This article was written by Kimberly Rossetti, vice president of economic development at Northern Kentucky Tri-ED.
Information Technology. This often invisible business sector is not only a critical component of every company and organization. It is a distinct industry in its own right, and one that will help lead the continuing growth of the Northern Kentucky economy.
Most companies know IT as critical infrastructure – the software and hardware, data security and internet applications that literally make business possible. Far from being merely a back-of-the-house function, though, IT is one of the most dynamic areas of the American – and Northern Kentucky – economy.
IT employment has increased nearly 19% during the past five years, twice the national rate of growth. Northern Kentucky’s IT sector has grown at an even faster clip during this period: between 2014 and 2019, local IT employment rose by more than 20%. That’s why Information Technology is one of the four target clusters Tri-ED recommends for future economic development efforts in Northern Kentucky, along with Advanced Manufacturing, Life Sciences and Supply Chain Management and Support Services.
These four target clusters collectively provide Northern Kentucky with a pathway to promote a balanced economic development agenda. The diversity of these clusters will help the regional economy from becoming too dependent on any one industry, and encompass companies of varying sizes, creating opportunities for startups and global businesses alike. A quick look at some of the area’s leading IT companies bear out that diversity.
STEP CG is a leading IT, security and cloud services provider with award-winning, nationwide solutions and a full portfolio of networking, voice, security and professional service solutions. Founded in 2014, privately-held STEP CG is one of the fastest-growing technology firms in the Midwest. The company recently invested nearly $5.3 million for 7,000 square feet of additional office space at 50 East RiverCenter Blvd. in Covington to accommodate its growth, generating at least 83 high-wage jobs.
Gentis Solutions helps clients hire talent through the use of innovative assessment, management and communication technologies. Founded in Pennsylvania in 2015, Gentis moved its corporate headquarters to Covington in 2020, investing $2.7 million in its new RiverCenter home and creating 80 well-paying jobs in the process.
Nexigen is a managed IT services and support company committed to making sure business owners have the most reliable and professional IT service and “solving IT nightmares once and for all.”
Global Business Solutions is a full-service IT provider founded more than a quarter century ago by Northern Kentucky University grad Gaby Batshoun, who serves as CEO.
Ulimi is a Covington-based startup founded in 2017 that uses artificial intelligence to make work-life easier for manufacturers and other employees.
C-Forward is a managed services provider of IT solutions. Last year, it invested $2.3 million in its corporate office at Fifth and Madison in Covington. C-Forward has achieved double-digit growth nearly every year since moving to Covington in 2003.
Archer Daniels Midland Company (ADM) chose to locate its information technology and support center in Erlanger in 2015 on the same campus as its WILD Flavors offices. ADM projects the center will grow to approximately 200 employees as the company expands its global IT support and infrastructure. 1ADM – the planning and implementation of the company’s enterprise resource planning system – is supported by the center.
The Gap, Inc. – the largest American specialty apparel company – has its global logistics center in Northern Kentucky.
Red Hawk uses technology in novel and creative ways to improve efficiency, lower costs and increase profits for its customers. This has led to the development of SaaS and PaaS products, as well as custom apps and system integrations for companies ranging in size from startups to the Fortune 500. Since its founding in 2008, Red Hawk has grown 450%.
Pomeroy Technologies is an industry-recognized, global technology firm headquartered in Hebron with nearly 3,500 employees worldwide. Its portfolio centers on the full life cycle of the managed workplace and includes enterprise networking, hybrid IT, cloud, technical staffing and a full range of procurement/logistics services and industry-specific solutions.
Vivitec, founded in 2015 and headquartered in Crestview Hills, focuses on technology and cybersecurity services.
Maintaining momentum in the IT sector, of course, is largely dependent on producing the talent IT companies need to thrive and grow. Indeed, regional production of IT talent (which include informatics) is increasing at a faster pace than the growth of air cargo shipments in the region.
IT talent has historically been in short supply nationally, and regions that feature educational institutions capable of delivering a sustained pipeline of new workers with advanced skills are especially appealing. Fortunately, Northern Kentucky University (NKU) is home to the College of Informatics (COI), one of just a handful of such colleges nationally. Enrollment in COI has grown steadily since it launched and it’s home to two of the top four enrolled majors at NKU as well as a top-ranked Cyber Defense Team. Recently, the college launched several new degrees including a new applied software engineering degree focused on software security and user experience design in addition to a BS and MS in cybersecurity.
COI is also partnering with some of the region’s largest and most important companies. Macy’s supports the Digital Media Lab, the heart of the college’s 3D digital design and VFX program, with the latest digital design tools on state-of-the-art hardware. The Kroger Technology and Digital Innovation Lab provides NKU co-ops and interns valuable real-world experience working for a major company right on the NKU campus.
Gateway Community & Technical College also offers a wide spectrum of training to build IT talent. Students can gain associates’ degrees in everything from cloud computing and information security to network administration and programming. The college also offers transfer pathways to NKU.
Throughout the Cincinnati region, Xavier University, the University of Cincinnati and Miami University all add IT talent to the pipeline. Last year, Miami was ranked No. 2 in the U.S., ahead of Carnegie Mellon and Columbia University, among colleges for coding assessments in a report from CodeSignal, based in San Francisco.
These graduates will all be needed. While more than 5,700 IT workers live in Northern Kentucky, just 4,300 – 75% – work in Boone, Campbell or Kenton County. Nationally, IT employment has increased by more than 50% over the past decade, sending employers scrambling for recent graduates with the latest technology IT skills. At the same time, the relative youth of the IT workforce can make it difficult to recruit and hire more experienced workers. Northern Kentucky offers existing and prospective IT employers an incredibly cost-competitive operating environment. In addition to the region’s relatively low cost of living, at approximately $77,000, the average IT wages here are barely half the national figure.
And as the region’s economy grows, so grows the IT sector, and vice versa. IT will play a primary role in advancing technological disruptors. Mass deployment of Artificial Intelligence, for example, will only be possible thanks to continued advancements in areas such as Big Data. Autonomous and electric vehicles look to emerge as the biggest digital platform since the rise of mobile phones.
Continued innovations in areas such as transportation and healthcare care are likely to depend on software/IT applications. IT is seeking to change the dynamics of the logistics and supply chain industry – heretofore characterized by labor-intensive practices – via technologies such as AI and robotics. The emerging Health Informatics field will help identify promising molecules, speeding the pace of drug development, and evaluate healthcare information systems to improve individual patient outcomes.
IT is far from invisible. The future will bear that out to an even greater degree.
To learn more about Tri-ED, visit www.NorthernKentuckyUSA.com or follow these accounts on social media: @NKY_EconDev (Twitter), Northern Kentucky Tri-ED on LinkedIn and Facebook.
