Northern Kentucky has long taken a collaborative approach to economic development, establishing BE NKY Growth Partnership, formerly Northern Kentucky Tri-ED, 1987 as one of the first regional economic development organizations in the United States.
Under BE NKY’s leadership over the last 36 years, the community benefitted from the successful location or expansion efforts of 765 business projects, representing more than 74,150 primary industry jobs created with more than $9.3 billion in capital investments.
Our efforts continue today through partnerships with organizations such as OneNKY Alliance, meetNKY, and the Northern Kentucky Chamber of Commerce. We work together to promote Northern Kentucky and attract new talent and companies to our region.
Growing Our Population
Within the Cincinnati metropolitan statistical area (MSA), 402,706 people live within the Northern Kentucky (NKY) counties of Boone, Kenton, and Campbell. Considering Northern Kentucky as its own Metropolitan Statistical Area (MSA), the region would rank third in Kentucky in population, trailing Lexington (517,916) and Louisville (1.284 million). The three-county region expects continued steady growth, reaching approximately 454,000 people by 2050, an increase of 12.6%. Kentucky, in comparison, expects to grow by 6%.
So far, we’re on the right track. Of the three MSAs, our population grew at the highest rate from 2020-2022, and our labor force participation rate for workers aged 25-54 comes in highest at 85.9%, compared to 83.8% in Louisville and 84.4% in Lexington.
A relatively low cost of living and median household income of $77,147 help the three-county region attract residents seeking a better quality of life with excellent amenities. The Greater Cincinnati MSA has four professional sports teams, numerous arts organizations, world-class parks, museums, and festivals.
Growing communities throughout the country struggle to meet workforce needs. NKY must retain our current population and draw in a new workforce to maintain our prosperity. Organizations throughout NKY, including those previously mentioned, work to get more people involved and prepare for the workforce as a critical element of economic growth and momentum.
Making a Major Economic Impact
NKY, the smallest of these three “metros,” consistently punches above its weight class.
Between 2019-2022, BE NKY averaged at least 23 project wins, $227 million in capital investment, and 1,794 new jobs yearly at an average wage of $64,452. We exceeded our new jobs target for the past two years and our capital investment target for the past three.
NKY’s real GDP grew 42.9% between 2011 and 2021, more than double the rate of growth for Louisville (19.6%) and nearly double the rate for Lexington (22.1%). The state of Kentucky grew by 12.6% during this same timeframe.
NKY GDP per capita ranks second among metro areas in the Commonwealth, and the region’s robust exports are a leading factor in this success.
In 2021, Boone, Kenton, and Campbell counties exported $12.7 billion in products, led by transportation equipment, machinery, and chemicals, accounting for nearly 43% of Kentucky’s total exports and 54% of the Cincinnati MSA’s exports.
NKY outpaced Louisville/Jefferson County’s exports of $10.3 billion and Lexington/Fayette County’s exports of $1.9 billion.
The three-county NKY region reached a 10-year peak in business formations in 2021 at 3,567 or 8.9 applications per 1,000 residents. With an increase of 23.4%, NKY employment growth over the last 10 years ranks first among Kentucky MSAs. We anticipate further growth in our key target industries of advanced manufacturing, life sciences, information technology, and supply chain support.
Preparing for Future Success
The Cincinnati/Northern Kentucky International Airport (CVG) is the seventeenth-largest cargo airport in the world, anchored by Amazon Air and DHL’s Global Superhub. With 14 passenger airlines/tour operators, the highest passenger volume, and the lowest passenger airfares in Kentucky, the airport is a significant economic driver for Northern Kentucky. A high priority is serving the number of passenger and cargo planes coming into and out of the airport with a skilled workforce.
FEAM Aero is partnering with Epic Flight Academy to build a new aircraft mechanic training facility at CVG. With room for 250 students per class, this school will increase the aviation maintenance technician workforce in NKY.
Northern Kentucky manufacturers work to change the old “dark, dirty, and dangerous” narratives surrounding their industry. They encourage young people and their families to challenge these stereotypes and consider a future in new, clean, advanced-skill manufacturing. The NKY FAME Advanced Manufacturing Technician Program through Gateway Community and Technical College allows students to work at a sponsoring manufacturing company while attending classes.
Our community works together to direct resources to early childhood development, address barriers to quality and affordable preschool accessibility, and promote strategies that achieve kindergarten readiness. Local organizations, including BE NKY, even focus on preschool and early childhood education, knowing that in as little as 10 years, these children will start entering the workforce.
All signs point to NKY as a prosperous region making an outsized economic impact on the Commonwealth of Kentucky and the Cincinnati region. We seek to maintain Northern Kentucky’s positive economic momentum and stay ahead of competitors inside and outside Kentucky.
I believe Northern Kentucky will achieve tremendous growth in the future and drive success in the Cincinnati MSA and the Commonwealth of Kentucky.
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