As Kentucky’s economy continues to grow, so does the need for businesses to locate and expand throughout the commonwealth, bringing quality jobs, investment and opportunities with them. Companies across the country and around the world are seeking to expand their operations to meet growing consumer demand. This need for growth and efficient turnaround times has brought the speed-to-market industry to the forefront when it comes to business expansion and relocation.
One of the most important factors for decision-makers at businesses considering a new location is finding states capable of getting companies from the project stage to operational as quickly and efficiently as possible. The commonwealth has taken an aggressive approach to meeting the speed-to-market demand, matching companies’ sense of urgency and expediting project timelines in a way many other states have not. This advantage has opened the doors to continuing strong statewide economic growth through increased investment and job creation.
“Ensuring that companies seeking to expand their operations have an upper hand by doing it here in Kentucky is critical to our state’s economy and workforce development,” Gov. Andy Beshear said. “Our ability to get companies operational quickly gives not only the company, but the commonwealth a competitive advantage in the site selection process. Kentucky is known for its business-friendly environment, and having sites ready for growing businesses is a key factor. I am proud of the growth we’ve seen in the speed-to-market sector during my administration, and I appreciate the local and state economic development officials for their continued dedication to the commonwealth’s success.”
Kentucky has a unified approach. State and local officials, utility providers and higher education institutions work seamlessly to quickly resolve requirements like permitting. This approach stands to benefit a host of different industries that thrive in Kentucky, like advanced manufacturing, automotive, distribution and logistics, food and beverage, and health care.
Kentucky’s speed-to-market and site selection initiatives are spearheaded by both its Build-Ready Sites and Kentucky Product Development Initiative (KPDI), which are paving the way for future speedy development and economic growth.
Through the KPDI, the state enables companies to quickly locate in Kentucky while mitigating the risks and delays normally associated with the construction process. This unique program was launched in partnership between the Kentucky Cabinet for Economic Development and the Kentucky Association for Economic Development (KAED) and provides funding for local communities to further invest in site and building upgrades to support future economic growth and bring well-paying jobs to Kentuckians.
During the 2022 legislative session, Gov. Beshear and the Kentucky General Assembly approved $100 million in funding for the initiative. More than 70 applications for funding were received after the initiative went live. Local government and economic development organizations throughout the state may take advantage of these resources to secure and build up sites with infrastructure to make them development ready.
Round 1 of the program concluded in December 2023 with 53 projects statewide approved for $31.2 million in funding. Including local contributions, these projects are generating over $123 million in investments in Kentucky’s sites and buildings portfolio.
Following the conclusion of Round 1 of the program, Gov. Beshear announced that 46 site and building development projects in 45 counties advanced to the due diligence stage of Round 2 for further review, with $68.8 million available to support the projects. To date, Round 2 of the program has seen more than $31 million in state funding allocated to support 28 projects throughout the commonwealth.
Site and building development projects are first evaluated by an independent consultant based upon all facets a prospective company would consider, from workforce availability, access to all infrastructure and detailed information on costs associated with development. In turn, these projects will generate increased economic development opportunities and job creation for Kentucky residents. The initiative furthers the efforts of the pilot PDI program, which provided nearly $7 million in state funding for 20 site development projects across the state. Companies have announced economic development projects at 10 of the locations funded during the pilot PDI program, projecting $4 billion of capital investment and 3,500 new, full-time jobs.
The KPDI Program is responsible for assistance for transformative site and infrastructure improvement projects, which include the development of Build-Ready sites.
A great example of how both KPDI and Build-Ready sites can work hand-in-hand is with one of the state’s most recent Build-Ready site additions. In July, Gov. Beshear announced a new Build-Ready location in Rowan County, positioning the community for future investment and job creation.
In 2022, Rowan County was approved for $212,500 in state support through the pilot PDI program toward construction of a building pad-ready site. In 2023, KPDI provided $599,414 to support the purchase of 238 acres along Rodney Hitch Boulevard for industrial use. Also in 2023, a regional project with support from Rowan, Menifee and Morgan counties was approved for $148,578 to perform infrastructure improvements at the industrial park. And just before the site became Build-Ready approved, $814,379 in state support was allocated to the community to acquire an 80-acre tract for industrial development purposes.
With a Build-Ready site, much of the work – aside from construction – has already been completed. That includes controlling the land to be developed, completing archaeological, environmental and geotechnical studies, constructing a building pad, finishing preliminary design work, obtaining approved site plan permits and putting necessary infrastructure in place. On a Build-Ready site, construction can begin immediately.
To be Build-Ready-certified, a site must include a pad ready to accommodate a 50,000-square-foot building with the ability to expand to at least 100,000 square feet, and with utilities extending to the site. Applicants – usually a city, county or economic development group – must have previously filed the necessary permits, as well as preliminary building plans, cost estimates and schedule projections. Applicants also are asked to provide a rendering of a potential building for the site.
Just this month, Gov. Beshear announced the largest Build-Ready site in Kentucky with the addition of a new regional Build-Ready location in Henderson County. The site includes a building pad with over 1.1 million square feet of space available.
Including these new sites in Rowan and Henderson counties, the commonwealth now has roughly 24 available Build-Ready sites, with numerous additional locations across the state currently working toward certification.
To date, 12 former Build-Ready-certified sites – including tracts located in Barren, Butler, Christian, Graves, Hart, Laurel and Pulaski counties and five sites in Warren County – have been selected by companies for new location projects, allowing companies to bring their operations online in a cost-efficient manner while creating jobs for Kentuckians.
Complementing Kentucky’s speed-to-market advantages are a variety of other pro-business elements, including an ideal geographic location that places the state within a day’s drive of more than two-thirds of the nation’s population With highly developed logistics and distribution infrastructure and facilities – including four major ground- and air-shipping hubs – Kentucky continues to attract businesses that rely on multiple reliable, air, road, waterway and rail shipping options. These factors are a huge reason why the logistics and distribution industry, and others, such as manufacturing, automotive, metals, food and beverage, and agritech, are thriving in the commonwealth.
Kentucky’s commitment to building its speed-to-market initiative, allowing for companies to locate, expand and grow here in the commonwealth, is laying the foundation for a future of continued economic success and high-wage job opportunities throughout the state. These programs are already paying dividends, and Kentucky sits in a good position to build a brighter future through these early successes.
For more information on Kentucky’s KPDI program, visit ced.ky.gov/kpdi. To learn more about Build-
Ready sites and available locations, visit ced.ky.gov/BuildReady.
