ABB 2006/7 | State Profiles | Mid West region | Kentucky | Profile

Situated in the heart of the US, between the upper Midwest and the Deep South, Kentucky has a population of just over four million. Historically an agrarian state, Kentucky has become an excellent location for manufacturers and supportive services. Kentucky’s manufacturing employment as a percentage of total private employment was 17.9% in 2005, compared to the US average of 12.8%.

Location

The state’s borders are within 600 miles of 65% of the nation’s population, personal income and manufacturing business establishments. It is well-served by interstates, state parkways, railroads and three major airports.

Hub of commerce

When it comes to logistics, Kentucky is more than just centrally-located. It is also home to the UPS global air hub in Louisville, moving more than one million parcels worldwide each day. Thanks to the UPS global air hub, Kentucky businesses can get products, papers and packages of every size into the global stream of commerce later in the day than those elsewhere, reaching their destinations that much faster.

Connectivity

Over the last two years, Kentucky has led the nation in the growth of broadband infrastructure and adoption, with 80% of households accessing broadband, and plans for full broadband deployment by 2007. Businesses are served by one of the most extensive telecommunications networks in the US, where fibre-optic, wireless, digital microwave and satellite technologies are integrated into a sophisticated infrastructure capable of handling the most demanding business needs.

Electrifying power rates

According to the US Energy Information Administration, Kentucky has offered the lowest industrial electrical rates in America for the past five consecutive years. Since the state ranks third in the US in coal production, it has an abundant local supply of fuels to help keep its utility costs low.

Energetic workforce

Kentucky’s workforce continually outperforms the national average for productivity, and its workforce training programmes have been ranked among the top five nationally by site consultants across the country. The ability to provide a customized program to meet the specific needs of a company sets Kentucky apart from competitors.

Business climate

Kentucky has the fourth-lowest cost of doing business in the nation, and the lowest of any state in the region, according to an independent study. The tax burden is below the national average with low property tax rates and the exemption of manufacturing equipment from sales tax. Kentucky has jumped ahead of the field in reforming its tax code. Led by Governor Ernie Fletcher, the Kentucky legislature passed a major tax modernization initiative in 2005, eliminating some business taxes altogether and lowering others.

Incentives

Kentucky has been a leader in providing progressive tax credits and other incentives to new manufacturing operations and supportive services. The passage of Kentucky’s tax modernization plan in 2005, created new financial incentive programs including the Environmental Stewardship Act for manufacturers that make environmentally friendly products. Additionally, a new Enterprise Initiative Act allows manufacturing, service or technology, and tourism attraction projects statewide that establish a new facility or expand an existing facility, to receive a sales tax refund.

Quality of life

Kentucky’s business climate is further enhanced by its quality of life. Kentucky ranks high in access to affordable housing, high-quality public schools, outstanding colleges and universities and cultural and recreational opportunities. Kentucky’s beautiful countryside is the heart and soul of America’s thoroughbred industry. Our music, crafts and fine arts are known around the world. In addition, the state boasts 24 state recreational parks and 17 state resort parks, more than any other state.

For more information, contact:
Paul Pilkauskas, Director,
European Representative Office, State of Kentucky
Avenue Louise 149, Box 40
B-1050 Brussels, Belgium
Tel: 00322 535 7642
Fax: 00322 535 7575
Email: PaulPilkauskas@kentuckyeurope.com
Website: www.kentuckyeurope.com

All pages are copyright © of Roxby Media Ltd. American British Business is a Roxby Media publication - Disclaimer