 |
| |
 |
|
|
|
|
|
FAST LANE - March
2005
The new $82.5 million, 700,000-sq.-ft. heavy freight facility is expected to bring 720 new jobs to Louisville with an estimated annual payroll of $12 million. At its launch in Louisville, the operation is slated to have 120 new full-time positions and 600 part-time positions. Several other states also were considered as bases for the heavy air freight operation, but a decision by the Kentucky Economic Development Finance Authority to extend tax incentives to UPS was instrumental in bringing the operation to Louisville. The authority approved the project for up to $20 million in incentives to attract at least 400 new full-time jobs over the next 10 years. Prior to the new operations announcement, UPS had already announced plans to hire an additional 200 pilots to support the growth and expansion of its air business. The company’s flagship air hub, Worldport, is located in Louisville. The company’s latest personnel announcement brings the total number of UPS’ new pilot hires to 300 when combined with the 100 new pilot hires the company announced in October. UPS expects to complete its hiring process by the end of the year. Once hiring is complete, the company will have nearly 2,800 pilots, the majority of which will be based in Louisville. UPS’ international route structure continues to grow with 12 new China flights. In addition, the company expects delivery of 13 A300s and 11 MD-11 aircraft during the next two years and is also acquiring 10 Airbus A380s, which it plans to begin flying in 2009. Though still under development in Europe, the A380 will be the largest commercial aircraft in the world. The aircraft will be able to carry a maximum payload of 330,000 pounds and its range will permit it to fly nonstop about twice as far as other large aircraft. Officials at Louisville International Airport are reviewing the aircraft’s operational requirements to determine if any changes will be necessary to accommodate the A380. LOUISVILLE On the heels of three acquisitions since the beginning of the year, U.S. Wireless Online is continuing its expansion via a merger agreement with Mississippi-based Air2Lan, Inc. The deal creates one of the largest wireless Internet broadband companies in the nation. Furthermore, company officials say they plan to leverage that prominence in the wireless industry to pursue additional acquisitions. Financial details of the agreement have not been released. Both companies have established themselves as leading providers in the fixed wireless broadband sector, including high speed broadband Internet access, Voice over Internet Protocol (VoIP), wireless mobility services (including Wi-Fi local and campus area networks), and a broadband wireless security system aimed at homeland security, transportation and video surveillance applications. Jai Bhagat, chairman and founder of Air2Lan, has been named as the executive chairman of the board of the newly combined company. U.S. Wireless CEO Rick Hughes will remain in that capacity and as a director. Mark Rodgers, currently CEO of Air2Lan, will become president and join the U.S. Wireless board. Hughes told the Louisville Courier-Journal that employment at the company’s Louisville headquarters could increase to up to 150 within the next 12 to 18 months. The company currently employs a staff of 40. With the expansion, however, come more decisions, Hughes said. The company is considering moving its headquarters to Columbus, Ohio, where MJS Holdings/Bluemile Wireless has a similar operations center. “We’re looking to very rapidly build a very large organization,” Hughes said. “As we move forward, things like tax incentives…will become of greater importance to us.” PIKEVILLE Affiliated Computer Services, Inc., a global provider of business process and information technology outsourcing solutions, has announced plans for a new call center in Pikeville that is expected to create up to 300 jobs at the outset and up to 700 positions within a year. ACS will occupy a 43,000-square-foot facility in Pikeville, providing “inbound customer support for a national wireless carrier,” according to company officials. The Dallas-based corporation is a Fortune 500 company with more than 47,000 employees supporting operations in nearly 100 countries around the world. The company currently employs about 1,600 people in Kentucky, with locations in Beattyville, Liberty, Lexington, London, Louisville, Monticello and Richmond. OWENSBORO The Owensboro Grain Company has announced plans to construct a new biodiesel plant in Owensboro that will produce 30 million gallons of fuel per year. The company’s plans mesh with Gov. Ernie Fletcher’s recently announced comprehensive energy plan for the state, which includes greater use of biofuels, a focus on energy efficiency and steps to encourage clean coal technology. The new biodiesel facility will also boost the state’s agricultural community: The new plant is projected to utilize up to 20 million bushels of soybeans annually. John Wright, Owensboro Grain’s vice president of strategic planning and development, explained that the company plans to work with farmers to help them select the soybeans that contain a high oil content. The company’s plans are subject to approval of its board of directors. However, assuming board approval and state environmental permits are granted, the new plant could be operational within 16 to 18 months following approval. The new facility will be located adjacent to the company’s edible oil plant and will share some of its facilities. Company officials say the new facility will require hiring 10 to 20 skilled employees. LOUISVILLE
The new off-mall, mid-sized store format is the result of Sears’ acquisition of 50 Kmart and six Wal-Mart stores last year and is designed to leverage the best of Sears along with convenience-inspired items. Based on customer response to the merchandise assortments at the company’s Sears Grand stores, Sears Essentials will appliances, lawn and garden, tools, electronics, apparel, and home fashions as well as convenience items such as health and beauty, pantry, household and paper products, pet supplies, and toys. The stores expected to undergo the transition over the coming weeks and months will remain open during the process to best serve customers and will convert to the Sears Essentials nameplate this spring. SPRINGFIELD Nicholasville-based Alltech, a global company that specializes in animal health products, has announced plans to build a solid-state fermentation plant in Springfield, Ky. Construction of the plant is being supported by grants from the state. The company expects to hire 35 to 50 people for the new facility, with an average annual salary of $50,000. The economic impact for the total economy is estimated at $10 million annually. Springfield will be the second solid-state fermentation plant in North America. The other, also owned by Alltech, is located in Serdan, Mexico. The Serdan facility is presently running at full production capacity, necessitating the expansion in Springfield. It is estimated that the facility in Springfield, when running at full capacity, will produce 500 tons of product per month, more than triple that of Serdan. “We see this as a major step forward for Alltech and Kentucky,” said Dr. Pearse Lyons, founder and president of Alltech. “This allows us to bring cutting-edge technology to the state where we can utilize the local wheat crop and employ people from the local community, all the while allowing us to keep up with growing global demand for Alltech products.” Alltech is currently represented in 85 countries around the world and employs 1,500 people. The company recently broke ground on a new $15 million yeast facility in Brazil that will be capable of producing 20 tons of Alltech products per year. Alltech’s investment will make Brazil the largest biotechnology producer and exporter in the area. STATE
Coming in at No. 45 was Lexington-based Appalachian Regional Healthcare (ARH), with Norton Healthcare of Louisville taking the No. 65 spot. Using survey data and independent research, Verispan awarded points to 33 weighted factors used in eight categories of comparison: hospital utilization; financial stability; physician networks and integration; services and access; contract capabilities; outpatient utilization; integration; and technology integration. LOUISVILLE
The event, which will be televised by NBC Sports and USA Network, will begin June 11 from the Panasonic Open in Louisville and will feature the top professional action sports athletes competing in skateboarding (vert and park), BMX (vert, park, dirt), and freestyle motocross. Other cities hosting the tour include Denver, Portland, San Jose and Orlando. At season’s end, based on a cumulative points system, the tour will award the Dew Cup to champions in the six combined disciplines of skateboarding, BMX and freestyle motocross. Tour officials are estimating attendance at each venue to be approximately 100,000, resulting in an economic impact of up to $30 million for each city. EASTERN KENTUCKY A newly published map from the Kentucky Geological Survey (KGS) provides details about the nature of an eastern Kentucky oil- and natural gas-producing geologic formation known as the Big Lime. Two KGS geologists, David Harris and Thomas Sparks, compiled data from over 6,400 existing oil and gas wells for the project, using a computer contouring program. The resulting map, Harris said, will provide “information that can help energy companies interested in the area improve their chances of finding oil and gas.” Harris and Sparks determined that an average oil or gas field in the region contains 30 to 40 wells with a potential to produce from one million to 1.5 million barrels of oil or 4.5 billion to six billion cubic feet of natural gas. As the price of imported energy sources rises, interest in cheaper domestic oil and gas increases, making maps like this one more valuable to the domestic energy industry. The project was funded by a consortium of three energy companies, and is publicly available for $10 through the KGS Public Information Center at UK by calling (859) 257-3896. It can also be viewed at the KGS publications Web site, http://kgsweb.uky.edu/findpubsmain.asp. STATE
“The goat industry is one of the fastest-growing segments of Kentucky agriculture,” said Kentucky Agriculture Commissioner Richie Farmer. “Kentucky’s topography, its climate and its growing ethnic population make goat farming a tremendous opportunity for Kentucky producers.” Ray Bowman, a Franklin County goat farmer and president of the Kentucky Goat Producers Association, also credited the marketing efforts of the Kentucky Department of Agriculture’s goat marketing specialist, Tess Caudill. Caudill devised a plan to group goats of similar quality and weight together and sell them in lots. “It increases the competition for those kids,” explained Caudill, “which therefore affects the price.” Bowman says the increased demand for goat meat can be attributed to two factors: an increasing number of Hispanic and Muslim immigrants, and the superior nutritional value of goat meat. “Eighty percent of the world’s population eats goat on a regular basis,” Bowman noted. “Cultures other than ours desire it, but there aren’t a lot of places you can go right now and buy it right off the shelf. MURRAY
Murray State's American Humanics (AH) youth and nonprofit leadership program and its Service Learning Scholars Program will be featured in the documentary. The program will also focus on programs at Arizona State University and the University of Michigan. The documentary will focus on ways universities are preparing students to be leaders in the youth and human service sector of organizations such as the American Red Cross, the YMCA, Big Brothers/Big Sisters, hospitals, colleges and ministries. There are more than 50,000 new jobs open each year in this area, making it one of the fastest-growing sectors in the country. Murray State’s AH program has led the nation in enrollment for more than a decade. Recognized as a model program, Murray's AH has also garnered the American Humanics National Award of Excellence in Community Service and the American Humanics National Award in Student Recruitment. Most recently, the program received the Excellence in Internships national award. A portion of the documentary will be devoted to the instruction of service learning, particularly as it relates to Murray's Service Learning Scholars program, one of only a handful of such programs in the country. The program combines community service with learning in a structured process. Murray's program includes instruction, service and research components. LOUISVILLE A group of prominent Louisville business and community leaders have joined forces to form a new community bank. Eclipse Bank will be led by John Pendergrass, a former executive with PNC Bank in Louisville. Organizers of Eclipse Bank intend to raise between $12-$15 million in capital and have already received commitments for almost half of the minimum amount from the organizing group. The organizers include Tom Austin; Thomas E. Dunham, Ph.D.; Al Fiorini; Joseph F. Fowler, Jr. MD; W. Frank Harshaw; Robert Holloway; Paul Lichtefeld; David L. McEwan; Douglas L. Michael, Jr.; J. Bruce Milligan, Jr.; David M Monsour; Allan B. Morris; John L. Pendergrass; Mitzi Pendergrass; G. Hunt Rounsavall; Theodore Strange, Jr.; A.R. Sullivan; and Henry C. Wagner. German American Bancorp, a financial services holding company based in Jasper, Indiana, has also committed to purchase up to nine percent of the common stock as an organizing investor. The remaining capital will be raised through a public offering of the bank’s stock. The stock, which is priced at $20 per share with a $50,000 minimum, is now available to interested investors. The approval process through the Kentucky Office of Financial Institutions and the FDIC takes approximately three to four months. STATE
The Golden Plow award is given annual to one senator and one congressman who best represent America’s farm interests. McConnell also received the Golden Plow in 1996 and is one of only five senators to win the award twice. LEXINGTON American Eagle, the regional affiliate of American Airlines, has announced that it will add daily non-stop jet service between Lexington and both Dallas/Fort Worth International Airport and Chicago O’Hare International Airport beginning May 1. American Eagle will operate three daily round-trip flights to Dallas/Fort Worth and two daily round-trip flights to Chicago. “Adding new service to both Dallas/Fort Worth and Chicago will provide Lexington travelers more connecting options,” said American Eagle President Peter Bowler. “The service between Lexington and O’Hare, for example, is perfectly timed to provide convenient connections to many of American’s international flights.” “The growing importance of reliable air connections to the nation’s business markets and minimal time spent in transit are a key ingredient of economic development,” Gov. Ernie Fletcher said. “The additional direct flights from Blue Grass Airport will provide business leaders more opportunities to experience Kentucky and make the decision to locate or expand their business in the Commonwealth.” The flights represent the first time American has flown into Lexington. Blue Grass Airport Executive Director Michael Gobb said the airport has been pursuing non-stop jet service by American Eagle for over five years. OHIO
Cincinnati-based Federated currently operates more than 450 stores in 34 states, Guam and Puerto Rico and earlier this month completed converting all of its Bloomingdale's, Bon-Ton, Burdine’s, Goldsmith's, Lazarus and Rich's stores to operate under the Macy's name. May, headquartered in St. Louis, operates 491 stores under the names of Famous-Barr, Filene's, Foley's, Hecht's, Kaufmann's, Lord & Taylor, L.S. Ayres, Marshall Field's, Meier & Frank, Robinsons-May, Strawbridge's, and The Jones Store, as well as 239 David's Bridal stores, 449 After Hours Formalwear stores, and 11 Priscilla of Boston stores. The deal will establish Federated as a $30 billion national retailer with stores in 49 states, Guam, Puerto Rico and the District of Columbia. Fifteen new states will be layered onto Federated's existing base, with relatively little overlap between the companies' locations. Federated expects to realize approximately $450 million in cost synergies by 2007, resulting from the consolidation of central functions and division integrations. The company plans to make St. Louis the headquarters of one of the major operating divisions. INDIANA
The corporation is patterned after successful public-private partnerships adopted by several other states and is designed to operate with more speed and flexibility in attracting and retaining businesses. "This is a major change in the way we administer our economic development programs," said Indiana State Senator Robert Garton, R-Columbus. "The governor now is in charge of our economic development efforts, and this bill is one of many structural changes designed to improve our ability to recruit and retain jobs in Indiana. There will be more structural changes in state government in the next four months than in the last 40 years." A 12-member board, chaired by Governor Daniels, will oversee the corporation and use assets and resources in a coordinated way to push for economic development.
Business Briefs BOYLE COUNTY
CAMPBELLSVILLE
COVINGTON
CRITTENDEN COUNTY
EASTERN KENTUCKY
ERLANGER
FLORENCE
FORT MITCHELL
GREENUP COUNTY
HAZARD
HEBRON
LEXINGTON
LOUISVILLE
NELSON COUNTY
NORTHERN KENTUCKY
PADUCAH
PAINTSVILLE
RICHMOND
SIMPSONVILLE
STATE
INDIANA
OHIO
TENNESSEE
|
 |
|
|
Copyright 1996-2005, by Kentucky Business Online. All rights reserved. Editorial content
is copyright 2005, Lane Communications Group The Lane Report is a trademark of Lane Communications Group. All other trademarks are the property of their respective owners. |
UPS has announced it will integrate its new heavy freight operations into its existing network with a major expansion of its Louisville cargo operations. 
Air2Lan, headquartered in Jackson, Miss., operates in Mississippi, Alabama, Louisiana, Tennessee, Arkansas and Texas. With its recent acquisitions of Ohio-based MJS Holdings (and its subsidiaries, Bluemile Workplace and Instant Workplace), Louisville-based United Broadband Networks and YYIreless.1net of Pittsburgh, Louisville-based U.S. Wireless now operates in Kentucky, Georgia, Pennsylvania, Ohio and Indiana. 
Louisville is one of 23 cities in which Sears, Roebuck and Co. plans to launch its newest retail concept, Sears Essentials.
The plant will produce Allzyme SSF, a product beneficial in lowering feed costs, and will utilize $1.1 million of locally grown wheat bran. 
Two Kentucky companies have been ranked among the top-performing health care networks in the nation. The rankings are a result of a survey conducted by Verispan, a Pennsylvania health care information provider.
Louisville has been selected as the kick-off site for the 2005 Dew Action Sports Tour, the first-ever, season-long professional multi-sport tour in action sports.
Kentucky’s goat population now ranks sixth in the nation, at an estimated 70,000 head as of January 1. That figure is a significant leap from the 1997 count, which was recorded as only 16,223.
Two Murray State University programs will be highlighted in a documentary by the Public Broadcast Service (PBS) that will be aired on national television in the late spring.
U.S. Senator Mitch McConnell (R-Ky.) has been honored with the “2005 Golden Plow” award from the American Farm Bureau Federation. 
Federated Department Stores has announced plans to acquire The May Department Stores Company in a transaction valued at $17 billion.
Indiana Governor Mitch Daniels has signed a new bill that creates the Indiana Economic Development Corporation, which will serve as the new platform for the state's economic development efforts.
Exstream Software has teamed with Digipro, S.A. de C.V. to distribute Exstream software throughout Mexico and Columbia. Digipro, headquartered in Mexico City, provides document management solutions for financial firms, banks, telecommunications firms, utilities, government institutions and other organizations. 
Associated Healthcare Systems has finalized the purchase of Samaritan Hospital from Ardent Health Services. Associated, which is headquartered in Brentwood, Tennessee, intends to implement the business plan of Samaritan, which includes a joint venture partnership with local physicians and the expansion of services and facilities. The 336-bed hospital will continue to operate under the Samaritan name with the existing staff. 
Louisville International Airport has been awarded $15 million in federal funding to assist in relocating nearly 100 families from the most noise-impacted areas around the airport. Airport Director Skip Miller credited U.S. Congresswoman Anne Northup for securing the funding, noting that she has secured over $98 million for the voluntarily relocation program. Northup noted: “The airport expansion is wonderful for Louisville’s economy, but it is important that we stay committed to those who have been adversely affected by a declining neighborhood and increasingly invasive noise concerns. This funding will help the airport keep that commitment by moving the relocation process closer to completion.” The airport authority projects an additional $20-25 million in federal dollars are still needed to complete making offers to those families who wish to relocate. 
Brown-Forman Corporation has announced that it is exploring strategic alternatives for its wholly-owned subsidiary, Lenox, Inc., including a possible sale. Lenox manufactures and markets leading brands in several consumer product categories, including fine china, crystal, collectibles, silver and giftware; Dansk contemporary tableware and giftware. Brown-Forman Chairman and CEO Owsley Brown II said that while Lenox is “consistently profitable and generates significant cash flow,” the company has decided that “the best path to creating value for our shareholders is to focus even more sharply on growing our core beverage business.” Brown-Forman beverages include Jack Daniel’s, Southern Comfort, Finlandia Vodka, and Korbel California Champagnes, among others. 
National City Corporation once again leads Kentucky’s banking industry in terms of providing U.S. Small Business Administration (SBA) loans. Fiscal year 2004 represents the third time the Cleveland-based company has earned that recognition. National City made 140 SBA loans totaling $7.3 million during the course of FY 2004. Nationally, National City Corporation ranked as the 10th largest Small Business Administration lender. 
Sara Lee is relocating its Blue Ash regional headquarters to Chicago as part of a company restructuring/consolidation plan that will organize the company into three business lines – retail, food service and international – that will be determined by geography, eliminating the need for divisional headquarters. The Blue Ash location has been responsible for overseeing Sara Lee's meat business, which includes brands such as Hillshire Farms, Kahn's, Ball Park and Jimmy Dean. The move will result in the loss of up to 500 jobs for the Cincinnati area.