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COVER STORY - September 2001
by Adam Bruns

Sidebar-
Here to Serve
The growth of the support and services sector in 2000 was driven primarily by the hubs of Greater Louisville and Northern Kentucky

A grand total of 79 non-manufacturing firms located or expanded in Kentucky in 2000, creating 11,147 jobs and investing $191,482,041 in land, facilities, equipment and payroll.

Among projects making headlines were a number of high-tech firms in Louisville, as the city pursues its quest to build the sector on eMainUSA and other avenues.The $5.8-million Internet service center expansion by Patrion, a subsidiary of HealthEssentials Solutions, Inc., will add 290 employees as a result. The firm is just one of so many health-related enterprises in Louisville to join Greater Louisville Inc.’s Health Enterprises Network last year, established to promote every facet of healthcare enterprise attraction.

In fact, a full 33 of the 79 new or expanding support/service firms are in Louisville, in large part because of UPS. The next-highest concentration was Northern Kentucky, with eight firms. Such a solutions-oriented mix would naturally lead to increased traffic in logistics and trucking operations, as well as other related spin-off activity.

“We don’t track trucking firms, but it’s a logical assumption that there would be more trucking activity,” says James Navolio, Commissioner of Business Development with the State Cabinet for Economic Development. “Whether there are more firms or not, one thing we do obviously track is UPS.”

UPS employs around 16,000 people now, with plans to add 6,000 more. Meanwhile, a bevy of new call centers continue to make Kentucky their home. Navolio points out some crucial differences in the types of call center however, and which ones the state is actively recruiting.

“The people that bug you at seven o’clock when you’re eating dinner, we do not actively recruit those kinds of businesses,” he explains. “What we do recruit are projects like the Cingular Wireless center that just ended up in Ashland and already has 500 people working there. That’s a service center, those are higher-quality jobs.”

The number of new and expanded non-manufacturing firms is a mere fraction of the number of new and expanded manufacturing firms (less than a tenth). The key to their success, however, may lie not just in expanding their own numbers, but in how much they interact with each other and with the hundreds of manufacturing firms on that bigger list.

Adam Bruns is associate editor of The Lane Report.
editorial@lanereport.com

Back to September Issue


Kentucky New and Expanding
Non-Manufacturing Industries (2000)

NEW MANUFACTURING FIRMS

COUNTY (CITY) COMPANY EMPL. INVESTMENT $ PRODUCT
Boone (Erlanger) Dana Corporation 30 600,000 Divisional Headquarters
Boone (Erlanger) DBA Direct, Inc. 25 240,044 Data Management Service
Boone (Hebron) Gap, Inc. 853 6,700,000 Distribution
Boone (Burlington) Rapid Transit Technology, Inc. 25 2,142,000 Data Center
Boyd (Ashland) Alltech 300   Telecommunications network services
Boyd (Ashland Applied Card Systems 500 8,250,000 Credit card/banking service center
Bullitt (Shepherdsville) Computer Service Express Corp. 35-100 2,500,000 Computer service
Bullitt (Shepherdsville) Illuminations.com, Inc. 150 3,000,000 Distribution center
Christian (Hopkinsville) Faultless Caster 23 200,000 Shipping & distribution
Christian (Hopkinsville) Wal-Mart Stores East, Inc. 480-960 9,600,00 Distribution
Fayette (Lexington) A & W Restaurants, Inc. 95 1,900,000 Corporate headquarters & warehousing
Fayette (Lexington) IBM 300 8,200,000 Office; data services
Franklin (Frankfort) GovernmentFirst.com 55 800,000 Internet service center
Graves (Mayfield) CDG Management 200 1,000,000 Call Center
Hardin (Elizabethtown) UPS e-Logistics, Inc. 528 12,785,422 Distribution/warehousing
Jefferson (Louisville) bCatalyst 12-100 650,000 Business accelerator & venture capital company
Jefferson (Louisville) Blue Fin Technologies 86 591,000 Computer service center
Jefferson (Louisville) Cyberswap Inc. 125 2,500,000 Headquarters, distribution & management
Jefferson (Louisville) eMergINT Technologies 35 1,007,500 Internet Technological service center
Jefferson (Louisville) Global Sports, Inc. 320 6,400,00 Distribution/fulfillment center
Jefferson (Louisville) Kaufman Supply 25 1,00,000 Distribution
Jefferson (Louisville) Loctite Corporation 65-98 1,300,000 Distribution
Jefferson (Louisville) PDC/Fleet Pride 6 2,174,000 Distribution
Jefferson (Louisville) Rehab Designs of America Corp. 40 724,800 Corporate office & billing center
Jefferson (Louisville) South Central Pool 5 550,000 Distribution Supply
Jefferson (Louisville) T A Edison Corp. 36 391,000 Service center & headquarters
Jefferson (Louisville) Webwide Insurance 50 1,000,000 Customer service center
Jefferson (Louisville) William M. Mercer 150 4,800,000 Data center
Johnson (Paintsville) CDG Management 200 1,000,000 Call center (outbound)
Kenton (Erlanger) Interactive Marketing Echnology 99-112 1,980,000 Computer service center
Leslie (Hyden) Image Entry, Inc. 100 385,415 Data processing facility
Muhlenberg (Central City) CDG Managment, LLC 100 1,000,000 Call center
Pike (Pikeville) CDG Management 200 1,000,000 Call center
Warren (Bowling Green) AFNI 550 2,148,961 Business solution/call center
Webster (Providence) CDG IV 200 2,000,000 Call center
TOTALS 35 FIRMS 6,682 $90,520,142  


EXPANDING SUPPORT/SERVICE FIRMS

COUNTY (CITY) COMPANY EMPL. INVESTMENT $ PRODUCT
Barren (Glasgow) R & S Pharma, Inc. 25 278,943 Telecommunications/R&D
Boone (Walton) Callahan Real Estate 30 1,225,000 Travel agency/tour company
Boone (Florence) Compass Engineering Automation Group 6-12 485,000 Engineering
Boone (Hebron) Pomeroy Computer Resources, Inc. 40 665,000 Internet/web development
Boone (Walton) SSE Manufacturing, Inc. 59 809,304 Refrigerated warehouse/distribution
Daviess (Owensboro) Firstar Home Mortgage 268 5,836,150 Loan processing center
Daviess (Owensboro) Resort Management, Inc. 22 1,500,000 Computer & reservations center
Daviess (Philpot) System Specialist 20 1,750,000 Computer software
Fayette (Lexington) Cypress Semiconductor 25 1,350,000 Development & support
Fayette (Lexington) Exstream Software, Inc. 30-40 580,000 Software development
Floyd (Prestonsburg) Worldwide Equipment 15 1,600,000 Headquarters office
Floyd (Prestonsburg) Worldwide Equipment 15 1,250,000 Heavy duty truck dealer
Greenup (Russell) AEI Resources, Inc. 338 6,760,000 Corporate headquarters
Greenup (Wurtland) Combined Terminals 15 3,000,000 Commercial marine terminal
Hancock (Hawesville) Riverside Warehouse, Inc. 28 1,900,000 Warehouse
Hardin (Elizabethtown) Fort Knox National Co. 73-82 640,498 Call center
Hopkins (Madisonville) Electric Technologies, Inc. 25 34,670 Maintenance and service center
Hopkins (Madisonville) Tango Motor Transit, Inc. 50-150 300,000 Headquarters/dispatching
Jefferson (Louisville) ABCPoint.com 140 1,512,000 Internet service center
Jefferson (Louisville) Advanced Production Systems, Inc. 34 680,000 Internet & IT center
Jefferson (Louisville) CN Management 35 700,000 Internet provider service center
Jefferson (Louisville) eRoute 116 1,303,840 Technology benefits support center
Jefferson (Louisville) Express Technologies, Inc. 57 1,140,000 Internet service center
Jefferson (Louisville) High Speed Access Corp 35 230,125 Corporate headquarters
Jefferson (Louisville) iGate, Inc. 33 549,150 Headquarters & warehousing facility
Jefferson (Louisville) Jillian's Entertainment Corp. 35 230,125 Corporate headquarters
Jefferson (Louisville) Lightyear Communications, Inc. 86 1,720,000 Telecom service facility
Jefferson (Louisville) Papa John's Online 72 1,440,000 Internet ordering service center
Jefferson (Louisville) Patrion, Inc. 290 5,800,000 Internet service center
Jefferson (Louisville) QuestEcon, LLC 646 3,350,069 Internet processing call/distribution center
Jefferson (Louisville) Service Administrators LLC 50 318,000 Internet maintenance plan service center
Jefferson (Louisville) Steel Technologies 85 1,000,000 Corporate Headquarters
Jefferson (Louisville) Tech Republic, Inc. 72 1,632,000 Internet technical information center
Jefferson (Louisville) TechRepublic 75 30,000,000 Web publisher
Jefferson (Louisville) The Stratos Group 188 2,700,500 Long-term care insurance service center
Jefferson (Louisville) True Quote, LLC 35 700,000 Internet brokerage service center
Jefferson (Louisville) Underwriters Safety & Claims, Inc. 50 400,000 Claims management service center
Jefferson (Louisville) Vobix 183 267,150 ISP center/software development
Jefferson (Louisville) XSports Interactive, Inc. 110 1,071,700 Internet service facility
Kenton (Florence) Emerson Power 120 2,400,000 Distribution & transmission
Lyon (Eddyville) Agri-Chem, Inc. 25 492,800 Wholesale fertilizer & chemicals
Mason (Maysville) Federal Mogul Corp. 200 1,500,000 Distribution of engine parts
Monroe (Gamaliel) Gamaliel Shooting Supply, Inc. 6 130,000 Mail order and distribution
Taylor (Campbellsville) National Data Questing 20 100,000 Market research call center
TOTALS 44 Firms 4,465 $100,961,899  
GRAND TOTALS 79 Firms 11,147 $191,482,041  


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