FRANKFORT, KY – The Kentucky Association of Manufacturers (KAM) and the Kentucky Association for Economic Development (KAED) today announced they have formed a joint Task Force on Economic Competitiveness to evaluate Kentucky’s economic development incentives, workforce strategies, and infrastructure needs to ensure the Commonwealth remains competitive in attracting and retaining employers.
The task force will bring together leaders from manufacturing, economic development, and several sectors of Kentucky’s business community to review the effectiveness of Kentucky’s existing incentive programs for both prospective and existing employers. Members will also evaluate the impact of recent legislative changes, identify remaining gaps, and examine successful policies and programs implemented by neighboring and competitor states.
“Kentucky has tremendous strengths, including a strategic location, a strong manufacturing base, and a talented workforce,” said Frank Jemley, KAM President and CEO. “However, we cannot afford to stand still while competitor states continue to invest aggressively in job creation, workforce development, and site readiness. This task force is focused on identifying practical, bipartisan solutions that will help Kentucky compete and win.”
The effort is informed by findings from a 2022 Ernst & Young (EY) study commissioned by KAED, which concluded that Kentucky faces significant competitive challenges. The study found that surrounding states invest substantially more in product development and economic development initiatives, while Kentucky trails many of its competitors in key economic indicators.
Among the 2022 EY study’s findings:
- Kentucky is outspent by many neighboring and competitor states on product development and economic development tools.
- The Commonwealth has the highest poverty rate, lowest median household income, and greatest wealth inequality among many of its regional competitors.
- Kentucky continues to struggle with talent retention, losing more college-educated residents each year than it gains.
- Educational attainment levels remain below average, limiting the available skilled workforce.
- Kentucky’s business tax environment remains comparatively burdensome, with fewer incentive tools available to offset business costs.
“If Kentucky is to compete for the next generation of manufacturing, technology, and advanced industry jobs, we must continually evaluate whether our policies and investments match those of our competitors”, said Ray Hagerman, KAED Board Chair. “We appreciate the General Assembly’s efforts this past session to strengthen Kentucky’s economic development incentives, but competitiveness isn’t something we can address once and consider finished. It requires ongoing evaluation and regular updates to ensure Kentucky remains positioned to win new investment and create quality jobs.”
The task force will focus on three primary areas:
- Competitive Incentives: Reviewing Kentucky’s existing economic development incentives, assessing the impact of recent legislative improvements, and recommending additional tools needed to compete with surrounding states.
- Workforce Solutions: Identifying strategies to strengthen talent recruitment, workforce development, education partnerships, and retention of skilled workers.
- Infrastructure and Site Readiness: Evaluating investments in industrial sites, utilities, transportation, broadband, and other infrastructure critical to business growth and expansion.
The task force’s ultimate objective is to develop recommendations that support long-term job creation, encourage business investment, strengthen existing employers, and improve economic opportunities for Kentuckians across the Commonwealth.
“Kentucky has the opportunity to build on its recent economic successes,” the organizations said in a joint statement. “By working together with business leaders, policymakers, and economic development professionals, we can identify the tools and investments necessary to create more jobs, attract new employers, retain existing businesses, and improve the quality of life for all Kentuckians.
However, while Kentucky has made good economic progress over the past several years, the widely recognized market reality is that Kentucky’s economic development incentives are less and less competitive with those of other states.
That is why our joint task force will evaluate and make recommendations to improve our economic development incentives programs and overall strategy, as well as our workforce, infrastructure, and industrial site readiness. There are few state government responsibilities more important than job creation and expansion, and we are pleased to be collaborating on this effort to expand economic opportunities for Kentuckians everywhere.”
The task force began meeting this summer and expects to present its findings and recommendations to stakeholders and policymakers following a comprehensive review of Kentucky’s competitive position.
About the Kentucky Association of Manufacturers
The Kentucky Association of Manufacturers (KAM) is Kentucky’s leading industry and business organization. Our mission is to make a better Kentucky by promoting and growing manufacturing and economic opportunity in the Commonwealth. We are the voice for free enterprise and economic growth in Kentucky. Learn more at KAM.us.com.
About the Kentucky Association for Economic Development
The Kentucky Association for Economic Development is the state’s leading organization dedicated to advancing economic development through education, collaboration, advocacy, and professional excellence, supporting sustainable growth and prosperity across Kentucky.