business

Becca Schimmel

Temporary work is the fastest growing industry in Kentucky. Clerical work may come to mind when you think about temporary agencies, but that’s a bit of a misnomer these days. An increasing number of manufacturing positions are being filled by temporary agencies.

At Quality Personnel in Bowling Green, a marquee advertises the most recent job openings. One of those is for an automotive supplier, just what Aaron Rinehart is seeking. When he moved from Ohio to Kentucky, he said that he used the same agency to find work. Rinehart said he understands why most factories only hire through temp agencies, but he feels it still hurts the people who want full-time work.

“Not much of a choice really. It’s hard to get on anywhere full time now a days, companies don’t wanna just hire people through the door. So the only way to get on now a days is to go through a temp agency, and put your 90 days of work in, and basically just hope you get hired on after that,” Rinehart said.


Ken Shmidheiser

Construction of a new $70 million manufacturing plant in Somerset could begin in the next few months. A tentative deal is in place to lease 23 acres of land.

The preliminary agreement with a group of Houston investors is for land near the Somerset Rail Park.

Local rail transportation and the new state-of-the-art Somerset Energy Center have been major factors in attracting the project.

Martin Shearer is Executive Director of the Somerset-Pulaski County Development Foundation. He says the energy center allows control of natural gas, a key part of the project.

GM

The Bowling Green General Motors plant is temporarily shutting down later this year to make changes to its vehicle production process.

The facility will temporarily lay off employees while the changes are being made.

A spokeswoman for the plant said a decision on the exact dates and length of the shutdown hasn’t been made, but that it would likely cover parts of the summer and fall.

The plant employees about 840 hourly workers, along with 165 salaried individuals. The spokeswoman said some employees will be asked to work through the temporary shutdown, with the plant making those decisions based on the facility’s needs.

WKU Public Radio

Workers at unionized companies in Kentucky will be able to stop paying union dues or fees once contracts negotiated between their employers and unions expire.

The so-called “right-to-work” policy signed into law by Gov. Matt Bevin last weekend forbids payment of dues as a condition to get or keep a job in Kentucky, though current collective bargaining agreements between unions and companies are still enforceable until they expire.

Bill Londrigan, president of Kentucky’s AFL-CIO, said the new law will have a negative impact on labor organizations and companies once some workers decide they don’t want to pay into the union anymore.

J. Tyler Franklin

Gov. Matt Bevin has issued an executive order creating the Work Ready Scholarship Program, which will provide free tuition to eligible Kentucky students getting a two-year degree that could be used in “high-demand” industries like healthcare and manufacturing.

“[T]he Commonwealth of Kentucky is committed to increasing the currently low workforce participation rate by expanding the skilled, competitive workforce necessary to attract new businesses to the state,” Bevin wrote in the executive order.

Becca Schimmel | Ohio Valley ReSource

During the presidential campaign I visited two regional manufacturing executives who do business in the same county but hold views on trade that are worlds apart. Now that Donald Trump is the president-elect, I asked them and some regional economists how the new administration’s approach to trade might affect the Ohio Valley region.


Fruit of the Loom

Fruit of the Loom has named a senior vice president at its global headquarters in Bowling Green as the company’s new chairman and CEO. Melissa Burgess-Taylor will lead the company following the unexpected death of former CEO Rick Medlin last month.

Flickr/Creative Commons

After an election season in which both major political parties bashed free trade deals, the mayors of Kentucky’s two largest cities have renewed their initiative to attract foreign investment to — and exports from — the region.

Louisville Mayor Greg Fischer said Lexington and Louisville need to join forces to be relevant on the global stage.

“We need to work together so we can present a unified force to the world that would allow us to better compete together for our whole state,” Fischer said during a news conference on Monday.

Fischer and Lexington Mayor Jim Gray formed the Bluegrass Economic Advancement Movement (BEAM) in 2011 to help create more international opportunities for businesses in a 22 county area around the cities.

On Monday, the mayors announced a plan to attract and retain companies that command higher wages, like those in the chemical, life science, software and IT industries, and create more workforce training programs like Code Louisville and Awesome Inc. in Lexington.

Jim Beam

Union workers at one of Kentucky’s biggest bourbon distillers are going on strike.

The decision impacts Jim Beam employees who are members of the local chapter of the United Food and Commercial Workers union.

The Kentucky Standard reports 201 workers voted to reject a contract offer by parent company Beam Suntory.

Nineteen voted to accept the offer.

Unless an agreement is reached soon, union workers will go on strike at midnight Friday.

Workers say they plan to protest with picket signs at the Jim Beam facility in Bullitt County, with a possible protest at the facility in Nelson County.

City of Elizabethtown

Shane Howard loves Elizabethtown.

He says living in Elizabethtown — just 45 miles south of Louisville — allows him to remain in close proximity to a bigger city without having to deal with city problems like rush hour traffic.

He’s only 35 minutes away from downtown Louisville. Arguably, Howard says, for someone living in the East End, it can take them the same amount of time to get to downtown. But the cost of living in Elizabethtown is much cheaper.

“The new restaurants popping up, new entertainment things, sports bars and those things popping up, it’s becoming more and more attractive,” he says.

Howard is founder of Custom College Recruiting. The service matches high school student-athletes abroad with sports scholarship opportunities in the U.S. He founded the company in 2009 and received funding in 2014. Prior to that, he bootstrapped. But Howard said he knew if he was going to expand his business from something he was doing at home alone on his couch, he was going to need help.

BRADD

The Barren River Area Development District will no longer provide workforce services for the southern Kentucky region.

The South Central Workforce Development Board voted Wednesday to terminate its contract with BRADD.

The Development Board’s Chairman, Ron Sowell, said his group was primarily concerned about the amount of workforce development money that has been returned to the state because it wasn’t used by BRADD.

The Bowling Green Daily News reports that number is estimated to be around $500,000.

Hopkinsville Community College, via Facebook

The Delta Regional Authority is investing more than $100,000 dollars in the Todd County Career Path Institute. The western Kentucky facility trains adults, college and high school students in welding, industrial maintenance and electrical networking. The money will go towards equipment for hands-on training.

DRA chairman Chris Masingill said workforce training and education is critical for attracting business leaders. "The number one question that business leaders ask about when they look to do an expansion or a location is that they really look at the skill level of our workforce. And so we want to continue to invest into programs, into locations, into partners that are really trying to move the needle on that."

The announcement Thursday was made on the same day Governor Matt Bevin's office awarded the institute with the 2016 Spirit of Kentucky Award recognizing regional partnership efforts.

Masingill said that was a coincidence, but he’s glad to know the Governor feels the same way about the institute. “We work collaboratively. It takes the governor and us, me as the federal co-chair, working collaboratively and we review these projects. So this project would not have gotten funded without the support of Governor Bevin.”

Ohio County Economic Development Alliance

Ohio County is launching an innovative business center with the goal of bringing  new jobs that have most of the commuting done online.

Chase Vincent is executive director of the Ohio County Economic Development Alliance. He says the business incubator is a way to offset the expense of bricks-and-mortar for startups.

“The concept of an incubator is that they come together and share experiences and advice and learn together. It dramatically increases their rate of success for becoming a long-standing business in the community.”

Vincent points to the increasing popularity and viability of remote work as confirmation of the timeliness of the Ohio County project. He says all the pieces are in place for the incubator. 

“We were recently approved for $100,000 from the Ohio County Fiscal Court to purchase property in Hartford to be used as an incubator, training center and co-work space.”

GE Lighting

General Electric Lighting has announced it will close two plants in Lexington and Somerset by August 2017.

WKYT-TV reports that the company announced the closures of Lexington Lamp Plant and Somerset Glass Plant would affect over 200 people.

The Lexington plant makes traditional, non-LED lighting products and employs 139 people. The Somerset plant makes halogen lamps and employs 71 people.

GE says in a statement that consumer demand for traditional lighting is at an all-time low. As a result, the company says it is operating at 15 percent capacity.

GE says the local union representing the workers has 60 days to ask for a different plan.

Flickr/Creative Commons

Mark Muro is having a conversation with someone in a bar. The person’s in their late twenties and is having trouble finding work. Maybe they have a high school diploma. Mark’s advice? Enroll in the closest community college you can.

Fast.

Auto manufacturing and digital services are some of the industries contributing to Kentucky’s economic growth. And you don’t need a Master’s or PhD to get a job in these areas.

“STEM workers are crucial to regional prosperity and advanced industry success but they don’t all need to have to have college degrees,” says Muro, senior fellow and policy director at the Brookings Institute’s Metropolitan Policy Program.

Muro did a study tracking the growth of advanced industries. Blue-collar STEM jobs fall under these industries, which employ more than 170,000 people in Kentucky. The average salary in an advanced industry is just over $65,000 in the commonwealth. That compares with almost $42,000 for all other industries.

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