NKY flies high with aviation sector as target industry

 

 

The Greater Cincinnati / Northern Kentucky International Airport (CVG) currently offers 118 acres of land for immediate office, retail, commercial aviation, and industrial development use. As many developers have noted, that space comes with some compelling features, such as a highly skilled local workforce, favorable tax incentives, flourishing communities that support a high quality of life, and easy access to CVG, one of the nation's largest and fastest growing centers of cargo transport. Logsitics provider DHL is located right at CVG, creating a "superhub" in the corridor.

 

"The benefits of just-in-time logistics operations located near a major hub airport are well-documented," says Adam Bruns, managing editor of Site Selection magazine, which publishes real estate and economic development news for regions nationwide. "And the fact that Northern Kentucky is in the I-75 automotive corridor, stretching from Michigan and through Tennessee, all the way down to Georgia — that's sort of a one-two punch."

 

Every time a new provider locates in the flight corridor, the impact multiplies. 

 

In a deal that stands to introduce 150 new resident jobs and a $3.5M investment for the region, leading world air cargo carrier Southern Air moved its headquarters to Northern Kentucky.

 

Southern Air's CEO Dan McHugh reserved special praise for Northern Kentucky's skilled workforce. 

 

"Northern Kentucky has an exceptional workforce with deep aviation expertise," McHugh says. "Our team is a combination of Southern Air employees who have relocated from Connecticut and new members of the Southern Air team who have joined us here. I continue to be impressed with the outstanding talent pool of aviation professionals in this region. It's exciting to see the new Southern Air team coming together."

 

In a transaction with similar potential for mutual benefit, iHerb, an online provider of natural products and food supplements, moved its longtime California operations to Northern Kentucky, settling into a 200,000-square-foot distribution facility at Hebron's Park West commercial complex.

 

"The announced new location by iHerb of its Boone County-Hebron location is tremendous news for Northern Kentucky," said Northern Kentucky Tri-ED Chair and Boone County Judge-Executive Gary Moore. "The ability of our community to compete and win the confidences of this international company speaks volumes of our reputation and attributes. We welcome iHerb to Northern Kentucky with open arms and plan to work closely with this company as they grow their business."

 

 

A recent study conducted by the University of Cincinnati and Northern Kentucky University's Center for Economic Analysis found that in addition to accommodating more than six million passengers per year, CVG contributes:

 

 

According to airport CEO Candace McGraw, the relationship is mutually beneficial. 

 

"We are in a prime location," McGraw says. "This region is home to 2.1 million people. We have 10 Fortune 500 companies in this region, which is more per capita than Chicago, Los Angeles, and New York. Two-thirds of major markets are within 90 minutes of CVG, and half the U.S. population within an hour's flight. All of this is very important to the businesses in this area, particularly the 10 Fortune 500 companies."

 

The area is also ideal for cargo transport, with 92 percent of all items shipped by DHL in North America traveling through the carrier's "superhub" at CVG. DHL's rapid expansion in recent years has prompted much excitement in the logistics and distribution sector. With an investment of more than $105M in improvements to its facilities, DHL kick-started an increase in cargo traffic at CVG that vaulted the airport to the top of a list of 50 airports in the country for percentage growth.

 

In response to all this change -- which very recently included the introduction of a low-cost partner, Frontier Airlines, who launched services on May 17 -- CVG is gearing up for a $23.5M runway rehabilitation; additions to DHL's North-American-Asia Pacific routes; and improvements to the airport's parking, seating, and concessions structures. Key routes surrounding the airport corridor will also be expanded to alleviate traffic to and from CVG.

 

"We continue to place a great deal of emphasis on ways we can diversify our revenues," McGraw said. "[The recently completed 2035 Master Plan] provided the Kenton County Airport Board an opportunity to identify and evaluate strategic business opportunities in an ever-changing economic environment."

 

The airport plans to conduct a cargo assessment study this month that will focus on an even bigger jump in cargo capabilities.