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$5.99 $5.99 2021 2021 JUNE/JULY JUNE/JULY 1985 1985 SINCE SINCE SOURCE SOURCE NEWS NEWS BUSINESS BUSINESS KENTUCKY’S KENTUCKY’S KENTUCKY ECONOMIC DEVELOPMENT TEAMS SEE PLENTY OF REASONS FOR OPTIMISM FOR REASONS OF PLENTY SEE TEAMS DEVELOPMENT ECONOMIC KENTUCKY Want to Invest in an Innovative Kentucky Startup? Kentucky’s Angel Investment Tax Credit can help Reimagined for 2021 and beyond, the program spurs private-sector investment in Kentucky’s job-creating companies of today and tomorrow. The Bluegrass Means Business.

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Kentucky’s Business News Source Since 1985 Volume 36 Number 5

20 COVER STORY CUSTOMER OBSESSION RATHER THAN COMPETITOR FOCUS 37 With $15 billion in investment, 18,000 jobs and 16 sites, Kentucky has become a key ingredient in Amazon’s success

30 WHAT IT TAKES TO KEEP KENTUCKY RUNNING Traditional energy players make expansions in infrastructure and manage new renewable energy sources

37 NEW TOOLS FOR GROWTH Kentucky Association for Economic Development 42 was feverishly busy during pandemic

42 GROUNDBREAKING P3 PROJECT MOVES FORWARD How tiny Brandenburg is using a 2016 law to build a water treatment plant for Nucor’s massive $1.7B steel mill and its 400 jobs

46 SURGE IN E-COMMERCE DRIVING AUTOMATION Booming demand in logistics sector is outpacing access to manpower The Lane Report makes it even easier to subscribe! Point your 52 A CONVERSATION WITH THE SECRETARY camera here to enjoy Transportation Cabinet Secretary Jim Gray talks Kentucky’s business about what it takes to keep Kentucky moving news source since 1985. DEPARTMENTS 6 Perspective 59 Nonprofit Spotlight 8 Fast Lane 60 Insurance and Investments 17 Interstate Lane 62 Public Policy 18 Corporate Moves 63 The HR Manager 20 On the Boards 64 Lifestyle 54 Marketing 65 Spotlight on the Arts 56 Small Business Snapshot 66 Exploring Kentucky 58 Diversity & Inclusion 68 Next Lane

ON THE COVER Andre Woodson is a regional operations public relations manager with Amazon, lanereport.com Kentucky business news online which operates 16 locations in Kentucky Read up-to-the-minute Kentucky business news stories, and employs over 18,000 people. Amazon’s current and archived copies of The Lane Report, Market presence in Kentucky represents an Reviews, Health Kentucky, Research Kentucky special reports investment of some $15 billion and the and community profiles. company just announced that one of its 11 new U.S. solar projects to power facilities will Faster Lane Email news bulletin be built in Kentucky. Five times a week, the editors of The Lane Report publish Faster Lane—email bulletins of fast-breaking and important PRESENTED BY Kentucky business and economic news, including a Studio46 Media Corporate Moves newsletter once a week. Visit lanereport.com to sign-up for this free, must-have, Video Production, Live & Virtual Event at-your-fingertips news service. Services, and Creative Services serving Central Kentucky and beyond! Our business is... an extension of your business. WAREHOUSING Warehousing Capacity – Strategically Located Flexible, national capacity. Located in the key Midwest transportation corridor adjacent to Cincinnati/Northern Kentucky Airport.

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FOUNDER Is a New Roaring ’20s Coming? Ed Lane 1985-2015 GDP growth could be the best since the early ’60s

OWNER/PUBLISHER BY MARK GREEN it into consumer spending that Kevin O. Stinnett drives 65-70% of the U.S. economy. HE nation’s economic rebound We know also that an end will CHIEF OPERATING OFFICER Jake Kratzenberg now occurring increasingly come when imperfect human public- Tlooks like the beginning of the sector managers at some point let a EDITORIAL most robust period of growth in most hunger for more, more, more get the VICE PRESIDENT/EDITORIAL DIRECTOR of our lifetimes. Though there are no better of their sound judgement and Mark Green guarantees—Mark Twain allegedly convince themselves imbalances can advised that “predicting is difficult, be sustained beyond logical limits. SENIOR EDITOR particularly when it involves the For now, though, conditions are Karen Baird future”—conditions are lining up for shaping up for what could be a nice SPECIAL PUBLICATIONS EDITOR the highest growth rates in a couple years-long run of GDP growth in the Lorie Hailey of generations and for a period that 5% to 7% range. And it will create could last years. permanent economic and quality- PRODUCTION Be ready, because its fruition of-life improvement that will carry VICE PRESIDENT OF PRODUCTION means tremendous opportunity. forward. Jessica Merriman The pie is growing and those best Such growth rates seem too good DIRECTOR OF DIGITAL MARKETING prepared to lean in and most quickly to be true after 15 years of sub-3% Matthew Moore satisfy pent-up demand, whether by GDP. But beyond believing it, you’d consumers or business, will see fat better be ready. The economy could CREATIVE SERVICES and lasting rewards. get goosed even higher. Stone Advisory After a roller coaster 2020 ended Washington is haggling toward an SALES & MARKETING down 3.7%, Kentucky’s $210 billion infrastructure program somewhere economy grew 6.4% the first quarter in the trillion dollar neighborhood SENIOR MARKETING STRATEGIST Hal Moss of 2021, according to the U.S. Bureau that would mean around $10 billion of Economic Analysis. The second for the commonwealth over the next MARKETING STRATEGIST quarter looks like 10% growth, four years as it gets dolloped out; Natalie Pitman according to various economists significant portions would end up DIGITAL MARKETING STRATEGIST CNBC polled, with the full-year in blue-collar paychecks of high- Kristina Dahl estimate averaging 7.2%. spending households. The Biden This is the experts’ best guess, administration would prefer to Build MARKETING CONSULTANT even though there is uncertainty Curtiss Smith Back Better to the tune of a politically from a housing stock shortage, unlikely additional $4 trillion to $5 Inquire about magazine supply chain problems, and a skills trillion. and digital advertising: disconnect between worker demand Kentucky’s elected state leaders [email protected] and unemployed millions, as well as have locked in some much-needed (859) 244-3500 a hint of inflation. The good news is infrastructure stimulus themselves, The annual subscription rate that all of those issues are the result around $500-$600 million for is $49 plus tax. To subscribe: of demand for, well, everything being broadband and $250 million for water lanereport.com/subscribe higher than supply. infrastructure. Again, much of this LaneReport.com What we know is that the market will end up in blue-collar paychecks will fill those shortfalls because across Kentucky—especially in there is money to be made doing Appalachia, where economic need is THE LANE REPORT, INC. so. Catching up to demand will greatest, for the water projects. 465 E. High St., Suite 124 take a year or two, and that will Are you ready to handle a bigger Lexington, KY 40507 generate ripples creating further and growing economic pie? If so, [email protected] wealth and demand likely to sustain sweet things await. ■ the expansion cycle. If presently The Lane Report corrects all significant errors proposed policies do, as is the aim, that are brought to the editors’ attention. continue to increase worker income Mark Green is editorial director of The Lane Report. Opinions ©2021 The Lane Report, Inc. levels and put more money in the expressed are those of the writer All editorial material is fully protected and hands of those on the lowest end of and not The Lane Report. must not be reproduced in any manner the economic scale, they will pump without prior permission. Powering Kentucky Businesses

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A COMPILATION OF ECONOMIC NEWS FROM ACROSS KENTUCKY

MOREHEAD/SOMERSET APPHARVEST CONTINUES TO GROW, BREAKS GROUND ON 2 NEW FACILITIES

ENTUCKY-based agricultural technology company KAppHarvest is building two new high-tech indoor farms that will be located in Somerset and Morehead, AppHarvest photo representing the company’s fourth and fifth indoor farming facilities. The new 30-acre Somerset location will grow berries, marking the company’s first entry into berry crops. The 15-acre Morehead farm—the second AppHarvest Farm in Rowan County—will produce leafy greens. Both facilities will produce non- fuel compared to existing growers in Work is now underway on AppHarvest’s GMO (genetically modified organisms) Mexico and the southwestern U.S. fourth and fifth indoor farming facilities. fruits and vegetables free of chemical The Morehead and Somerset The company’s goal is to have 12 high-tech farms by the end of 2025. pesticides, to be distributed to top farms are preceded by the company’s U.S. grocers and restaurants. Because flagship 2.76-million-s.f. facility of the facilities’ central location in growing tomatoes in Morehead; a 15- Appalachia, AppHarvest can reach acre facility in Berea that will grow Construction for both the Somerset nearly 70% of the U.S. population in a leafy greens; and a 60-acre facility in and Morehead facility is anticipated day’s drive, with up to 80% less diesel Richmond that will grow vine crops. to finish by the end of 2022.

SIMPSONVILLE SHELBYVILLE KENTUCKIANA CURB TO HIRE 700 WIELAND TO BUILD $100M COPPER FOR $60M MANUFACTURING PLANT RECYCLING PLANT IN SHELBY CO. ENTUCKIANA Curb Co. UST months after locating its North American (KCC), a manufacturer headquarters in Louisville, Wieland North America Kof commercial HVAC JInc. is now planning to build a $100 million copper and products, is investing $60 copper-alloy recycling facility in nearby Shelby County.

Kentuckiana Curb Co.Kentuckiana photo million to establish a new Wieland plans to build its new operation on 79 acres location in Simpsonville that off Isaac Shelby Drive in Shelby County. The plant will will create 700 new jobs. melt copper and copper-alloy for recycling for use in KCC plans to initially manufacturing semi-finished copper and copper-alloy build a 380,000-s.f. facility products for customers throughout North America. on 80 acres along Buck Work on the project is expected to begin in October Creek Road that will produce and be complete by the end of 2022. HVAC equipment as well Currently, over 230 metals-related facilities operate as roof curbs, curb adapters and other sheet metal in Kentucky, employing approximately 25,000 people. products for roof-mounted air conditioning equipment. Since 2019, over 40 new-location and expansion projects KCC has a wide range of clients, including agritech- have been announced in the state’s metals industry, related businesses, health care facilities, schools, retail, creating nearly $2.5 billion in new investment and 2,000- restaurants and lodging. plus projected new jobs. KCC established its headquarters in Kentucky in Wieland photo 1977 and currently has two manufacturing facilities in Jeffersontown, where it employs more than 510 people, as well as a location in Tooele, Utah. The company also has a heating and cooling division that has locations in Louisville and Lexington. Work on the new facility is scheduled to begin in January 2022 and be completed by the end of 2022.

8 June/July 2021 lanereport.com STATE WILLIAMSBURG 4 KENTUCKY ECONOMIC DEVELOPMENT GROUPS FIRESTONE ADDING RANKED AMONG THE TOP 20 AGENCIES IN U.S. 250 JOBS TO HELP

U.S. Army Corps of Engineers photo MEET EV DEMAND N the heels of Kentucky being recognized as the top state in the south- Ocentral region for job-creating projects IRESTONE Industrial Products in 2020, four Kentucky economic development Co. is investing $50 million organizations have been named among the top Fto expand its manufacturing 20 ED agencies in the nation. plant in Williamsburg, a project The Bowling Green Chamber of Commerce, that will create 250 new jobs. Commerce Lexington Inc., Greater Louisville Firestone plans to add 68,000 s.f. Inc. (GLI)/Louisville Forward and Northern to the existing 375,000-s.f. plant, Kentucky Tri-ED have been selected as which produces air suspension recipients of the Mac Conway Award for Excellence in Economic Development, systems for the automotive which recognizes the top local and regional economic development agencies in industry. The expansion is being the United States based on their success in attracting job creation and capital spurred by growing customer investment projects to their respective regions. Kentucky had more economic demand and new business, development organizations represented than any other state and the Bowling including an increased focus on Green Chamber of Commerce was the smallest community of the 20 recipients. electric vehicle parts. The awards are based on the total number of projects, the total investment associated with those projects, the number of jobs associated with the projects, and a per capita calculation of those same metrics. “There’s no doubt that 2020 was one of the most difficult years on record Firestone photo Firestone for business and industry,” said Commerce Lexington Inc. President and CEO Bob Quick, “but despite the barriers, Kentucky economic development professionals adapted quickly to a new way of recruiting companies.”

LEXINGTON SOFTWARE COMPANY FOUNDED IN KENTUCKY RETURNS TO LOCATE GLOBAL HQ IN LEXINGTON

UBICON, a technology company Rubicon photo “Firestone air suspensions that provides a suite of software are optimally designed with Rfor waste and recycling electric vehicles in mind,” said solutions, has announced plans to Emily Poladian, president of establish its global headquarters Firestone Industrial Products. in Lexington. The office will be “Compared to traditional coil located in the City Center complex spring suspensions, our air in downtown Lexington. suspensions are designed to help The location expands the company’s existing footprint and honors its roots improve the handling and comfort in Kentucky, where it was founded over 10 years ago. It joins the company’s of heavier electric vehicles and other executive leadership office in New York City, which has remained in can even help improve EV range operation throughout the past year as the majority of Rubicon’s workforce by lowering the vehicle to help transitioned to remote operations, though a significant number of Rubicon improve aerodynamics. Advanced employees continue to be based in the metro Atlanta area. air suspensions are increasingly Founder Nate Morris, a native of Lexington, has built Rubicon into a global a ‘must-have’ technology on company with 4.9 million service locations worldwide, more than 7,000 vendor premium electric vehicles.” and hauler partners, and high-profile investors such as Leonardo DiCaprio. In Firestone first opened its 2017, Forbes reported that Rubicon’s valuation was more than $1 billion and Williamsburg plant in 1989 and Rubicon was recently named one of the world’s “Most Innovative Companies” currently employs more than 500 by Fast Company magazine. Morris was the first Kentuckian to be named to people. The expansion project Fortune magazine’s 40 Under 40 list and in 2019 was named to the Kentucky is slated to be complete by Entrepreneur Hall of Fame. December 2022.

lanereport.com June/July 2021 9 FAST LANE

BUSINESS BRIEFS NELSON COUNTY DISTILLERY PLANS MAJOR TOURISM BOWLING GREEN n Pink Lily, a Bowling Green-based online retailer of women’s ATTRACTION FOR NELSON COUNTY clothing and accessories, has leased an additional 160,000-s.f. of warehouse space in the South Central Kentucky Industrial Park OG Still Distillery to support its continued growth. Founded in 2014 by Tori and continues to make Chris Gerbig, the company now employs a staff of over 200 and progress in its work to logged record-breaking sales in 2020, with total sales of over L $100 million. The Bowling Green fulfillment center ships some revive a historic 300-acre site 10,000 products each day. in southern Nelson County

Log Still Distillery Still Log photo that will not only serve as VisitLEX photo CENTRAL KENTUCKY home to the distillery but as n Four new brands have been added to the a major tourism attraction. Brewgrass Trail, which showcases craft breweries The first lodging amenity to open at Dant Crossing across the Central Kentucky region. Goodwood (Lexington and Frankfort), Brewer Dude is the Homestead Bed & Breakfast, which opened (Lexington), Void Sake Co. (Lexington) and Maiden earlier this year. A tasting room opened in mid-May City (Cynthiana) are now part of the trail, bringing and amenities slated to open later this year include an the total number of stops on the trail to 27. amphitheater, restaurant, train depot and an event/ conference center. A visitor’s center, museum and gift FLORENCE shop are scheduled to open in 2022. n Gateway Community & Technical College is launching a new Log Still has already invested $12 million in the first Apprenticeship Academy for the fall 2021 semester that will offer students the opportunity to engage with area employers phase of the project and plans to invest another $24 during two-to-three-week rotations, giving them the opportunity million into Phase 2 of the development. The company to witness different company cultures and manufacturing anticipates hiring 126 people for the second phase of the processes. In the second year of the program, apprentices will project, in addition to the 20 jobs created by the first phase. be hired by area employers to complete the apprenticeship in “Log Still Distillery will be a true destination their field of choice. Students in the Apprenticeship Academy experience, unlike anything seen in bourbon country,” could also qualify for the Kentucky Work Ready Scholarship, which offers up to 60 hours of free tuition for any Kentuckian said Kim Huston, president of the Nelson County who has not yet earned an associate degree. Development Agency.

FRANKFORT n A new market/restaurant is slated to open near downtown LOUISVILLE Frankfort this summer with a focus on providing the community with increased access to locally sourced foods. Locals Food Hub TENNESSEE-BASED LIFEPOINT TO & Pizza Pub will include an in-person grocery as well as an online storefront offering items sourced only from Kentucky farmers ACQUIRE KINDRED HEALTHCARE and food producers. IFEPOINT Health has announced GEORGETOWN Toyota photo that it will acquire Louisville- n Toyota has committed $1.7 million based Kindred Healthcare,

to provide full-tuition scholarships for L photo LifePoint creating an extensive health system female and minority students who that brings together LifePoint’s want to earn an engineering degree from UK or UofL. Through Bluegrass national network of community- Community and Technical College, based hospitals and providers with students will first acquire a two-year Kindred’s expertise in delivering long-term acute care, associate degree before enrolling in rehabilitation services and behavioral health services. an engineering program. Beginning LifePoint, headquartered in Brentwood, Tenn., has this fall, 35 students will be selected over a five-year period to nearly 90 hospitals across 29 states—including 10 in receive the scholarships. The students will be mentored by Toyota Kentucky—and employs a workforce of approximately engineers and participate in a paid co-op opportunity with the company, earning $17-$21 per hour. In addition, the students will 53,000. Kindred operates 62 long-term care hospitals, complete two to three co-op rotations that will provide hands-on over 125 rehabilitation facilities and two behavioral experience in multiple areas of engineering. health centers. The company has approximately 1,000 employees in the Louisville area and a total of about GLASGOW 24,000 nationwide. Kindred CEO Benjamin Breier said n Innovative Manufacturing Services Inc., a Glasgow company Kindred will retain its brand name, management team that specializes in engineering material handling systems, automation solutions and technical support, has added a new and its Louisville headquarters. warehouse and equipment that doubles its extrusion aluminum Financial details of the agreement have not been cutting capacity. The expansion has also increased manufacturing disclosed. The transaction is expected to close in the capacity, leading to shortened lead times for customers. fourth quarter.

10 June/July 2021 lanereport.com LOUISVILLE BUSINESS BRIEFS JAPAN-BASED HOUSE FOODS TO GREENSBURG HIRE 109 FOR FIRST KY OPERATION n Franklin-based manufacturer Worldwide Technologies is investing $1.42 million to open a new operation in Greensburg OUSE Foods that will create 25 full-time positions. The company has America Corp., purchased an existing spec building in Greensburg to support its a subsidiary of House Foods/Truly Creative photo production of precision-machined parts used in the heavy truck, H defense and medical industries. WWT’s services also include Japan-based House precision milling and turning, heat treatment, mechanical Foods Group, plans to assembly and maintenance. The company has a staff of more build a new 350,000- than 50 at its main location in Franklin. s.f. facility on 30 acres in Louisville Riverport HARRODSBURG Authority’s Phase 5 n Apple has awarded $45 million to Corning development that will Inc. to expand Corning’s manufacturing create 109 new jobs. capacity and drive innovative new technologies. With support from Apple’s The plant will produce tofu using 100% U.S.-grown, Advanced Manufacturing Fund, experts at non-GMO (genetically modified organism) soybeans. Apple and Corning have worked together House Foods Group has operated in Japan for more to develop a new glass-ceramic, which gets than 100 years. The company created House Foods its strength from nano-ceramic crystals America Corp. in 1983 to introduce its food products to produced at Corning’s plant in Harrodsburg, the American market. House currently operates facilities where every generation of iPhone glass has been made. Corning has already received in California and New Jersey; the new Louisville plant $450 million from Apple’s Advanced will be its first Kentucky facility. Manufacturing Fund over the last four years. The investment Construction is expected to begin in 2022 and is helps support more than 1,000 jobs at Corning operations in slated to be complete by 2025. Kentucky and other facilities.

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lanereport.com June/July 2021 11 FAST LANE

BUSINESS BRIEFS CARTER COUNTY REFINING BYPRODUCTS USED TO HAZARD n Dajcor Aluminum is expanding its facility at the Coalfields MAKE MATERIALS FOR MILITARY Industrial Park in Hazard, where it produces extruded and fabricated aluminum products. The company is currently operating DVANCED Carbon Products (ACP) and ACP out of a 200,000-s.f. facility and has another 100,000 s.f. split up Technologies (ACP-T) have opened a facility among multiple outbuildings, one of which is being renovated as in Hitchins to transform petroleum and coal part of the expansion. The project will include the purchase of new A equipment that will enable Dajcor to add a natural oxide layer to byproducts into high-tech materials for military systems their products, thereby increasing resistance to corrosion and wear. and vehicles. The Canada-based company plans to add 50 more employees to Utilizing its 80-member workforce as part of the expansion and expects to byproducts have 200 employees within the next couple of years. from oil

Alaska Airlines photo Airlines Alaska refining, ACP HEBRON n Alaska Airlines is now and ACP-T are offering daily nonstop developing flights between the prototype Cincinnati/Northern carbon fiber Kentucky International and carbon Airport (CVG) and Seattle, foams components for military vehicles to reduce its first scheduled flight vehicle weight, increase range, reduce heat signature service to Kentucky. Alaska Airlines officials said the route has long been requested by corporate clients interested in a and dissipate heat from engines, electronics and crew direct flight between Seattle and CVG. In response, the airline compartments. Their work is part of a pilot project has scheduled the flight to depart CVG at 6:30 p.m. Eastern sponsored by the U.S. Army Ground Vehicle Systems time and arrive in Seattle at 8:25 p.m. Pacific time, allowing Center. The Carter County facility is the first of its kind businesspeople to be there for the next business day. Seattle is in the nation. also a gateway to Asia, offering nonstop flights to Tokyo, Seoul, “In addition to providing a technical solution to the Hong Kong and Singapore. rapidly changing needs of our military, this breakthrough HIGHLAND HEIGHTS technology could also create jobs and economic growth n Northern Kentucky University has enhanced its master of in our region,” said U.S. Congressman Hal Rogers. public administration program by adding a fully online option “Demand for carbon fiber and foam technologies is on and reducing the number of credit hours required to complete the rise. However, sourcing components from China the program from 39 to 36. The MPA program offers two is far too expensive and puts American jobs at risk. graduate certificates in nonprofit management and emergency Quite frankly, importing byproducts from China is management, which can be earned on their own or “stacked” toward the MPA degree. In addition, students can earn micro- unnecessary with the natural resources and industry credentials in areas such as arts administration, disaster we have available in Central Appalachia.” readiness, and GIS and mapping. So far, more than 20 local jobs have been created at the Carter County facility, with room to expand. HORSE CAVE Lancaster Colony Corp. photo n Construction is officially underway on T. Marzetti Co.’s $133 million expansion of its facility in Horse ELIZABETHTOWN Cave. The 184,500-s.f. project CANADIAN PACKAGING COMPANY will allow for the addition of eight new processing kitchens HIRING 150 FOR NEW $114M PLANT and several packaging lines to increase production of the Canadian company that company’s salad dressings, produces 100% recycled sauces and other foods for the retail and foodservice markets. packaging products is The project, which is being led by Lexington-based industrial A contractor Gray, is expected to be complete by July 2022 and will investing $114.2 million to add 220 more jobs to the existing 500-member workforce. establish a new manufacturing operation in Elizabethtown. LEXINGTON Kruger Packaging plans to hire n Lexington-based bedding manufacturer Tempur Sealy at least 150 people in the coming International Inc. has signed an agreement to acquire bedding years to staff the 400,000-s.f. retailer Dreams for $475 million. Dreams is the leading specialty facility, which will be located in bed retailer in the United Kingdom, with over 200 brick-and-mortar locations and a leading online channel as well as manufacturing the T. J. Patterson Industrial Park. and delivery assets. Dreams will be operated as an independent The Elizabethtown plant will be the company’s first business unit and led by the current management team. corrugated box facility in the United States.

12 June/July 2021 lanereport.com COVINGTON BUSINESS BRIEFS HOTEL COVINGTON RANKED ONE LEXINGTON OF NATION’S BEST BY TRIP ADVISOR n Biscuit Belly, a Louisville- based fast-casual restaurant Hotel Covington photo OTEL Covington has been concept that specializes in gourmet biscuit sandwiches, has named one of the top 25 Biscuit Belly photo signed multi-unit development hotels in the nation in H agreements to franchise 10 TripAdvisor’s 2021 Travelers locations in Lexington, Knoxville, Choice Awards. Huntsville and Birmingham. The awards are based on Franchisee Jay Shoffner, who travelers’ reviews posted on the operates 34 KFC locations and TripAdvisor site in 2020. 10 Long John Silver’s stores Hotel Covington opened in 2016 in a downtown in Indiana, Kentucky and Tennessee, will be working with his wife and daughters to Covington site that once housed Coppin’s department open the first Lexington operation in mid-September, with two store. According to TripAdvisor, “Hotel Covington more Lexington stores slated to open in the winter of 2022. The embodies the transformation of a celebrated, century-old company currently has three Louisville locations and plans to downtown building into a modern luxury hotel. Hotel open 10 corporate locations by the end of 2022. Covington will appeal to business and leisure travelers accustomed to upscale hotels in primary markets LOUISVILLE n seeking an authentic and locally influenced experience. OHM Advisors, a Michigan-based architecture and engineering firm, has opened an office in Jeffersonville, Ind., The hotel draws inspiration from the local culture and the firm’s first in the Ohio River Valley region. The new office cultivates a following though a sense of civic pride and will be led by Rob Huckaby, a water resources engineer who exciting food and beverage… This significant project is has worked in the region throughout his 15-year career. Aside certain to become the springboard for development in from the new Jeffersonville location, OHM has more than 500 Covington’s downtown business district.” employees across 15 offices in Michigan, Ohio and Tennessee.

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BUSINESS BRIEFS LOUISVILLE GOPUFF WIDENS KY FOOTPRINT LOUISVILLE n MR3, a Pittsburgh-based development and management WITH PURCHASE OF LIQUOR BARN company, has purchased 15.4 acres in the River Ridge Commerce Center with plans to build a 210,000-s.f. cross-dock industrial IQUOR Barn, a facility to help meet the continued growth of the e-commerce Louisville-based sector. Construction on the project, which is MR3’s first entry Lcompany that is into the Louisville/Southern Indiana market, is expected be Kentucky’s leading complete by late fall. independent chain of

Duralock photo beer, wine and liquor n Duralock, a family-owned stores, has been acquired United Kingdom company that by Gopuff, a company is one of the world’s leading that delivers a wide variety of items ranging from food and providers of PVCu fencing, has drinks to pet products, cleaning supplies and over-the-counter opened a new office in Louisville medications for a flat $1.95 fee. to serve as its North American Gopuff is not a courier service but rather delivers directly headquarters. The Louisville from its 275-plus micro-fulfillment centers located in more office, led by Michele Fischer, than 185 locations. The acquisition of Liquor Barn, which has will provide equestrian, sports 23 locations across the state, accelerates Gopuff’s expansion and commercial fencing for the in Kentucky and positions the company to support Kentucky’s U.S. and Canadian markets. bourbon industry by working with distributors to expand access to products nationwide. n Louisville-based law firm Stites & Harbison has opened an “Through this partnership, we will continue to deliver office in the Cincinnati suburb of Mason to meet the increased beer, wine and spirits and will add thousands of new items needs of its clients in the region. The firm also has an office in that our customers need in everyday life,” said Liquor Barn Covington, in addition to locations in Frankfort, Lexington and Chairman Jonathan Blue. “Gopuff is the ideal partner to bolster Louisville; Atlanta; Jeffersonville, Ind.; Franklin, Memphis and the business into this next era of growth and meet customers’ Nashville, Tenn.; and Alexandria, Va. evolving needs. We look forward to working closely with Gopuff

Adobe photo as we integrate Liquor Barn into their business and serving as n Louisville-based strategic advisors on alcohol-related initiatives. BrightSpring Health Services has completed its acquisition of Abode Healthcare, LOUISVILLE one of the nation’s leading providers HUMANA GROWS HOME HEALTH of home health and BUSINESS WITH 2 ACQUISITIONS hospice services. The acquisition of the Colorado-based OUISVILLE-based Humana company expands BrightSpring’s home health and hospice Inc. has signed definitive business to 17 states. BrightSpring is a leading provider of home Lagreements to acquire and community-based pharmacy and health services for those two home-health companies in need of specialized care and has more than 360,000 patients as part of its goal to expand and clients in 50 states. that segment of its business offerings. n The Louisville Muhammad Ali International Airport (SDF) ranks No. 5 in the world and No. 3 in North America as the Humana will acquire the busiest cargo airports, according to the preliminary World Airport remaining 60% interest in Traffic Report for 2020. SDF handled more than 6.43 billion Kindred at Home (KAH), the nation’s largest home pounds of cargo in 2020, a 4.6% increase over the previous year. health and hospice provider, for $8.1 billion. The

PACCAR Parts photo agreement includes Humana’s existing equity value of n PACCAR Parts, a distributor $2.4 billion associated with its current 40% minority of aftermarket parts for ownership interest. heavy and medium-duty trucks, trailers, buses and Humana also plans to acquire One Homecare engines, is building a $52.2 Solutions for an undisclosed price. The Florida- million parts distribution based company provides a range of in-home medical center in the Louisville equipment and services, including infusions, nursing, Riverport Authority’s Phase occupational and physical therapy. The company has 5 development. PACCAR been serving Humana members since 2015. distributes parts to customers through an extensive network that includes 2,200 locations The acquisitions are part of Humana’s goal of worldwide. The 260,000-s.f. facility is expected to be operational investing in home-based clinical solutions to produce in 2022 and will create 80 full-time jobs. improve patient outcomes and increased satisfaction.

14 June/July 2021 lanereport.com CAVE CITY BUSINESS BRIEFS NEW OWNERS RENOVATE ICONIC LOUISVILLE ROADSIDE TOURIST ATTRACTION n Norton Healthcare has opened a new 46,000-s.f. lab in a former OR over 80 Wayne photo Garmon Kmart store that consolidates its years now, clinical laboratory resources, the Wigwam technology and services under F one roof. Norton has invested Norton photo Healthcare Village on U.S. some $20.5 million in the 31-W in Cave City project, $7 million of which was has piqued the dedicated to new equipment. interest of travelers. The new lab will provide faster The group of 15 turnaround times for providers and patients and will also handle motel rooms built to resemble teepees has had numerous specialized testing that was once sent to outside labs. owners, but now new owners Keith Stone and Megan n The University of Louisville has received $750,000 from the U.S. Smith are in the process of a five-year, $500,000 restoration Economic Development Administration to launch a new program of the property to return every architectural and landscape aimed at solving the long-term health, economic and societal feature to its original condition. problems resulting from the COVID-19 pandemic. The Pandemic- Technically known as Historic Wigwam Village No. Related Product Acceleration & Responsive Entrepreneurship 2—founder Frank Redford built the first Wigwam Village Program (PRePARE) will partner UofL researchers with members in nearby Horse Cave (which no longer exists) before of the community to scale up innovative ideas. The end goal is to grow existing companies or spin up new ones to bring those building five more, including two locations in Arizona ideas to market. and California that remain in operation—the property is listed on the National Register of Historic Places. Stone MADISONVILLE and Smith have retained some of the original furnishings n Ahlstrom-Munksjö is investing $70 million to build a second while adding amenities such as Wi-Fi, flat-screen TVs facility in Madisonville that will house a glass fiber tissue production and charging ports. They also enlisted Rueff Sign Co. in line to produce luxury vinyl tiles and vinyl sheet materials. The Louisville to refurbish the iconic “Sleep In a Wigwam” glass fiber tissue will also be marketed neon sign. After closing briefly for renovations, Historic for building panels, Wigwam Village No. 2 has now reopened, much to the energy storage delight of both the community and travelers. and thermoplastic “It’s such an icon for this area,” Cave City Tourist molding for the transportation industry. The new facility, which is and Convention Commission Executive Director Greg expected to begin delivering to customers in mid-2023, will create Davis told The Bowling Green Daily News. “One of the 51 new jobs. Ahlstrom- Munksjö’s existing 133-employee facility in Madisonville produces filtration materials for automotive and top questions we get when we go to conferences is if the industrial applications. wigwams are still there.”

lanereport.com June/July 2021 15 FAST LANE

BUSINESS BRIEFS SOMERSET CONTINENTAL REFINING INVESTING PRESTONSBURG n Big Sandy Community & Technical College has launched a $20M IN BIODIESEL PRODUCTION cyerbersecurity program to meet the growing demand for jobs in the computer technology field. According to Cyberseek 2021, there ONTINENTAL are currently over 2,300 cybersecurity job openings in Kentucky. Refining Co. is investing $20 WALTON C n American Trailer Rental Group, a Walton-based family of million to add a soybean companies with a rental fleet of nearly 16,000 rental trailers, has crushing, biodiesel acquired Ervin Equipment’s rental fleet in Laredo, Texas. The deal refining and blending represents the company’s sixth acquisition since the company was facility at its oil refinery formed in June 2017 and brings its total number of rental locations in Somerset. to 17 in eight states. The company operates under Meisler Trailer Continental Refining plans to use The company will Rental, First in Trailer Service, Fleet Trailer Rental, Advantage soybeans grown in Kentucky to Trailer Rental and Arizona Storage Trailer Rental. create biodiesel fuel. utilize local businesses to provide soybean WESTERN KENTUCKY feedstock that will be refined into biodiesel fuels. CRC n Webster and Union Counties have received a $472,000 products will include: soy meal, soy oil, soy hulls, B100, Community Development Block Grant to purchase property for the crude glycerin, biodiesel and gasoline, among other Western Kentucky Regional Training Center. In collaboration with products. The company expects to begin processing Madisonville Community College, the facility will train students soybeans by January 2022 as utility linemen and diesel mechanics and help them obtain a commercial driver’s license (CDL). The former administrative “The south-central and southeastern regions of offices at the Dotiki Mine, which closed in 2019 and have remained Kentucky have industries and institutions that rely on unused since, will house the training center. A $350,000 grant from diesel fuels, and because Kentucky is a leader in the the Delta Regional Authority is also being used for the project, nation for soybean production, the region also has the raw bringing the total funding to more than $800,000. materials and technology to make biodiesel at a scale that reflects the local and regional demand,” said Demetrios WILDER n Protech Home Medical Corp., a Wilder-based company that Haseotes, CEO of CRC parent company Hemisphere Ltd. specializes in respiratory home medical equipment, has changed CRC plans to add 20 new jobs with an annual payroll its name to Quipt Home Medical Corp. and is now trading on of over $1.2 million. the Nasdaq stock exchange as “QIPT.” Protech had previously been traded on Canada’s TXS Venture Exchange and the OTCQX Best Market in the U.S. Company President/CEO Greg Crawford BOWLING GREEN said renaming the company and being listed on the Nasdaq will allow the company to increase the company’s profile as MANUFACTURER PLANS TO HIRE they prepare for a national expansion. The company currently has 51 locations in 11 states, 17,000 referring physicians and 288 FOR NEW SEMI-TRAILER PLANT approximately 120,000 current, active patients. EMI-trailer manufacturer Fruehauf Inc. is investing STATE $12 million to establish a plant in Bowling Green, n The Kentucky Energy and the first U.S. facility the company has had in nearly Environment Cabinet has S 25 years. unveiled a new web-based platform that allows users Fruehauf’s production to easily identify reclaimed operations are currently mine lands that are suitable located exclusively in

for large-scale solar projects. Mexico. photo Fruehauf State officials say the tool The new dry van trailer gives Kentucky an important manufacturing operation economic development tool to will create 288 new jobs attract companies that want sustainable energy as a significant portion of their energy portfolio. in the years ahead and will be located in an unfinished spec building in Bowling n To meet the heightened demand for business coaching Green’s Kentucky Transpark. The new location will allow for Kentucky small businesses, the Kentucky Small Business the company to better serve its customers in the U.S. and Development Center has added six new locations in Covington, Canada with components primarily manufactured offsite Frankfort, Owensboro, Somerset, Bowling Green and Paducah. and assembled at the new location. Services provided include: one-on-one business coaching, Fruehauf was formed in Detroit in 1890 by August training workshops, access to market research, loan packaging help, assistance with financial projections and information Fruehauf, who was the inventor of the semi-trailer. The needed to make informed business decisions. The expansion company is now a subsidiary of the Fultra Group, a brings the total number of locations to 17. diversified manufacturing company based in Mexico.

16 June/July 2021 lanereport.com INTERSTATE LANE

BUSINESS NEWS FROM NEIGHBORING STATES

TENNESSEE BUSINESS BRIEFS $2.3B BATTERY PLANT TO SUPPORT INDIANA GM WILL CREATE 1,300 NEW JOBS n JobVite Inc., a software company that helps recruiters attract and retain employees, plans to add more than 300 employees in LTIUM Cells, a GM photo Indianapolis over the next several years as part of the company’s joint venture plan to move its global headquarters from California to of LG Energy Indianapolis, where it already operates its U.S. headquarters. The U company will be hiring to fill positions in product engineering, Solution and sales, marketing and finance. General Motors is investing more than n Poland-based packaging $2.3 billion to build manufacturer CANPACK is Ultium batteries will power the Cadillac a second battery- investing $380 million to build LYRIQ, which will be produced at GM’s an 862,000-s.f. aluminum cell manufacturing Spring Hill assembly plant.

beverage can manufacturing CANPACK photo plant in Spring Hill, plant in Muncie, Ind. The plant Tenn., just south of Nashville. The 2.8 million-s.f. plant will begin production in the is scheduled to open in late 2023 and will create 1,300 fourth quarter of 2022 and is new jobs. expected to have a workforce Ultium currently operates a plant in Lordstown, Ohio, of 345 by 2023. that produces battery cells for GM’s growing lineup of n electric vehicles. That line-up includes the Cadillac Kentucky-based Tempur Sealy International Inc. has announced plans to build its third domestic foam-pouring plant LYRIQ, which will be built at GM’s Spring Hill assembly on a 130-acre site in Crawfordsville, Ind. The first phase of plant later this year. construction is planned for approximately 700,000 s.f., with the GM has committed more than $27 billion to electric ability to double capacity over time and expand to a final size of vehicle (EV) and autonomous vehicle (AV) production approximately 1 million s.f., which would make it the company’s through 2025. As GM transitions its manufacturing largest manufacturing facility in the world. Construction is facilities to support EV production, a transition in expected to begin in the third quarter of 2021, with production required skills will need to happen as well. Tennessee commencing in 2023. The company plans to hire approximately 300 employees to staff the facility. leaders say they are developing skilled-trade programs to support companies like GM, LG Energy Solution, Ultium OHIO Cells and others. n Bath & Body Works is building a new distribution center in Pickaway County, Ohio, near Columbus. The OHIO new facility will fill online

PELOTON’S FIRST U.S. PLANT WILL photo Works & Body Bath orders and will add 500 employees to the company’s BRING OVER 2,100 JOBS TO OHIO existing 3,000-member workforce in Central Ohio. Peloton photo ITNESS equipment manufacturer Peloton has selected a 200-acre n SugarCreek, a food and bacon producer, is investing $10 site in Troy Township, Ohio, million to build a new production facility in Sharonville, Ohio. F The expansion will add 235 new jobs. for its first dedicated factory in the United States. TENNESSEE As the coronavirus pandemic n BRS Offroad North America closed gyms across the country in plans to establish its headquarters 2020 and people wanted to continue and manufacturing operations in their workouts at home, Peloton sales Hohenwald, Tenn. The off-road and soared, but with most of its indoor luxury camper manufacturer plans to hire 115 employees to staff the exercise bikes and treadmills produced at third-party plants operation, where it will build its in Taiwan, the company experienced delivery delays. Sherpa, Pursuit and Pullman models. BRS photo Peloton CEO John Foley said the new 1 million- s.f. Ohio plant “gives us a massive strategic lever to n St. Jude Children’s Research Hospital in Memphis has make sure we have capacity, quality and economics of committed $11.5 billion over the next six years to expand scale in our bike and tread product lines to support our patient care and clinical and laboratory-based research related continued growth for years and years to come.” to pediatric catastrophic illnesses, including cancer, blood disorders, neurological diseases and infectious diseases. The Work on the $400 million project is slated to begin this plan calls for an additional 1,400 jobs; the expenditure of $1.9 summer with production beginning in 2023. The company billion in new construction, renovation and capital needs; and plans to hire 2,174 employees to staff the new plant. the development of new research areas.

lanereport.com June/July 2021 17 CORPORATE MOVES

NEW LEADERSHIP FOR KENTUCKY BUSINESSES

BIG MOVES

n Bank of the Bluegrass & manager in Cincinnati and Old Fashioned Sodas. Prior to Audrey Trust Co. in Lexington has brings more than 19 years joining CORNETT, McQueen Moeglin announced the following of experience to her new worked at Louisville Public has joined additions to its staff: position. Media. CORNETT as account Kathy D. Matt Mesa coordinator. Meade has joined Moeglin, a has joined n Lexington creative agency CORNETT graduate of Audrey Bank of the CORNETT has announced the as associate the University Moeglin Bluegrass as following additions to its staff: copywriter. of Kentucky, also operates vice president Mesa, who a small business designing and chief Paige Hansen has a degree custom-made greeting cards compliance Kathy D. has joined in advertising Matt and paper goods for weddings officer. Meade the agency from the Mesa and showers. Meade, who joins the bank as assistant University with more than 30 years media planner of Georgia, works with a of banking experience, and buyer. client list that includes UK is currently attending Hansen, HealthCare, Tempur-Sealy and n Kelli Paige the University of the who earned the University of Kentucky. Schmidt has Hansen Cumberlands, is a certified a bachelor’s been named regulatory compliance degree in integrated strategic Phillip business manager and a graduate of communications from UK, Burrows director for the LSU Graduate School works with the agency’s paid- has joined Louisville- of Banking, KBA General media clients. the agency based IT Banking School and KBA as associate managed Kelli Essentials of Banking School. Robert Baker copywriter, services firm Schmidt has joined working ISC Kentucky. Schmidt is Phillip Larra E. CORNETT as with clients responsible for the day-to-day Burrows Freeman has senior digital that include office administration, human joined Bank of engagement Sazerac and Keeneland. resources, accounting and the Bluegrass manager after Burrows plays a significant preparing the business for as universal building his role in traditional campaign growth. Robert own digital and branding work as well banker at Baker the bank’s and creative as content creation for social Southland Larra E. consultancy, Yazoo Motif. At media accounts. branch in Freeman CORNETT, he oversees digital n Jill Lexington. Freeman comes to engagement and content for Aaron Lugo Annarino the position with five years of several Sazerac bourbons and comes to Farfan banking experience. A resident Toyota’s Kentucky Experience CORNETT has joined of Madison County, Freeman is Center. as senior alt32+ Cox also an aspiring writer. art director. Architecture Tajah His past as a project Jill Annarino McQueen experience manager at Aaron Farfan has joined includes Lugo the firm’s n Kristel the agency working as Lexington headquarters. Farfan Jensen has as digital art director for companies has over 20 years of project joined Fifth engagement such as JCPenney and management and design Third Bank’s manager and Michael’s and for Louisville experience and is a member Kentucky is the primary Tajah agency Scoppechio. His client of Women in Architecture, McQueen leadership community list at CORNETT includes Mothers in Architecture and team as retail manager and engagement UK HealthCare, Tempur- Women Leading Kentucky. Kristel Jensen executive. specialist for several Sazerac Sealy and the University of Jenson began her career bourbon brands as well as Kentucky. with Fifth Third as a branch specialty brands like Freddie’s

ATHLETICS n Brandon Phillips has joined the ownership n Christopher Andress has joined n Dr. Glen McClung has group of the Lexington Legends professional Lexington-based Central Bank as vice been named team medical baseball team. president, senior trust officer. director of the Florence Y’alls minor league BANKING baseball team. n Chris Whitfield has been named president of South Central Bank’s Bowling Dr. Glen Green market. McClung

18 June/July 2021 lanereport.com EXECUTIVE PROFILE Paid partner content is provided by client. n Darin Winterbotham GOVERNMENT has joined Burlington- n Tiffany Ge has been based Heritage Bank as promoted to legislative senior vice president. director for U.S. Sen. Mitch McConnell’s personal BUSINESS office in Washington, DEVELOPMENT D.C., where she will Darin Tiffany Ge n Shelby Williams has oversee Kentucky-focused Winterbotham joined Greater Louisville legislative matters. Inc. as vice president of government affairs and communications. n Jamie Link has been appointed secretary of the Kentucky Labor Cabinet. He ECONOMIC succeeds Larry Roberts, who is retiring at DEVELOPMENT the end of June. n Margy Poorman has been named president and HEALTH CARE CEO of the Hardin County n Brian Lawrence has Chamber of Commerce. joined Covington-based Gravity Diagnostics as Zach Davis Margy President and Principal Broker, EDUCATION Poorman chief technology officer n Paul Czarapata has and general manager. Kirkpatrick & Co. been named president of Brian Education the Kentucky Community LEGAL Lawrence Bachelor of Arts, History, and Technical College n Devon Callaghan, Liam Transylvania University System (KCTCS). Felsen, Miles Harrison, Colin Stouffer and Doug Walter have been promoted to Accomplishments n Dr. Joe Kingery has members in Frost Brown Todd’s Louisville Davis was recently named first in total sales for been named dean of Paul office. Jacinta Porter and Hamid Sheikh the first quarter among all 3,500-plus members the Kentucky College of Czarapata have been promoted to members in the of the Lexington-Bluegrass Association of Osteopathic Medicine at firm’s Lexington office. Realtors. With an average sales price of over $1.6 million, he is distinguished as the University of Pikeville. a broker of farms, land and estates. MANUFACTURING n Terrance D. Brown n Dominic Bardos has been named chief Board Service has been named dean financial officer of Holley, a Bowling Green- Commissioner, Lexington-Fayette Urban County of Western Kentucky based manufacturer of high-performance Government Planning Commission University’s Potter College automotive products. Vice President, High Hope Steeplechase of Arts and Letters. Terrance D. Association Brown NONPROFIT Vice-Chair, Professional Standards Committee, n University of Kentucky n Matt Frey has been Lexington-Bluegrass Association of Realtors Past Vice-Chair, LFUCG Rural Land College of Medicine Dean named executive Management Board Bob DiPaola has been director of the Kentucky Past Board Member, Blue Grass Trust appointed to serve a one- Financial Empowerment year term as UK’s acting Commission. Since 1984, Kirkpatrick & Co. has provided expert provost, effective July 1, representation for buyers and sellers of Bluegrass Matt Frey 2021. n Goodwill Industries of horse farms, land and estates. Davis has led Bob DiPaola Kentucky has named Mark Daniel as vice Kirkpatrick & Co. as president and principal n Taunya Phillips has president of retail operations. broker since 2011. He is proud to represent the been named director of finest properties in Fayette, Scott, Woodford and Bourbon counties. the University of Kentucky REAL ESTATE Office of Technology n Jeff Mosley has joined Hollenbach- Davis’s particular expertise includes Thoroughbred Commercialization. Oakley in Louisville as chief operating and sport-horse properties, historic homes officer/general counsel. and conservation management. Davis’s clients EQUINE include financial institutions and high-net-worth n Katherine Armstrong Taunya WORKFORCE DEVELOPMENT individuals, groups both well-served by his has been named vice Phillips n Jon Sowards has been named discretion and “white glove” approach. president of culture for Louisville-based president of the South Central Workforce Churchill Downs Inc. Development Board. Brian Becker has Kirkpatrick & Co. is recognized as the top boutique real estate firm in the Bluegrass and joined the organization as vice president brings hyperlocal expertise to the market. Davis n Tony Lacy has joined Keeneland as vice of operations and special projects. and his associates offer a nimble, personalized president of sales. approach through professional photography and OTHER videography, 3D technology, drone imagery and FOOD/SPIRITS/HOSPITALITY n Andrew Boyd has been named president expert graphic design. n Len Landry has been named vice of Boyd CAT, a Louisville-based commercial president of operations and engineering and industrial equipment supplier. Zach Davis can be reached at 859.576.8195, zach@ for Wilderness Trail Distillery in Danville. kirkfarms.com, or by visiting KirkFarms.com

lanereport.com June/July 2021 19 ON THE BOARDS

KENTUCKIANS NAMED TO ORGANIZATIONAL LEADERSHIP ROLES

ACADEMY OF MUSIC PRODUCTION GREATER LOUISVILLE INC. Shaundeidra Bradford, teacher, Jefferson EDUCATION AND DEVELOPMENT n Kimberly Halbauer, Matt Ward and County Public Schools; Kimberly Clayton- n Calesia Henson has Jordan Reber have been named to the board Code, professor, Northern Kentucky been named to the of directors for Greater Louisville Inc., the University; Jeanne Lee, district gifted board of directors of Metro Chamber of Commerce. Halbauer and talented coordinator, Harlan County the Academy of Music is regional president of Fifth Third Bank Schools; Hannah England, gifted and Production Education and N.A. (Kentucky). Ward is market president talented coordinator, Russell County Board Development. Henson for Truist. Reber is chairman and CEO of of Education; Brenda Martin, consultant is an attorney in Stites OvareGroup. and community liaison for James Martin & Harbison’s Louisville Calesia Jr., M.D.; Mason Dyer, vice president of office. Henson external relations and information, AIKCU; HORIZON COMMUNITY FUNDS Jonathan Haynes, teacher, Henderson OF NORTHERN KENTUCKY County Schools. AMERICAN ASSOCIATION OF HISPANICS n Donna Salyers has been IN HIGHER EDUCATION named to the Horizon n Julian Vasquez Heilig has been appointed Community Funds of KENTUCKY BOARD to serve on the American Association of Northern Kentucky OF RESPIRATORY CARE Hispanics in Higher Education Board of Council of Trustees. n Marlene McKinley and Scott Pettinichi Directors. Heilig is dean of the University of Salyers is the founder and have been appointed to the Kentucky Kentucky College of Education. owner of Donna Salyers Board of Respiratory Care. McKinley, of Fabulous-Furs. Donna Salyers Cynthiana, is the manager of respiratory care at St. Joseph Hospital. Pettinichi, BLUEGRASS COMMUNITY of Louisville, is a respiratory therapist at AND TECHNICAL COLLEGE HUMAN RIGHTS COMMISSION Norton Children’s Hospital. n Richard Webb and Sannie Overly n Joan “Toni” Stringer, James Glenn, have been appointed to the Bluegrass Rick Wirth and Devine Carama have been Community and Technical College Board appointed to serve on Kentucky’s Human KENTUCKY BOXING of Directors. Webb, of Danville, is a retired Rights Commission. Stringer, of Louisville, & WRESTLING COMMISSION teacher. Overly, of Paris, is a partner at is a retired judge. Glenn, of Owensboro, n David Franklin has been named as Overly & Johnson. is a retired educator. Wurth, of Union, a member of the Kentucky Boxing & is the CEO of CHNK Behavioral Health. Wrestling Commission. Franklin, of Carama, of Lexington, is a hip-hop artist Versailles, is an attorney at Franklin & EASTERN KENTUCKY UNIVERSITY and educator for Kingtucky LLC. Rapp. n Michael Eaves has been appointed to the Eastern Kentucky University JUVENILE JUSTICE ADVISORY BOARD KENTUCKY CENTER FOR THE ARTS CORP. Board of Regents. Eaves, n The following individuals have n J. P. Davis has been appointed to serve of Richmond, is a partner been appointed to serve on Kentucky’s as a member of the Kentucky Center for at Eaves, Olds, Bohannon Juvenile Justice Advisory Board: Toa the Arts Corp. Davis, of Louisville, is the & Floyd PLLC. Green, owner and operator of Crank & founder of J.P. Davis Partners. Michael Eaves Boom Craft Ice Cream, Lexington; Curtis McGehee, county judge of Muhlenberg GATEWAY COMMUNITY AND County, Greenville; Eric Haner, judge for KENTUCKY COMMUNITY TECHNICAL COLLEGE FOUNDATION the Kentucky Administrative Office of AND TECHNICAL COLLEGE n Natalya Olivia, Todd Sarge and Michael the Courts, Louisville; Deonte Hollowell, SYSTEM FOUNDATION Romes have been named to the board of assistant professor at Spalding University, n Stephanie Bell, Chris Perry and Pamela the Gateway Community and Technical Louisville; Yolanda Johnson, Department Smith-Wright have been named to College Foundation. Olivia is a financial of Corrections/Division of Reentry Services, the board of trustees for the Kentucky services professional with US Bank. West Paducah; Veronica Koontz, division Community and Technical College System Sarge is sales support operations director director for the Department of Juvenile Foundation, the not-for-profit fundraising for TQL. Romes manages the research Justice, Mount Sterling; Donna Pollard, arm of KCTCS. Bell is vice president of associate team at CTI, an international founder of Survivors’ Corner, Fairdale; and government affairs for Windstream. Perry contract research organization Laura Karem, attorney for the Department is president and CEO of the Kentucky headquartered in Covington. of Public Advocacy, Frankfort. Also named Association of Electric Cooperatives. Smith- to the board are students Shaela Worsley, Wright is a retired commissioner for the of Richmond; Jansen Hammock, of City of Owensboro. London; and Isaac Owen, of Louisville.

KENTUCKY EDUCATION KENTUCKY ADVISORY COUNCIL FOR PROFESSIONAL STANDARDS BOARD GIFTED AND TALENTED EDUCATION n Elizabeth Spradlin, Sarah Weedman and Natalya Todd Michael n The following individuals have been Daniel Stanfield have been appointed to Olivia Sarge Romes appointed to serve on the Kentucky serve on Kentucky’s Education Professional Advisory Council for Gifted and Talented Standards Board. Spradlin, of Irvine, is a Education: Tiffany Marshall, principal, middle school teacher at Estill County Jefferson County Public Schools; Schools. Weedman, of Louisville, is an

20 June/July 2021 lanereport.com elementary school teacher at Jefferson appointed as members of the Madisonville STATEWIDE INDEPENDENT County Public Schools. Stanfield, of Community and Technical College Board of LIVING COUNCIL Danville, is a principal at Jefferson County Directors. Lossner, of Slaughters, is a retired n Leslie Bays, Ruthann Daniel-Harteis, Public Schools. school administrator. Ellis, of Benton, is an Winter Renfrow and Susan Clary have optometrist at Clarkson Eyecare. Oliver, of been named as members of the Statewide Princeton, is a retired school administrator. Independent Living Council. Bays, of KENTUCKY ENVIRONMENTAL Brockenborough, of Paducah, is president Prestonsburg, is the director of disability EDUCATION COUNCIL of Hannan Supply. Brooks, of Hanson, is a support services at Big Sandy Community n Ryan Green has been retired health care executive. & Technical College. Daniel-Harteis, of appointed to serve on the Jeffersonville, is director of disability Kentucky Environmental support services at Bluegrass Community & Education Council. Green NORTHERN KENTUCKY TRI-COUNTY Technical College. Renfrow, of Owensboro, is executive director ECONOMIC DEVELOPMENT CORP. is a volunteer. Clary, of Lexington, is a of budgeting, financial n Johnna Reeder Kleymeyer, Lewis retired attorney. planning and fiscal Diaz and Diane Whalen have been effectiveness at Eastern Ryan Green appointed to the board of directors of the Kentucky University. Northern Kentucky Tri-County Economic WEST KENTUCKY COMMUNITY Development Corp. (Tri-ED). Kleymeyer AND TECHNICAL COLLEGE is executive vice president of performance n Butch Bradley, Jay Simmons, Kenneth KENTUCKY HOSPITAL ASSOCIATION and growth at AssureCare and founder of Hurt and Erika Mehta have been appointed n William Haugh has been named chair of JRK Executive Strategies. Diaz is a partner to serve on the West Kentucky Community the Kentucky Hospital Association Board in Dinsmore & Shohl’s Covington law and Technical College Board of Directors. of Trustees. Haugh is chief executive office. Whalen has served as the mayor of Bradley, of Paducah, is an attorney at officer of Bluegrass Community Hospital Florence since 1999. Grumley, Riley & Stewart. Simmons, of in Versailles. Mayfield, is the superintendent of the Carlisle County Board of Education. Hurt, of Paducah, is a tax consultant. Mehta, of KENTUCKY PERSONNEL BOARD Murray, is a community volunteer. n Yvette Gentry, of Louisville, has been named to serve on Kentucky’s Personnel Board. Gentry is a project director at Metro YOUNG PROFESSIONALS United Way and the executive director of Johnna Lewis Diane ASSOCIATION OF LOUISVILLE the Rajon Rondo Foundation. Reeder Diaz Whalen n The Young Professionals Association Kleymeyer of Louisville has announced its 2021- 2022 board of directors: President – John KENTUCKY PETROLEUM Weber, Stites & Harbison; President-Elect MARKETERS PEDIATRIC CANCER RESEARCH – Woo Smith, Terracon Consultants Inc.; ASSOCIATION TRUST FUND BOARD Immediate Past President – Rudy J. Ellis n Scott Kiser has been n The following individuals have been III, Dinsmore & Shohl; Treasurer – Patrick named chairman of the appointed by Gov. Andy Beshear to serve Wilson, MCM CPAs & Advisors; Secretary Kentucky Petroleum on the Pediatric Cancer Research Trust – Elizabeth Mosely, Frost Brown Todd; Marketers Association. Fund Board: Spencer Moorman, social Vice President of Public Relations – Betsy Kiser is executive vice worker, Norton Children’s Cancer Institute; Oyler Appleton, Confluent Health; Vice president for Woodford Scott Rachel O’ Farrell, social worker, University President of Connection – Eiman Zuberi, Oil Co. in Ashland. Kiser of Kentucky Children’s Hospital; Sunnye Louisville City FC & Racing Louisville FC; Mayes, associate professor of pediatric Vice President of Development – Kulwant psychology, Norton Children’s Hospital; Singh, Farm Credit Mid America/Rural LOUISVILLE ARENA AUTHORITY INC. Courtney Emery, school interventionist 1st; Vice President of Engagement – Lena n Nicole Yates has been appointed to specialist, University of Kentucky Muldoon, Louisville Metro Government. the Louisville Arena Authority Board of Healthcare; Eric Durbin, associate Directors: Communication – Sean Directors. Yates is associate vice president professor and director of cancer registry; Southard, Kentucky Department of of community engagement for Molina University of Kentucky; Elizabeth Turner, Agriculture; Social Media – Sam Draut, Healthcare. safety professional, UPS; Michelle Searcy, Block Communications Inc.; Technology registered nurse, Franklin County Health – Jay Brown, Smart Data; Community Department; Jennifer Mynear, volunteer Outreach – Elizabeth Penn, Wyatt, LOUISVILLE PARKS FOUNDATION director, Jarrett’s Joy Cart; and Haley Sage, Tarrant & Combs; Public Issues – Aaron n Michael Bowman has joined the student, University of Louisville. Vance, Dinsmore and Shohl; Professional board of directors of the Louisville Parks Development – Tanelle Smith, Greater Foundation. Bowman is special assistant Louisville Inc.; Leadership – Emory to Lt. Gov. Jacqueline Coleman. STATEWIDE ADVISORY COUNCIL Williamson, Academy of Music Production FOR VOCATIONAL REHABILITATION Education and Development (AMPED); n Kellie Smith, Tyler Levy, Susan Farra Diversity and Inclusion – Victor Keye, MADISONVILLE COMMUNITY and Amy Luttrell have been appointed Louisville Urban League; Recruitment – AND TECHNICAL COLLEGE as members of the Statewide Advisory Gabrielle McChristion Stone, Appriss; n Alan Lossner, Joe Ellis, Patsy Oliver Council for Vocational Rehabilitation. and Membership – Kezia Ramsey, The and Bruce Brockenborough as have been Monticello Banking Co.

lanereport.com June/July 2021 21 LANE ONE-ON-ONE Customer Obsession Rather Than Competitor Focus With $15 billion in investment, 18,000 jobs and 16 sites, Kentucky has become a key ingredient in Amazon’s success as the world’s top e-commerce company

Mark Green: The Amazon air hub facility about to launch this fall at the Cincinnati/Northern Kentucky International Airport (CVG) in Hebron is the biggest economic development project in state history. Tell us about it. Andre Woodson: Yes, our own dedicated space at our hub operation, which is located on the south side of the Cincinnati/Northern Kentucky International Airport. This project involves a total estimated $1.5 billion

Andre Woodson is a regional operations public relations manager with Amazon for an area that includes Kentucky. In his seven years with Amazon, Woodson’s roles have included corporate reputation management, crisis communications, corporate affairs, media relations, and employee and stakeholder engagement. Prior to joining Amazon, Woodson was an assistant coach at Morehead State University, a graduate assistant at University of Kentucky, and a professional athlete in the National Football League. A native of Fort Lewis, Wash., he was a “military brat” who became a successful athlete at North Hardin High School and then at the University of Kentucky, where as quarterback he set an SEC record for touchdown passes in a season. He led UK teams to wins at consecutive Music City Bowls in 2006 and 2007, with 2006 being the school’s first bowl game in 22 years. Woodson holds a bachelor’s degree from UK.

22 June/July 2021 lanereport.com Amazon expects to open the first phase of its $1.5 billion air hub and distribution center at the Cincinnati Northern Kentucky International Airport (CVG) later this year. The 3 million-s.f. hub will include space to house 100 planes and a 250,000-s.f. loading dock. investment in the Cincinnati/Northern Kentucky region and will create 2,000 new full-time additions at this state- of-the-art facility. The Amazon Air facility will feature a new ramp— or aircraft parking—a 680,000 s.f. sortation building and a multilevel parking garage, as well as some local road-grade improvements. The project will open later this year as part of Amazon’s commitment to ensure the best preshipping for customers. We’re really excited to call Kentucky home for our hub. MG: What is the significance of MG: Amazon has an innovative MG: Why was Northern Kentucky adding this hub to Amazon’s a new form of hub and spoke chosen as the location for this? overall e-commerce operation? delivery and this will be the first Kentucky has lots of major AW: Amazon operations has a long hub. Is the expectation at this logistics hub operations. history of innovating on behalf point that the hub will grow or AW: There are a lot of contributors of our customers, and we view that Amazon will create additional that go into our thought process on transportation, not just the aircraft, such hubs or both? where to place a new facility. We’re as the glue that connects customers AW: Amazon Air continues to expand responding to customer demand. to their orders from the moment they globally to meet the needs of its current We want to make sure facilities are click on Amazon.com to the time their customer base while investing in jobs close to customers package arrives on and sustainable solutions to power its so we can offer their doorstep. In network. In 2020, Amazon launched great Prime service It’s important that regard, this air its first-ever air hub in Germany and and fast shipping to us that the hub will continue expanded its presence in the U.S. in speeds. We also thousands of local to provide reliable, more than 35 locations. Since Amazon strategically speedy delivery Air’s launch in 2016, Amazon has look for various organizations we so customers can invested hundreds of millions of dollars locations support are the ones enjoy the great and created thousands of new jobs at that provide value and quality Amazon Air locations across the U.S. As robust public that matter the most products available we’ve continued to increase capacity infrastructure, a to the people from on Amazon. Using with the launch of new sites across strong dedicated the communities our technology, our Amazon Air network, we’ve also workforce and, of we’ve developed a invested in our fleet support to continue course, great local in which we very sophisticated fast, free delivery for customers. We support. And we operate. hybrid point-to- now have more than 70 aircraft flying found all those point and hub-and- in our dedicated air cargo network, and factors in Kentucky. spoke network. Our that number will increase to more than Today Amazon’s main investments operation at CVG will help support 88 aircraft by the end of 2021. in Kentucky have included 10 that network, which lets us serve fulfillment-sortation centers, two increasing numbers of customers MG: Amazon has a number of delivery stations, two Whole Foods with fewer aircraft and flying fewer facilities already in Kentucky. Market locations and a customer miles per package. At this point What is Amazon’s total investment service center, and an Amazon hub now, packages will be loaded and in Kentucky to date and is it locker location. We’re proud of our unloaded from the aircraft for onward reasonable for Kentuckians investments in the state of Kentucky transport to sortation centers and to anticipate operations and and we look forward to launching delivery stations to finish that last investments are going to continue this state-of-the-art facility. mile of delivery. to grow?

lanereport.com June/July 2021 23 LANE ONE-ON-ONE

AW: Amazon is proud to provide a safe and innovative work Amazon’s 12 Leadership Principles environment, which employs the heart and soul of our operations, but Customer Obsession: Leaders start with the customer and work backwards. They work an Amazon presence in Kentucky vigorously to earn and keep customer trust. Although leaders pay attention to competitors, they obsess over customers. means more than just the jobs within the four walls of our facilities. Ownership: Leaders are owners. They think long term and don’t sacrifice long-term value Since 2010, Amazon has created for short-term results. They act on behalf of the entire company, beyond just their own team. They never say “that’s not my job.” more than 18,000 jobs in Kentucky and invested $15 billion across Invent and Simplify: Leaders expect and require innovation and invention from their the state, including infrastructure teams and always find ways to simplify. They are externally aware, look for new ideas from everywhere, and are not limited by “not invented here.” As we do new things, we accept and compensation. Additionally, that we may be misunderstood for long periods of time. Amazon’s investments have contributed more than $12.9 billion Are Right, A Lot: Leaders are right a lot. They have strong judgment and good instincts. in GDP to the Kentucky economy and They seek diverse perspectives and work to disconfirm their beliefs. helped create over 23,000 indirect Learn and Be Curious: Leaders are never done learning and always seek to improve jobs. From construction and logistics themselves. They are curious about new possibilities and act to explore them. to professional services, Amazon’s Hire and Develop the Best: Leaders raise the performance bar with every hire and component network also supports promotion. They recognize exceptional talent, and willingly move them throughout the millions of businesses of all sizes organization. Leaders develop leaders and take seriously their role in coaching others. We worldwide through fulfillment by work on behalf of our people to invent mechanisms for development like Career Choice. Amazon and many of those local Insist on the Highest Standards: Leaders have relentlessly high standards—many organizations are based in Kentucky. people may think these standards are unreasonably high. Leaders are continually raising the Currently there are more than 16,000 bar and drive their teams to deliver high-quality products, services and processes. Leaders small and medium-sized retail sellers ensure that defects do not get sent down the line and that problems are fixed so they stay fixed. and developers in Kentucky working Think Big: Thinking small is a self-fulfilling prophecy. Leaders create and communicate a in partnership with Amazon to reach bold direction that inspires results. They think differently and look around corners for ways new customers, grow their businesses to serve customers. and create jobs. Bias for Action: Speed matters in business. Many decisions and actions are reversible and do not need extensive study. We value calculated risk taking. MG: What business factors make Kentucky attractive to Amazon? Frugality: Accomplish more with less. Constraints breed resourcefulness, self-sufficiency and invention. There are no extra points for growing headcount, budget size or fixed expense. What key factors influence decisions on where to grow— Earn Trust: Leaders listen attentively, speak candidly, and treat others respectfully. They tax structure, infrastructure, are vocally self-critical, even when doing so is awkward or embarrassing. Leaders do not believe their or their team’s body odor smells of perfume. They benchmark themselves and education system, supply chain their teams against the best. safety, the cost of doing business? AW: I wouldn’t be able to dive deep Dive Deep: Leaders operate at all levels, stay connected to the details, audit frequently, on that one because technically that’s and are skeptical when metrics and anecdote differ. No task is beneath them. a question for a different department, Have Backbone; Disagree and Commit: Leaders are obligated to respectfully and more specifically that is some challenge decisions when they disagree, even when doing so is uncomfortable or of the ‘secret sauce’ with Amazon: exhausting. Leaders have conviction and are tenacious. They do not compromise for the sake of social cohesion. Once a decision is determined, they commit wholly. identifying different real estate space. Deliver Results: Leaders focus on the key inputs for their business and deliver them MG: You mention that 16,000-plus with the right quality and in a timely fashion. Despite setbacks, they rise to the occasion Kentucky businesses are already and never settle. supported by Amazon selling their products, etc. Are there platform to reach millions of wants and does it provide training other relationship opportunities customers across the globe. We’re after it onboards people? Amazon presents to the Kentucky always looking for opportunities to AW: Kentucky’s been a source of business community? support the local economy. exceptional talent for Amazon, AW: Amazon is always looking and we’re excited to continue our for ways to give back to the local MG: Amazon has thousands growth by adding additional job communities in which we live and of employees in Kentucky and opportunities on top of the Amazon work. We partner with local vendors hundreds of thousands elsewhere; employees already working across and nonprofit organizations and it’s a hiring machine. Is Amazon the Bluegrass State in its operations. different small and medium-sized able to find employees in Kentucky We’re always innovating to bring our businesses that sell on Amazon’s in the quantity and quality it customers new levels of convenience

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and provide them with a variety of options so they can choose what works best for them. However, the health and safety of our employees is Amazon’s No. 1 priority and has been since day one. All associates go through hours of safety training, such as virtual new-hire orientation, routine safety reminders through multiple internal channels and training modules. We’re reallocating people from other jobs around the world for the purpose of being safety ambassadors. We’re short-term results, or valuing risk Amazon employs over 18,000 full- and part- coaching employees about safety, and taking, our unique Amazon culture time employees in Kentucky and operates we send regular emails, newsletters helps us relentlessly pursue our 10 fulfillment and sortation centers, two delivery stations, one customer service and text messages to convey mission of being the earth’s most center, and two Whole Foods Market important safety instructions. We also customer-centric company. locations in the Bluegrass state. work closely with health and safety experts. Scientists conduct thousands MG: Does Amazon have one of safety inspections each day in our executive overseeing all operations and keeping thousands of new building, and we’ve made hundreds in Kentucky? employees on an ongoing basis? of changes as a result of employee AW: There’s no correct answer on this. AW: This year LinkedIn ranked feedback on how we can improve It’s hard to categorize one individual as Amazon No. 1 on its Top Companies their well-being at work. the top chief because there are multiple of 2021 list. LinkedIn’s methodology Last year alone we committed over business lines that have vertical lines evaluates how companies attract $1 billion in incremental investments going straight up to (CEO) Jeff Bezos; it and retain the best talent, including in employee safety. We hired over would be almost impossible to say one through promotions, finding 180 new leaders and plan to hire an individual oversees the region. Several opportunities for employees learning additional 60 new safety leaders by individuals oversee…operations, skills, gender diversity and hiring the end of the year. That’s in addition transportation, delivery, staffing, people from all backgrounds and to more than 1,000 new safety team sourcing, all those different businesses. levels of education. LinkedIn also members hired to date and plans to Our fulfillment network is made looked at how recruiters from other add another 5,000 experts to our global up of state-of-the-art technology companies search for employees team by the end of the year to ensure and a variety of building types currently working at Amazon. the health and safety of our workforce. and sizes to support processing Just this past year, Amazon created orders, but it’s truly our people more than 400,000 jobs in the U.S. MG: Amazon has experienced who bring Amazon to life, who and onboarded tens of thousands phenomenal success. Are there operate world-class facilities in of new employees virtually. All unique elements of its business cities and communities across the Amazon jobs pay a starting wage of culture that have created this Bluegrass State. In Kentucky, we at least $15 an hour, twice the federal ongoing success that Amazon currently support more than 18,000 minimum wage, and all regular full- shares publicly? employees who are innovating and time employees enjoy health care that AW: Amazon in general is guided by working to serve customers in our starts on their first day, a 401(k) plan four principles: customer obsession fulfillment and sortation centers, with company match, up to 20 weeks rather than competitor focus; specialty and receiving facilities, of parental leave, company-subsidized passion for invention; commitment delivery stations, a customer service backup child and adult care, and to operational excellence; and long- office, retail location, and Air Hub access to free upskilling opportunities term thinking. Amazon also strives to network. Those are in addition to such as the career-choice program that be earth’s best employer or place to our leaders on the real estate, public prepays up to 95% of tuition for in- work. Additionally, our 12 leadership policy, community engagement, and demand courses. Those are incredible principles [see box on page 24] safety teams supporting Amazon’s opportunities for our workforce to describe how Amazon does business, operations around the region. provide advanced skill opportunities how leaders lead and how we keep the to grow within the company. customer at the center of our decisions. MG: Amazon is one of the largest Amazon also has 13 affinity So whether it’s leaders starting with employers in the nation and in groups—better known as employee the customer and working backwards, Kentucky. What is its successful resource groups—with more not sacrificing long-term value for strategy for finding, onboarding than 90,000 members across 190

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chapters. Those groups bring to extend the human reach and MG: You mentioned a lot Amazon employees together across capability in a manner that will of community support and businesses and locations around make tasks easier, but also allow engagement. Is there an Amazon the world. Affinity groups play an our associates to turn their abilities foundation and are there any important role in building internal to more sophisticated tasks where projects that such a foundation is networks for creating a community, they can add the most value. I would involved with in Kentucky? advising Amazon business units, also say that across all of our sites, AW: There’s no Amazon foundation leading in-service projects and we use innovative technology to (but) Amazon does a lot of reaching out to communities where assist employees on a daily basis community stuff. We’re a global employees live and work. We’re and we will continue to consider the business and have local roots set proud to create a global business introduction of robotics in areas of firmly in Cincinnati and Northern with a lot of diversity and different our facilities that make most sense. Kentucky and firmly in the Kentucky backgrounds as we continue to grow Our teams continue innovating, region. From the local jobs we bring across the globe. utilizing advanced technology and to local people we employ, train and all types of abilities to make jobs upskill, our business is made up MG: Are there workforce safer and easier for employees and of people from the communities in characteristics specific to improve the customer experience. which we operate. Amazon is part of Kentucky that are conducive to this community and we’re invested in being effective Amazon team its success. It is important to us, and members? the thousands of employees who live AW: This is simple. What unites and work where we have a physical Amazon employees across the presence, to continue to find ways Kentucky teams and geographies is to support local organizations that that we’re all striving to innovate matter the most to the people from on behalf of our customers and the communities. We are constantly make their lives easier. Our diverse looking for ways to give back to those and inclusive teams have a positive local areas. impact on our products and services It’s important to us that the and help us better serve customers, thousands of local organizations employees and members of the we support are the ones that matter community. We’re just proud to the most to the people from the continue to invest in the state of communities in which we operate. Our Kentucky where there’s incredible In August 2020, Amazon received federal work includes providing children and workforce talent for us to employ. approval to operate its fleet of Prime Air young adults from underrepresented delivery drones from the Federal Aviation and underserved communities access MG: There’s debate as to whether Administration. to computer science and STEM robots are displacing human jobs (science, technology, engineering and or employees are increasingly math) education through the Amazon becoming robot overseers. What’s MG: There’s a high interest level Future Engineer program. We address the role and trend of robotics use in drones and drone delivery. Is immediate needs—such as reducing in Amazon facilities? drone delivery taking place or family hunger and homelessness AW: Stepping into an Amazon facility about to take place in Kentucky? and serving communities in need that uses robotics is pretty cool. AW: I can’t comment on that, but following natural disasters. We Keeping the machines operating safely there is general information in the also make it easy for customers and smoothly requires thoughtful public domain. The latest prototypes to support their favorite charity engineering and maintenance, so the are incredible. If you go on amazon. through AmazonSmile. A few of responsibility of maintaining these com/primeair I believe the different the many Kentucky organizations systems falls to multiple technical variations of the creative will we have worked with recently professionals throughout Amazon pop right up. There are like seven include Louisville-based Dare to facilities who possess a very valuable different prototypes, and there’s a Care, Northern Kentucky Freestore set of skills and experiences. Those new one that was recently released Foodbank, Taylor County Public are skills and experiences that we and it’s astonishing. They continue Library, and God’s Pantry in know will continue to play a key to change. Depending on what Winchester. role in the future of logistics and terrain they’re going to be hovering operations at Amazon. in—if it’s a rural area, if it’s urban MG: Many people believe team We’re investing in research and area—that will dictate the creation sports is good preparation for development that provides assisted and the engineering. They’re pretty business success. How does your and collaborative technology neat to look at. experience as quarterback of some

28 June/July 2021 lanereport.com of the University of Kentucky’s best football teams, where you were a leader and a communicator, play into your current role with Amazon? AW: The University of Kentucky football program helped me develop an incredible skill set needed for working with phenomenal builders and innovators through Amazon. To find the best talent from all LET THE JOURNEY BEGIN. backgrounds, Amazon brings varying cultures, ideas and points Hard work, dedication to family, and respect for of view as a way to scale their the craft have led us home along Monk’s Road. impact as they continue to grow. In that regard, I was fortunate to learn We invite you to join us for a fi rst taste from from diverse educators at UK that the new Log Still Distillery. instilled self-reliance, self-discipline and leadership skills to prepare me for the ‘real’ world. In stores throughout Kentucky.

MG: How did you come to work for Amazon? Did you seek them out or did they come to you? AW: Actually one of my good friends who was working for Amazon suggested me for a position that became available in community relations. I went to meet with the leadership team in Seattle. I traveled there for an in-person interview and had a chance to understand the culture and see the campus and see firsthand some of the incredible things that Amazon was doing, and I knew I wanted to be a part of this. I wanted to be a part of this network and grow with this company that was having such an impact on millions of people across the world.

MG: When did you join Amazon? AW: I joined in 2014. My seven- year milestone with the company— we call them AM-iversaries—was June 15. I celebrated seven years with the company and I’ve had an array of positions, from community specialist, community relations, supporting community activations nationally to public relations, crisis issues management, now more storytelling opportunities. In the multitude of roles that I’ve had, I’ve had the pleasure of supporting and working with some phenomenal people across the network. ■

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Even during the pandemic, LG&E/KU made ongoing investments in the utilities’ electric distribution and transmission systems. Here, What it Takes to Keep LG&E/KU utility workers install a recloser— an automatic, high-voltage electric switch— Kentucky Running in Elizabethtown. processes and prioritized investment in equipment critical to reliable Traditional energy players make expansions in generation,” said Natasha Collins, infrastructure and manage new renewable energy sources director of corporate communications for LG&E and KU. “The key reliability measure of unplanned equipment BY JEFF MCDANALD KU), supplies 1.3 million natural downtime has been reduced or gas and electric customers in 93 of improved by approximately 50% at HETHER we’re talking Kentucky’s 120 counties. the utilities’ power plants over the water, gas or electric, Continuing enhancements across last decade.” Kentucky’s public operations at LG&E and KU electric utilities are faced with transmission systems include Wthe challenge of updating hundreds replacing aging wooden poles with of miles of distribution systems that steel, installing new circuit breakers are in many cases decades old. and substation equipment, managing Here’s a look at Kentucky’s key vegetation and upgrading lines. public utilities players and how they LG&E and KU use advanced are keeping pace with the market technology that can pinpoint the pressures of this capital-intensive location of power outages and, in business sector. We’re covering water, many cases, limit the impacted area gas and electric providers, but as the and automatically restore service for Kentucky legislature continues to the surrounding customers. invest in internet delivery, we’re also “At our generation facilities, taking a look at broadband. reliability at LG&E and KU’s power LG&E/KU’s newly launched mobile app Kentucky’s largest utility provider, plants is among the best in the nation allows customers to view their account Louisville Gas and Electric Co. and as a result of the utilities’ focus on information, view and pay their bill, view Kentucky Utilities Co. (LG&E and carefully planned maintenance outage maps and report outages.

30 June/July 2021 lanereport.com A flock of Shetland sheep manage the vegetation at the hydroelectric and universal solar facility at LG&E’s E.W. Brown Generating Station in Mercer County, Ky. , alleviating the problem of getting mowers underneath the solar arrays.

Across their natural gas system, LG&E continues to replace aging steel gas lines and make upgrades to compressor stations and underground storage facilities. And following comprehensive safety protocols, they are using in-line inspection tools, robotic sensors and leak detection surveys. plant, a coal-fired generating unit, prompted LG&E and KU to launch Like other utility providers in natural-gas fired combustion turbines a live-streaming sheep cam where Kentucky and across the nation, and a universal solar facility. viewers can watch the “mowing.” LG&E and KU are feeling the public At the universal solar facility, The variety of options LG&E and pressure for renewable energy as a LG&E and KU are taking an innovative KU have created to meet renewable replacement for legacy fossil fuel approach to vegetation management. energy and sustainability goals power that has steadily increased Thanks to a partnership with nearby includes a business solar program since the 1980s. Shaker Village of Pleasant Hill, flocks where customers can purchase solar, On the banks of Lake Herrington of sheep freely roam and munch hydro or wind power with renewable near Harrodsburg, the E.W. Brown vegetation around the 44,000 solar energy certificates. Plant is unique in that it showcases panels. “Already, two of Kentucky’s leading four generations of electricity- This spring, public interest in the industrial companies, Toyota and producing facilities—a hydroelectric sheep and their role in the solar array Dow, are participating in renewable

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The Kentucky Public Service Commission in 2020 approved approximately $8.3 million in Kentucky American Water’s Qualified Infrastructure Program (QIP) improvement projects, which allows the company to replace aging water system infrastructure at a quicker pace. power agreements that support the construction of a new, 100-megawatt solar array, which will be among the largest in Kentucky,” Collins said. “In addition, we’ll soon be doubling the size of our (business and residential) solar share facility in Simpsonville.”

A drop in Kentucky’s bucket Kentucky is a state of rivers and streams. Unlike the vast expanse of “Our abundant supply, outstanding projects in 2021. Although 90% of Western states that are praying for quality and low rates make us a great their customer base is in Fayette the next rainfall or depending on fit for any business, but especially for County, the utility provides water snowmelt, Kentucky is blessed with food and beverage,” Smith said. and/or wastewater services in an abundant water supply. The recent announcement of portions of 14 surrounding counties. “The Ohio River is a great example, House Food America’s new facility “We are currently working on with 75 billion gallons of water in Louisville is a case in point. The projects such as upgrading aging water flowing by every single day,” said internationally known tofu-maker mains in some parts of our service area, Kelley Dearing Smith, vice president required two primary ingredients: as well as making water-treatment of communications and marketing for soybeans and abundant quality water. plant improvements,” said Susan Louisville Water. “And yesterday at Louisville Water is employing Lancho, external affairs manager for Louisville Water, we only pulled 140 robotic technology for monitoring Kentucky American Water. million gallons of water to produce their underground systems. “Water is essential, and it’s a life drinking water; it’s a drop in the “Our robot device will go through force,” said Lancho. “It flows through bucket.” a pipe while it’s filled with water, everything big and small, giving us Kentucky has done a good job over delivering it to customers’ homes,” what we need to drink, wash, work, the past 30 years in consolidating Smith said. “Because of technology, cook, play, grow and so much more. water utilities, which has kept we’ve been able to do more preventive It’s a vital part of nearly everything consumer costs down and improved maintenance, which means we’re not we do.” water quality according to Smith. digging up streets or dealing with giant Ongoing investment in water “There were close to 1,000 water water-main breaks that disrupt life.” system infrastructure is critical to utilities in the state of Kentucky 30 Upcoming investments in maintain quality, reliable service for years ago,” Smith said. “That’s crazy technology over the next few years communities, Lancho said. for a state our size, but today there will improve the customer experience “We are also concluding our first are a few hundred.” at Louisville Water, allowing year of capital projects funded through Louisville Water, which serves customers to track their own daily our Qualified Infrastructure Program 850,000 residential and business usage and improve billing options. (QIP),” Lancho said. “The purpose customers in the greater Louisville “Today we’re trying to work with of the QIP is to allow the company area has been singled out by the four or five different types of people, to replace aging water system Partnership for Safe Water, an EPA- everything from the baby boomers to infrastructure at a quicker pace before driven program, as a utility that Gen Z,” Smith said. “Some want to it potentially becomes problematic and goes above and beyond in terms of talk to you on the phone, some just more costly to replace.” delivering quality water. They are one want to send an email, some never In June 2020, the Public Service of only 18 North American utilities want to talk and want to have you on Commission authorized Kentucky with that distinction. their mobile app and do everything American Water to replace Louisville Water often finds itself they need on their smartphone.” approximately six miles of water main playing a role in the regional economy, Kentucky American Water, a projects along with main replacements working closely with Louisville provider to 500,000 business and associated with water main repairs. Forward and Greater Louisville Inc. residential customers, will invest This represented $8.3 million in to help market the state. approximately $25 million in capital improvements by the end of June 2021.

32 June/July 2021 lanereport.com “We have filed our replacement program remains a key service area,” said Risa Richardson, recommendations for 2021-2022 focus of efforts to ensure safe and communications manager at Columbia QIP projects with the PSC, which reliable service for customers. Gas of Kentucky. “Major projects this are currently in review,” Lancho They are working toward a goal year include work in conjunction with said. “The fee associated with of replacing aging cast-iron and bare the Clays Mill Road widening project the 2020-2021 QIP projects added steel pipe in their system with new in Lexington. approximately 36 cents to the average pipe that has enhanced safety features As with many utilities across monthly residential water bill.” and requires less future maintenance. Kentucky, the pandemic has brought “We are investing about $45 million an outpouring of relief and support in projects in neighborhoods across our programs for customers—an array of Working cooperatively East Kentucky Power Cooperative (EKPC) is a member-owned electric cooperative that provides wholesale electricity to 16 member-owned WE INVEST IN OUR distribution cooperatives that serve 1.1 million Kentucky residents across 87 counties. COMMUNITIES If you spot a TV or magazine advertisement for one the local EKPC cooperatives, they are often referred to as Kentucky’s Touchstone Energy www.kentuckyamwater.com Cooperatives. EKPC provides power through coal- fueled plants located in Mason and Pulaski counties; natural gas-fueled plants in Clark and Oldham counties; and renewable energy plants in Barren, Boone, Clark, Laurel, Greenup, Hardin and Pendleton counties. EKPC owns and maintains nearly 3,000 miles of high-voltage electric transmission lines and more than 275 substations. Much of this infrastructure was built decades ago. EKPC has established an assessment and screening process to identify and prioritize sections of transmission lines that will need to be replaced in coming years. Major upgrades underway include a series of projects at EKPC’s power plant in Maysville aimed at ensuring future compliance with federal regulations related to handling and storage of coal ash and related materials, as well as handling and discharge of water at the plant that began in 2019 and will continue until 2024. These projects, totaling $263 million, will help to ensure the power plant remains in compliance with more stringent environmental rules. Columbia Gas NiSource serves about 135,000 residential and commercial customers in 30 counties in Central and Eastern Kentucky. Their multiyear pipeline

lanereport.com June/July 2021 33 ENERGY & UTILITIES

payment plans, waiving late fees and promoting federal and state payment- assistance programs. Atmos Energy, which provides natural gas to 182,000 customers across western Kentucky, also makes community assistance a priority. “Compassion to give back to communities we serve flows through the heart and soul of Atmos Energy’s employees, and our ‘Fueling Safe with off ramps into every county in Atmos Energy provides natural gas to more and Thriving Communities’ program Kentucky,” said Jamie Link, who was than 182,000 customers in Owensboro, focuses on three primary areas: named executive director of KCNA Bowling Green, Paducah, Hopkinsville, Shelbyville, Lawrenceburg, Danville, students, community heroes and our in March 2020 and was recently Princeton and Campbellsville. most vulnerable neighbors,” said Kay appointed as secretary of the Kentucky Coomes, public affairs manager at Labor Cabinet. “One of the things that Atmos Energy. needs some clarity is that the Kentucky industry, health care and other Wired Network is what we call a Kentucky enterprises. ISPs can also Broadband connectivity middle mile. If you use an analogy like utilize the network to extend service The Kentucky Communications the roadway system, Kentucky Wired into underserved areas.” Network Authority (KCNA) is the is the interstate highway.” The broadband network will have public technology authority that is To provide those last miles the most impact on rural areas where partnering to build and manage a of connectivity from the nearly providers like AT&T, Windstream commonwealth-owned broadband completed Kentucky Wired backbone and Charter Spectrum have seldom fiber network across the state. to broadband customers, KCNA is ventured. The promise of the project has relying on Accelecom, their exclusive “In the rural market, the economic wide-ranging benefits for improving wholesale partner. model just didn’t work for them,” Link the lives and lifestyle of Kentuckians, The statewide network connecting said. “So that’s where the governor and including economic development and all 120 counties is a 100G symmetrical congressmen saw the need, and that tourism growth, higher education geo-redundant fiber network was the motivation behind building advances, interconnected public according to David Flessas, CEO of the Kentucky Wired network.” safety, and enhanced health care. Accelecom. “The cost of building the network The construction of the high- “It’s 3,200 miles of cable extending is somewhere in the neighborhood speed fiber optic cable network is into each Kentucky county,” Flessas of $360 million,” Link said. “The 98% complete and approximately said. “The cable consists of 288 goal is that KCNA will be the service 150 government-related offices have strands, with 144 strands designated provider to all state government already migrated over to the Kentucky for use by state agencies. The agencies and that is expected to Wired network. remaining capacity of the cable is generate about $12 million a year in “By September we should be totally available through Accelecom for service revenue that was previously completed with Kentucky Wired, commercial access for business, going to private-party providers. One of the key elements of our wholesale agreement with Accelecom is that 75% plus of their net revenue comes back to the commonwealth. As those revenues continue to grow, the goal is that the project will be net positive in its ability to pay for itself.” ■

Jeff McDanald is a correspondent for The Lane Report. He can be reached at [email protected].

Spurlock Station is Eastern Kentucky Power Cooperative’s largest power plant, featuring four generating units that have the capacity to produce more than 1,300 megawatts of power. EKPC serves approximately 545,000 homes, farms, businesses and industries in 87 Kentucky counties.

34 June/July 2021 lanereport.com Sponsored Content STATE OF DOWNTOWN REPORT SHOWS DOWNTOWN LEXINGTON READY TO REBOUND

More than 150 real estate and economic development professionals, community leaders and downtown stakeholders recently gathered at the new LexLive theater and entertainment venue for the State of Downtown presented by Republic Bank and hosted by the Downtown Lexington Partnership (DLP) with support from the Downtown Lexington Management District (DLMD). At the event, DLP and DLMD presented benchmarks of key economic indicators on the health of downtown and provided analysis of 2020 as well as the effect of the pandemic on downtown and projections and trends for the next 12 months. To bolster traditional benchmarks that DLP tracks, this year’s report also includes results and analysis of a DLP survey of downtown street-level merchants, bars, hospitality and food service businesses and commercial office tenants that was conducted in May 2021.

In whole, the set of data in the 2021 State of Downtown Report shows that many downtown businesses were significantly affected by the pandemic but not all economic indicators took a hit. In fact, commercial and residential real estate had a strong year, and the data shows that downtown is well positioned to rebound and is showing signs that recovery is already in progress.

STATE OF DOWNTOWN HIGHLIGHTS CUSTOMER BASE: • 297,167 composed of office workers, residents, students, visitors and event attendees.

COMMERCIAL REAL ESTATE: LIVING AND QUALITY OF LIFE: • New Project pipeline of recently completed, underway and planned projects grew to • Top 10 residential sales accounted for $3.3 Billion. $12.6 million and the top 50 sales generated • Top 50 sales surged, recording nearly $87.5 $29 million. million in sales with the top 10 transactions • 3,853 apartments with 94.72% occupancy rate. exceeding $69.8 million compared to $33 • Crime rate decreased 14% compared to 2019 million 2019, and $36 million in 2018. and 44% compared to 2018. • 122 new street level businesses opened since 2017, including 31 in 2020. SURVEY RESULTS: MOBILITY AND TRANSIT: • 74% of offices have reopened to the public. • 90% of commercial office tenants and 83% • 71,209 downtown Lextran trips and 51,707 of street level business plan to hire new downtown e-scooter trips. employees in next 12 months. • Walk score of 91 and 18.72 miles of bike lanes • 83% of restaurants/bars believe their 2021 and trails. sales will exceed 2020. Visit downtownlex.com to view the 2021 SODT Report and Video.

Downtown lex V2.indd 1 6/28/21 3:50 PM ECONOMIC DEVELOPMENT

Gov. Andy Beshear (center) was joined in June by state, local and company representatives to celebrate AppHarvest’s groundbreaking ceremony in Somerset, where the Kentucky- based agricultural-technology company is building a 30-acre indoor farming facility that will grow berries. AppHarvest also announced its second indoor farm in Morehead, bringing the number of AppHarvest facilities in the state to five. New Tools for Growth compare themselves to competitors, Kentucky Association for Economic Development inform marketing decisions and was feverishly busy during pandemic manage supply chains. “We were the second state to roll this out,” Tackett said. “KAED did it free BY MARK GREEN There are 550 KAED members, for members and others in Kentucky. including all the state’s local and We saw it as a responsibility and an HE Kentucky Association regional economic development opportunity. There is a lot of growth for Economic Development operations; many chambers of and reshoring (of manufacturing responded to the COVID-19 commerce; universities and colleges, from foreign countries) taking place. pandemic with a burst of energy including the Kentucky Community KAED is here to amplify and support thatT created a new set of tools for local and Technical College System; communities.” economic developers and businesses many individual businesses; and— Faculty at the University of across the state to not only retain significantly—the commonwealth’s Kentucky worked with a California business but generate new growth. utility companies. Utilities traditionally startup to develop a customer “We immediately shifted the play an especially large role in relationship management tool for majority of our resources to business supporting and encouraging economic economic developers, communities retention,” said Matt Tackett, development because large projects and businesses to better access and president/CEO of KAED. “We’ve got a tend to be big customers whose use the information. The dashboard lot of intellectual capacity sitting here consistent needs allow utilities to better was introduced in June. (in the state’s economic development plan and manage their own operations. The commonwealth is aggressively sector). Let’s put it to work for us all.” Size Up Kentucky offers business reaching out to new businesses across The work on business retention intelligence and analytic data to equip multiple industries and especially in strategy grew into the Kentucky every Kentucky business or local its major industry sectors, including Economic Recovery and Resilience economic development operation. manufacturing such as automotive, Project, resulting in several new In many areas this is a function of aerospace, primary metals, and food initiatives and programs that Tackett the county judge-executive’s office. and beverage, as well as industries said are now available to the public This free service provides business like logistics and transportation. and private sector all over Kentucky. intelligence and marketing analytics As of mid-June, Kentucky And they are free. data that allows businesses to economic developers had announced

36 June/July 2021 lanereport.com $1.6 billion in investment with 3,000-plus new jobs in 2021. This is coming after the state announced Kentucky economic $2.3 billion in 2020 projects with 8,000 new jobs “in a difficult year,” developers are optimistic Tackett said. “Kentucky is very well positioned to NIQUELY disruptive pandemic conditions brought an unexpected drop take advantage of new realities created in overall business and economic activity in Kentucky, the nation and by COVID,” he said, citing the growing the world. The steepest plunge and greatest rise in GDP ever recorded move to remote work. “We have U occurred in 2020. It left the U.S. and Kentucky alike with an overall GDP shown we have a very competitive, decrease of about 3.7% for the year. attractive space for business. We have With restrictions aimed at preventing COVID-19 infections having been lifted many reasons to be enthusiastic.” in June, The Lane Report asked a variety of local economic development offices KAED support services include around Kentucky about their current goals and priorities for the second half lining up a consultant to evaluate grant of 2021. applications for money the Cabinet for Economic Development has received. July 12 is the deadline for We are continuing to encourage communities in Kentucky to apply LOUISVILLE employers to offer vaccine incentives for the latest Product Development “I am extremely to their employees and public-facing Initiative grants of up to $500,000 to optimistic about businesses to offer incentives to improve the sites they have available the current their patrons. I am encouraged by for businesses to locate or grow into. trajectory of the current trends in vaccination It is the third such round of grants. our economy, rates and COVID cases. However, “This has worked really well for but realistically we must keep the momentum going us the past two years,” Tackett said. there is still a to make it to the finish line of this “This makes us more competitive” long road ahead. pandemic. by being able to offer prospects sites Economic Many businesses in our region are that are “risk free and ready to go.” Sarah Davasher- recovery is GLI’s facing unique challenges stemming Wisdom, KAED also is participating in President and CEO top priority, and from the ripple effects of the marketing the state nationally and Greater Louisville Inc. we are working pandemic. Whether it be supply chain sometimes internationally. Tackett to support disruptions or workforce shortages, spent two weeks in China in 2019 businesses and to eliminate barriers many of our core industries are in addition to visiting Europe and that may slow down our growth. Japan. When the pandemic struck in Over the last few months, spring 2020, that marketing initiative we have promoted efficient and Louisville Mayor Greg Fischer, center, joined transitioned to virtual meetings with equitable distribution of COVID-19 executives from Vision Hospitality Group in top site-selection consultants. vaccines because herd immunity late May for the opening of The Grady Hotel, “We are telling the story of Kentucky through vaccination is imperative a new luxury boutique hotel just steps away across the world,” he said. “We seek to keeping our economy fully open. from Whiskey Row in downtown Louisville. markets in the U.S. and elsewhere, go to site-location consultants within those target markets and let them know why Kentucky makes sense for their clients to find a home.” KAED is also assessing economic development incentives other states are offering—especially Kentucky’s main competitors in the Southeast and just to the north—to see how the commonwealth might adjust its own incentives, which last had a significant update more than a decade ago. “I really believe we’ve hardly scratched the surface of what KEAD can do, which is really exciting,” Tackett said.

lanereport.com June/July 2021 37 ECONOMIC DEVELOPMENT

Legion Logistics moved its headquarters into newly renovated space at Newport on the Levee in late May. Because of an increased demand for its third-party logistics services, Legion is actively hiring and expects to add more employees by the end of 2021.

layoffs, workshares, child care, etc. Businesses and schools were directed to call the chamber for whatever needs they faced, and we worked diligently to track down solutions,

Preston Saunders/We the Creators photo regardless of sector or county of residence. Serving as the community response network, we took calls from all over the state and disseminated information on a daily basis. Area businesses acknowledge that our information sharing has been paramount to their continued operation and for those that have locations in other states and countries, our information has been shared missing critical pieces to the puzzle throughout their organizations. of their individual recoveries. We are BOWLING GREEN Additionally, our coordination of working through our advocacy and Amidst the communications helped businesses economic development channels to pandemic in know how others were handling stabilize these core industries. While 2020, South issues. That has led to new business troubleshooting is a major focus, Central Kentucky friendships in the region to allow for we are also working to develop didn’t see a sharing of best practices. innovative initiatives that will allow slowdown These feedback loops have opened our region to build back stronger in economic doors to businesses and created an than before. development opportunity for us to engage at a much We are continuing our focus on activity. We deeper level. We can survey quickly talent attraction. However, over Ron Bunch, saw major and receive custom information. the past year we have shifted our President and CEO, announcements They are far more apt to reply than strategy and have been working Greater Bowling in our region Green Chamber they were pre-pandemic. to attract remote workers to of Commerce from companies In addition, in 2020 Bowling Greater Louisville and develop like CROWN Green and Warren County made an our homegrown workforce. Our Cork and Seal, Dollar General and investment in the future by facilitating advocacy team is pursuing policies Nova Steel, just to name a few. We $46.5 million in bonds to help pay for to increase workforce participation, ended the year with $331 million the development of Phase II within which is critical to the long-term in capital investment in new and the Kentucky Transpark. The initial success of our economy. We are also expanded businesses and over 335 new Kentucky Transpark was comprised continuing to manage the Greater jobs. We recently were awarded the of 700 acres that have largely been Louisville Regional Partnership and Mac Conway award by Site Selection developed and sold. This new bond are encouraged by the 44 projects magazine, recognizing our region as will pay for the development of an we currently have in our economic one of the top 20 in the country for additional 400 acres. Issuance of the development pipeline. economic development in 2020. bond is timely given that several To complement all these efforts, We were not, however, unaware of companies such as CROWN Cork diversity, equity and inclusion are how our local businesses were being & Seal and Ball Corp. have already at the forefront of all our work. To affected by the pandemic. Businesses chosen site locations that are outside become the kind of forward-thinking needed to know to what level they of the initial acreage. There are and top-tier city we are striving to be, were allowed to operate, how to currently 1 million s.f. of buildings we must eliminate racial disparities identify reliable sources of PPE being built in the Transpark and and create a region and economy (personal protective equipment), and investments close to the same size where everyone can succeed.” how to help their employees navigate are set to be announced soon.

38 June/July 2021 lanereport.com Our focus the past nine years has will gather data about contracting to develop a plan to improve the been on the talent supply chain for needs, how companies approach region’s ability to increase jobs, our region. A strong talent supply the contracting process, the current develop the needed workforce, chain is vital to the continuing capacity of minority business and improve infrastructure and success of our region, and that need enterprises (MBE) to meet those business climate so that we are better only intensified as a result of the needs, and potential opportunities to positioned to compete nationally and pandemic. Currently, we are seeking increase MBE contracting. internationally. Guiding this process ways to find out the composition Commerce Lexington will be will be Ted Abernathy, managing of those unemployed, what their collaborating with partners and partner of Economic Leadership LLC, barriers are to finding work, and keyWomen's leaders Summit across ad-LaneReport-4.5625x7.4375_Layout the nine-county a consultancy 1 6/23/2021 that develops 11:16 AM economic Page 1 helping resolve those issues to build economic development region and workforce strategies. our workforce stronger than ever.

LEXINGTON As the Lexington region continues to climb out of the pandemic, Commerce Lexington’s Inaugural economic development WOMEN’S team is working Bob Quick, on many President and CEO impactful Commerce S U M M I T Lexington initiatives. In presented by addition to our efforts to recruit and retain business and industry here, we are focused on projects related to small July 19, 2021 business support; diversity, equity Central Bank Center | Lexington and inclusion; minority business development; regional collaboration; and workforce development. Commerce Lexington has been Featuring managing the city’s $2.5 million 10:15 A.M. KEYNOTE Small Business Economic Recovery Grant Program, which is providing DR. NEELI BENDAPUDI support to many small and minority- PRESIDENT, UNIVERSITY OF LOUISVILLE owned businesses. Our organization RENEE SHAW successfully managed last year’s grant PUBLIC AFFAIRS MANAGING PRODUCER program, with 67% of the approved AND HOST, KENTUCKY EDUCATIONAL applicants being minority- or women- TELEVISION (KET) owned small businesses. Through our commitment to 1:30 P.M. KEYNOTE diversity, equity and inclusion initiatives, Commerce Lexington THE HONORABLE plans to expand its Minority ELAINE CHAO Business Accelerator Program to FORMER U.S. SECRETARY OF LABOR AND seven companies, which will help U.S. SECRETARY OF TRANSPORTATION strengthen and expand the regional ASHLI WATTS minority business capacity. We will PRESIDENT & CEO be working closely with the Black KENTUCKY CHAMBER OF COMMERCE Faith Leaders Collaborative to assess Learn More or Register the needs of prime contractors and kychamber.com/events/womenssummit minority businesses throughout Central Kentucky. This assessment

lanereport.com June/July 2021 39 ECONOMIC DEVELOPMENT

Mark Cetrulo, president and COO of Hollaender Manufacturing Co., left, gives a tour of the company’s new warehouse in Somerset to Mayor Alan Keck and Pulaski County Judge-Executive Steve Kelley. Hollaender opened its 12,000-s.f. warehouse in October 2019 and company executives are already considering expansion.

Finding talent continues to be a major issue for employers. This workforce shortage will require a multifaceted solution, including efforts to increase access to child care or elder care, closing the skills gaps, and creating an adequate talent the horizon, existing businesses to-date website and marketing plan pipeline that addresses employer expanding, our tourism economy tailored specifically to site selectors. needs now and in the future. on Lake Cumberland and downtown Our website is now automatically One of the biggest challenges to Somerset growing, and a thriving updated with community data and attracting business locally is a lack arts and agriculture sector seeing information related to the assets we of land for economic development unprecedented success. The Lake promote. Our assets are promoted on in Lexington. Not only have we lost Cumberland region is laying multiple national and international several projects over land constraints the groundwork for tremendous websites, and we obtain leads on to surrounding communities, but prosperity and we believe we are visitors to the site. Lexington is also at risk of losing jobs just starting to see the fruits of our While some things might have and capital investment from existing regional collaboration efforts. seemed to slow during the pandemic, companies who may not be able to we announced 209 new jobs with expand here. a recurring $23 million annual PADUCAH economic impact on our community. While COVID With the Kentucky legislature’s SOMERSET has changed the recent passage of sales tax incentives While the method in which related to data centers and our ability pandemic has we promote our to offer affordable power, we’ve seen altered life for assets, we’ve an increased interest in technology many Americans been fortunate centers. We just announced a $50 and been a this past year million project anticipated to bring detriment to to continue 20 new jobs to our community with many industries, cultivating an expected $5.7 million recurring we have seen a Bruce Wilcox, existing annual economic impact. We are surge in growth President and CEO. opportunities at the forefront of this new industry Chris Girdler, on many levels Greater Paducah and are working and see more opportunity in the President and CEO in Somerset and Economic on new ones. months to come. Big Rivers Electric Somerset Pulaski Development Economic Pulaski County. In fact, we’ve has been a tremendous partner with Development Despite the been blessed with a lot of activity. us, planning to invest $12.7 million in Authority slowdown from During the pandemic restrictions, additional utility infrastructure in one a government- we restructured our Industrial of our industrial parks. We see more induced recession, our community Development Authority and it now opportunity to grow and capitalize and region is growing and owns publicly owned properties to with this industry. prospering. As SPEDA predicted be utilized for economic development With travel restrictions being last year, we saw a resurgence of purposes. It also has a revenue stream eased, we attended a site selector our economy and with the markets and is now positioned for future summit with 16 different site being allowed to re-open, albeit it property acquisitions and growth. selectors, and we anticipate being later than we had hoped, it has been We intend to leverage our strengths able to get out and promote the a “V-shaped” recovery. Somerset and and capitalize on the restructuring to good news we have to share about Pulaski County are in a renaissance increase our economic development our community. We’ve taken the of sorts and we anticipate 2021 assets and have additional inventory opportunity to better position being a banner year with many to offer expanding companies. ourselves for opportunity and only new business announcements on We have also created a more up- see great days ahead.

40 June/July 2021 lanereport.com tub manufacturers and consumers. more than 50 employers participating— NORTHERN The company expects to double its there is tremendous demand. KENTUCKY sales over the next year. Corporex CEO Dan Sink recently Northern Aristech’s strategy to attract and shared that six office tenants Kentucky’s retain employees is centered on a in RiverCenter are considering industrial and wellness program that focuses on expansions. Companies are seeking office economy physical, mental and financial health. urban, riverfront space to help attract is back to pre- It also has an apprenticeship program, and retain talent. One recent example pandemic levels funded in part by programs through the is Legion Logistics, which opened a and we expect it Department of Labor and Kentucky. new office in the renovated Newport to exceed 2019 Our retail and restaurant sector is on the Levee. The Levee has more performance. ramping up to meet the demand from than 75,000 s.f. of office space Lee Crume, Companies are local residents and bigger meetings and available after a $100 million redesign President and CEO, hiring rapidly to conferences as they start to happen. and we expect that to move quickly. Northern Kentucky Amazon Air launched its initial Tri-ED is working with the Tri-ED meet demand and many hiring initiative in late May for the Northern Kentucky Chamber of manufacturers and office-based hub at Cincinnati/Northern Kentucky Commerce, One NKY Alliance and employers are considering expansions. International Airport. We know our elected leaders to ensure that One example is Aristech Surfaces, employers are deploying hiring and the American Rescue Plan Act funds a producer of acrylic sheets used retention bonuses. In a recent survey coming to the community are used to form bath tubs, shower inserts of Northern Kentucky business leaders, for transformational initiatives. and hot tubs, and countertops used 73% of respondents requested outreach Our goals are to help Northern in fast-food restaurants and retail about workforce hiring programs and Kentucky become a data-informed settings. Aristech hired more than 60 services. Tri-ED and our workforce community and ensure land is employees in 2020 to meet demand partners will work to address these developed with the highest and best for its products, in part driven by hot concerns. A hiring fair in mid-June had use in mind. ■ ECONOMIC DEVELOPMENT

The City of Brandenburg’s wastewater treatment plant project is the first in the state to take advantage of Kentucky’s public-private partnership law enacted in 2016. Officials say using the P3 model is shaving up to 2 ½ years off the project timeline and will reduce the project cost by around $3.5 million.

Districts, but that can be a waiting game. A glance at KIA’s online Kentucky Water and Wastewater Infrastructure Planning Dashboard shows total funding needs of more than $5.9 billion. Of 5,599 total projects in Kentucky communities—3,329 water and 2,270 wastewater—2,331 have been constructed, 3,044 are listed as pending or approved, and 224 are in Groundbreaking the construction phase. Rogers wondered if there was another way for these projects to proceed, and began working P3 Project with others to draft an update for Kentucky’s Public Private Partnership (P3) law HB309, enacted in 2016. It allows local government entities Moves Forward to partner with the private sector and include financing to bring projects to fruition—often in a shorter time How tiny Brandenburg is using a 2016 law frame and without budget shortfalls from inflation that typically occur to build a water treatment plant for Nucor’s when timelines lag. massive $1.7B steel mill and its 400 jobs The first local project to use this method broke ground in February 2021, an $8.3 million wastewater BY SHANNON CLINTON Why? A multitude of federal treatment plant in Brandenburg. regulations drove costs up over the “Brandenburg had a serious ATER and wastewater course of the projects’ conception need,” said Brandenburg Mayor treatment plant projects to completion, a process that could Ronnie Joyner in a news release in Kentucky have take as much as a decade even for for the groundbreaking. “We had to historically progressed at simple projects in a moderately sized build a new wastewater treatment Wa trickling pace. community, Rogers said. plant that could handle not only the Just ask Warren Rogers, who Fundraising was performed around present but also the future needs of spent three decades as owner/ initial budget figures, he said, but by the city. We needed to explore all of president of W. Rogers Company the time bids were awarded, those our options to find the quickest and in Lexington building water and figures often had become outdated most cost-effective way to build this wastewater treatment plants in the and the project would appear over plant.” commonwealth before selling the budget from the start, necessitating Legal firm Frost Brown Todd company in 2016. hard decisions to bring the dollars served as project consultant, issuing During Rogers’ tenure, WRC built back in line. a P3 Request for Proposals to design, more than 300 facilities in 62 of “Not every project was that way, build and finance the plant, receive Kentucky’s 120 counties. Time and but many certainly were,” Rogers said. innovative solutions, negotiate the time again, he saw projects for which Projects often rely on limited agreement and facilitate regulatory his company bid or was the successful federal funds administered by the approval processes. bidder be over budget, scaled down, Kentucky Infrastructure Authority Ultimately, Mount Sterling-based postponed or not awarded at all. (KIA) through Area Development design and construction firm The

42 June/July 2021 lanereport.com Walker Co., partnering with GRW Engineers and WP3 Consulting, was selected as the design/build contractor, with Ross Sinclaire & Associates providing financing in partnership with Kentucky League of Cities Financial Services and the Kentucky Bond Corp (KBC). The parties’ process and agreement was later unanimously granted the first approval of its kind by the Kentucky Local Government in October 2020 and will create an Brandenburg Mayor Ronnie Joyner says Public-Private Partnership Board. estimated 400 new jobs. the P3 model provided his city with Brandenburg and Meade County Rogers, now managing partner for the best way to get its new wastewater each fund half of the project, with WP3 Consulting, began exploring local- treatment plant built in a shorter time frame and at a lower cost. KBC issuing bonds. level P3 possibilities in 2013, eventually Significant among the future needs gaining support of construction the new wastewater treatment plant associations in the state, the Kentucky will meet are support of a $1.7 billion Chamber of Commerce and others. to draft the bill that was sent to the steel plate manufacturing mill Nucor A P3 coalition made up of state House of Representatives in Corp. has under construction in the approximately 40 members formed 2015 before being vetoed by then- Buttermilk Falls Industrial Park, and met regularly to help the effort Gov. Steve Beshear. land that includes Brandenburg’s gather momentum, with Rogers as The measure resurfaced with existing wastewater treatment facility. chairperson. Members represented tweaks in 2016 that included the That project—one of the largest in government, industry and other local government P3 portion. After Kentucky history—broke ground stakeholders and worked together successful passage by legislators it ECONOMIC DEVELOPMENT

Schirmer said this timeline is Fact Sheet: Kentucky P3 much faster than the typical design, bid, build model, in which the design P3 Meaning and Benefits • Enhance infrastructure and phase could take a couple of years, n P3 stands for public-private quality of life. followed by a four- to five-month partnership. • Reduce regulatory burdens and bidding process, all while trying to n It is a “long-term contract between associated costs. a private party and a government secure financing and factoring in a entity, for providing a public Advantages few years for construction. All told, asset or service, in which the n The P3 project delivery model can such projects commonly take four to private party bears significant risk save local governments time and five years. and management responsibility, expenses when delivering capital “In the P3 model, it’s really and remuneration is linked to projects. unique because the municipality performance.” (WorldBank.com) n “Free money” from federal grants n According to the Kentucky Finance is not always free. Kentucky put out for bid the need for a and Administration Cabinet website: Infrastructure Authority (KIA) loans wastewater treatment plant and • The ability of Kentucky are sourced with federal funds we came up with our own design government agencies to work and although there are attractive and we were awarded the job based with private-sector partners on interest rates, said funds are subject on our qualifications and what projects gained momentum in to federal requirements, which the best overall value was for the results in significant increased costs 2016 with passage of legislation municipality,” he said. regarding public-private over alternatives. This is especially partnerships for projects. important as communities consider Schirmer said that based on a 2 • Government agencies, both state how to apply their funds from to 2.5-year time savings using the and local, will determine if a the American Rescue Plan Act P3 model, inflation and the $8.35 solicited P3 is the appropriate (ARPA) and the forthcoming federal million project cost using a third- way to proceed with certain infrastructure bill. party financial group, he estimates capital services or construction n Time = money. Construction costs a cost savings of about $3.5 million. projects (see KRS 45A.077 or KRS almost always rise over time and 65.028). the COVID-19 pandemic has had He said to learn more about • The legislation allows agencies to sizeable impacts on the construction local P3 projects, municipalities consider unsolicited P3 projects industry. Inflation has taken its toll typically look to KLC and Kentucky that private-sector partners on the construction industry over Association of Counties resources, recommend. the past year, with limited labor and and representatives with his firm are n Transportation-related P3 projects constriction in supply chains. It is also willing to lend advice. fall under KRS 175B.015 and KRS believed with the increased amount Casey Bolton is partner with 175B.037. of funds in the market, inflation n Benefits of public-private will continue to push these costs. Commonwealth Economics, a partnerships: Quicker project delivery saves real Lexington-based firm that conducted • Leverage private-sector expertise dollars. a financial feasibility study for the and funding to advance n The P3 approach allows the design Brandenburg project. This analysis government projects. firm and construction contractor to is required by statute to see if the • Stimulate job creation and work collaboratively from start to P3 delivery model is best suited for finish to resolve potential problems economic growth. particular projects or if the traditional • Bring projects to fruition more before they arise and avoid change quickly. orders that drive up costs. process should be followed, he said. Bolton said the language on financial feasibility in local P3 was signed by then-Gov. Matt Bevin whether it’s water or wastewater statutory regulations is quite in-depth. in April 2016. related, a convention center or other It examines whether a given project J.D. Chaney is executive director/ community recreation projects. It may will work under the P3 format from CEO of the Kentucky League of Cities also be looked to as a good template a timing, fit and savings standpoint. and was involved in crafting the local for other states wanting to target local He said in a local P3 agreement, government portions of the updated P3 projects, he added. those involved can not only determine legislation. The Walker Co. CEO Jake Schirmer arrangements for building a facility “What the legislation did in 2016 said his company was awarded the with protections built in for each was create a streamlined mechanism bid for the Brandenburg wastewater party, but agreements can also include and establish a blueprint that local treatment plant project on Sept. 30, engaging private-sector companies governments could use under the law, 2020. His firm received a limited notice to perform operations, building knowing that statutorily it was an to proceed for design and limited site maintenance or other services. authorized procedure,” Chaney said. work in January and by early June “It’s really a great tool to leverage Once local governments see local 2021, construction was already 20% private-sector expertise to come up P3 projects in action, he expects other complete. The estimated completion with creative ways to find solutions project applications will be explored, date is June 30, 2022. to public needs,” Bolton said.

44 June/July 2021 lanereport.com Leslie Combs is a former state private sector to maintain and repair representative from District 94, who 100 bridges in a designated area for helped craft and lead all aspects of 30 years, using existing transportation HB 309. She also formerly served as funding to provide a guaranteed executive director of Kentuckians for annual payment to the contractor. Better Transportation. If a contractor were to go out Combs said she’s excited about of business during that time, their the Brandenburg project, as using remaining obligations would be the local P3 framework provides addressed in the agreement. municipalities new ways to raise “This is designed to take what revenue using private-sector capital. ability you have to pay and match “It’s probably the only way that, in it up with your need,” Combs said. Jason Halligan, an attorney with the law my opinion, local governments can get Rogers said the local P3 legislation firm of Frost Brown Todd, speaks at the the much-needed infrastructure that encourages collaboration and out- groundbreaking ceremony on Feb. 5. they really need …. They don’t have of-the-box thinking. In addition to Frost Brown Todd serves as the project consultant and has handled the request the resources and they don’t have the individual city and county projects, for proposals to design, build and finance borrowing capacity,” she said. it can be used for regional projects the plant in addition to negotiating Combs said some may initially with multiple counties involved. agreements and facilitating the regulatory have feared the plan sounded too Rogers said he meets with many approval processes. good to be true or that there had public officials and people in the design to be a catch, but she’s confident community and tells them that the P3 the thinking behind the legislation method will save time from concept to get problems solved, to get things was thorough, fair and resulted in a completion and save significant dollars done,” he said. ■ “good, longstanding product.” during the overall process. For instance, she said, local “The great thing here is you can Shannon Clinton is a correspondent governments can even enter into use creativity and common sense for The Lane Report. She can be reached long-term arrangements with the that entrepreneurs like to utilize to at [email protected]. LOGISTICS

Verst Logistics, a large third-party logistics company headquartered in Walton, Ky., uses fulfillment distribution network planning technology and specialized robotics called Lotus Robots that assist employees.

million, a more than 39% increase over the same quarter in 2020. As consumers continue clicking “place order” buttons on their screens, the e-commerce boom shows no signs of slowing. Kentucky logistics companies are reaping the benefits of increased demand and investing in new technologies to keep pace. Paul Verst is chairman/CEO of Verst Logistics, a Walton, Ky.-based third-party logistics (3PL) provider of public and dedicated warehousing, transportation, shrink-sleeve labeling and order-fulfillment services. The majority of Verst operations, he said, are in Kentucky,

Photo courtesy of Photo courtesy Verst Logistics Ohio and Indiana, but there’s also presence in Alabama and Arizona, serving the entire Paul Verst, country from these Chairman/ CEO, Verst locations. There are Logistics about 1,900 employees total, of which 1,325 are in Kentucky. Primary client sectors include food and grocery, consumer packaged goods, distilled spirits, automotive, Surge in E-commerce is paper and fulfillment sectors, Verst said. The logistics industry experienced Driving More Automation exponential growth due to COVID’s impact on consumer spending habits, he said. Booming demand in logistics sector “With many families working from home or being laid off, many is outpacing access to manpower purchases were made online for food, groceries, medicines, arts and crafts, BY SHANNON CLINTON Commerce 360 data. In comparison, and other items,” he said. “Home e-commerce spending increased improvement projects that were on F you found yourself ordering more 15.1% between 2018 and 2019. hold for years suddenly rose to the clothes, gifts, household supplies After the pandemic hit late in the forefront and were completed. All and groceries online last year, or first quarter of 2020, e-commerce of these involve the movement of chose to have items delivered for sales jumped nearly 32% in the goods, which is exactly what logistics Ithe first time, you weren’t alone. second quarter. According to U.S. companies provide.” Consumers spent $861 billion Department of Commerce figures, With restaurants closed or working online with U.S. merchants last year, first-quarter sales of $154.6 billion at reduced capacity and hours, Verst up 44% from 2019—the highest rose to $203.8 billion in the second said his grocery company clients, one annual domestic e-commerce jump in quarter as the pandemic began of which is the largest in the U.S., saw at least 20 years, according to media to gain momentum. In Q1 2021, a spike in business as people prepared and research organization Digital e-commerce sales had risen to $215 more meals at home, resulting in a

46 June/July 2021 lanereport.com Integrated Protection Services (IPS) handles about 30,000 parcels each week, and has more than 100,000 e-commerce customers. The company started in Cincinnati in 1999 and now also has offices in Lexington and Columbus, Ohio.

“major positive impact” on Verst’s company as well. Darrel Lyell, who leads IPS Logistix’s domestic and international consolidation and fulfillment services center in Erlanger, said some sectors suffered but 2020 was financially good for his company. “The past year has been absolutely wonderful for us,” he said. “Over the past year we’ve seen an increase in business, so it’s been a blessing.” IPS, which has a presence at the Port of Cincinnati, handles about 30,000 parcels weekly, according to its website, and has more than 100,000 of about 80% of the U.S. population. CSX—that aid in product movement. e-commerce customers. Its East The state is served by world-class Meanwhile, the Ohio River is one of Coast location is in Ford, N.J., with Cincinnati/Northern Kentucky the major water-shipment systems in international partnership locations in International Airport and Louisville the country. Ireland, London and Hong Kong. International Airport, two of the largest As for challenges, Lyell said states “E-commerce orders have shipping airports in the nation. on the East and West Coasts do increased,” Lyell said. “A lot of those “The airports are home to companies have greater access to global water age groups who weren’t as familiar such as Amazon, DHL, UPS, Delta, transport and importing options, with ordering products online learned Southwest and many others who ease and increases in fuel prices in the over the pandemic how to do that. and expedite the travel of people and past several months have increased Now that they understand how much products,” he said. trucking costs. easier that is, I think e-commerce is In addition, he noted, interstates “There’s always an increase (in going to continue exploding.” transiting Kentucky run from Canada cost) for us to do business, which we A logistical advantage Kentucky has to Florida, with major east-west routes in turn have to pass that on,” he said. compared to other states, Verst said, is as well. There are also two Class 1 Still, e-commerce trends are its location within two days delivery railroads—Norfolk Southern and bringing new opportunities to logistics companies. Verst said many third-party logistics companies are entering the fulfillment and contract- packaging arena. His company’s e-commerce/fulfillment division was launched four years ago and has grown from 20,000 s.f. to 400,000 s.f., with employee numbers skyrocketing from six to 200. “It is all about driving the revenue per square foot, so any new value- added services that can be incorporated within the four walls of the warehouse

Verst Logistics, headquartered in Northern Kentucky, offers an array of services, including contract packaging solutions, warehousing, transportation and fulfillment. The company has 1,900 employees in five states.

lanereport.com June/July 2021 47 LOGISTICS

Amazon operates 10 fulfillment and sortation centers, two delivery stations and one customer service center in Kentucky. Its new, $1.5 billion Air hub at the Cincinnati/ Northern Kentucky International Airport is set to open this fall.

after a successful pilot program with Locus Robotics. DHL Express Hub’s corporate office is located in Erlanger. The article said the new robots will use “machine vision” to identify and select objects to be placed on a line as part of a human-robot hybrid logistics warehouse operation often used in e-commerce. Kerry Byrne is president of Cincinnati-based Total Quality Logistics, should have a positive impact on the technologies. which works with bottom line,” Verst said. Referring to the industry as a more than 90,000 Customers crave reliable, useful whole, Lyell said the market is carriers and thousands data and information that will competitive and there is more work of customers in assist them in their own business than most companies can hire the produce, food, Kerry Byrne, President, operations, and his company delivers employees to perform. manufacturing, retail, Total Quality that, too, he said. For some, the solution to a chemical, construction Logistics “Some people say, ‘cash is king.’ shortage of people to hire may be and energy industries, While so, the change we have seen is in high-tech automation. A 2020 among others, from small business ‘data is king,’ or at least ‘good data,’ article in Robotics Business Review operations to multinational Verst said. cited transportation management corporations. A trend Lyell said he’s noticed is firm Logistics IQ’s estimate that the The company has 5,000 employees new e-commerce websites popping warehouse automation market may in 56 offices across 26 states. Three up, and though free shipping and hit $27 billion by 2025. Kentucky offices in Erlanger, lower costs may tempt consumers, he Business technology news website Louisville and Lexington employ cautions that not all are reliable and ZDNet recently reported that contract more than 500 workers, he said. people should read the fine print about logistics provider DHL Supply Chain, TQL had a record year in 2020, longer shipping times and shadowy which has a presence in Eddyville Byrne said, paving the way for more return policies. In some cases, product and Bowling Green, will have 1,000 growth this year. quality suffers due to lack of oversight warehouse robots among its 20 sites by Last year TQL finalized expansion and compliance in origin countries. the end of this year and may have as of its home office campus with a new “In many cases there is nowhere many as 2,000 in its fleet by next year state-of-the-art 133,000-s.f. addition for the consumer to send the merchandise back to,” he said.

Automation helps alleviate worker shortage As the industry and consumer demand continue to grow and evolve, Kentucky-based logistics firms are looking to hire, while at the same time investing in new equipment and

Total Quality Logistics (TQL), headquartered in Cincinnati, moves more than 2 million loads across the nation each year through a portfolio of logistics services and a network of more than 90,000 carriers. It has more than 5,000 employees in 56 U.S. offices.

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connecting to an existing 100,000-s.f. building. “We are growing significantly and intend to hire 1,000 new employees this year to help fuel growth in our core business—full truckload—and our growing segments of business like customs brokerage, LTL (less than truckload) and intermodal rail,” Byrne said. Keeping employees happy in a work culture that fosters engagement customers, had never seen before,” The Muhammad Ali International Airport and high morale is a challenge, and he said. in Louisville is home to UPS Worldport, it is especially important during a Verst said many professional truck the largest automated package handling facility in the world. The 5.2 million-s.f. pandemic, Byrne said. drivers, often in their late 50s or 60s, hub processes about 2 million packages “We had to, and continue to, retired during the pandemic because a day—4 million during the peak holiday show real agility in our workforce to they feared bringing the virus home shipping season. solve for challenges that we, and our to their children and grandchildren. The ability to replace those vacancies is limited, he said. As of April 2021, is crucial, whether it’s from tracking Logistics Industry there were 7.5 million jobs available shipments with the company’s TQL industrywide, but only 260,000 TRAX platform, or monthly market Data at a Glance were hired, making Verst wonder if reports provided to customers that unemployment benefits, supplements detail macro-economic trends and • Industry publication Transport and stimulus payments were keeping their impacts on transportation in an Topics news data shows the prospective hires at home. easy-to-digest format. 2020 U.S. logistics market had Verst said investments are being Byrne said swift and significant gross revenues of $231.5 billion. The largest segment is domestic made in labor-intensive contract pandemic-driven shifts in consumer transportation management, packaging and fulfillment operations spending habits presented huge labor, at $91.2 billion, followed by due to lack of available talent. raw material and transportation international transportation All the while, the company shortages that are still being felt across management at $70 billion, and continues to look to acquire or build supply chains in every industry. value-added warehousing and warehouses to allow an exit from “Our focus is to always be proactive distribution at $46.7 billion. The buildings currently being leased. and provide the best customer remainder came from dedicated contract carriage and logistics “Leasing lots of real estate resulted service,” he said. “Remaining agile software. from our amazing growth over the and flexible while providing solutions • More than 540 logistics and last five to 10 years, with no time to across all modes of transportation has distribution facilities in Kentucky build or acquire,” he said. never been more important.” employ nearly 75,000 people, Operating costs have increased Looking to the future, Lyell said IPS Kentucky Cabinet for Economic dramatically industrywide, Verst said, will be expanding to Los Angeles soon, Development data show. In the chiefly due to COVID. requiring an investment in warehouse past seven years, more than 250 “The average price of (buying) a leasing, computer equipment, a new or expanded facilities have been announced, comprising $4.7 tractor trailer has increased almost vehicle, warehouse equipment like billion in investments and nearly 200% in the last 10 to 15 years, pallet jacks and racking, and additional 15,000 new jobs. much of it due to changes in EPA employee hires. • In late 2020, Gov. Andy Beshear regulations,” Verst said. “The cost of He feels the overall outlook is rosy announced a firm providing warehouse construction has increased for his industry. technology development, sales from $30 per square foot to $60 per “Only time will tell how many and implementation for the health square foot and growing in the same new users will continue to use online care equipment supply chain is period, much of it due to increases in marketplaces to do their shopping but expanding in Jefferson County raw material and labor costs.” if the current trend continues, then I with a $7.8 million investment in the form of additional All increases can’t be passed along foresee e-commerce growth beyond warehousing, and 80 new jobs. to customers, he said, so logistics any past trends that we’ve looked at,” ■ • Dollar General Corp. last year companies must continuously he said. announced its plans for two new increase productivity, automate and Kentucky distribution centers in reduce costs whenever possible. Boone and Warren counties. Shannon Clinton is a correspondent To keep customer satisfaction high, for The Lane Report. She can be reached Byrne said transparency and visibility at [email protected].

50 June/July 2021 lanereport.com PRINT • DIGITAL • DAILY NEWS

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TLR Marketing ad.indd 1 4/26/21 10:07 AM TRANSPORTATION Kentucky Department of Department Kentucky Transportation photo

The Brent Spence Bridge carries both I-75 and I-71 traffic through the Greater Cincinnati and Northern Kentucky area, but it also connects 10 states from as far north A Conversation as Michigan to as far south as Florida. It is one of the busiest trucking routes in the U.S. The bridge is over capacity, carrying about 160,000 vehicles a day across the Ohio River with the Secretary when it was only designed to carry 80,000. people on the front lines, out there in Transportation Cabinet Secretary Jim Gray talks snow and ice. They are there on the about what it takes to keep Kentucky moving highways or interstates when there is a problem or accident. They are there controlling traffic in construction projects, monitoring construction, Kevin Stinnett: In the 18 months it shows our economy is growing inspecting and managing construction you’ve been in this position, across the state. projects. And that work needed to what has been your biggest The Brent Spence Bridge (repair) continue. We also had the challenge surprise going from being mayor project was a real test for the of quickly adjusting to remote work of Lexington to Transportation cabinet. We got it done ahead of and telework. The cabinet did an Cabinet secretary? schedule and under budget and got extraordinary job of adjusting and Jim Gray: I now realize it back into working continuing to get the job done. how much authority the order. We learned how It was a real challenge managing state has over cities— essential that bridge is the social distancing. There was and how much cities to commerce—not just concern and anxiety among many and towns rely on Northern Kentucky of our employees who were on a job transportation. Every and southern Ohio but site. There was anxiety and concern day I get a call, text the country: 3% of the among the contractors who were on or email from a local country’s GDP crosses job sites. But what is characteristic official somewhere in that bridge annually, of good teamwork is people working the state. I have given something like $600 together to solve problems. I was so them all my cell number billion a year. impressed and inspired by the quality to be accessible; the of the management of the cabinet at governor told me to KS: You mentioned every level. People came together and I was happy to Jim Gray, Secretary, Kentucky repairing the Brent in the spirit of cooperation. It really do it. I realize how Transportation Cabinet Spence Bridge after manifested throughout COVID as essential transportation a fiery crash closed we were making adjustments and infrastructure is to the state. There is it. What other challenges did you it required extraordinarily capable not a week that goes by that a county have during COVID that made management at every level. or town isn’t calling about a potential your first year tough? project—a new turning lane, an access JG: We have 4,400 employees in the KS: Have you had an issue getting road or industrial park. That’s all good; cabinet and roughly 3,400 of those are supplies and materials?

52 June/July 2021 lanereport.com JG: Paint for striping the highways Surrounding states have managed to continuing the Mountain Parkway. has been a real problem. That was make adjustments to their revenues Those two major projects are well the first commodity we were seeing through tax increases for gasoline and underway (and) on schedule. Gov. problems with maybe three months diesel fuels. Eric Holcomb recently announced ago. At the same time, lumber prices It is very challenging to get to an that Indiana was going to fund were going up, steel prices were agreement on any kind of revenue the I-69 approach that is closest to going up and so was reinforced hike. The challenge today is that our Evansville and closer to the bridge. steel associated with any kind of revenues in absolute dollars are less I-69 will be a major economic shot in bridgework. All of these translate than they were in 2015. Highway the arm for western Kentucky. into increased costs. (Even though) construction costs have increased our revenues today have begun 35% and they are just going up. KS: You have mentioned that one coming back up, compared to 2015 So you have declining revenue and of the first things companies look they are down significantly, and they increasing costs. Any business would for when they come to Kentucky haven’t come back to that level. find that a problematic dynamic. is transportation access. How do We have to get up to speed on who you interact with the Cabinet for KS: You mentioned efficiencies is paying for these electric vehicles, Economic Development? in getting the Brent Spence paying their fair share. There is not JG: The governor has been very clear Bridge completed. Are there any even a fee today. The state legislature that jobs and economic development efficiencies you will keep in the would have to pass any type of fee. for our communities around the cabinet that you learned through There is plenty of advocacy supporting state is job number one. And he is COVID? legislation to address these revenue a great salesman; makes a difference JG: Before COVID, the chief district needs. With electric vehicles coming when the governor is there in the engineers would meet maybe once on strong, that issue has to be tackled. negotiations, working with folks a quarter. Once the pandemic hit, General Motors said by 2035—14 years who are looking at Kentucky for we were meeting two days a week– from now—they are only going to be locations. I am talking to a county virtually–in order to quickly make producing electric vehicles. judge or a mayor on a daily basis, adjustments. It has backed down to and at least weekly I am talking to once a week but that has continued KS: Speaking of other revenue (Economic Development Secretary) and the improved communication that sources, CARES Act money from Larry Hayes or the governor about a has come as a result is dramatic. That Washington, D.C., has trickled transportation need and how we can is not Jim Gray saying it; that is coming down. What are some of the big make improvements. from people within the organization. priorities with that federal money? It also means working with the They are bouncing ideas off each other JG: There are clear guidelines on the legislature. What I have found today that they did not do before. CARES funding. Of the roughly $150 encouraging is that members of What are we doing in District 12 that million we received, $77 million was legislature are very supportive of job we can do in District 1? How do we toward airports. And of that, 95% growth and economic development. take best practices and translate that went to the five commercial airports: The governor and the leadership into the work environment at a faster Paducah, Owensboro, Lexington, in legislature and members of the pace? What we are seeing happen Louisville and Northern Kentucky. It legislature have found common with these new methods of managing was a big boost to these commercial ground and have been able to work communications is the ability to airports when they lost so much together on a number of the projects. respond to changes that are occurring revenue. Our other big number was so quickly. roughly $60.5 million for public KS: Are there any technology Right now, the automotive industry transit in rural areas of the state. upgrades the Transportation is not just in a transformation, it’s in a Cabinet is working on? revolution–a revolution to autonomous KS: Do you know what is in the JG: We are going to need to rely electric vehicles and battery new federal infrastructure bill? more and more on technology; manufacturing. That potentially JG: We are trying to translate electric vehicles and autonomous changes our entire revenue structure what the bill might generate into vehicles are going to carry the day for the Transportation Cabinet. We get how can we utilize this. We need sooner than later. That means our revenues today from the tax on a billion dollars in bridge repair to innovative technology is going to gasoline and diesel. If those numbers bring our bridges from poor to good be essential. Autonomous vehicles decline with more electric vehicles, and a billion dollars in pavement have to have clear lane markings, we are in a more stressful position maintenance work to bring our so the Transportation Cabinet has than we are already, where we are pavement up to good. Then we to respond and be creative. The behind a billion dollars in bridge have major projects like the I-69 challenge is to keep up with new ideas maintenance and a billion dollars in bridge in western Kentucky between and implement new technologies as pavement management in Kentucky. Henderson and Evansville, and quickly as this change is occurring. ■

lanereport.com June/July 2021 53 MARKETING

The growth of online shopping will only grow in The New Normal. It’s a tremendous advantage for companies that offer it. A customer can see and personally choose the product online. If you have your inventory connected to an online database, add it to your website. You will be serving your customer better and more efficiently. If you are not one of those companies currently doing so, why not? There are services that can help you make this option a reality. In general, people prefer to “shop local,” but you have to personalize the service to their needs. Why should the big online services get all the business when you have the same product in stock—and without the additional cost of shipping? Closely investigate that potential investment because it can pay big dividends. Once you have it, let your customers know. Curbside service will continue to be a valuable service for those who are medically fragile, parents with children in the car, or people on the go. Don’t treat those requests as though they are inconveniencing you. Those calls result in sales. Have Surviving the New Normal a system in place to handle curbside service—and then market that How to get your marketing message heard above the noise service. Let your customers know that you care enough about them to bring their purchases directly to their BY JOE LILLY The key is to determine—and plan car. for—“The New Normal.” At the store where I work, we NE of my all-time favorite Three words to remember when designated one or two employees as Christmas traditions is planning for The New Normal: the “go to” people to handle curbside Owatching the original cartoon Personalize. Personalize. Personalize. orders when they came in. We created version of “How the Grinch Stole Your actions will speak louder than a template and a procedure for Christmas.” And one line I’ll always your words, and that’s how you’ll be handling, even down to the estimated remember is the Grinch muttering… able to cut through the “noise.” time of arrival, the color and model “Oh, the NOISE … NOISE … Think of some of the tactics of the vehicle being driven, and the NOISE … NOISE!” companies employed during the past form of payment. Then the same As we finally exit the pandemic, year: Carryout meals, curbside service, people would fulfill the order, clearly the “noise” will be intense and phone orders, home delivery, online mark it and place it in a designated dramatic. Businesses everywhere shopping. Most, if not all, of these spot for when the curbside customer will be rushing to spread the message services and customer preferences arrived and notified us they were at that life—and shopping–is returning are not going away. If anything, they the store. to normal. Or should I say, the new will grow. And now, like never before, During the height of the pandemic, normal. But how can your company one size does NOT fit all. They are even at the small hardware store get your message through to the personalized to the preference of the where I work, we’d average 50-60 consumer amid all the noise? customer. The companies that adjusted curbside orders a day. In other words, One thing is certain: There’s no their way of doing business during the thousands of dollars a day because turning back to “the way we were.” pandemic reaped the greatest benefits. we went the extra mile to cater to

54 June/July 2021 lanereport.com people who could not—or preferred the days when your only options for message, but you personalize the to not—get out of their car. While that advertising were print and broadcast. media for maximum effect. number has decreased over time, we While those remain high value, Just as the Grinch couldn’t stop continue to get curbside orders, and digital marketing, e-newsletters, Christmas from coming—it came!— great reviews by customers because blogs, earned media and social media we cannot stop The New Normal we are catering to and respecting their platforms all should be considered. from coming. However, in many individual needs. We broke through They can be much more targeted and ways, The New Normal is nothing the noise of the larger retailers with personalized and thus, there is less more than a throwback to the past: this simple service. “waste” of ads going to the wrong personal service, personal messages We also offer home delivery, audiences. However, they must be and personal contact. Just as the sometimes free and sometimes for a personalized to your customer and pandemic has made us all realize small charge, depending on the value his/her needs. the value of family and friends, it of the purchase. This service has Let’s use The Lane Report as an has made us look for companies been especially used by the elderly example. Business and government we can consider as friends because or infirm. In the past, they might have leaders throughout Kentucky read they value us and cater to us. New been written off. With personalized the magazine, the daily feeds or the technology allows us to utilize service, they are responsible for website. So, if you want to reach some of the old ways that are most additional income for you. a business or government leader, effective–and that will inevitably For example, when our company would you run a TV commercial on lead to increased sales and an sells a grill, we assemble it, deliver it a Saturday morning kids show, or enhanced reputation. That’s the best and haul off the old grill—all included would you personalize your message way to break through the noise. ■ in the purchase price. We are known using a platform that gets it directly for doing this. We make it a point to to their desk or laptop on a consistent Joe Lilly is a communications meet the customer where they are. basis? You have to invest the most consultant in Louisville. Contact You also have to FIND the where your most important audience him at [email protected]. customers where they are. Gone are is. Not only do you personalize the SMALL BUSINESS SNAPSHOT

Pitman Creek Wholesale’s Big Splash Fishing tackle supplier designs an effective lure for company growth James Coffey, left, is CEO of Pitman Creek Wholesale. Addison Coffey is an operations specialist. Pitman Creek specializes in the bass fishing market, providing its dealers with top tackle products. BY MARK GREEN

ENTRAL Kentucky fishing tackle supplier Pitman Creek Wholesale’s strategy had already landed it hired a management team and shifted operations to Danville. Cyears of strong growth even before the 2020 pandemic Now the operation is expanding into a new 206,000-s.f. created a record year for all business categories related to distribution center in Stanford, outdoor activity. a move slated for October. Pitman Creek Wholesale Pitman Creek Sales are up a whopping (859) 439-2001 launched into 80% since the COVID-19 pitmancreek.com what owner James pandemic disruption led Coffey described as people to spend more time outside the office, said Coffey, exponential growth who bought Pitman in 1993. six years ago, after he “All outdoors sporting activities are experiencing record years,” he said, citing hunting, kayaking, hiking and others in addition to fishing. Pitman Creek hooked into a strong growth curve by providing one-stop purchasing for several thousand retailers Pitman Creek stocks more than 26,500 items from of fishing products in 49 states and a few foreign countries, over 280 vendors. including all the major sporting goods chains such as Bass

56 June/July 2021 lanereport.com Pro Shops, Cabela’s, Dick’s Sporting Goods and Walmart. It benefits from Kentucky’s logistically advantageous location to fulfill orders to the majority of customers in one or two days. Between 10% and 20% of that business comes from within Kentucky, from farm pond cane-pole amateurs to uber-equipped tournament professionals who make a living on the commonwealth’s major lakes. Pitman Creek Wholesale will soon move into a new 206,000-s.f. The bulk of its business is concentrated in the Southeast, distribution center facility in Stanford. from Texas to the Carolinas and Virginia, Coffey said. Pitman Creek Wholesale has grown its list of independent product vendor clients from 600 to more than Wholesale as a custom lure maker, and it evolved into a 1,100 since the management enhancement, Coffey said. full-line tackle distributor. Clients large and small do business with Pitman as a single About 15 years later, Coffey, a CPA with an accounting point of access to more than 300 manufacturers and their degree from the University of Kentucky and several years products. The present warehouse and distribution center experience with then-Big 6 accounting firm Coopers & stocks 26,000 products, and that is only 10% of what it Lybrant, decided to buy the business. Coffey had insight can quickly obtain and provide. into the vendor-retailer relationship from having begun Coffey calls the effective strategy “vendor consolidation.” work as a route salesman at age 16 for his uncle’s business Pitman is outpacing all of its competitor providers, he said. that distributed products to convenience stores. It sells only to retailers, not individuals. Pitman Creek has grown to roughly 230 employees as “We are not your competition, but your business of early 2021 and expects to increase to more than 250 partner,” its website tells the retailers who are its customers. after the new, larger distribution center is finished in the The business draws its name from its origins as a fall, Coffey said. ■ specialist in bass fishing lures located along Pitman Creek, a Lake Cumberland tributary near Somerset. In Mark Green is editorial director of The Lane Report. He can be reached at 1978, Don and Marella Stephens started Pitman Creek [email protected].

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lanereport.com June/July 2021 57 DIVERSITY & INCLUSION

About Devine Carama A Lexington native, Devine Carama Living the Mission studied journalism at Aquinas College in Nashville, and business management at Bluegrass Community and Technical Carama leading efforts to unite Lexington agencies College. He is an adjunct professor at and community partners to address violent crime the University of Kentucky, where he teaches a course that merges hip-hop writing and community engagement. Carama won the Bluegrass Community BY LORIE HAILEY enhance safety and quality of life in Foundation Black Leadership Award in neighborhoods experiencing violent 2021; was named a “Point of Light” by Lexington hip-hop artist, crime. Like many cities, Lexington the late President George H.W. Bush community activist, has seen an increase in violence and in 2018; and was the recipient of the motivational speaker and social unrest during the past year, often Lauren K. Weinberg Humanitarian A Award in 2018. He and his wife, Cierra adjunct professor is now leading involving young people, Gorton said. Spaulding, have three daughters. the city’s initiative to coordinate “We understand that the city can’t resources that address violent crime. solve these problems alone,” Carama Devine Carama began his new said. “My job is to connect faith bottom or yelling from the top, but duties as director of One Lexington and nonprofit communities, schools, relationship building in the middle,” LFUCG photo neighborhood Carama said. leaders, along with In 2014, Carama founded Believing our city government in Forever, a nonprofit organization partners to wrap all that works to inspire and motivate of our arms, hearts young people toward community and resources around leadership through art, education, these issues in order mentoring and community service. to make a difference.” He also founded Kingtucky, an Youth engagement arts and entertainment company that is first on Carama’s focuses on hip-hop, poetry and live list of priorities. He music that also offers inspirational encourages young youth programming. Through the people to advocate Carnegie Center, he teaches an for themselves in a interactive summer class on the healthy way, using history of hip-hop and how to write civil discourse and hip-hop lyrics. self-expression Carama’s music career and to constructively creative pursuits complement his job Mayor Linda Gorton, left, announces the communicate their grievances and at One Lexington. appointment of Devine Carama as the new messages of hope and change, he said. “I think my music career helped director of One Lexington, the city’s initiative Much of the violence in Lexington create relationships and connections to address violent crime. Carama’s wife, happens in communities that to the Lexington community that I Cierra Spaulding, looks on. are underserved and starving for can now transition into partnerships opportunities, Carama said. to better serve the citizens of our “I want One Lexington to be a city,” he said. “The creativity it on June 7, but he has “been living facilitator for community partners takes to be an artist is similar to the the mission of One Lexington for to come together to address some innovation it takes to think outside of at least 15 years, long before we of the root causes of violence in our the box when it comes to community started” the program, said Mayor neighborhoods. I believe engaging engagement and programming. Hip- Linda Gorton. “Through hip-hop, youth and providing wrap-around hop’s original formula in the 1970s teaching, community engagement services for their families is key to and early 1980s was to be a voice for and volunteer work he has built making our community safer,” he said. the ‘voiceless.’ Adopting the mantra programs and initiatives that reach Authentic relationship building led to a very seamless transition from out to young people and help them and community engagement is key musician to activist.” build successful lives.” to making Lexington safer and more Carama encourages everyone to Created in 2017, One Lexington equitable, he said. work together to address issues that works to coordinate, leverage “Community activism is the threaten the community. To volunteer and mobilize city government backbone of true, substantial change. or learn more, email dcarama@ and community resources to True leadership isn’t pushing from the lexingtonky.gov. ■

58 June/July 2021 lanereport.com NONPROFIT SPOTLIGHT

Cassie Slone is the founder of The Foster Care Council, which works to provide academic and enrichment opportunities for children in Kentucky’s foster care system.

TLR: Tell us about your upcoming Tee it Up for The Kids Golf Scramble. CS: This fall, we are presenting our annual Tee It Up For The Kids! Last year we were able to raise $35,000 at this event thanks to our sponsors and participants. This year’s four-person best-ball scramble will be held Oct. 11 at Griffin Gate Golf Resort. We are expecting 100 players. Teams and sponsorships are still available (teeitup2021.com).

TLR: How can the business community help support your organization? What are the sponsorship opportunities? CS: We have an annual giving/networking campaign, Champions for Children, and also accept donations of gently worn clothing to our “unique boutique,” Studio ThriftyFor the Kids. Or become a sponsor at one of our Fostering Hope fundraising events. In addition to the golf scramble, we have the Lasso-a-Dream Western Gala. The next Lasso-a- The Foster Care Council works to enrich the lives Dream event is scheduled for April 29, 2022. of children in Kentucky’s foster care system TLR: How do you get people involved in your mission? CS: If you have a heart for supporting foster children, HE Foster Care Council was founded by Cassie Slone please follow us on social media (Facebook, Instagram in 2012 with the mission of meeting the needs of and LinkedIn - @fostercarecouncil) Tchildren throughout Kentucky who have been placed and subscribe to our email list at in the foster care system after being removed from their thefostercarecouncil.com. You homes due to abuse, abandonment or neglect. can find information about all the The Foster Care Council works to provide funding for opportunities to get involved through clothing, individualized tutoring, summer camp and other these avenues of communication. enrichment activities for Kentucky’s foster children. “We strive to help this population of children become TLR: What recent achievement are strong, healthy adults and not a statistic,” said Slone. you proud of? 2121 Richmond Road #105 Slone continues to lead the organization as executive CS: One of our proudest achievements Lexington, KY 40502 director. The staff consists of Business Development would be opening Studio ThriftyFor (239) 248-7699 Director Lindy Hester and Fundraising and Special Events the Kids in 2018. To provide children thefostercarecouncil.com Coordinator Cindy Guckian. who have possibly never been able Here, Slone provides more information about the to go shopping with the opportunity to pick out “cool” mission of the organization and how its work is changing clothes and shoes and then see their self-esteem change the lives of children. within an instant is truly a humbling experience. It is simply priceless to be able to provide something so special The Lane Report: When you meet someone new, how do for them that we often take for granted. you describe your organization? Cassie Slone: As an organization that is changing lives. We TLR: Is there anything else you’d like to say about The provide resources to foster children in Kentucky that the state Foster Care Council? does not. We work alongside foster parents and caseworkers CS: The Foster Care Council literally changes the lives to provide opportunities these kiddos otherwise might not of this often-forgotten population of children. Providing have. We provide avenues for them to explore talents and educational and social opportunities changes the trajectory passions through extracurricular activities. We provide of one’s life. We have witnessed first-hand how one-on- academic assistance to build confidence in the classroom, one tutoring changed one student from “hating” school which in turn changes attitudes, not to mention providing and thinking she would never graduate because she options for future higher learning. We provide youths with wasn’t smart enough to now being on the dean’s list life skills that will help them succeed when they age out of at the University of Pikeville, studying to be a teacher. the system. We are the only organization in Kentucky that Opportunities change lives, and we strive to do that one provides these services to foster families at no charge. child at a time. ■

lanereport.com June/July 2021 59 INSURANCE AND INVESTMENTS

The company is the owner, premium payer and beneficiary of the policy. The covered person could be the company’s founder, its patent- generating scientist or anyone else critical to the business. The policy may be term insurance or cash-value life insurance. The premiums paid by the company are not tax deductible. And while life insurance benefits are normally not subject to income tax, the death benefit received by a corporation from a key-person policy may be subject to the alternative minimum tax. Key-person insurance can also be set up to fund buyout arrangements or deferred compensation plans for a retired top employee.

Additional benefits Besides helping to stabilize a company’s financial position following an essential employee’s Why You Should Insure death, key-person insurance can: • Serve as collateral for bank loans. • Pay off company debt or hold off creditors seeking to collect following Your Top Employees the key person’s death. • Instill loyalty and enthusiasm in Having ‘key-person’ insurance could the insured employee. • Provide funds when needed to be a lifeline for a small business purchase a deceased owner’s stock.

Ask yourself how much it will BY KEVIN O. STINNETT But what happens if a company’s cost to replace a key employee in chief researcher or other key worker the event of death, and where the OULD you hesitate to buy dies? The firm might fall into disarray cash will come from. Check with a fire insurance for your lab and investor capital could dry up. reputable insurance professional to Wor office building? Of course By insuring its top employees with find out how key-person insurance not. What about liability insurance “key-person” insurance, however, can help provide some answers. ■ in case someone slips on your steps? the business may be more likely to

Same answer. But have you insured survive the loss. Kevin O. Stinnett, LUTCF is a what could be your most valuable Key-person insurance (previously registered representative and asset—your top employees? If not, known as “key-man”) offers investment advisor representative of Lincoln Financial Advisors you should consider “key-person” a financial safety net. It can Corp., a broker/dealer (member insurance. provide the cash needed to hire a SIPC) and registered investment advisor, 465 E. High St. Suite replacement and keep the business 101, Lexington, KY 40057, (859) 277-8370, Protecting your most valuable asset running. That’s why savvy firms offering insurance through Lincoln affiliates and other fine companies. This information should not The know-how, judgment and looking to keep their businesses be construed as legal or tax advice. You may want experience that build a business are running smoothly can benefit from to consult a tax advisor regarding this information found in people, not equipment or as it relates to your personal circumstances. The key-person policies. content of this material was provided to you by machinery: The company president, Lincoln Financial Advisors for its representatives its key scientist or an essential How it works and their clients. employee who helps develop new Key-person insurance can be *The content of this material was provided to you products, attract investors and structured in several ways. Typically, by Lincoln Financial Securities Corporation for its representatives and their clients. This article may generate profits. Those people could the business buys a life insurance be picked up by other publications under financial be your most important asset. policy on the life of the key-person. professional’s bylines.

60 June/July 2021 lanereport.com WHY YOUR BUSINESS NEEDS CYBER INSURANCE

Cyber security is constantly evolving, resulting in several factors that effect your business. Below are examples why.

LACK OF INCIDENT BUSINESS INTERRUPTION RESPONSE PLANS The costs associated with a cyber intrusion Having a clearly defined and documented are not only related to response. According cyber incident response plan helps to NetDiligence’s Cyber Claims Study,6 organizations respond quickly and effectively claims impacting small and midsized when a breach impacts their business. enterprises resulted in an average of Unfortunately, only 23 % of businesses $343,000 in business interruption expenses surveyed by the Ponemon Institute reported as the breached organizations worked to having an incident response plan that was get their businesses back up and running. applied consistently across their enterprise, leaving 77 % with inconsistent or no plans.5

RISING RESPONSE COSTS RANSOMWARE The costs associated with responding to a Ransomware, a form of malware targeting cyber incident are rising. From forensic and critical data or computer systems for legal experts to deal with the incident to the extortion, is a growing threat for businesses rise in ransomware demands, including a of all sizes. Not only are instances of $600,000 ransom paid recently by a city ransomware on the rise, but the average in Florida,2 the costs to respond to a cyber amount paid in a ransomware attack more intrusion are rising quickly. than doubled in late 2019, to more than $84,000.1

INADEQUATE INCREASING CYBERSECURITY HYGIENE REPLACEMENT COSTS Implementing basic cybersecurity best According to “The 2020 State of IT ”3 report, practices can prevent, or at least minimize, 1 in 4 businesses increased their IT spend many of the most common risks.4 With in 2020 due to a recent security incident. many organizations enabling their Additionally, 44 % of businesses planned to employees to work remotely, the lack of increase their tech budget, up adequate cybersecurity controls on home 6 % from the prior year. networks can lead to significant exposures when those workers return to the office. Organizations should implement controls, including endpoint detection and response, to reduce exposure risks to their networks when employees return.

CONTACT LEXINGTON INSURANCE AGENCY TODAY (859) 253-6570 [email protected]

® 1Average Cost to Recover From Ransomware Skyrockets To Over $84,000, 2Florida City Agrees To Astonishing $600,000 Ransom Payout, 3The 2020 State of IT, The Annual Report on IT Budgets and Tech Trends, 4How to Implement & Assess Your Cyber Hygiene, 5Ponemon Institute’s The Fourth Annual Study on the Cyber Resilient Organization, page 35, 6NetDiligence Cyber Claims Study, 2019 Report

Cyber Insurance RED.indd 1 4/23/21 11:09 AM PUBLIC POLICY

Picnics and Politics A Kentucky tradition Deep in Western Kentucky some The annual Fancy Farm Picnic at Saint Jerome returns with all of 270 miles from Frankfort and 440 Church in Western Kentucky is known for its from Pikeville is the bucolic farm political speeches and BBQ. This year’s event the glitz and blitz is being emceed by Bob Babbage. community of Fancy Farm, home to the historic St. Jerome Catholic BY BOB AND JULIE BABBAGE Church. Back in 1880, these good Catholics started a tradition to span Fancy Farm is required attendance T might be the best bargain in the centuries. A small fortune is for the political class. Even though politics. It’s certainly the most raised for the Catholic parish school. there are no elections in 2021, the Italked about date on the Kentucky As tradition dictates, the 141st grounds are filled with decision- political calendar. edition will take place on the first makers. Handshakes are ongoing. For those unfamiliar with this annual Saturday in August, the 7th. Last Heckling from the opposition is a state tradition, one that consistently year was greatly reduced and socially constant. receives national attention, let us paint distanced; political speeches were Our ancestor, Keen Johnson, served a picture for you. altogether canceled. as governor during 1939-43. Fancy Imagine the sight of a superb With an extra year to create barbs Farm records show he spoke there. barbecue picnic combined with a to go with the barbecue, this year’s Gov. A.B. “Happy” Chandler massive reunion of all the political panel will be one to watch. popularized the political stump families in the state, friend and foe, red Rare is the chance for U.S. Senate speaking, back when speakers and blue. The top folks in office are all Republican Leader Mitch McConnell actually mounted a tree stump to be given a chance to rile up the crowd and to sit a few seats from Gov. Andy better seen. level jab after jab on each other. Beshear with Congressman James Mitch McConnell first came in What is this lively event dubbed the Comer close by—and possibly U.S. 1984 as an “underdog” county judge- “Super Bowl” of Kentucky politics? Senator Rand Paul, who is up for a executive, ahead of his upset win to The answer: Fancy Farm. The third term in 2022. become a U.S. senator that November. homey but packed gathering both Also likely to be right up front Former Gov. Steve Beshear was a bakes and takes the cake for a bucket- are Lt. Gov. Jacqueline Coleman, regular throughout his long elected list experience. It’s guaranteed to Attorney General Daniel Cameron, career. be hot—both the weather and the Secretary of State Michael Adams, Paducah banker Steve Elder chairs rhetoric. Not to mention the bingo. Agriculture Commissioner Ryan the event, which was deemed the Quarles, Treasurer Allison Ball and World’s Largest Picnic by the “Guinness Auditor Mike Harmon. Book of World Records” back in 1982. Come 2023, each could be on the The consumption of 15,000 pounds of ballot. Quarles, Ball and Harmon are mutton was the deciding factor. termed out, having high potential for “There is much to enjoy at Fancy seeking other offices. Farm, but the political speaking is The adage that “it’s always about the big draw, a show carried live on the next election” comes home to KET. Our rules of debate assure a fair roost. A mayor from many miles east, forum,” Elder said, “with a strong or a state legislator from the northern helping of humor and maybe a dash regions would spark the candidacy of spirited oratory.” ■ speculation. Most come just for the iconic scene, plus a little drama. Bob Babbage and Julie Babbage are The Fancy Farm Picnic typically serves about A gaggle of reporters and with Babbage Cofounder, 10,000 pounds each of barbecued pork and photographers will seek out the faces a leading government barbecued mutton. of the future. relations firm.

62 June/July 2021 lanereport.com THE HR MANAGER

Be flexible As we return to the workplace, we will Returning to the Workplace not be going back to the same ways of What you should consider as employees come back to the office working. You need to encourage and embrace new ways of working that make sense in this “new normal.” Let go of how things have always been BY MOLLEY RICKETTS been in the same storm, but not in done. Just because a goal was set the same boat. Empathy, concern and in 2020 does not mean you cannot HAT will a return to the compassion is required from leaders. modify it today. In fact, that is a good workplace look like, whether Some workers may be reluctant to thing. The most effective leaders are Wyou are in an office or on return to the office or factory floor. able to act quickly and decisively to a factory floor? The likelihood is Others may be eager to leave remote recognize changes in the marketplace that a return will look different work behind but for some reason, and adjust with them. for every organization. However, their responsibilities have changed Perhaps now is the time to consider there is something we all have in that make it difficult for them to do a more permanent flexible schedule. common: COVID-19 has created a so. Others will simply need time to Maybe it is two days remote and three new understanding of work and adjust to the new ways of working days in the office or vice versa. Who how organizations can be affected post-pandemic. has done their job successfully during by outside events. the pandemic? If they were high Reset expectations performers, perhaps they have earned Safety first I suspect you will find that the right to have additional flexibility. Your employees are counting on you to typical performance management It is likely many leaders and managers help them get back to work safely. You solutions—designed to manage have gained the skill to manage and will need to comply with federal, state employee reviews, give feedback, lead people remotely. There you will and even local orders as restrictions set goals and increase engagement— find many opportunities for growth are eased. These guidelines may not need adjusting. After all, you are and employee development. be consistent with all locations so basically re-hiring people to come As difficult as it has been for all of you need to plan for a wide range back into the office again. Now may us during the pandemic, if we focus of possibilities to ensure compliance. be the time to reassess the work on regular, effective communication, Workers will want to see what steps people were hired to do. What were leaders will be able to turn the you are taking to protect their health. I their responsibilities pre-COVID? COVID-19 crisis into an opportunity would suggest you focus on their well- Those roles and expectations for the to build teamwork, increase loyalty being to help reduce their emotional, position may have changed—and that and boost productivity. ■ mental and physical stress. is okay. Act now to provide clarity and communication to re-engage Be sensitive individuals and more importantly, Molley Ricketts is the CEO While all of us experienced this crisis, teams. Without employee buy-in, of Incipio Workforce Solutions we have not all been impacted in the even the best-designed plans will run in Louisville. same way. I like to say we have all into trouble.

lanereport.com June/July 2021 63 LIFESTYLE

Summer Smokin’ Tips from an expert on how to become a backyard barbecue pitmaster

BY JAKE KRATZENBERG make sure you are keeping your wood in there and keeping your temperature where you need to be. If you are doing AZY summer days are upon us and there is no better low and slow, you are going to go with a low temperature smell than the aroma of smoking meats wafting for an extended period. Lthrough the backyard. There are a million different ways to smoke meats and JK: When you say low temperature, are you talking hundreds of different smokers to use. Each type gives the about 250 degrees? 200? meat a different flavor, but which way is the best? The Lane DC: You probably want to go lower than that. If you go Report reached out to Lexington restaurant owner David 160 for 12-14 hours and it is taking longer than expected, Carroll of Red State BBQ to get his response to that question then maybe the last two hours go ahead and push that up to 250 or 260. Jake Kratzenberg: What is Red State BBQ’s style? David Carroll: We are Texas-style. The Texas thing is all JK: What kind of wood would you recommend? about low and slow. We have brisket that is going to go DC: Hickory. You see that a lot in the Carolinas. That is 14-16 hours; same thing with pork. We also have several what we use and the customers like it. It produces a mild different sauces that we make available to our customers. flavor, not too overwhelming.

JK: Do you ship your products? JK: If you were starting a backyard barbecue-type DC: Our retail paraphernalia, the sauces, the dry rubs – smoking, what kind of meat should you start with? anything that is nonperishable like that, we can ship. We DC: It is just whatever you like. I got into doing chicken in have an e-commerce site and our e-commerce site has had the smoker, so that was kind of my thing for a while. For a pretty good year so far; the numbers have been solid. ribs, you want to go probably about three to four hours. We do St. Louis style. It is a very meaty rib, so you have to JK: What is the best advice you can give people just put your rub on there. I would recommend brown sugar; starting smoking in their backyard? that sugar is going to pull out the sweetness of the pork. DC: Patience. If you are doing a pork butt or brisket or something like that, you kind of just set it and forget it. JK: Is there a preferred pairing of sauces with certain You want to check your temperature from time to time, types of meat? DC: Memphis Sweet with pork is probably one of my favorites. Kentucky Small Batch is good with pork. The South Carolina mustard, I like with our ribs. The Alabama Showhorse is good with brisket, especially our double- smoked brisket.

JK: What is the most outrageous thing you have smoked? DC: I have smoked a watermelon; you smoke the watermelon. You take balsamic vinegar and reduce that and put that with the smoked watermelon. It’s phenomenal. ■

Brisket is one of the most popular items at Red State BBQ in Lexington.

64 June/July 2021 lanereport.com SPOTLIGHT ON THE ARTS

Left: Naturalization ceremony at Thomas Jefferson’s Monticello, July 4, 2013.

Below: The First Vote, drawn by A.R. Waud, Harper’s Weekly, November 1867. Thomas Jefferson FoundationMonticello at photo

“Voices & Votes: Democracy in America” is part of the Smithsonian’s Examining Museum on Main Street program in cooperation with Kentucky Humanities. The exhibit – which is Democracy based on an exhibition currently on display at the Smithsonian’s National in America Museum of American History called “American Democracy: A Great Leap of Faith”—examines the nearly Traveling Smithsonian 250-year-old American experiment and keep the vote, the machinery exhibit explores government of government “of, by and for the of democracy, the right to petition ‘of, by and for the people’ people” and how each generation and protest beyond the ballot, and since continues to question how to the rights and responsibilities of form “a more perfect union.” citizens. The exhibit began its tour through Voices & Votes features historical traveling art exhibit presented Kentucky at the Portland Museum in and contemporary photos, educational by the Smithsonian Institution Louisville, where it ran from May 8 and archival video, multimedia Athat explores American through June 12. It is now on display interactives with short games, and democracy is making its way across at The Center for Rural Development historical objects like campaign the commonwealth this year. in Somerset, where it will be located souvenirs, voter memorabilia, and

Courtesy of the National Courtesy Woman’s at the Belmont-Paul Party Women’s Equality through July 24. Subsequent stops protest materials. will include: The Oldham County “This traveling art exhibit allows History Center in Lagrange (July 31- us to reflect on our history and Sept. 11); The Glema Mahr Center explore what it means to be an for the Arts in Madisonville (Sept. active participant in the governance 18-October 23); and the Wilmore of not only the country but also this Community Development Board in community,” said Laura Glover, Wilmore (Oct. 30-Dec. 11). managing director of marketing The exhibit explores the action, and events for The Center for Rural reaction, vision and revision that Development. democracy demands as Americans In Somerset, admission to the continue to question how to shape exhibit is free of charge. The exhibit the country. Exhibition sections may be viewed 8 a.m.-5 p.m. Monday highlight the origins of American through Friday and during extended democracy, the struggles to obtain evening and weekend hours when the building is open to the general public. The exhibit can be viewed on Alison Turnbull Hopkins pickets the weekends by calling (606) 677- the White House, 1917. 6000 for an appointment. ■

lanereport.com June/July 2021 65 EXPLORING KENTUCKY

The B-Line in Northern Kentucky is a collection of craft bourbon distilleries, bourbon bars and bourbon-centric restaurants. It features a free digital passport. Visitors who collect stamps from at least two distilleries, two bars and two restaurants can earn free B-Line swag.

bourbon. The nation’s first consumer protection law, the Bottled in Bond Act of 1897, was passed to assure that a bottle of whiskey was not an adulterated product. The spirits distilled at New Riff are bottled in bond but without chill filtration. That fact makes it “new.” In other words, the distillery follows “the time-honored Make a Beeline for the B-Line sour mash Kentucky regimen” in crafting a range of whiskeys with its Northern Kentucky trail celebrates all things bourbon own spin on the process. The Pogue family has been crafting BY KATHERINE TANDY BROWN That said, no matter how many bourbon in Mason County for more distilleries open in any number of than 150 years. A short drive from S a Kentucky native and a states, the Bluegrass State provides the Maysville, the Old Pogue Distillery bourbon fan, I know for sure true bourbon experience. Northern sits on a bluff that overlooks the Ohio Athat the commonwealth distills Kentucky in particular continues to River Valley. The current owners, fifth- the best bourbon and always will. step up to the bourbon plate in a big and sixth-generation Pogues, make Period. Am I prejudiced? No doubt. way. Early 2018 saw the opening of bourbon and small-batch rye. But with good reason. The B-Line, short for “The Bourbon Though Boone County Distilling Distinguished Master Distiller Line,” the border formed in the area Co. has been making fine Kentucky Booker Noe, sixth-generation by the Ohio River, which transported bourbon since 2015, its roots reach distiller and grandson of Jim Beam, the first bourbon throughout the introduced me to his namesake country. This collection of five Booker’s at lunch one day. Having Kentucky Bourbon Trail Craft Tour only tasted a rotgut bourbon at the distilleries includes eight bars—all time I had the privilege of meeting named by Bourbon Review as the him, I declined his offer of a little Best Bourbon Bars in America—and pre-lunch libation and told him six restaurants offering a selection of why. Without missing a beat, the bourbon and bourbon-centric dishes. gentleman said, “Honey, you haven’t All B-Line distilleries feature tours tasted my bourbon. Let me fix you a and tastings. Following is just enough little Kentucky Tea.” about each of these to whet your desire He did. He was right. Mr. Noe made to head north and wet your whistle. a bourbon aficionado out of me and Since 2014, New Riff Distilling in Three Spirits Tavern in Bellevue is located in a Booker’s will always be my favorite. Newport has created a “new riff” on historic 1880s brick, three-story home.

Lake Barkley & Land Between The Lakes Plenty of Things that Make a Vacation the Best Ever

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66 June/July 2021 lanereport.com Libby’s Southern Comfort in Covington is home to award-winning fried chicken, shrimp and grits and an unforgettable bourbon experience.

back hundreds of years, when Boone County was king of the bourbon industry. The distillery first opened in 1833 in Petersburg, Kentucky, and was re-established in Independence six years ago. Take a tour and learn why this business honors its history by declaring their bourbon to be made by ghosts, then sip its finest in an elegant tasting room. Add a little more historical color to your experience at family–owned and operated Neeley Family Distillery in chill with a fine bourbon or bourbon the circa 1796 Beehive Augusta Sparta. Nine generations of Neeleys cocktail. And to add to your choices, Tavern for farm-to-table dining, live made moonshine in the Kentucky on June 14 (in conjunction with entertainment, and a magnificent mountains before 10th-generation National Bourbon Day) the B-Line selection of bourbon to sip while Royce Neeley decided to pay the announced the addition of four new gazing at the Ohio River. required government taxes and open stops: Smoke Justis and Libby’s You don’t even have to enjoy a distillery. Southern Comfort, both in Covington; bourbon to have a ball on the B-line. “We have as much illegal history Three Spirits Tavern in Bellevue; and There’s so much to see, do and taste. To in this state as the Beams have legal,” The Beehive Augusta Tavern. score cool bourbon swag, download a he declares in an entertaining website Named to honor an early 1900s digital passport at thebline.com or stop video. Using his forefathers’ recipe, player in the Major League Baseball by one of the B-Line stops and nab a he now makes bourbon, whiskey Hall of Fame, Smoke Justis, located paper copy. Then visit two distilleries, and moonshine—the latter in a raft at the foot of the Roebling Bridge, is two restaurants and two bars, and of flavors, including sweet tea and all about smooth bourbon, smoked voila! You get free glasses, T-shirts, chocolate truffle. meats, craft beer and live music. hats and other B-Line souvenirs. And finally, Second Sight Spirits, Libby’s Southern Comfort in Uber and Lyft offer discounts to folks an artisan distillery in Ludlow, Covington lures you in with shrimp doing the Line, so you can hire them produces bourbon, premium rum, and grits, oatmeal cream pies and its to be your designated driver and sip to moonshine and whiskey. Its still is famous Cheerwine Bourbon Slush. your heart’s delight. Yet another option also a work of art, complete with a Libby’s also features a dog-friendly is to hire TourWithUsKY, a boutique turban-wearing swami and a crystal patio. transportation service provider. ball–a play on “second sight” and Only a mile from downtown Get the scoop at “spirits.” After a tour, visitors can Cincinnati and several blocks from findyoursippingpoint.com (859) 261- relax in a lounge that features its New Riff Distillery, Three Spirits 4677 and climb aboard The B-Line. ■ spirits in cocktails and coffee drinks. Tavern serves beer, wine, spirits and Katherine Tandy Brown is a correspondent Perhaps the toughest decision on food in a Bohemian atmosphere. for The Lane Report. She can be reached the B-Line can be where to eat and Wind along scenic Route 8 to at [email protected].

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