Total 2011 Impact projects 2,839 jobs and over $497 Million in Business Sales for NKY
Covington, KY, March 21, 2012 – Northern Kentucky Tri-County Economic Development Corp. (Tri-ED) announced today that it exceeded its yearly average of attracting or facilitating the expansion of 22 companies in Boone, Campbell and Kenton counties. In 2011, 28 companies announced locations or expansions outpacing prior years in number of projects and capital investment.
Tri-ED Chairman and Kenton County Judge Executive Steve Arlinghaus noted the role of the Advanced Manufacturing sector in Northern Kentucky’s 2011 economic development success. “Leading edge Northern Kentucky companies including Messier-Bugatti, Mubea, Linamar and ZF Steering increased efficiencies and sharpened their competitive edge in 2011. We are thrilled that these companies along with 24 additional new and/or expanding businesses chose Northern Kentucky for their business location.
The annual economic impact study of primary industry growth for 2011 conducted by Northern Kentucky University’s Center for Economic Analysis and Development shows total impact of the 28 projects as follows:
Projected Annual Economic Impact of Primary Industry Growth- 2011 Calendar Year
SUMMARY (PRIMARY INDUSTRIES: 28 Companies)
Jobs Business Sales or Output Labor Income Value Added
Direct Effects 1,303 $285,075,924 $60,742,109 $85,121,853
NKY Indirect/Induced Effects 1,536 $212,607,272 $71,062,409 $117,367,042
Total Impact on NKY* 2,839 $497,683,197 $131,804,517 $202,488,896
Other Indirect/Induced Effects 1,289 $187,831,636 $62,245,427 $101,056,801
Impact on Cincinnati MSA* 4,127 $685,514,833 $194,049,944 $303,545,697
“Northern Kentucky’s results are an important part of the Cincinnati MSA success,” continued Arlinghaus. “Our community’s diversified economy lends balance and high-tech performance to several industry sectors including Advanced Manufacturing, Aviation, Technology/Life Sciences and E-Commerce/Logistics”.
Northern Kentucky Tri-ED is now also measuring a new benchmark through the ezone, a division of Tri-ED, which is the amount of capital investment raised/invested in companies in the region through the Kentucky Cabinet for Economic Development and private sources. The average, over the last ten years, has been $7.8 million. In 2011, the combined investment doubled to $15.3 Million. This benchmark is not included in the impact study for annual data consistency purposes.
“There is a strategic focus in Northern Kentucky to encourage entrepreneurs and innovation,” said Dan Tobergte, President and CEO of Northern Kentucky Tri-ED. “We have significant momentum through initiatives like UpTech and are working to make private investment easier and to build on our results in this area. The growth of Northern Kentucky University’s College of Informatics has greatly enhanced the benefits of the technology sector. The presence of high-tech companies like TiER1 Performance Solutions, HealthWarehouse.com, OMEGA Processing Solutions and ViaCord LLC greatly strengthen Northern Kentucky’s value proposition with new and expanding businesses in the future.”
Northern Kentucky Tri-ED recognized the companies that made announcements in 2011 and announced the results of the economic impact study during the organization’s annual Thoroughbred luncheon held March 21.
Founded in 1987, the Northern Kentucky Tri-County Economic Development Corp. (Tri-ED) serves as the primary economic development marketing agency for Boone, Kenton, and Campbell counties in Northern Kentucky. Since 1987, 540 companies have located or expanded in Northern Kentucky accounting for 51,750# new primary jobs and $5.2 Billion in capital investment. Tri-ED is a key partner in Vision 2015, a 10-year strategic plan for growth in the region. For more information, visit www.NorthernKentuckyusa.com. Northern Kentucky Tri-ED can also be followed through social media channels via Facebook,LinkedIn, Twitter and YouTube. To sign up for NKY Thrives e-newsletter, please visit www.nkythrives.com.
Locating or Expanding in 2011
Arcron Systems Inc.
Meaningful Use Technologies LLC
The Party Source
Club Chef LLC
TiER1 Performance Solutions
Mubea Disc Spring Division
Dynamic Catholic Institute
Mubea Stabiliazer Bars Facility
Tokyo Boeki North America Inc.
Ferrous 85″ Co.
OMEGA Processing Solutions, LLC
Verst Group Logistics
PAMARCO Global Graphics
Johnson Controls, Inc
Post Glover Resistors
Schwan’s Global Supply Chain, Inc.
ZF Steering Systems, LLC
Northern Kentucky New and Expanding Companies:
Headquartered in Austria, ALPLA Inc. has approximately 12,000 employees worldwide with 134 production plants in 37 countries, of which 11 are in the United States. ALPLA produces bottles, preforms, caps and tubes for products associated with beverages, food, beauty care, home care and oil/lubricants. With their in-house production plants, ALPLA produces bottles directly to their customers’ filling lines. More than 60 customers have already opted for in-house production. This enables ALPLA to economize greatly on the cost of secondary packaging, deliveries by truck, and fuel, while significantly improving their carbon footprint. ALPLA has established an in-house bottling manufacturing operation in Northern Kentucky in conjunction with L`Oreal USA.
Korean-based Arcron Systems Inc. and Meaningful Use Technologies LLC are each establishing their U.S. headquarters in Newport to serve the North American markets. The information technology companies together will create 20 new jobs and invest a total of more than $1 million in Northern Kentucky. Both companies help hospitals achieve compliance with legislative mandates within the American Reinvestment and Recovery Act, the Health Information Technology for Economic and Clinical Health Act and the Patient Protection and Affordable Care Act. The Newport location will be the first U.S. office for both companies and will serve as the base of their North American operations.
During 2011 Club Chef LLC completed a 42,000-s.f. expansion of the refrigerated receiving, production, and shipping areas of its Northern Kentucky facility. The project included additional food processing equipment, which increased production capacity by 20 percent. The facility is one of the largest fresh fruit and vegetable processing facilities in the United States and employs close to 500 people.
The South Ramp Expansion project adds 19 acres of aircraft apron, which is 18 inches thick, to the Boone County operations of the DHL CVG Hub. The expanded area includes parking for nine additional wide-body aircraft with hydrant fueling and the capability to de-ice in each gate. The $22 Million expansion assists DHL in connecting the United States to points in Asia, Europe, Canada, Mexico, and Latin America.
The Dynamic Catholic Institute is a non-profit organization presently located in Ohio. The Institute will be relocating their office and distribution operations from Ohio to the Kentucky and will establish a 23,000-s.f. facility to allow for growth in warehousing, fulfillment and office needs.
Ferrous 85” Co., a member of the Ferragon Corp. family of companies, is a leading steel coil processor of flat rolled steel in the Midwestern United States. The company is headquartered in Cleveland and was started in 1982. They have Ohio facilities in Cleveland and Macedonia, as well as operations in Detroit, Mich., and Luka, Miss. Over many years, Ferragon has provided steel slitting services to TMK/IPSCO from their Cleveland and Luka facilities. Presently, a building is being constructed at IPSCO’s Wilder facility to accommodate Ferragon’s steel slitting operation.
HealthWarehouse.com relocated its headquarters and on-line pharmacy operations into a 62,000-s.f. Florence-based facility in July. The company is licensed to sell prescription medications in all 50 states and the District of Columbia and is one of only 29 VIPPS (Verified Internet Pharmacy Practice Sites) accredited pharmacies in the US. HealthWarehouse.com is also a 2009, 2010 and 2011 winner of the Bizrate Circle of Excellence Award, putting it in the top 1.7% of 5,000 companies for customer service and satisfaction. The company has grown from start-up to publicly traded, servicing nearly 200,000 customers and filling more than 70,000 prescriptions in the first six months of 2011. Revenues have grown from $67,000 in 2007 to $10 million in annualized sales of 2011. HealthWarehouse.com is projected to employ 224 Kentucky residents as a result of their expansion.
Johnson Power Solutions Florence Poly Operations, a wholly owned subsidiary of Johnson Controls, Inc. (“JCI”), is expanding its Boone County facility, creating 45 new jobs. The company’s $24.2 million investment will increase the plant’s square footage to accommodate additional production lines and warehousing space. JCI is a globally diversified technology and industrial leader serving customers in more than 150 countries for over 125 years. Their employees create quality products, as well as services and solutions to optimize energy and operational efficiencies. The Johnson Power Solutions Florence Poly Operations manufactures plastics and poly materials, specifically injection molding of automotive battery containers.
Linamar Manufacturing Group America was a 60/40 joint venture between Linamar and Navistar and became wholly owned byLinamar in 2009. The business function of Linamar is utilizing CNC machinery and leading-edge automation to machine engine components to part print specifications and statistical capability requirements for their customers. Among Linamar’s current customers are Ford, Chrysler, Toyota and Navistar. Due to increased sales, Linamar needed to produce additional units at their Florence facility. The company plans to purchase new equipment totaling $40.8 million and will more than double the size of its workforce, creating 138 new jobs.
Established in 1987 in Muncie, Ind., Magna-Tech Manufacturing is a provider of the sealing of cast metal and electronic components, vacuum impregnation services. The company has since diversified into other services, which include machining, thermal de-burring, conversion coating, de-rusting, electric motor impregnation, parts washing, warehousing, inspections and testing services. Magna-Tech located in Northern Kentucky in order to serve their customers in this area and to increase their level of service to other companies.
Messier-Bugatti USA is a subsidiary of Messier-Bugatti-Dowty (Safran Group), the world leader in aircraft landing and braking systems. The company is a partner to 33 leading commercial, military, business and regional airframers and supports more than 22,000 aircraft making over 35,000 landings every day. Activities at the Walton plant, which has 200 employees, include production and refurbishment of carbon brake disks, as well as production of wheels and brakes for civil and military customers in the Americas.
Mubea (disc springs & stabilizer bar facilities) is a leading supplier of highly technical components to the automotive industry and continues to develop new products and technologies for the automotive industry that reduce vehicle weight and/or improve fuel economy. The company has developed an innovative process that will improve vehicle crash test performance. The company intends to install the first cold rolling mill of this type in North America at the Disc Spring Division, which will allow Mubea to offer state-of-the-art technology to the automotive industry.
Mubea also is a leading supplier of high-quality spring products for the automotive industry and has been based in Northern Kentucky since 1982. As a result of increased sales, Mubea needed to expand at its Kenton County/Elsmere Stabilizer Bars Facility. The project will significantly increase capabilities so the plant can produce the volume of parts required and also allow the company to transfer the production of these products to Northern Kentucky from the Czech Republic.
OMEGA Processing Solutions LLC, founded in 2003, is a credit and debit card processing company owned by CEO Scott Anderson and President Todd McHugh. The company is expanding its headquarters and operations in Fort Thomas at the Fort Thomas Executive Center and will create 25 new jobs. The expansion allows the company to take advantage of new growth opportunities as well as expand upon an existing call center to serve various inbound customer calls. The project is expected to be complete by the spring of 2012. The company is recognized in the 2011 Inc. Magazine’s 500/5000 List, “The Emerging 30” top businesses by the Northern Kentucky Chamber of Commerce and as a finalist in The Goering Center for Private and Family Business through the University of Cincinnati.
The Walton location of PAMARCO Global Graphics (PGG) manufactures cylinder bases that are then further customized at the company’s other United States and United Kingdom facilities. Base cylinders are an essential component in many of PGG’s graphic products and were previously purchased from outside suppliers. The geographically centralized location of PGG’s Walton manufacturing facility allows the efficient production of superior-quality base cylinders for both internal use and external sale.
Post Glover Resistors was founded in 1892 and dedicated itself to supplying the electrical industry with quality products and services. The company will consolidate Ohio-based and Northern Kentucky-based operations into one larger facility in the Northern Kentucky area, creating 19 new jobs in the region. The expansion will entail a nearly $5 million investment in the Commonwealth.
Schwan’s Global Supply Chain Inc., based in Marshall, Minnesota, is one of the largest privately held businesses in the country. Their 400,000-square-foot Schwan plant in Boone County makes frozen pizzas under brand names that include Tony’s, Red Baron and Freschetta. It also makes products for Schwan’s home delivery service and for schools, hospitals and other institutional customers. Schwan is the second-largest maker of frozen pizzas in North America, after Kraft/Nestlé. Schwan produces approximately 1 million pizzas a day in their modern, highly automated facility.
Steinert US is the North American headquarters of Steinert Elektromagnetbau GmbH, the global leader in separation technology solutions for the scrap, waste, and mining industries. The company manufactures a complete line of magnetic and sensor sorting equipment designed to separate and recover a wide range of materials. Steinert US is led by President Jason Looman who relocated the company from Clearwater, Florida, in 2008. The company expanded in 2011 into 36,000-square-feet in Walton with 12 existing employees and expects to create six additional jobs.
The Party Source, located in Newport, is underway with construction on one of the largest micro distilleries to date. Plans call for the inclusion of a 60-foot column still similar to those in use in Kentucky’s heritage distilleries. The distillery/event center is designed as a tourist destination and will be used for educational and tasting events and is part of the company’s plan to create a “campus of activity” in Northern Kentucky. The project is expected to create 11 jobs.
TiER1 Performance Solutions helps large organizations improve performance through learning, change, knowledge and talent management. Revenue at the fast-growing company climbed from $4 million in 2008 to over $9 million in 2011, ranking it 28th on the Cincinnati Business Courier’s Fast 55 list last year. In 2011, TiER1 signed a 10-year lease for 12,500-s.f. of space on the ground floor of Corporex’s RiverCenter II in Covington, which will provide more efficient space, designed specifically for the company’s uses, with room to grow. TiER1 employs 75 professionals, with 50 located in Covington.
TMK IPSCO is one of the largest North American producers of welded and seamless pipe and premium connections dedicated to service the oil and gas industry and many industrial markets. The company’s mill in Northern Kentucky has an annual capacity of 570,000 tons. IPSCO produces tubular products up to 16 inches in diameter by the high-frequency electric resistant welding process (ERW). The “Thread Shop” Facility has now been constructed at their present facility in Campbell County.
Tokyo Boeki North America Inc. relocated its sales and service support office from Detroit, Mich., to Florence given Northern Kentucky’s proximity to major auto manufacturers as well as the area’s efficient transportation system and resources. Established in Michigan in 1988 to accommodate the U.S. market for Tokyo Boeki, the company focuses on technology, automobiles and the information industry. The company provides custom designed 3D coordinate measuring machine (CMM) sales and services. Products from Tokyo Boeki North America are designed to improve product development capabilities for automobile, aircraft and construction equipment manufacturers.
In 1968, William Verst acquired J.C. Buckles Transfer Co., which had been in the logistics business since 1854. Through his vision, he created a group of innovative and full-service logistics companies to provide superior customer service at affordable rates. Today, Verst Group Logistics has locations in Kentucky, Ohio, Indiana and Georgia. Their current project involves light manufacturing products for a Fortune 500 Company and a related expansion of their transportation division.
ViaCord LLC, a division of PerkinElmer, has been a critical part of the region’s life science community since entering the Northern Kentucky market in 2003. The company’s laboratory operation in Hebron, Boone County, Kentucky is known for its pioneering services in obtaining, processing and storing newborn stem cells for future life-saving treatments. As part of the company’s ongoing re-investment in their services, ViaCord expanded the lab in 2011 with the most state-of-the art clean room, cryopreservation and storage facility possible. The expansion resulted in an investment of $500,000 and five new employees.
WAYFAIR, headquartered in Boston, Mass., is a top-three online U.S. retailer comprised of more than 250 different shopping sites under the csnstores.com umbrella. The company is establishing an approximately 155,370-square-foot Kentucky Distribution Center in order to increase capacity for rapid growth. In addition to Northern Kentucky, the company considered sites in Ohio, Indiana and Massachusetts.
ZF Steering Systems LLC is a 100% subsidiary of ZF Lenksysteme GmbH, based in Germany and located in Kentucky since 1994. The company manufactures steering and suspension components for passenger cars and SUVs. In September, the company marked the completion of its $95.8 million expansion in Northern Kentucky. The project entailed the construction of two new buildings totaling 175,000-square-feet on its existing site and is creating 374 new full-time jobs over the next two years. This project was one of Kentucky’s largest job-creation and investment projects announced in 2010.