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Kentucky Business Likes What It Sees for 2017

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The ® LaneKENTUCKY’S BUSINESS NEWS SOURCE Report FOR 32 YEARS JANUARY 2017 $4.50 KENTUCKY BUSINESS LIKES WHAT IT SEES FOR 2017 Manufacturing and construction upswing, automotive sector’s second record year, and a new, positive political environment are raising expectations Page 18 KY 40150 KY Lebanon Junction Lebanon Permit #327 #327 Permit PAID ELECTRONIC SERVICE REQUESTED SERVICE ELECTRONIC U.S. POSTAGE U.S. PRST STD PRST 201 E. Main St. Ste. 1402, Lexington KY 40507 KY Lexington 1402, Ste. St. Main E. 201 lanereport.com TLR_C1-C4.indd 1 1/6/17 1:42 PM IN 2015, TOURISTS SPENT MORE THAN JUST TIME IN KENTUCKY. THEY SPENT $13.7 BILLION. Tourism is the third largest revenue generator in our state, making it a vital part of Kentucky’s economy, culture and quality of life. Tourism also supports 186,204 jobs in Kentucky – up 6,241 good-paying jobs since 2014. It’s clear – tourism works for Kentucky. kentuckytourism.com 94696_KDTT_EcoImpact_8_125x10_875c.inddTLR_C1-C4.indd 2 1 12/14/161/6/17 11:33 1:42 PMAM Our energies go to: p owering businesses and empowering growth. Producing safe, reliable power for the companies that depend on us is only part of our job at LG&E and KU. We also power Kentucky with some of the lowest rates in the nation to attract new business and help existing ones expand. Our energies go to serving you. lge-ku.com January89981_LGEku_Crp_EcoDvBB_8_125x10_875.indd Lane 1-17.indd 1 1 1/6/179/6/16 2:125:47 PMPM JANUARY LThe ane Report 2017 Kentucky’s Business News Source For 32 Years Volume 32 Number 1 18 COVER STORY KENTUCKY BUSINESS LIKES WHAT IT SEES FOR 2017 Manufacturing and construction upswing, automotive sector’s second record year, and a new, positive political environment are raising expectations 27 EARTHQUAKE AND AFTERSHOCK Democrats sift the rubble as Republicans stand ready to take up big issues 30 STEVE POE’S PARTNER: FINANCIAL PRACTICALITY Louisville hotel and apartment developer’s winning vision always focused by the market condition prism Departments 4 Perspective 35 Viewpoint 6 Fast Lane 36 Emerging Lane 14 Interstate Lane 38 Lane List 15 Kentucky Intelligencer 39 Spotlight on the Arts 16 Corporate Moves 40 Exploring Kentucky 17 On the Boards 42 Passing Lane 34 Opinion 44 Kentucky People lanereport.com Kentucky Business News Online Read up-to-the-minute Kentucky business news stories, current and archived copies of The Lane Report, On the Cover Market Review, BG – A way of life, Next – Your Future After Kentucky business leaders are distinctly optimis- High School in Kentucky, Health Kentucky, Research Kentucky tic about economic prospects for 2017. Agribusi- special reports, white papers and community profiles. ness and coal country especially will face challenges but construction, logistics and manu- facturing like what they see. Unified Republican Faster Lane Email news bulletin control of political policymaking in Frankfort and Washington is viewed very positively. Three or more times a week, the editors of The Lane Report Photo illustration by Paul Blodgett. publish Faster Lane – email bulletins of fast breaking and important Kentucky business and economic news. Visit lanereport.com to sign-up for this free, must-have, at-your-fingertips news service. January Lane 1-17.indd 2 1/6/17 2:12 PM Wealth Management Financial Planning Trust Services Insurance Services Investment Banking Lending Cash Management Personal Investing you to look at us differently? us at look to you What do we have to do to get get to do to have we do What Today, Hilliard Lyons is larger than ever and offers more diversified services than ever. We are a full-service wealth management firm providing a wide range of advice and products - from estate planning to investment banking, from lending to insurance services. Yes, Hilliard Lyons is more than a traditional investment brokerage. It’s everything you need in your pursuit of financial success. 888-403-8317 Ashland | Bowling Green | Danville | Elizabethtown | Ft. Mitchell | Glasgow | Henderson Hopkinsville | Kevil | Lexington | Louisville | Madisonville | Murray | Owensboro | Paducah Securities are offered through J.J.B. Hilliard, W.L. Lyons, LLC | Member NYSE, FINRA, & SIPC Trust services are offered through Hilliard Lyons Trust Company, LLC, an affiliate of J.J.B. Hilliard, W.L. Lyons, LLC. January Lane 1-17.indd 3 1/6/17 2:12 PM LThe ane Report PERSPECTIVE Kentucky’s Business News Source for 32 Years EXECUTIVE EDITOR/VICE PRESIDENT back. In addition, spending on higher- Mark Green MOVING KENTUCKY cost public works projects means less ASSOCIATE EDITOR FORWARD money to shore up Kentucky’s ailing Karen Baird pension system – a problem that DIGITAL EDITOR Changing political landscape national credit agencies are watching Jonathan Miller creates new opportunities closely – and less money for education CREATIVE DIRECTOR and economic development programs. Jessica Merriman BY DAVE ADKISSON Charter Schools. On the educa- CREATIVE SERVICES tion front, Kentucky is one of only Stone Advisory seven states that do not allow charter Paul Blodgett schools, which the Chamber has long CORRESPONDENTS new chapter in Kentucky’s his- advocated. Charter schools are help- Katherine Tandy Brown; Chris Clair; tory is being written this year in ing other states close achievements Shannon Clinton; Anne Charles Doolin; Kevin Gibson; Frank Goad; Robert Hadley; Frankfort as the Republican gaps, empower parents, and discover AParty holds the governor’s office and a innovative ways to help students and Lorie Hailey; Debra Gibson Isaacs; Kara Keeton; Meredith Lane; Abby Laub; Tim Mandell; majority in both chambers of the Gen- teachers succeed in the classroom. Esther Marr; Greg Paeth; Robin Roenker; eral Assembly. This changing political They should be included in Kentucky’s Josh Shepherd; Sean Slone; Katheran Wasson; landscape offers new opportunities, education toolbox. Gary Wollenhaupt; Dawn Yankeelov and the Kentucky Chamber of Com- Legal Reform. Finally, the increas- PUBLISHER/CEO merce is optimistic that the 2017 ses- ing cost of civil litigation, whether Dick Kelly sion will bring passage of some through legal fees, higher liability ASSOCIATE PUBLISHER common-sense legislation Donna Hodsdon that will create jobs across Melissa McGarry the commonwealth. BUSINESS DIRECTOR There are, of course, a Nicole Conyers couple of headline issues MARKETING CONSULTANT – pensions and tax reform Curtiss Smith – that deserve serious con- CIRCULATION/IT sideration and will require Josiah White more time to address than that allowed in a short ses- FOUNDER Ed Lane sion. Those are perhaps best left to a special ses- sion later this year, an SYNDICATED COLUMNS approach that many of Creators Syndicate Kentucky’s elected leaders PRINTING & CIRCULATION SERVICES seem to favor. Publishers Printing Co. But significant prog- WEB MARKETING & PUBLISHING ress is possible in a so- Software Masters called short session – 30 IT SERVICES days of legislative meet- NetGain Technologies ings instead of 60. Here are the Ken- Gov. Matt Bevin congratulates House Speaker INTERNET SERVICES tucky Chamber’s four key priorities: Jeff Hoover, R-Jamestown, on the floor of the House QX.net Right to Work. It’s time to make on Jan. 3. Lane Communications Group Kentucky a right-to work state and allow is a member of employees to make a personal decision insurance premiums, defensive busi- on whether to pay dues to a union. ness practices or simply reduced invest- States with right-to-work laws report ment opportunities, is a significant The Lane Report is published monthly by: faster per capita income growth, faster burden for Kentucky’s employers. Lane Communications Group growth in manufacturing and non-agri- These costs are hurting businesses, 201 East Main Street 14th Floor Lexington, KY 40507-2003 cultural jobs, greater capital expendi- their employees and consumers as they [email protected] tures, lower unemployment and fewer are passed on in the form of higher For more information and prices and fewer choices. Because of advertising rates contact: work stoppages. As Kentucky has strug- PHONE: 859-244-3500 gled to recruit and retain business, not this the Chamber has long advocated The annual subscription rate is $29. being a right-to-work state has cost us for legal liability reforms. (Kentucky residents add $1.74 sales tax.) jobs. Kentucky is the only Southern Progress on these four items will Newsstand price is $4.50. state not to have enacted right-to-work make the 2017 legislative session a Send check or money order to: legislation. With Indiana, Michigan and great success. We hope you will join the Circulation Manager Kentucky Chamber in encouraging our THE LANE REPOrt West Virginia’s new right-to-work laws, 201 East Main Street 14th Floor our state is a conspicuous outlier in this state representatives and senators to Lexington, Kentucky 40507-2003 much-needed area of reform. support these measures to move Ken- or go to lanereport.com/subscribe Prevailing Wage. It is time for Ken- tucky forward. ■ THE LANE REPOrt corrects all significant errors that tucky to repeal its prevailing wage law. are brought to the editors’ attention. An independent study determined that © 2017 Lane Communications Group prevailing wage inflates construction Dave Adkisson is president and CEO All editorial material is fully protected and must not be of the Kentucky Chamber of Commerce reproduced in any manner without prior permission. costs by 10 to 16 percent, and that means public construction projects like schools and libraries have to be scaled 4 JANUARY 2017 LANEREPORT.COM • THE LANE REPORT January Lane 1-17.indd 4 1/6/17 3:35 PM Powering Kentucky Kentucky’s Touchstone Energy Cooperatives provide safe, affordable, reliable energy to more than 1 million Kentucky residents and businesses across 87 counties. We are member-owned, not-for-pro t cooperatives based in Kentucky and serving the Bluegrass State.
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