Why The Bluegrass State is Great For Businesses
Looks can be deceiving. When it comes to states, Kentucky is the definition of average. Compared with the collective United States, it ranks 37th in total area and 26th in total population. In 2019, US News ranked Kentucky as 41st. It’s the 41st best state because of some arbitrary set of information. Nobody can even define, and therefore pigeonhole, what region of the country Kentucky sits. Nobody can agree. The state’s marquee universities associate with both the Southeastern and Atlantic Coast Conferences, respectively. Some would say it’s midwestern. The folks at the Little League World Series would even have you believe Kentucky is part of the Great Lakes Region. Kentucky was once seen as the boundary between both the east and west, and north and south. Despite the average-ness and ambiguity of Kentucky, however, the commonwealth is superior when it comes to doing business. In fact, its indistinctiveness is precisely what makes it uniquely susceptible to business success. It’s just… different.
Few states boast industries as easily identifiable as Kentucky. From bourbon to basketball to thoroughbreds to coal, the commonwealth is as rooted in culture and tradition as any state. But the real reasons for Kentucky’s idyllic business disposition are more practical, if also unique. It’s hard to say what region of the U.S. Kentucky belongs because it is virtually right in the middle. Bordering seven states – only Tennessee and Missouri border more – Kentucky is within a day’s drive of 2/3 of the country’s population and consequently serves a 34-state distribution area comprising every major metro area east of the Mississippi River (and several to its west). Further, because of its central location, Kentucky is in company rare housing multiple hubs for UPS, FedEx, DHL, and Amazon, and is served by more than 20 major land thoroughfares, the Ohio and Mississippi Rivers, major rail networks, and plenty of airports. Not only can products get just about anywhere overnight, but business expansion opportunities across the local supply chain seem ever-expanding as each new facility pops up.
In addition to its convenient and efficient location, Kentucky has long been ranked among the states with the lowest cost to do business. From tax incentives and financial assistant programs, to low utility costs – roughly 20% below the national average – Kentucky businesses are able to accomplish more for less and grow at faster rates than most other states. The cost of labor is significantly lower as well, also about 20% less than national averages.
Because of its many advantages, the overall business outlook for Kentucky has trended positively for a number of years, and is recognized accordingly. In Site Selection magazine’s 2021 Prosperity Cup rankings for the nation’s top business climates, Kentucky moved from 9th to 4th from the previous year. Based on multiple criteria, including job creation, business expansion, capital investments, career readiness certificates, and wage figures, among other metrics, Kentucky is also 2nd in the south region. Indeed, business in Kentucky is anything but average; it is flourishing with an unbridled spirit.™