Latest / Kentucky Business News / 8.21.25

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8.21.25 · Kentucky Business News

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Speaker 1: Hello to day. I'll be reading from business sources in Kentucky,
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including the Lane Report and others from around the Commonwealth.
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Your reader today is Tim Curry. As a reminder, Radio
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I is a reading service intended for people who are
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blind or have other disabilities that make it difficult to
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read printed material. I'll begin today with the Lane Report,
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dated July twenty twenty five, and our first article is
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titled Kentucky Tourism is Creating a Splash by Shannon Clinton.
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Kentucky's tourism industry is shattering records, driven by a surge
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in demand for the authentic and diverse experiences today's traveler's crave.
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Behind the momentum is a powerful spirit of collaboration among
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the state's travel and hospitality sectors, an alliance that industry
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leaders credit with delivering unprecedented economic impact, soaring visitor numbers
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and robust job growth across the Commonwealth. The twenty twenty
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four numbers released in mid June make it evident the industry,
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both on the local level and as a whole, has
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rebounded from the challenges faced in twenty twenty when pandemic
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slow downs and standstills its swaths of the economy. The
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rebound was aided by multimillion dollar allocations of American Rescue
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Plan Act or ARPA funding and the state's Regional Marketing
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and Matching Funds program run by the Kentucky Department of Tourism.
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The investment resulted in a strong return. Kentucky's tourism industry
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collectively generated fourteen point three billion dollars in economic impact
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in twenty twenty four and supported ninety seven thousand, three
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hundred ninety four jobs, the best year on record and
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the third straight record breaking year. Kentucky's tourism industry is
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experiencing the biggest historic winning streak we've ever seen. Governor
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Andy Basheer said, thanks to the hard working people in
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this industry in Team Kentucky's ongoing investment in tourism, we're
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welcoming more people to our new Kentucky home and celebrating
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three straight years of record breaking economic impact. Collaboration is
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a key strategy today. This win is more than just numbers.
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It's about families, creating lasting memories in our communities thriving.
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The Sheer added, together, we will keep this momentum going
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and showcase what makes Kentucky so special. Tourism industry data
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collection and analysis firm Tourism Economics compiled the newly released statistics,
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but showed that eighty million travelers spent ten point one
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billion dollars statewide during their stays, a three point eight
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percent increase over the prior year and the equivalent of
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twenty seven point seven million dollars per day. Of the
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total spending, two point six billion dollars went toward food
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and beverage, two point four billion was spent on lodging,
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and more than one billion dollars each was spent on transportation, retail,
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and recreation. Entertainment. Tourism trends. Summer months at Lake Cumberland,
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known as the houseboat capital of the world, are typically
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jam packed with fishing, boating, and other water recreation opportunities.
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Lake Cumberland Tourism Executive Director Michelle Allen said land opportunities
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for fun in the Lake Cumberland area include the Pulaski
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County Park with its numerous RV camp sites and mountain
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biking trails, adding to the allure. Somerset City leaders over
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the past six years have revitalized the downtown district, making
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it a hub of activity once more. With live entertainment,
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places to eat and shop, all within walking distance. It
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brings back the nostalgia of our youth. Allan said. However,
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now we are old enough to enjoy a nice dinner
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at the Urban Steelhouse, visit a show with the newly
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renovated Virginia Theater, and have a nightcap at the Emerald Hound,
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a new jazz bar right in the heart of our city.
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State and local economic development data show Pulaski County experienced
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one hundred forty six and a half million dollars in
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total spending, fairly consistent with one hundred and fifty point
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nine million dollars a visitors spent in twenty twenty three,
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and above the one hundred and forty four point five
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two million dollars tallied in twenty twenty two, which was
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then the highest amount ever recorded. Kentucky's unique blend of
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rural charm in big city sites, sounds, and flavors continues
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to attract visitors and visit les is ready to guide
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them toward countless opportunities to create unforgettable memories. In fact,
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according to Tourism Economics data, Lexington comprises twelve percent of
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tourism impact in the the State and the Economic impact
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of travel and tourism in Lexington Fayette County set a
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record one point seven billion dollars last year. It generated
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more than one hundred and thirty one million dollars in
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state and local tax revenue and supported eleven thousand, eight
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hundred and fifty one jobs. The Economic Impact taally is
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the third record setting year for Lexington Faytte County tourism.
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Visit lex A Vice president Marketing Leslie Miller, said, adding
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or experiencing another solid twenty twenty five here, tourism officials
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continuously monitor what visitors want to see and experience, adjusting
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their marketing strategies and messaging to match. For example, Miller said,
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outdoor recreation is something that continues to just bubble to
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the top. Lexington has a herd of beautiful horse farms
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to tour booked through Visit Horse Country, and there's also
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Boon Creek Outdoors Adventure Park, the estate of influential American
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Statesman Henry Clay, and the exhibits and shows at the
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Kentucky Horse Park, a ten acre downtown green space adjacent
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to the convention Center, has undergone thirty nine million dollars
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in privately funded improvements and is set to open in August.
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Known as Gatton Park on the Town Branch. The revitalized
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area is already driving an increase in meeting and convention bookings.
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There is also a new entertainment district at r D
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one at Turner Commons, and the newly opened thirty acre
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Kelly's Landing now offers the first public access point to
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the Kentucky River. Travel industry officials were overjoyed to hear
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the two day Breeders' Cup World Championships will return in
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fall twenty twenty six to Keenland Race Course, which is
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undergoing more than one hundred million dollars in facilities improvements
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that began last year. These are all things that are
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contributing to the growth of tourism. Miller said collaborations are
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key to success. Shelby County is positioned just off I
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sixty four between Louisville and Lexington, and the tourism economic
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impact news is good there as well. Visits shall be
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Ky Vice president Mason Warren reported and eight percent a
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year over year increase in tourism from twenty twenty four
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to twenty twenty five, with total economic impact, rising from
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ninety one point nine million dollars in twenty twenty three
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to ninety eight point nine million dollars last year. Now
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they're focusing on reaching that milestone one hundred million dollar mark.
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Since twenty twenty one, total total economic impact figures have
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risen by thirty seven excuse me, thirty four point seven percent,
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a tributal will in a large part to an increase
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in interest in out recreation sparked during the pandemic. Two
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new distilleries are poised to open here before long, for
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a total of four in the area. Warren said it's
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a cooperative effort to build upon and maintain these successes.
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He said, from restaurants and distilleries to Chamber of Commerce
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reps who those working with its main street program, and
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elected officials, we don't work in a silo, he said.
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We have to have amazing partners that offer spectacular experiences
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in order to promote them. Family friendly destinations are also popular,
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he said, as are activities for long weekend road trips,
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serving as an iconic slice of Americana for many. We
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see a lot of people traveling in multi generational families, kids, parents, grandparents,
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that type of arrangement, Warren said in bowling Green, home
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to Western Kentucky University and GM's Corvette Plant, Bowling Green
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Area Convention and Visitors Bureau Executive Director Cherry Murphy emphasized
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the value of strong partnerships when pursuing shared, mutually beneficial goals.
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She highlighted the importance of collaborating with a wide range
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of stakeholders, including local elected officials, developers, chambers of commerce,
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downtown revitalization groups, and others. Those collaborations, said Murphy, put
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tourism directors in a strong position to be aware of
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what's happening in their communities and spot upcoming events that
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could benefit the growing hospitality sector. Even a new Buggies
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in Smith's Grove has driven visitor traffic, along with a
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new winery and distillery nearby. Multi jurisdictional trails developed with
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the help of ARPO funding have also been increasingly popular,
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Murphy added. She notes that business travelers also play important role,
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particularly as business and industry are thriving in the region,
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and it's important to make them feel welcome. In some ways,
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I feel they are the unsung heroes of our hospitality base.
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She said, Optimism abounds music festivals continue to draw visitors
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by the thousands, including Bourbon and Beyond, a four day
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music festival in Louisville that last year brought in a
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record two hundred and ten thousand attendees, making it the
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largest music festival in Kentucky history. Add to that refrain
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the one hundred and fifty thousand attendees at a Louder
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Than Life twenty twenty four tenth anniversary and its music
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to the ears of local tourism officials like Roseanne Maston,
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communications and public affairs manager for a Louisville Tourism The
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Bourbon and Beyond music festival, along with Louder Than Life,
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just signed a ten year contract to continue calling Louisville
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home at a record breaking year and was named Pollstar's
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twenty twenty four Music Festival of the Year. Maston said
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it's an incredible honor that puts Louisville on the global
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stage for live music and entertainment. Currently, Louisville welcomes nineteen
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million visitors annually, with the goal of reaching twenty five
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million by twenty thirty. To do this, tourism leaders are
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looking to develop new markets in New York and the
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Northeast via a new comprehensive marketing campaign and a dedicated
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regional director to serve these markets. Maston is optimistic about
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twenty twenty five and beyond, as the Kentucky Expo Center
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has started a four hundred million dollar plus expansion that,
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upon completion, will make it the fifth largest of its
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kind in the nation. There's also a proposed Loyal Sports
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Entertainment District mixed use development with entertainment and lodging underway
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and in the new one thousand room hotel at the
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former Museum Plaza development. As with many Kentucky communities, bourbon
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remains the attraction for visitors worldwide, and Louisville is no exception.
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The area is home to nearly two dozen distilleries, including
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a recently opened Green River Distillery tasting room and Uncle Boogie's.
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Kentucky Bourbon whiskey. Spirits are also high in the Lake
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Cumberland region. Allen said, I always have a great outlook
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for our area, she said, with new attractions on the
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horizon like Horse Soldier Bourbon Distillery being added to our
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staple events like Master Musicians Festival, Summer Nights Cruise and
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Moonlight Festival. There is a little something for everyone all
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year round. Murphy projects twenty twenty five will be a
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good year in Bowling Green and Warren County as well.
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Here in Bowling Green we have the National Corvette Museum,
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Motorsports Park, racetrack, and we also have our Beach Bend Venue,
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which hosts so many events that our annual repeats for us,
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She said, I feel as we continue to grow and
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those areas develop more and more, twenty twenty five is
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going to be a very good year for us, and
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I feel like twenty twenty six will be even better.
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Our next story from the Lane Report is Productivity by
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Design by Shannon Clinton. Artificial intelligence seems to be everywhere,
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from the app answering your questions and making to do lists,
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to the smart device at home you ask about movie
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listings and to turn off the lights, and news media
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is obsessed. Ask this new quasi friend itself, in this
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case Google Gemini AI, what the future of AI might
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hold and the answer is to aid in making medical diagnoses,
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autonomous vehicles, personalized learning, virtual assistance, and cybersecurity. Thanks AI,
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but Gemini left out manufacturing AI and the machine learning
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are critical to the enablement of industry for dot zero.
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The current industrial revolution powered by smart connected systems, said
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Ed Walton, CEO of step CG, a Covington based IT
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services engineering firm. Kentucky manufacturers are embracing this revolution, he said,
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developing lines with AI, robotics, computer vision, digital twins, and
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the Internet of Things, creating enhanced efficiency and productivity within
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a smart manufacturing environment. Even Kentucky's bourbon sector, an industry
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steeped in tradition, is seeing the utilization of AI in
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some operations. Walton noted that the Whiskey House, which opened
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its one hundred seventy six acre campus in July twenty
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twenty four in the T. J. Patterson Elizabethtown Hardin County
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Industrial Park, is the most technologically advanced distillery in the nation.
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The Whiskey House combines advanced manufacturing principles from the food
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industry with lean manufacturing techniques and the latest industry ford
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at zero technology and hybrid network work connectivity. Walton explained,
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by enabling fully automated and connected systems, t wh can
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run in parallel multiple mash bills, including small craft production,
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while maintaining consistency and quality of production. Furthermore, Walton added,
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Manufacturers who resist using AI risk falling behind competitors who
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are capitalizing on its ability to drive automation efficiency, reduce
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costs and increase output. Getting to know AI uses in Florence, Kentucky,
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Dennis Lewis oversees one hundred and sixty five US based
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employees for Ballaff, a German maker of precision position sensing
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devices in manufacturing automation systems. Many of its products are
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connected Internet of Things elements and are monitored by AI.
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Over the past year at BALLAF, AI has been incorporated
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to a meaningful degree in many facets of administration. Lewis
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now uses the Microsoft Copilot tool rather than Google for
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searches and finds the results more useful in context. The
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Florence operation distributes Ballaf's thirty thousand products across North America
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and is one of seven manufacturing sites focusing on position sensoning,
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linear transducers, limit switches, and networking cables. BALAF is approaching
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the new technology by incorporating it first into administrative prosuit
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because AI is only as good as the information it
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is fed, so it must be fed correctly. While many
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aspects of it are very good, there are still major
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holes in its capabilities. Lewis said, there is a very
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fast learning curve and enough ways to leverage it with
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the current iterations on the administrative side to keep us
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busy for quite a while without intrusting critical processes to IT.
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Salespeople get help matching particular bale of products to problems
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the items can solve via internal AI tools that scan
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product knowledge and application databases. A competitor's information is being
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loaded in to allow for quick technical cross referencing of
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product differences. Manufacturers all over Kentucky are on board and
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they have questions for Brian Rushman, president of c Forward
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Information Technologies, a managed IT services provider and consulting firm
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with thirty seven employees and a presence in Covington and Lexington.
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Most of c forward It's clients are small and mid
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sized businesses ranging from fifteen to twenty employees on up
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to two hundred and fifty, many in the nonprofit and
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legal services sector, but some in manufacturing. Rushman deals often
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with Microsoft based IT solutions, including the Microsoft Copilot product,
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which is the company's AI platform now included with many
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clients existing Microsoft business IT plans. What we're finding so
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far is most of them are using it around their
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daily work day to save time, make things sound more professional,
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maybe say what they need to say, but in a
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different way, he said, noting that it is also useful
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for gathering data for a presentation. At s Forward, Rushman
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educates clients around the security considerations of AI. What's okay
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to input and what's not. Personal information is a no no.
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To alleviate this concern, some clients ask about having an
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internal server that operates a secure AI platform. I would
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say that that's in the very beginning stages, Rushman said,
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we haven't set that up yet for any one. He
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sees his role as a trusted advisor, giving clients options
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to think about and choices of what they may want
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to implement. For years, he said, cybersecurity was the buzzword,
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and though still relevant, attention has shifted to AI and
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how it may keep companies from having to hire more workers,
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in part by helping existing employees become more productive. He
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notes that in terms of productivity, a forty hour employee
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could probably do fifty hours of work with an assist
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of from AI. For example, Rushman said an employee could
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run a project or task through AI, which will get
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eighty five percent of the way there, leaving the employee
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to simply review it for accuracy, quality, or to spark
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some idea generation. A task that once took two hours
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might take an AI assisted employee fifteen minutes, he said,
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an inspector that never tires. Ford's Kentucky truck plant is
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another adopter of AI. A recent article in Design News
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detailed how the maker of the popular and profitable heavy
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duty truck line is boosting efficiency with both AI and
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three D printing. One of the largest vehicle manufacturing plants
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in the United States, with the six point five million
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square foot facility employing nine thousand. The KTP site uses
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an Apple iPhone based AI program developed in house called
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Mobile Artificial Intelligence Vision System or MAVES to inspect vehicles
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at targeted points during assembly. An insurer correct installation. Manufacturing
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engineers with iPads in hand then consult a dashboard that
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shows the results of AI inspections, allowing for problem detection
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and corrections in real time. The Kentucky Manufacturing Extension Partnership KYMEP,
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based at the University of Louisville, as a resource for
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Commonwealth manufacturers to work toward growth solutions. Innovations and operational efficiency.
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Scott Broughton is Kentucky MPP's executive director and Director of
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Manufacturing Engagement and the Office of Research and Innovation. There
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part of a national network of fifty one centers nationwide.
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KYMEP was launched just over two years ago and one
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of its roles is to include AI and machine learning
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in automation technologies. An expert is on staff to assist clients,
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primarily in Kentucky. In my experience, either of relatively young
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or mid to large sized companies regularly adopt AI brought
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and said with the workforce issues that everyone is experiencing,
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the more automated we can make mundane or dangerous activities
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the better. This frees up time for higher level specialists
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to focus upon other tasks that will bring a higher
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level of return on investment of their time. How do
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we deploy this? The current tip of the AI spear
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in manufacturing is in quality control. At the University of
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Kentucky's Stanley and Karen Pigman College of Engineering, Hassan Punawala
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serves as assistant professor in the Department of Mechanical and
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Aerospace Engineering and is actively monitoring frontline action from his observations,
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Kentucky manufacturers are using and adapting AI in machine learning
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at different rates. The biggest uptake is in quality control,
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where pilot product demonstrate the use of more mature visions
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of AI mL vision models to identify quality defects in
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manufactured goods. Bunwala said these pilot programs are mostly at
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larger firms like the Ford Plant in Louisville. Gray Solutions
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in Lexington is also deploying AI driven projects for quality control.
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Smaller manufacturing firms are interested in AI, but many are
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still working to find reliable vendors or engineering talent to
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help them deploy AI in their operations. He said it's
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common for AI to generate reports, but it's a different
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matter to have AI mL running machines, so that's less
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widespread for now, and training for these technologies in manufacturing
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is still new. He and his colleagues are developing short
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courses on deploying AI mL models for those with manufacturing backgrounds.
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Our Research has been using d learning for a while
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and is now working on multimodal large language models for
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process control and robotic automation. Pinuwala said, we are also
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partnering with the AI Applied Consortium on projects related to
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machine visual inspection and industrial augmented reality. Some challenges include
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the limited spread of AIML programming skills in the manufacturing sector,
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on which deployment of AI driven solutions would rely. There's
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also limited manufacturing data to use in training models, leading
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to unclear ROI, Panwala said, But if manufacturers can ramp
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up and implement AI and machine learning, they could boost
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work or productivity, help address labor shortages and skills gaps,
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better respond to economic shifts, and reduce waste through improved
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process control and supply chain or up optimization. He said.
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With so much market competition and AI companies vying to
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prove themselves as the best, most accurate, and cheapest option,
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the cost implement AI remains low and returns on investment
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can be nearly immediate. Rushman said. Manufacturers are using AI
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to automate manual processes, which could one day replace certain
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human tasks. However, Rushman noted the technology hasn't advanced that
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level yet. Still, he thinks AI's evolution revolution will move
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at lightning speed, even faster than the Internet itself has.
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Looking ahead just six months to two years from now.
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He thinks it can't yet be fully grasped where this
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technology will take us. I think AI will go one
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hundred times faster than any of that did, he said,
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I've seen it already. It's the second coming of the Internet.
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It's the biggest disruptor since the Internet came to be.
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It's the next big thing for sure. Bunuwala said, we
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can expect AI to match human performance, at least on
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a cost basis, in more and more skills over time.
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As this happens, some jobs will change in their composition
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of skills, some may be reduced to baby sitting AI,
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and some may even be eliminated. He expects AI to
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continue to spread throughout manufacturing operations, enabling both employers and
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those who manage them to do more than ever before. However,
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workforce development programs will be crucial to provide workers with
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the skills needed when it comes to AI programming and manufacturing.
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The biggest challenge Broughton sees is in convincing people to
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adopt and fully embrace the possibilities. In response to the
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fear that AI will only replace human jobs, Broughton said
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AI works well in repetitive activities and alongside of human beings.
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In most cases, it helps support jobs and freeze up
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time for most advanced activities. Walton emphasized that AI adoption
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is here and it's something businesses must embrace. It's a
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natural evolution of how we work, he said. For manufacturing.
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In other sectors, AI is transforming the landscape, providing a
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powerful tool for workers rather than a replacement. Baliff has
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a plan for easing into adoption of AI. We started
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using AI in our sales administration originally by summarizing meeting transcripts,
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helping with writing emails, notices, et cetera, and we continue
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to find bigger and better ways to use it in
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the selling process. Lewis said. Our goal is to develop
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AI tools that will allow complete dictation of sales call reports,
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which will be summarized, cleaned, and stored within our CRM system.
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By developing an interactive agent to handle the paperwork, our
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sales team members can spend more time being productive in
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front of customers. Bailiff purchased business licenses for the AI
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tools it shows, enabling them to build their own private models.
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Lewis said this products business intellectual property and avoids information security.
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Risks possible with publicly available AI tools. Once the AI
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agent is trained, is extremely difficult to discern it from
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an actual human, Lewis said. Utilizing the agent to set
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up appointments and do the follow up work also allows
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the sales team to perform customer visits, improving their productivity
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and efficiency. This concludes the reading of the most recent
28:36
Kentucky business news. The reader today has been Tim Curry.
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Thanks for listening, and now please stay tuned for more
28:43
programming here on Radio I