
Kentucky ranks third in the nation for light automotive production, and 16.8% of the state's manufacturing workforce is employed in vehicle production, bodies, trailers or parts, according to the U.S. Bureau of Economic Analysis. In 2011, over 50 motor vehicle-related facilities located or expanded in Kentucky, representing over $1 billion in investment. Of those, several major announcements came from Northern Kentucky:
- Johnson Controls will expand its automotive battery operation, creating 45 new jobs and investing $24.2 million to increase the facility's square footage
- Linamar Corp. subsidiary Eagle Manufacturing will invest $14.8 million in a capital equipment upgrade that is expected to create 138 new jobs
- ZF Steering completed a $95.8 million expansion in September, expected to create 374 full-time jobs over the next two years
- Tokyo Boeki North America, Inc. moved its sales and support HQ to Florence earlier this year
- Mazak announced that it will begin exporting products from its U.S. headquarters in Northern Kentucky to Japan, Europe and South America
Why the momentum? A few good reasons, says Gary Moore, Boone County Judge Executive and Northern Kentucky Tri-ED Executive Member.
''Our geographic location along with our educational systems and the work ethic of our people are a great match for jobs in the manufacturing sector, especially automotive manufacturing,'' Moore says.
Location is everything
Nestled at the nexus of I-71 and I-75, Northern Kentucky is within half day's drive of major automotive centers throughout the Midwest, including Detroit, MI, Greensburg, IN, and Sharonville and Lima, OH.
Factor in the global hub of the Cincinnati / Northern Kentucky International Airport and the shipping advantages provided by regional hubs for DHL and FedEx, and you have a distribution network that is safe, efficient, and second-to-none.
When Tokyo Boeki moved their sales and support headquarters to Northern Kentucky, general manager Steven Hays cited the region's location as a major factor in the decision.
''We chose Northern Kentucky because of its proximity to major auto manufacturers as well as its efficient transportation system and community resources,'' Hays said in a press release.
ZF Steering president Mike Hirsch praised the existing logistics infrastructure as a key asset when the company completed its expansion in September.
''With I-75 going right by our door, and the airport next door, we have a perfect set-up to tie in to the customer plants we are shipping to,'' Hirsch said.
Cooperation and support
For years, Northern Kentucky Tri-ED has focused on the automotive supplier base as a key industry for the region's economic health. Throughout the state, public and private organizations have come together to build partnerships, offer incentives, and keep the engine of growth running smoothly.
Prioritizing a highly-skilled workforce is an important part of that effort. Northern Kentucky University and Gateway Community and Technical College are key players in preparing students for today's high-tech, in-demand manufacturing jobs, as well as building partnerships with local businesses to provide training and continuing education that responds to the changing needs of manufacturers.
ZF Steering worked with Gateway to create a training program tailored to the company's needs. About 60 employees are currently working to complete the program.
Business leaders routinely praise the spirit of cooperation and support among government organizations as part of what makes the region so attractive.
Linamar subsidiary Eagle Manufacturing, headquartered in Florence, received approval this year for up to $4.5 million in performance-based tax incentives through the Kentucky Business Investment Program. Eagle Manufacturing's investment includes $41 million in equipment upgrades and 138 new jobs to support the manufacture of engine and frame parts for Ford and Chrysler.
"We very much appreciate the support of the State of Kentucky in helping us to achieve our investment goals," says Linamar CEO Linda Hasenfratz. "Together we can invest in the future of the state and create jobs much needed in the area."
Johnson Controls also received an incentive through the Kentucky Business Investment Program. The company, which makes automotive batteries, employs 96 people in Florence and has had a presence in Northern Kentucky since 1967. By the spring of 2012, Johnson Controls expects to have converted 60,000 sq. ft. of its existing warehouse space into manufacturing floor space. The expansion is expected to add 45 new jobs.
Looking forward
In September, Mazak Corporation announced that it would begin exporting machines designed and built at its Florence plant to Asia, South America, and Europe. The decision is a vote of confidence in U.S. manufacturing and indicates the potential of Northern Kentucky's automotive industry to grow, compete and flourish in a global economy.
''Exporting Kentucky-designed and built machines reaffirms the fact that the United States remains a very competitive manufacturing environment for advanced technology products,'' said Brian Papke, president of Mazak Corporation, in a press release. ''In fact, we see the exporting of Kentucky-built machines as a catalyst that lays the groundwork for future expansion of our North American manufacturing operations.''
News of development triumphs in Northern Kentucky have demonstrated the vitality of the local automotive/manufacturing industry. And with the automotive sector investing millions of dollars into the local economy and contributing to the development of a high-tech, in-demand workforce, the entire region benefits from their commitment.
In other words: The automotive sector drives Northern Kentucky.
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