MAY 2019 LANEREPORT.COM • the LANE REPORT Nothing Says I’M Right Here, Like the Care and Professionalism of Our Nursing Team at St
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The ® LaneKENTUCKY’S BUSINESS NEWS SOURCE Report FOR 34 YEARS MAY 2019 $4.50 $ THE VALUE PROPOSITION OF COLLEGE TUITION Kentucky higher education makes the case to today’s savvy students that Success is their ROI lanereport.com KY 40150 KY Lebanon Junction Lebanon LANE ONE-ON-ONE: Permit #327 #327 Permit PAID LAURA PREWITT ELECTRONIC SERVICE REQUESTED SERVICE ELECTRONIC U.S. POSTAGE U.S. Executive Director, PRST STD PRST 601 W. Short St., Lexington KY 40508 KY Lexington St., Short W. 601 Kentucky Horse Park BUSINESS HAPPENS ONLINE. That’s why we engineered our Kinetic Business One Gig Fiber Internet service with unbeatable speed and reliability. 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Kinetic and Windstream are registered service marks or trademarks of Windstream Services, LLC. and/or its afliates. All other marks are the property of their respective owners. 023357LexingtonLaneReport1QLunarSMB8125x10875.indd 1 1/15/2019 9:48:09 AM FIFTH THIRD PAYMENTS AND COMMERCE SOLUTIONS WHERE EXPERIENCE AND INNOVATION INTERSECT. Bridgit Chayt SVP, Director of Commercial Payments and Treasury Management at Fifth Third Bank Bridgit and the Treasury Management experts at Fifth Third Commercial Bank combine innovative technology and investments to help craft effective ways to manage the complexity of your company’s capital. This is banking a Fifth Third better.® 53.com/Experience Fifth Third Bank, Member FDIC MAY LaneThe Report 2019 Kentucky’s Business News Source For 34 Years Volume 34 Number 5 24 COVER STORY THE VALUE PROPOSITION OF COLLEGE TUITION Kentucky higher education makes the case to today’s savvy students that success is their ROI 30 REINVENTING STARTUP SUPPORT Louisville’s entrepreneurship ecosystem is seeing a range of new developments 34 BUILDING BLOCKCHAIN FOR BUSINESS Online degree program at the University of the Cumberlands tackles a new form of data security Departments 4 Perspective 36 Emerging Lane 6 Fast Lane 38 The Lane List 14 Interstate Lane 39 Spotlight on the Arts 15 Kentucky Intelligencer 40 Exploring Kentucky 16 Corporate Moves 42 Passing Lane 17 On the Boards 44 Kentucky People 18 Lane One-on-One: Laura Prewitt Executive Director, Kentucky Horse Park On the Cover Kentucky colleges and universities are lanereport.com sharpening their pitch to today’s digital- Kentucky Business News Online native students, who expect a payoff from Read up-to-the-minute Kentucky business news stories, their tuition dollars and have access current and archived copies of The Lane Report, unlimited info on the job market and they Market Reviews, Health Kentucky, Research Kentucky skills they need to be successful. special reports and community profiles. Faster Lane Email news bulletin Five times a week, the editors of The Lane Report publish Faster Lane – email bulletins of fast-breaking and important Kentucky business and economic news. A Corporate Moves newsletter has been added once a week. Visit lanereport.com to sign-up for this free, must-have, at-your-fingertips news service. YOUR DREAM STARTS HERE We can help you “push the start button” on that dream/dream business. KY Innovation is assisting entrepreneurs and small businesses achieve their dreams of business success. We work to meet the needs of founders, investors, innovators and small business owners, guiding them toward the right connections, collaborators and capital to help companies imagine, launch, grow and scale. DREAM BIG. WE ARE HERE TO HELP. LaneThe Report PERSPECTIVE Kentucky’s Business News Source for 34 Years EXECUTIVE EDITOR But the observable economic forces Mark Green IN THE LONG TERM, IT and trends at work presently point to ASSOCIATE EDITOR continuing slow growth. Karen Baird PAYS TO BE POSITIVE Ironically, when recession does DIGITAL EDITOR When a recession does arrive, it Jonathan Miller come it likely will have been triggered by may be because we expect it the psychological consequences of the CREATIVE DIRECTOR Jessica Merriman current economic expansion having lasted so long. As the present growth DIGITAL REPORTER BY MARK GREEN Matt Wickstrom cycle ventures further into record-length territory, Hoffman explained, business CREATIVE SERVICES Stone Advisory ACTS do regularly defy decision-makers grow more wary of Paul Blodgett expectations in our complex making capital expenditures and economy, but expectations can investments – a new store, factory, CORRESPONDENTS F Michael Agin; Katherine Tandy Brown; and do also create facts. Thus, perhaps product or fresh hires – because the Russ Brown; Chris Clair; Clary Estes; it does pay to be positive, in the long result of the outlay might come online Kevin Gibson; Susan Gosselin; Robert Hadley; term especially. just as a recession does in fact arrive. Lorie Hailey; Debra Gibson Isaacs; Abby Laub; Recession in the U.S. economy is Hoffman is a numbers man. Prior to Greg Paeth; Robin Roenker; Josh Shepherd; unlikely this year, and the current entering wealth management portfolio Sean Slone; Dianne Timmerling; analysis, his education included Katheran Wasson; Gary Wollenhaupt; expansion – now 10 years old and the Dawn Yankeelov; Esther Zunker longest in history – could easily continue astrophysics and physics bachelor’s, through most or all of 2020, according to master’s and Ph.D. degrees at Yale and PUBLISHERS Brett Lane Mark Hoffman, managing director, head the University of Chicago. That level of Meredith Lane Ferguson of portfolio management and analytics at achievement is rare. Astrophysics and SENIOR ASSOCIATE PUBLISHER PNC Asset Management Group. physics math is essentially gathering and Donna Hodsdon When recession does come, the analyzing data to make reliable ASSOCIATE PUBLISHERS primary cause is likely to be … determinations about what one can Hal Moss expectations, negative expectations expect to happen. Kristina Dahl that then create facts. Consequently, he looked at the total CHIEF OPERATIONS OFFICER “We think this is going to be a long-term investment return of putting Nicole Conyers White positive year,” Hoffman said. While assets into the collective stock market CONSULTANT recession will occur eventually, he listed from 1893 to 1993, a century of Dick Kelly why PNC’s economic team forecasts it monumental change encompassing the MARKETING CONSULTANT won’t be this year: rise of electricity, the automobile, flight, Curtiss Smith • There is no “bubble” of income taxes, world wars, multiple small CIRCULATION/IT overexuberance in real estate or stock recessions and the Great Depression. Josiah White prices. Stocks gained 6.5% annually. FOUNDER • Consumer confidence is positive And Hoffman looked at the overall Ed Lane and consumers have money to spend. investment returns of the collective 1985-2015 • U.S. economic growth of near 2.5 stock market from 1993 to 2018, a percent recently is based on solid quarter century of further monumental PRINTING & CIRCULATION SERVICES activity and not a tax cut “sugar high.” change encompassing the rise of the Publishers Printing Co. • International Monetary Fund internet, a dot-com boom and bust, WEB MARKETING & PUBLISHING predicts global growth of 3-plus percent. 9-11, China’s economic ascent, the eLink Design • China most recently reported a Great Recession and a 10-year recovery. IT SERVICES controlled-slowing 6% GDP growth rate, Stocks again gained 6.5% annually. NetGain Technologies • Federal Reserve leaders say any Hoffman said he looked also at the INTERNET SERVICES further interest rate increases will be investment returns of putting assets QX.net “data based” rather than to arrive at a into the bond market, again during the number that seems to sound good. century from 1893 to 1993 and the Hoffman does arrive at an investor quarter century from 1993 to 2018. strategy for 2019 (maybe longer?) when Again those assets produced equal The Lane Report is published monthly by: he overlays this perspective with historic long-term results, a return of 0 percent. Lane Communications Group 601 West Short St trends dating back 125 years, which he Of course, individual years can and Lexington, KY 40508 said decisively shows that there is greater do see a stock portfolio fall and a bond [email protected] For more information and risk in investing too conservatively rather portfolio rise, by double-digit advertising rates contact: than too aggressively. He counsels that percentages even. And the short-term PHONE: 859-244-3500 wise wealth investors should keep plenty strategy is important when it is time to The annual subscription rate is $29. of assets in stock markets, but they should use those assets – for retirement, (Kentucky residents add $1.74 sales tax.) Newsstand price is $4.50. switch assets from aggressively managed acquiring real estate, or buying or funds to defensively managed funds as expanding a business. Send check or money order to: Circulation Manager, THE LANE REPORT this expansion cycle plays out its late But a long-term investor’s strategy is 601 West Short St., Lexington KY 40508 innings. clear: Keep thinking positive thoughts. I or go to lanereport.com/subscribe Hoffman spoke to PNC Wealth THE LANE REPORT corrects all significant errors Management’s Kentucky leadership that are brought to the editors’ attention.