The need for growth and quick turnaround times for companies looking to expand has made speed to market one of the most important factors when it comes to business expansion and relocation.
For decision makers at businesses considering a new location, states capable of taking companies from the project stage to the operational stage quickly and efficiently are in a prime position compared to their competition.
The commonwealth of Kentucky has taken an aggressive approach, matching companies’ sense of urgency and expediting project timelines in a way many other states cannot. This advantage has opened the doors to continue strong statewide economic growth through increased investment and job creation.
This aggressive approach is seen with the Kentucky Product Development Initiative (KPDI) program. KPDI was established last year after Gov. Andy Beshear and the Kentucky General Assembly approved $100 million in funding for KPDI during its regular 2022 session. Applications are first evaluated by an independent consultant based upon all facets a prospective company would consider, including workforce availability, access to all infrastructure and detailed information on costs associated with development. In turn, these projects will generate increased economic development opportunities and job creation for Kentucky residents. KPDI furthers the efforts of the pilot PDI program, which was established in 2019 and provided nearly $7 million in state funding for 20 site and building development projects statewide.
In the past two months, Gov. Beshear has announced the first approvals in the initial round of KPDI, rolling out more than $7.3 million in state funding for site and building development projects in Adair, Allen, Breckinridge, Johnson, Laurel, Madison, Rowan, Russell and Simpson counties, as well as regional projects between Bell, Knox and Whitley counties and Greenup, Boyd, Carter, Elliott and Lawrence counties.
Gov. Beshear previously announced that 54 site and building development projects are requesting nearly $34 million in state funds during the first round of KPDI. The Kentucky Cabinet for Economic Development continues to review each project for a recommendation of approval by the Kentucky Economic Development Finance Authority (KEDFA) in the coming months.
In addition to the KPDI program, the state is paving the way for future speedy development through its Build-Ready Sites program. Gov. Beshear recently appropriated $250 million for the development of a Site Identification and Development Fund to prepare build-ready sites that will help attract world-class companies to Kentucky.
With a build-ready site, much of the work – aside from construction – has already been completed. That includes control of the land to be developed, archaeological, environmental and geotechnical studies performed, construction of a building pad, preliminary design work, approved site plan permits and necessary infrastructure in place. On a build-ready site, construction can begin immediately.
Including the two newest sites recently announced in Lyon County, the commonwealth is home to roughly 23 build-ready sites. Multiple other locations across the state are currently working toward certification.
To be build-ready certified, a site must include a pad ready to accommodate a building of 50,000 square feet with the ability to expand to 100,000 square feet or more, as well as utilities extending to the site’s edge. Applicants – usually a city, county or economic development group – must have previously filed the necessary permits, as well as preliminary building plans, cost estimates and schedule projections. Applicants also are asked to provide a rendering of a potential building for the site.
To date, eight former build-ready-certified sites, including tracts located in Hart and Laurel counties and four sites in Warren County, have been selected by companies for new location projects, allowing companies to bring their operations online in a cost-efficient manner while creating jobs for local Kentuckians.
Aiding in the state’s increase in speed-to-market initiatives is Kentucky’s unified approach between state and local officials, utility providers and higher education institutions, which work seamlessly together to quickly resolve needs, including permitting. This approach stands to benefit a host of different industries that thrive in the commonwealth, including advanced manufacturing, automotive, distribution and logistics, food and beverage and health care.
Complementing Kentucky’s speed-to-market advantages are a host of other business-friendly elements, including an ideal geographic location that places the state within a day’s drive of more than two-thirds of the nation’s population and personal income and manufacturing operations. With highly developed logistics and distribution infrastructure and facilities – including four major ground and air-shipping hubs – Kentucky continues to attract businesses that rely on multiple reliable, air, road, waterway and rail shipping options. These factors are a huge reason why the logistics and distribution industry, and others such as manufacturing, automotive, metals and food, beverage and agritech are thriving in the commonwealth.
Equally advantageous for manufacturers is Kentucky’s nationally low industrial electricity rate, which rank among the lowest in the U.S. Kentucky also ranks No. 6 in the U.S. for lowest cost of doing business, according to CNBC in 2021.
Kentucky’s commitment to bring companies to market quickly, create high-wage opportunities and improve infrastructure throughout the state are paying dividends, and the state sits in good position to build a brighter future through these early successes.
For more information on KPDI, visit kpdi.ky.gov.
