(The Center Square) – Kentucky celebrated another banner year for economic development in 2022, as nearly 250 businesses chose to invest upwards of $10.5 billion in new projects or expansions.
According to Gov. Andy Beshear’s office, that news comes one year after the Bluegrass State posted its strongest year for business growth. In 2021, the state reported more than $11 billion in investments for expansion or attraction projects slated to create more than 18,000 jobs.
This year, 248 companies plan to create 16,000 full-time jobs in the near future. Based on data from the Kentucky Economic Development Authority, the average wage of those jobs will be $26.78 before benefits are included.
Over a full year, the average salary for those jobs would be more than $55,700. By comparison, U.S. Census Bureau data shows the state’s median household income is $55,454.
“Not only does this year mark the best two-year period for economic growth in Kentucky, it also brought significantly increased wages for Kentucky families, a record high for investment in the bourbon and spirits industry, and a diverse economy that now includes the rapidly growing electric-vehicle sector that can support our workforce for generations to come,” the governor said in a statement.
Fueled partly by increased interest in bourbon-related tourism, more than 30 spirits makers announced projects in the state this year, bringing nearly $2.2 billion in investments and creating up to 730 jobs. Last month, Sazerac announced a $600 million investment in Laurel County that will expand its barrel-making capabilities and significantly increase its storage capacity.
The single largest project this year was Envision AESC, which announced plans in April to build an EV battery production facility in Bowling Green.
The company held a groundbreaking on the $2 billion plant in August. It’s expected to employ 2,000 workers and begin trial production of batteries in 2024.
Envision was one of 37 auto-related projects that Kentucky landed this year. Those private-sector investments are expected to create as many as 4,200 new jobs.
Kentucky also continued to be a hotspot for logistics companies, with 42 new businesses or expansions coming to the state. Among them was UPS, which announced a $330 million expansion of its healthcare logistics facilities in the Louisville area. That’s expected to create 435 new jobs.
A significant portion of the investment in the state is coming from foreign-owned companies. According to Beshear’s office, those businesses plan to invest nearly $4 billion and create about 3,400 jobs.
