The past five years have been “one for the record books” for the state of Kentucky. Since the beginning of the current administration, the commonwealth has announced more than 1,200 private-sector new-location and expansion projects totaling about $40 billion in announced investments, roughly 63,000 jobs, and achieving the best period of economic growth in state history. A critical factor of this historic momentum has been the growth of high-tech businesses and continuous efforts to establish Kentucky as a prime destination for innovation and high-wage jobs.
One of the most significant catalysts for the rise in the commonwealth’s advanced technology sector and high-wage job growth has been private businesses and industry-leading companies choosing to locate to and reinvest in their Kentucky operations.
“There has never been a better time for a business to choose the commonwealth as their New Kentucky Home,” said Gov. Beshear. “The continued investment we are seeing from companies in the advanced manufacturing, technology and innovation industries is a testament to the business-friendly environment we have worked to establish. Kentucky has the access to resources, ideal location and skilled workforce needed to support world-class companies for them to succeed. Our goal is to build a better future for all Kentuckians, and the growth of these key industries, coupled with our rising average hourly wage, is helping us do exactly that.”
In June, GE Appliances announced the first phase of its nationwide manufacturing investment with a $490 million project at Appliance Park in Jefferson County, creating an additional 800 jobs to overhaul and redesign their front-load washer production lines. The investment represents one of the largest private-sector economic development projects under the current administration, as one of only five projects with at least $450 million in investment and 800-plus jobs created.
GE Appliances’ new project at its global headquarters in Louisville will serve as the cornerstone of the company’s recently announced $3 billion investment in its U.S. manufacturing operations over the next five years. This commitment from the company will further emphasize its global headquarters in Louisville as a central location for innovation. The facility will be used for all of the research, product design, development and testing for this new $3 billion investment as GE appliances will rely on its 1,600 engineers working at the Kentucky facility to usher in the next phase of the company’s future. This project will not only elevate the commonwealth’s position as a growing technology hub, it will also help make Kentucky an ideal location for science, technology, engineering and mathematics careers.
Adding to this recent innovation success for the state, Gov. Beshear joined leaders from Ford Motor Co. in August to announce a monumental, nearly $2 billion commitment that will introduce an innovative manufacturing process at the Louisville Assembly Plant to serve as the platform for an all-new, yet to be unveiled, electric mid-size pickup truck.
“We are grateful to the Kentucky Economic Development Finance Authority for its support as we build upon Ford’s proud legacy of investment in Kentucky,” said Tony Reinhart, Ford’s director of state and local government affairs. “We look forward to assembling another signature Ford vehicle in Kentucky to serve customers across the U.S. and beyond.”
Ford’s $1.9 billion investment represents the third-largest economic development project in Kentucky’s history and will include new equipment and technology to upgrade and modernize the Louisville Assembly Plant to support future product development and secure 2,200 existing full-time jobs at the facility. This includes the introduction of a new production platform that represents a major manufacturing breakthrough with an “assembly tree” approach to increase efficiency, ergonomics and affordability. The new low-cost, scalable EV platform is expected to be completed by Q2 2027.
General Matter added to the state’s August momentum with a major economic development project in McCracken County that will include a nearly $1.5 billion investment and create 140 well-paying jobs. The Governor joined the American uranium enrichment company to recognize its signing of a lease with the U.S. Department of Energy (DOE) for the former Paducah Gaseous Diffusion Plant. The lease signing paves the way for future milestones, including permitting, licensing and contractual terms with the DOE that will move the project forward. When completed, the facility will represent the largest economic development project in Western Kentucky history.
State Programs Powering Innovation Across the Commonwealth
In addition to the continued investment from private businesses and industry-leading companies bringing high-wage jobs to communities across the commonwealth, state programs are doing their part to advance Kentucky’s technology and innovation sector.
Thanks in part to Kentucky’s Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) matching funds programs, entrepreneurs, innovators and tech companies are building rapid momentum throughout the commonwealth.
This year, Gov. Andy Beshear has announced nearly $1.5 million in state matching grants have been awarded to 15 innovative Kentucky companies to further support high-paying jobs and further grow the state’s technology sector.
Kentucky’s SBIR/STTR programs, overseen by KY Innovation, provides critical non-dilutive capital for promising early-stage tech companies by matching all or part of federal SBIR/STTR awards received by Kentucky-based businesses or companies committed to relocating to the state.
“The Kentucky SBIR Matching Fund Program and its dedicated team have played a pivotal role in accelerating HeXalayer’s growth and establishing cutting-edge R&D capabilities for our advanced graphene Li-ion battery technology right here in Kentucky,” said Harut Vardanyan, CEO and co-founder of HeXalayer. “Thanks to this invaluable support, we’ve been able to streamline our product development cycle and strengthen our intellectual property portfolio by building world-class, in-house capabilities at our Louisville facility. These advancements are essential to our mission of delivering next-generation, U.S.-based battery technologies that support the critical needs of the Department of Defense.”
To date, Kentucky SBIR/STTR-awarded companies have leveraged the state’s matching programs to receive $7.40 in federal or private capital for every dollar in state funds. These businesses also have created more than 773 well-paying jobs, 90% of which have annual salaries over $50,000. Match recipients have 240 patents and generated more than $129.6 million in sales and licensing revenue. Kentucky has made 345 match awards to 157 unique companies since the program’s inception, leveraging $173.17 million in federal funding coming into the state.
More information on Kentucky’s SBIR/STTR matching funds programs and awarded companies awarded is available at kyinnovation.com/sbir.
The continued efforts of the state to establish Kentucky as an emerging destination for innovation and technology advancement is paying off. The robust investment and job creation in this sector has been accompanied by rising wages across the commonwealth. Since 2022, the average incentivized hourly wage has topped $26 in three consecutive years for the first time.
As more high-tech companies recognize the potential and growth opportunities here in Kentucky, high-wage jobs and further economic momentum will continue to follow – creating a better, brighter future for the commonwealth and its communities.
