Latest / Kentucky Business News / 5.21.26

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5.21.26 · Kentucky Business News

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Speaker 1: Hello. Today, I'll be reading from business sources in Lexington
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and Louisville, including The Lane Report and others from around
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the Commonwealth. Your reader today is Julia Shane. As a reminder,
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RADIOI is a reading service intended for people who are
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blind or who have other disabilities that make it difficult
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to reprinted material. Our first article comes from the May
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eighteenth to twenty twenty sixth edition of The Lane Report
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and is titled b NKY shares Top Economic Development Site
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Criteria for twenty twenty six. The top five site developments
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selection factors, ranked by leading location advisors across the United
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States include availability of skilled labor, electric power availability at scale,
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site readiness and due diligence status, responsive state and local government,
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and operating cost structure. This is according to Area Development's
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fortieth annual Corporate and twenty second Annual Consultant Site Selections.
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Bnk wi's Growth Partnership team attends conferences and trade shows
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throughout the country and the world, connecting with site selectors
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and consultants and learning more about what they and their
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clients are looking for when it comes to choosing a
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new site or expansion location. The team shares its takeaways
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internally and with our business and community leaders. So Northern
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Kentucky competes at a high level when a company is
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considering the region for its next move or expansion. Client
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relations manager Devon Greco attended Site Selectors Guild in Atlanta.
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Below are her takeaways. One. Over the past few years,
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projects have been operating on a ready set pause trajectory,
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with multiple factors contributing to this pattern. Construction and labor
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costs have increased, Banks are setting stricter lending policies, and
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projects are failing to receive the needed funding. Two. Many
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companies are uncertain about whether they will be profitable building
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new facilities in the United States. According to Area Developments
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Survey results, there is now a major focus on operational
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certainty and a shift from cost optimization to risk mitigation. Three.
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Uncertainty will become a factor that needs to be weighed
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in the site selection process and not used to postpone decisions.
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Projects need to move forward. Four. Data centers, power and
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AI will be front of mind in twenty twenty six,
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and industrial policy changes will spur more manufacturing jobs, apprenticeships
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and internships, reviving this industry and taking it to the
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next level. Technology is changing at a rapid pace, with
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AI offering the potential to make companies, especially in manufacturing,
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more efficient. Five. Young baby boomers are continuing to participate
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in the workforce and staying in jobs longer than anticipated,
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but it is important to prepare the next generation of workers.
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According to Area Development Survey, availability of skilled labor remains
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at the very top of the survey rankings, cited by
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one hundred percent of respondents as important or very important.
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Depth of technical talent pipelines, including community colleges and trade
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schools was cited by ninety five percent, an increase from
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eighty percent one year ago. Six manufacturing culture is reaping
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the benefits of focusing on education and awareness for students
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at a younger age, and there is greater communication between
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the business community and the education community on what skills
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are needed to fill roles. Moving forward, there is wider
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acceptance of skilled labor career opportunities and that young people
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are starting to explore jobs in the skilled trades with
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a better understanding of them. Seven. Energy is the new
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filter through which every location is first evaluated, with electric
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power availability at scale appearing at ninety eight point five
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percent in the survey. Access to water continues to be
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a major issue and over the next ten years will
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surpass electric and power needs. This focus puts northern Kentucky
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in the Midwest in a strong position. B NKY Vice
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President of Economic Development Kimberly Rossetti recently attended Consultant connect
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in Charleston, South Carolina. Below are several of her key takeaways. One.
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In twenty twenty six, projects are more real with more
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defined timelines and action items, and a greater number of
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deals are closing this year compared to last year. In
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twenty twenty six, b NKY has announced five project wins
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representing two hundred and forty eight jobs, compared to three
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project wins and sixty jobs at this time in twenty
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twenty five. Two projects that are moving forward are becoming
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inactive because of site or building availabilit and the cost
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of real estate. Three. Relationship building, outreach, and marketing continue
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to be top drivers of economic development success, with an
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emphasis on in person or telephone communication instead of emails
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and texts. LinkedIn posts remained vital, as many PSITE consultants
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closely follow LinkedIn news. Four. BNKY will showcase its strong
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university partnerships that tie into our target industries of life sciences,
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information technology, supply chain, and advanced manufacturing. The BNKY team
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will expand its presence at conferences and trade shows three
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twenty twenty six, actively showcasing the Northern Kentucky community and
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sharing insights and best practices with partner organizations and key
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stakeholders across the region. BNKY Growth Partnership, the Economic Development
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Company for Northern Kentucky, provides businesses with the u S
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expertise they need to build opportunities in Boone, Kenton, and
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Campbell Counties. The next article from the Lane Report is
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titled Arbor Homes introduces new homes at one hundred ninety
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nine thousand, nine hundred ninety five dollars in the Louisville market. Today,
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Arbor Homes announced the launch of its Arrival series in
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the Louisville Southern Indiana market, introducing new home constructions starting
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at one hundred ninety nine thousand, nine hundred ninety five
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dollars at Trailside Landing in Jeffersonville. The initiative is designed
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to address a widening affordability gap that has pushed many
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first time home buyers and workforce households out of the
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home ownership market entirely. According to an analysis published by
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the National Association of home Builders, sales of new single
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family homes priced under three hundred thousand dollars have declined
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by approximately sixty five percent since twenty twenty, significantly reduced
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seeing attainable new construction options for buyers. In response, Arbor
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Holmes developed the Arrival series as a strategic effort to
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reintroduce new homes at price points historically accessible to first
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time buyers. Arbor Homes is motivated to increase home ownership
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for those who didn't think they could afford it, said
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Michael Metzig, Louisville Division President. With Arrival, we've taken a
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different approach, working closely with municipalities and trade partners to
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re engineer parts of the construction process and reduce costs
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without sacrificing quality. Jeffersonville has been very supportive of bringing
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attainable new housing options to its residents. Arbor Holmes first
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Arrival community, trail side landing, will include sixty one home
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sites featuring thoughtfully designed floor plans with streamlined selections and
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optional package upgrades that allow buyers to personalize their home
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while maintaining affordability. These homes provide private outdoor spaces, simplified
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design choices, and the benefits of ownership without shared walls.
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Ourbur's approach includes standardized first floor layouts and phased foundation installation,
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allowing trade partners to scale production efficiently and lower construction costs.
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These operational efficiencies help make monthly ownership costs competitive with
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area rental rates while enabling buyers to begin building long
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term equity With the Arrival Series, our goal is to
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create a practical pathway to home ownership for Louisville's workforce
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across manufacturing, health care, logistics, and education, said Jeff Gall,
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vice president of sales. We serve as advocates and guides
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for buyers navigating one of the most important financial decisions
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of their lives. Three decorated model homes, the Gladstone, Rockaway
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and Berlin, were completed in April, with the first homes
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now available for buyers. Arbor Holmes is working with its
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preferred lending partner, Silverton Mortgage, another Clayton company, to provide
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financing options designed to support first time buyers. The launch
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of the Arrival Series in Louisville represents a strategic expansion
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of Arbor holmes attainable housing portfolio. Arbor Holmes currently has
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two additional Arrival communities in the Louisville market moving toward development,
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positioning the Arrival series as a key component of the
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company's long term growth strategy. About Arbor Holmes. Arbor Holmes
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is a regional home builder dedicated to expanding access to
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home ownership for individuals and families who may not have
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previously believed it was within reach. Since nineteen ninety four,
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the company has built thousands of homes across Indiana, Kentucky,
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and Ohio. Guided by the belief that home ownership is
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we one of the most effective paths to long term
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financial stability and generational wealth. Through a diversified portfolio of
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home collections, Arbor Homes focuses on delivering thoughtfully designed homes
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that balance quality, efficiency, and value. The company continuously evaluates
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how homes are designed, built and delivered to create more
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attainable price points without compromising the homeowner experience at every
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stage of the journey. Arbor Homes serves as an advocate
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and trusted guide for buyers navigating one of the most
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significant investments of their lives by combining operational innovation with
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the mission driven approach. Arbor Holmes is committed to strengthening communities,
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supporting local workforces, and helping more people achieve the stability
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and opportunity that comes with owning a home. Arbor Homes
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is proud to be a part of Clayton, a leading
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single family, values driven home builder committed to opening doors
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to a better life through attainable ownership. The next article
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from the Lane Report is titled one million dollar gift
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launches program to strengthen equine pre veterinary training at UK.
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The University of Kentucky Martin Gatton College of Agriculture, Food
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and Environment has received a one million dollar private gift
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to pilot Pathfinder, a new initiative designed to address the
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national shortage of equine veterinarians by expanding training and support
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for students pursuing equine veterinary careers. The mg CAFE Pathfinder
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Equine pre Veterinary Support Fund will enhance recruitment, outreach and
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educational opportunities for high school, undergraduate and graduate students preparing
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for veterinary school. Pathfinder reflects our Land Grant mission bringing
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people together to address real challenges facing our communities and industries,
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said Laura Stephenson, vice President for Langrant Engagement and Dean
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of the Martin Gatton College of Agriculture, Food and Environment.
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We are deeply grateful for this gift, which strengthens the
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pathways from early interests through veterinary school by expanding hands
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on learning and industry connections. With Kentucky's signature equine industry
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playing a vital role in our economy and identity, this
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investment helps ensure we are preparing the veterinary professionals needed
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to support horsehealth, equine excellence and the people in industries
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that depend on it. According to the US Department of Agriculture,
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more than five hundred counties across forty six states face
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large animal veterinary shortages, including eighty six of Kentucky's one
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hundred twenty counties. Pathfinder was created to strengthen and expand
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the future of large animal and equine veterinary medicine by
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investing in the next generation of professionals. The program will
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utilize a three pronged approach, building early interests among K
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through twelve students through four h and FFA collaborations, expanding
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access to enhanced horse handling instruction, and supporting student retention
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through career focused experiences. Pathfinder will also work in tandem
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with the university's newly improved research and teaching facilities, history
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of high veterinary school acceptance rates, and critically important education
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partnerships across the state's signature equine industry. The equine veterinary
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shortage isn't just as statistic. It's a strain we're fueling
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every day in our clinics and our farms, said Ronda Rathberger,
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a veterinarian with Haggard Equine Medical Institute and member of
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the uk agg Equine Advisory Board. Fueling pre veterinary education
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is one of our most powerful tools to engage more
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students to pursue the veterinary profession. It is so beneficial
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to reach these students early, giving them the raw, hands
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on experiences that reveal the true heart of this profession
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and the incredible rewards. By pouring our support into this
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kind of real world training, we aren't just preparing them
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for a classroom. We are ensuring they have the passion
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and the foundation to succeed in the field. This investment
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in additional contributions will provide crucial resources for the Pathfinder program,
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including teaching, personnel management, and a population of horses at
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UK facilities. The next article comes from the May fifteenth
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to twenty twenty sixth edition of Business Lexington and is
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titled Local Banks adapt for the App Economy, written by
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Liz Carey. As banking enters a digital first era, many
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regional banks are adapting to meet the new market, from
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adopting artificial intelligence to refining digital stress. Banks in Central
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Kentucky are working to meet customers where they are with
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products and services they want and will use. According to
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the American Bankers Association, Americans use mobile apps to bank
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more than any other method, with fifty four percent of
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customers choosing apps on their phones or other mobile devices
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as their top option for managing accounts. Another twenty two
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percent choose online banking via laptop or PC, while only
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nine percent prefer visiting a branch, six percent favor ATMs,
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and four percent op to bank by phone. The ABA
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said the share of customers choosing mobile banking apps has
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more than doubled since its first conducted survey in twenty seventeen,
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when only twenty six percent said mobile apps were their
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preferred method. About two thirds of Gen Z sixty three
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percent and millennials sixty seven percent use mobile banking apps
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the most, while more than half of Gen X adults
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fifty six percent. Due for the first time in the
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survey's history, more than a third of Baby boomers thirty
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eight percent said they primarily use mobile apps, while the
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number who said they primarily use online banking fell from
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forty one percent in twenty twenty four to thirty five percent.
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When it comes to branch visits, one in eight Baby boomers,
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twelve percent visit branches, while only three percent of Gen
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Z prefer branch banking. Additionally, artificial intelligence is helping customers
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and banks manage financial transactions, while third party platforms, including
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peer to peer services like venmo, Zell and cash app,
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give customers more options. To adapt to these trends, banks
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are increasingly focused on digital strategies. In March, Republic Bank
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named Alex Cravens its new Chief Digital Officer, while Jenna
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Cowley was promoted to Chief Transformation Officer. Together, these appoints
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men's underscore Republic Bank's commitment to strengthening its digital capabilities,
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enhancing the client experience, and building the bank of the future,
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the bank said in a press release. Across Central Kentucky
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banks are seeing similar trends. Bill Allen, CEO of Bank
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of the Bluegrass, said his bank's customers are moving to
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digital platforms for nearly all aspects of their banking needs.
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Once a business or personal customer relationship is established, the
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majority of customer transactions take place within the app or
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an online channel. He said. The majority of debit card
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purchases still occur with a tap or card insertion at
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the point of sale. However, we are seeing an uptick
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in customers placing their traditional bank debit or credit card
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in their mobile wallet and choosing to make purchases that way.
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Zell and other p twop platforms continue to increase in usage,
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with many customers tying these to their person checking account.
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The bank is also seeing an increase in customers initiating
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home loan inquiries online, though most lending relationships still begin
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with the conversation between the borrower and the bank, He said.
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That means focusing digital solutions on what works for customers first.
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He said, whether it's opening an account, transferring money, applying
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for a mortgage, or simply checking balances, clients can do
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what they need to do from the comfort of their
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own home in a less time consuming way than even
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ten years ago. He said. We're always here when they
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want to speak with a real person, but they also
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have the flexibility to access us from anywhere across the
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nation or around the globe. Dana Adamson, chief Marketing and
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Development Officer at Traditional Bank, so the bank's digital strategy
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centers on customers. As a community bank, we view technology
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decisions through a customer first lens, seeking thoughtful and strategic
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solutions than to streamline operations and enhance the customer experience.
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For our bank, digital strategy is all about meeting the
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customer where they are. From that perspective, we continually invest
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in making our mobile apps as strong as possible for
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both personal and business customers, with the goal of replacing
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an in person experience to the fullest extent possible. That
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means adapting to new technologies, but only where it makes sense.
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As it relates to AI, we see an opportunity to
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create efficiencies across the bank and support intentional growth, especially
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in critical areas like fraud prevention and cybersecurity. She said.
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At a high level, we believe there is no true
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substitute for face to face interaction. We will always lead
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with human touch while we explore ways to implement AI
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behind the scenes to enhance our digital capabilities, our approach
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will remain people first for business customers. While banking may
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happen online, Kathy Beach, chief operations officer at Stockyards Bank
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and Trust Company, said, many still want to know their
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banker and build a personal relationship. There are many business
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customers who wouldn't dream of opening an account online as
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opposed to coming into the bank, she said. Although we
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offer all of these digital services for opening an account,
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the number of customers who come in to do so
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far exceeds the customers that do it online. At Stockyards,
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the digital focus is on making banking more convenient. One
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of the things that we've been focusing on this year
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is trying to bring every ancillary app that our customers
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do banking with. We're bringing all of that technology into
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Stockyards Bank app so that customers never have a reason
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to leave the app, she said. Another thing that we'll
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be doing this year is updating our app and giving
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it a fresh look. We're looking forward to that kind
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of an extreme makeover banking leaders agree that leaning into
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digital service services starts with the customer, not with the trends.
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Providing financial services as an evolving landscape remains their primary mission,
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regardless of how or where customers choose to engage. The
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next article comes from the May fifteenth, twenty twenty sixth
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edition of Louisville Business First and is titled U of
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L Legend buys rights to local basketball team, written by
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Shay Van hoy A. University of Louisville basketball Legend is
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taking on a new sports business venture. Cardinal alum and
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bourbon entrepreneur Russ Smith has acquired the rights to the
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Louisville alumni team the Ville for the twenty twenty sixth
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TBT Tournament. According to a news release, Smith has assembled
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a leadership group to finance, manage, and coach the team.
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While details about this year's tournament have yet to be
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announced by TBT, Smith and his partners wanted to continue
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the legacy and tradition of Louisville basketball and to bring
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back the vill for the fourth year. Smith previously played
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for the Ville and also had a sponsorship deal with
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TBT via his bourbon brand Mister and Miss Bourbon this year,
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he'll serve as general manager as well as playing for
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the team. We have such a special relationship with our
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fans as former players at Louisville, it is imperative we
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continue to build on that legacy and give cards fan
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another way to engage and support guys that played here,
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all of which are still playing elite pro level ball globally,
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said Smith in the release. We are keeping this a
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one hundred percent Louisville alumni team. While it started with
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the core of the twenty thirteen National championship guys, we
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will start to bring on other talent from programs in
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the years since, and that will include names the fans
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love to watch. The team will be coached by North
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Hardin High school head coach Michael Baffour, who played at
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Louisville with Smith. Alums will share leadership roles, including Wayne
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Blackshear as assistant GM. Several other coaches and staff will
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be named in June. Game dates are soon to be
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announced by TBT for July, and a full roster could
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be announced by Smith as soon as next week. TBT
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is a sixty four team, one million dollar winner take
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all tournament largely made up of college basketball alumni teams.
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The team is looking for sponsors who want to support
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Louisville alum All games air on Fox main channels or
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Fox Sports Network, reaching over twenty million viewers each year.
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We are going to have fun, create unique fan activations
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and experiences, and most importantly, continue to build on the
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demand for high level professional sports in Louisville. There will
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be team signings, ticket giveaways, and other ways to interact
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with players one on one this summer. Tickets go on
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sale soon and we want to pack the house to
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welcome back all of our guys. The Villa is owned
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and operated by Smith and Sean Van dever and is
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incorporated in Kentucky under the name DIAD Sports, which also
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is a full service sports agency with the ability to
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negotiate brand partnerships and deals for college and pro athletes,
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along with hosting other sporting events and tournaments. According to Vandivere,
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financial details of the deal were not released. However, Vandverer
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said it will require around two hundred and fifty thousand
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dollars to fully fund the organization every year, and we
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expect that to rise annually. Van de vere said there
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are ongoing conversations about the long term potential for Louisville
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to host the entire TBT or a large portion of
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the games. The organization is actively seeking sponsors, including title sponsors.
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The next article from Louisville Business First is titled Robots
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Are Coming for Bourbon Barrels. JS Controls aims bringing robots
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to the key Kentuck industry, written by Stephen Schmidt. Some
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distilleries resist changing how they produce spirits, viewing tradition and
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legacy as core to their brand identity. Others see how
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automation processes can lead to a more effective and efficient
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business model in a market that has softened since early
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twenty twenty three, The founders of JS Controls are hoping
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that more distilleries join the latter. Camp Jeremy and Jamie
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Stratham run JAS Controls out of a twelve thousand square
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foot facility in Campbellsburg, Kentucky and Henry County. JS Controls
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is an electrical engineering shop specializing in distillery automation devices,
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which include barrel escalators, laser etching machines for barrels, mobile
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robotic trailers for the movement of barrels to any part
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of the distillery grounds, and robotic dumping empty and systems.
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Several distilleries have implemented robotic paletizing systems in the last
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several years, but the Strathman's envision more robust forms of automation.
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We're trying to get robots into this industry, said Jeremy Stratham,
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who serves as the company's electrical engineer and owner. We're
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trying to pioneer that. We're trying to get robots moving barrels.
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The dumping emptying system has drawn the most interest. It
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takes barrels, empties them and sets them in a trailer.
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We're extracting out to less than two ounces. There's no
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product wasted, said Jamie Stratham, who serves as the company's
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vice president of operations. A lot of these things are
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expensive initially on the front end to put in, but
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when you are not losing product and you are getting more,
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it pays for itself pretty quickly. Projects can range from
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five hundred thousand dollars to three million. Jamie said that
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the investment from one of the major distilleries in a
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dumping emptying system can pay for itself in about six months. Today.
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The company worked with several well known bourbon distilleries, beverage
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alcohol companies including Wild Turkey, Sasarac Company, Brown Foreman, Suntory
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Global Spirits, and Four Roses, as well as several rum
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distilleries in the Caribbean. Jeremy Strotham mentioned a conversation he
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had recently with a distillery about installing a dumping emptying system.
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The pushback was, well, the owner likes to see it
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the way it has been done since the seventies, just
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for nostalgia and if there's people walking through taking tours,
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they can see it and it's like, well, that's great
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and all, but does that allow yourself to get where
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you need to be Because automation isn't just about robots,
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it's about efficiency. JS Controls began as a side hustle
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in twenty sixteen before blossoming into a full time business
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in twenty twenty. Currently JS Controls is working on three
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projects right now. It's a capital issue, Jeremy Strotham said.
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Everybody's interested, but right now it's hard for people to
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release capitol. This concludes the reading of the most recent
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business news in Lexington, Louisville and around the state. Your
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reader today has been Julia Shane. If you have any
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questions or comments about this program, please give our Lexington
28:13
Studios a call at eight five nine four two two
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six three nine zero. Thanks for listening and now please
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stay tuned for readings from the Kentucky series here on
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