NORTHERN KENTUCKY TRI-ED ANNUAL REPORT 2013€¦ · Specific Company Highlights On December 12, 2013 Governor Beshear cut ribbons for two new ezone assisted companies: Xcelerated

NORTHERN KENTUCKY TRI-EDANNUAL REPORT 2013

2 www.NorthernKentuckyUSA.com 3Northern Kentucky Tri-ED

Northern Kentucky discovered long ago that the regional approach to economic development works and Northern Kentucky Tri-ED embodies this notion.

Mission StatementBuild a world-class economy in Northern Kentucky through the expansion of existing businesses

and the creation and attraction of high-quality, primary industry employers.

Thus, NKY Tri-ED follows a three-year Strategic Plan to CREATE, RETAIN/EXPAND and ATTRACT primary industry jobs and companies in Boone, Campbell and Kenton counties as part of the 2.1 million population Cincinnati Metropolitan area. “Primary industries” are defined as companies that are predominantly exporting products or services outside the region and, at the core, NKY Tri-ED assists primary industries grow.

NKY Tri-ED targets and promotes the Northern Kentucky region on a national and international basis as a location for companies with projects in the following sectors:

Oftentimes, NKY Tri-ED’s 11-member team responds to Requests for Information from consultants for new prospects, assists in labor market studies, surveys existing businesses, structures incentives for new and expanding companies, and through the NKY ezone, assists start-up companies identify resources for capital—all as examples of the services NKY Tri-ED provides as a community service.

Since 1987, NKY Tri-ED has played an integral role in the successful location, creation, or expansion of primary industries with:

NORTHERN KENTUCKY TRI-ED OVERVIEWMESSAGE FROM THE CHAIRMAN

Steve Pendery, Judge-Executive, Campbell County

• Advanced Manufacturing• Professional Office/Headquarters• Aviation

• Informatics/High Tech• Logistics and E-Commerce

• 585 companies• 49,600 new jobs• $6.7 billion new capital investment

Northern Kentucky Tri-ED was formed in 1987 in a spirit of collaboration between Boone, Campbell, and Kenton counties as the first regional economic development entity in Kentucky. This spirit continues today, focusing on Business Retention and Expansion, Entrepreneurship

and Attraction for primary industries. Economic development is a “team sport” and our local allies help to grow the Northern Kentucky economy. Key allies include cities, counties, private businesses, educational institutions, utilities, workforce development groups, Commonwealth officials, transportation providers, and many private, public, and non-profit organizations.

In 2013 we saw prime examples of collaboration in Northern Kentucky:

• NKY Boost-City and county allies participated with NKY Tri-ED in over 120 visits to primary industries gaining valuable business climate intelligence to act upon. A prime example is the KY Transportation Cabinet, District 6 for exemplary tangible local transportation and infrastructure enhancements resulting from NKY Boost activities.

• UpTech-NKY’s first, and only, Informatics business accelerator program for start-ups, is the product of superb collaboration among the Northern Kentucky Fund of the Greater Cincinnati Foundation, the R.C. Durr Foundation, Duke Energy, PNC Bank, the Carol Ann and Ralph V. Haile, Jr. / US Bank Foundation, Pomeroy, the City of Covington, the NKU Research Foundation, NKU, Vision 2015 and the Campbell County Economic Progress Authority.

• NKY Tri-ED’s Marketing Program-Significant collaboration deepened among the Kentucky Cabinet for Economic Development, the Cincinnati USA Partnership, Kentucky United, and other important allies to secure domestic and international prospects for Northern Kentucky.

In 2013, NKY Tri-ED worked with 91 prospects, resulting in the announcement of 21 economic development projects for 2013. Every sector that NKY Tri-ED supports experienced growth—Advanced Manufacturing, Aviation, Logistics, Informatics, Biotechnology, Professional Office/Headquarters and Water Technology. Further, our Governor and Lt. Governor participated in eight (8) economic development announcements or dedications in Northern Kentucky in 2013—quite possibly a regional record!

On behalf of our Boards of Directors and the NKY Tri-ED Team, we very much look forward to working with our primary industries and our many allies to expand the Northern Kentucky economy in 2014 and beyond.

585new companies have located or expanded in Northern Kentucky,

an average of 22per year

200international companies in NKY

of investment by companies expanding or locating in NKY

$6.7 Billion

118,000total jobs have been

created*

49,600new primary jobs have

been created

in economic impact generated by job creation

$25.2 Billion*

Cincinnati

*Data compiled by Center for Economic Analysis and Development, Northern Kentucky University, using historical data provided by NKY Tri-ED.54

NORTHERN KENTUCKY TRI-ED BY THE NUMBERS 1987–2014


Projected Annual Economic Impact of Primary Industry Growth 2013 Calendar YearAnalysis prepared January 2014

MAKING AN IMPACT

Summary-Primary Industries: 21 Companies

Jobs Business Sales or Output

Labor Income Value Added

Direct Effects 1,181 $307,965,534 $59,420,573 $89,196,488

NKY Indirect/Induced Effects 1,101 158,549,513 50,236,721 85,523,630

Total Impact on NKY* 2,282 $466,515,047 $109,657,294 $174,720,118

Other Metro Indirect/ Induced Effects

250 47,163,070 13,479,479 21,837,249

Total Impact on Cincinnati MSA* 2,532 $513,678,117 $123,136,773 $196,557,367

In addition, the new and expanding businesses in Northern Kentucky are

PROJECTED TO INVEST MORE THAN

$152 million in land, buildings, and equipment

From New Business-Primary Industries: 8 Companies


Labor Income Value Added

Direct Effects 860 $186,104,025 $40,447,777 $59,830,454

NKY Indirect/Induced Effects 710 95,006,405 30,980,197 52,458,479

Total Impact on NKY* 1,570 $281,110,430 $71,427,974 $112,288,933


150 24,615,675 7,933,696 12,718,657

Total Impact on Cincinnati MSA* 1,720 $305,726,105 $79,361,670 $125,007,590

From Expanding Business-Primary Industries: 13 Companies


Labor Income

Value Added

Direct Effects 321 $121,861,510 $18,972,797 $29,366,033

NKY Indirect/Induced Effects 391 63,543,109 19,256,524 33,065,151

Total Impact on NKY* 712 $185,404,619 $38,229,321 $62,431,184


101 22,547,396 5,545,783 9,118,593

Total Impact on Cincinnati MSA* 812 $207,952,015 $43,775,104 $71,549,777

* NKY includes Boone, Campbell and Kenton Counties in Kentucky. In addition to the three counties listed for NKY, the Cincinnati MSA includes Bracken, Gallatin, Grant and Pendleton Counties in Kentucky; Franklin, Dearborn and Ohio Counties in Indiana; and Butler, Warren, Hamilton, Clermont and Brown Counties in Ohio. Totals may not sum due to rounding.

Prepared by: Northern Kentucky University’s Center for Economic Analysis and Development (CEAD)

9Northern Kentucky Tri-ED

GrouponGoods, Inc.

$12M Investment115 Jobs

ZoomEssence$3M Investment

20 Jobs

SouthernAir

$3.5M Investment150 Jobs

Cincinnati

Boone

Florence

Walton

Covington

Newport

MeyerTool


CitiLogics$800K

Investment Capital1 Job

Tri-StatePlastics

$750K Investment5 Jobs

XceleratedLearning Dynamics

$800KInvestment Capital

50 Jobs

ClearMeasures


Ethos$2.6M Investment

45 Jobs

LegionLogistics


Alpla$9.6M Investment

38 Jobs

NewGistics$7.6M Investment

300 Jobs

TRIVACO$3.2M Investment

45 Jobs

NewlyWeds Foods


Ticona/Celanese


BestSanitizers


LyonsMagnus


UltimateAir Shuttle

$170K Investment40 Jobs

JacobsAutomation


HAHNAutomation


8

BUDGET2013 ANNOUNCEMENTS

Revenue

Rental Car License Fee 76% $1,568,000

NKY Tri-EF Allocation (private funds) 10% 200,000

KY Innovation Network Grant 10% 202,200

Other Income (Interest, Rent, Other) 4% 78,500

$2,048,700

Expenses

Business Retention & Expansion 20% $399,500

Entrepreneurship 19% 392,400

Marketing/Attraction 28% 564,200

Board/Office Operations 27% 566,900

External Agencies 6% 125,700

$2,048,700

2013 Economic

Development Activity

Highlights

FY14 Northern Kentucky Tri-ED BudgetJuly 1, 2013–June 30, 2014

Cincinnati

28%of companies cite

workforce issues as biggest barrier to

growth

35companies received

assistance with workforce training grants, resulting

in $932K ingrant funding

40expansion leads

52% of companies have

workforce training needs

122business visits

13expansion projects,

creating 321 new jobs

and $68.1M incapital investment

1110

BUSINESS RETENTION AND EXPANSION

“Northern Kentucky Tri-ED,

through NKY Boost, is committed to serving our existing companies,

fostering growth and solving any challenges they

may be experiencing.” —Tom Fromme, City

Manager, City of Newport

NKY Boost is the Business Retention and Expansion (BR&E) program of Northern Kentucky Tri-ED. It is a free resource connecting Northern Kentucky primary industries with solutions to sustain current operations and accelerate growth,

while also growing jobs in the local economy. The program provides a business a single point of contact for a wide range of assistance opportunities. NKY Boost coordinates a systematic and extensive business visitation program with local communities utilizing a customized software program. Intelligence gained from these coordinated visits helps identify expansion opportunities, troubleshoots problems, provides resources, expands market reach and engenders new capital investment and job growth. Duke Energy Kentucky provides valuable resources to make NKY Boost possible.

In 2012, NKY Tri-ED re-launched and re-branded the existing BR&E program as NKY Boost. In 2013, NKY Boost received the “Excellence in Economic Development Award” from the International Economic Development Council for our business retention and expansion program.

For more information on NKY Boost and to view the full NKY Boost annual report, please visit www.NorthernKentuckyUSA.com

12 www.NorthernKentuckyUSA.com

Grand Rapids

Detroit

Cleveland

Boston

Charleston

Chicago

Indianapolis

New York City

13

NORTHERN KENTUCKY

SIGNATURE SITES AND BUILDINGS

Deal Hotline888.874.3365 or 859.344.0040

MARKETING

The evolution and integration of several marketing programs in place since 2005, as part of a long-term marketing effort for the region, has gained national recognition and momentum for Northern Kentucky among qualifying companies and real estate professionals. Northern

Kentucky was named in 2013 as a “Top Mid-Market of the South” by Southern Business & Development Magazine based on capital investment, job creation and other metrics.

Each target industry cluster has a target profile analysis. Efforts with the Kentucky Cabinet for Economic Development, Kentucky United and the Cincinnati USA Partnership drive our prospecting efforts and identify competitive advantages in vertical and geographic sectors. Marketing programs including social and media relations, prospect cultivation, Thrive e-newsletter and marketing missions across the U.S. are then utilized to market Northern Kentucky to our target audience.

Recognized by the International Economic Development Council (IEDC) as a newsletter of excellence, Thrive (www.NKYThrives.com) is a monthly e-newsletter with a decidedly favorable NKY marketing message. Thrive is targeted to approximately 12,000 subscribers and showcases only “good news” items for Northern Kentucky.

Creation, production and distribution of the Northern Kentucky Signature Sites and Buildings catalog highlighting key properties to a highly targeted prospecting and key accounts list has met with great support and success. The hard copy and electronic piece has served as a rallying point for many Northern Kentucky communities and in a tangible way demonstrated the benefit of a regional economic development effort.

2013 Marketing Missions

BostonCharlestonChicago (2)Cleveland

DetroitGrand RapidsIndianapolisNew York


51Clients

$158.6M

$61,000Average Salary

188Jobs Created

2013

$22.7MInvestment Funds

301Clients

$54,000Average Salary

1,496Jobs Created

$158.6MInvestment Funds

20022013

to

JobCreation

Northern Kentucky ezone

by the numbers

15

NORTHERN KENTUCKY E-ZONE

Northern Kentucky Tri-ED High Growth Entrepreneurship Program

NKY Tri-ED’s ezone program focuses on high growth technology start-ups and early stage entrepreneurs that are funded via equity investments. UpTech and mUpTech are programs developed and operated by the ezone. The ezone operates the Northern Kentucky office

of the statewide Kentucky Innovation Network, which entails the counties of Boone, Bracken, Campbell, Carroll, Gallatin, Grant, Harrison, Kenton Owen, Pendleton, and Robertson.

Highlights for 2013Specific Company HighlightsOn December 12, 2013 Governor Beshear cut ribbons for two new ezone assisted companies: Xcelerated Learning Dynamics (XLD) is a spin-out of TiER1 Performance Solutions; Clear Measures was created by dbaDIRECT. XLD, TiER1 and Clear Measures are projected to add 341 jobs to Northern Kentucky over the next three years.

UpTech Class I graduate, CitiLogics, was awarded a Phase I Federal SBIR Grant for $150,000 from the National Science Foundation in 2013 to test CitiLogics’ analytics product at the Greater Cincinnati Water Works and the Northern Kentucky Water District. Kentucky, as the only state to match Phase I SBIR grants, awarded CitiLogics a matching grant for $150,000.

“CitiLogics’ idea of actually seeing the condition of thousands of miles of underground pipes will not only reduce cost and improve the quality of our water in the Commonwealth, but also the rest of the nation. Kentucky is proud to support innovative companies like CitiLogics and help transform those ideas into reality.”—Gov. Steve Beshear

Long time ezone client, Jacobs Automation, was purchased by Rockwell Automation, the world’s largest company dedicated to industrial automation and information. Jacobs’ patented iTRAK assembly line product was developed with the support of the ezone and the Kentucky Cabinet for Economic Development. Plus Jacobs Automation was the first investment of the Northern Kentucky Growth Fund I—and the Rockwell purchase engendered a solid return on investment in a timely manner.


Cincinnati

Covington

LarryKlein

City ManagerCity of Covington,

Kentucky

17

ALLIES

Regional AlliesWorking with Northern Kentucky Tri-ED encourages a thriving business climate in Northern Kentucky. NKY Tri-ED collaborates with various state and local governments, planning agencies, and business associations, most listed below:

Local GovernmentBoone, Campbell, Kenton Counties, and all incorporated cities

Local, Regional, and State Agencies• Boone County Planning and Zoning Commission• Campbell County Economic Progress Authority• Campbell Leadership Action Group• Cincinnati USA Partnership• Covington Business Council• Kentucky Association for Economic Development• Kentucky Cabinet for Economic Development• Newport Business Association• Northern Kentucky Area Development District• Northern Kentucky Area Planning Commission• Northern Kentucky Chamber of Commerce• Northern Kentucky Education Council• Northern Kentucky Industrial Park Industry Partnership• Northern Kentucky Port Authority• Ohio Kentucky Indiana Regional Council of Governments (OKI)• Southbank Partners• The Catalytic Fund• Vision 2015

Transportation• Cincinnati/Northern Kentucky International Airport (CVG)• Kentucky Transportation Cabinet-District 6• Transit Authority of Northern Kentucky (TANK)

Utilities• Boone County Water District• Cincinnati Bell• Duke Energy• Northern Kentucky Water District• Owen Electric• Sanitation District No. 1 of Northern Kentucky• Time Warner Cable• Walton Water and Sewer District

Workforce and Education• Gateway Community and Technical College Workforce Solutions• Kentucky Career Center Northern Kentucky• Northern Kentucky University • Northern Kentucky Workforce Investment Board• Partners for a Competitive Workforce• Thomas More College

“HAVING AN EFFECTIVE REGIONAL economic development

partner like Northern Kentucky Tri-ED has been an essential element in many of

Covington’s recent economic development successes. Covington is able to stay abreast of

the local, regional, state, national and international economic development opportunities and trends

first-hand.

NKY TRI-ED AND EZONE have been influential in helping us grow our high tech entrepreneurial sectors. NKY Tri-ED brings business recruitment opportunity to the City whenever possible and proactively looks for ways to help grow our economic base. NKY Tri-ED has also been effective in coordinating with Covington on joint business retention and expansion visits through the NKY Boost program.

WE APPRECIATE NKY TRI-ED as a valuable partner and enjoy working with them

to grow the economy of the City of Covington and Northern Kentucky.”


Northern Kentucky Tri-ED Board of DirectorsNKY Tri-ED is comprised of the three judges-executive, three appointees from each county representing a wide array of businesses, four standing directors, one at-large appointment elected by the NKY Tri-ED Board and eight ex-officio members.

Boone County• Gary W. Moore, Past-Chair, Judge-Executive • Aaron Bludworth, George Fern Exposition & Event Services• John Mocker, Lally Pipe & Tube• Kristi Nelson, Pomeroy

Campbell County• Steve Pendery, Chairman, Judge-Executive• Robert A. Heil, Kohrs Lonneman Heil Engineers, PSC• Pamela Stapleton, U.S. Worldwide Logistics, Inc.• Hal Wendling, Wendling Printing

Kenton County• Steve Arlinghaus, Chair-Elect, Judge-Executive• Robert M. Hoffer, Dressman Benzinger LaVelle PSC• Johnna Reeder, Duke Energy• Shad Sletto, EGC Construction

Regional Stewardship Council• John Domaschko, Vision 2015

Northern Kentucky Chamber of Commerce• Deborah Simpson, Multi-Craft • Lytle Thomas, Heritage Bank

At-Large• Wm. T. (Bill) Robinson III, Secretary-Treasurer, Frost Brown Todd LLC

Tri-County Economic Development Foundation• Steven Dasch, Tri-EF Chairman, Citi

Ex-Officio Members of the Board of Directors• David Armstrong, Thomas More College• Brent Cooper, Northern Kentucky Chamber of Commerce• Matt Davis, Cincinnati USA Partnership• Dr. G. Edward Hughes, Gateway Community & Technical College • Candace McGraw, Cincinnati/Northern KY International Airport• Geoffrey S. Mearns, Northern Kentucky University• Jack Moreland, Southbank Partners• William Scheyer, Vision 2015

LEADERSHIP AND GOVERNANCE

NKY Tri-ED TeamA seasoned and dedicated team delivers high-level regional economic development services to Northern Kentucky. Call 888-874-3365 or visit www.NorthernKentuckyUSA.com.

• Daniel E. Tobergte, J.D., CEcD, President & CEO• Wade T. Williams, VP-Business Retention & Expansion/Manufacturing Projects• Dustin M. Lester, Business Retention & Expansion Manager• Mary L. Hollon, Senior Office Manager• Caitlin M. Douglas, Research Manager• Nick D. Brophy, Economic Development Manager

NKY ezone• R. Casey Barach, J.D., M.B.A., Sr. VP-Entrepreneurship & Director, KY Innovation Network

at Northern Kentucky• Casimir R. Choppy, Assistant Director-Entrepreneurship• Sheryl L. Stolze, Assistant-Entrepreneurship

Northern Kentucky Tri-EF Board of DirectorsNKY Tri-EF draws upon the private sector and foundations for expertise and resources to assist the efforts of NKY Tri-ED. NKY Tri-EF is governed by a Board of Directors that includes all members of the Tri-ED Board and twelve members elected by NKY Tri-EF.

• Steven Dasch, Chairman, Citi• Jennifer Doering, Chas. Seligman Distributing Co. Inc.• Jane Garvey, Cincinnati Children’s Hospital Medical Center • Kimberly Halbauer, Fifth-Third Bank• Paul Hitter, Messer Construction• Julie Hopkins, Chair-Elect, Ashland, Inc.

• Thomas Prewitt, Graydon Head & Ritchey LLP • Toby Rau, Secretary, US Bank• Timothy Slaughter, Castellini Company• Sheila Spradlin-Reich, The Huntington National Bank• Mark Stallons, Owen Electric• Robert Zapp, The Bank of Kentucky

Daniel E. Tobergte, President/CEO

Northern Kentucky Tri-ED300 Buttermilk Pike, Suite 332 • Covington, Kentucky 41017

ph: 859.344.0040 • tf: 888.874.3365NorthernKentuckyUSA.com

NORTHERN KENTUCKY TRI-ED ANNUAL REPORT 2013€¦ · Specific Company Highlights On December 12, 2013 Governor Beshear cut ribbons for two new ezone assisted companies: Xcelerated

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