kentucky's global economy
TRANSCRIPT
Presented by Erik Dunnigan, Deputy Secretary
Kentucky Cabinet for Economic Development
Kentucky’s Global Economy
UNEMPLOYMENT RATE EDGES DOWNWARD
• Added 271,000 jobs in October
• Rate drops from 5.1% to 5%
• Lowest rate since April 2008
EXPORTS INCREASE AND IMPORTS DECREASE
• International trade balance improves by
$7.2 billion
• GDP growth continues at 1.5%
U.S. ECONOMIC INDICATORS IMPROVING
As the world’s second-largest economy, China’s output and consumption rates impact global manufacturing.
PRESSING INTERNATIONAL FACTORS
6.5
7
7.5
8
12 13 14 15
Economic Growth Rate
CHINA
%
%
%
%
STOCK MARKET: WORLDWIDE DROP
Hang Seng
Nikkei
Dow
DAX
FTSE
MAJOR INDICES FELL IN THIRD QUARTER 2015 Markets have experienced increased volatility since
05,000
10,00015,00020,00025,00030,000
HESITANCY ON THE NATIONAL SCALE
Citing recent
market turmoil,
the Federal
Reserve
kept its
federal funds rate
near zero
last quarter.
Kentucky Economic Activity
GOVERNOR’S CUP - 2014
> KENTUCKY #1 NATIONALLY PROJECTS PER CAPITA
> KENTUCKY 6th OVERALL IN PROJECT ACTIVITY
1 Texas 26,448,193 2 of 50
2 Ohio 11,570,808 7 of 50
3 Illinois 12,882,135 5 of 50
4 N. Carolina 9,848,060 10 of 50
5 Georgia 9,992,167 8 of 50
6 KENTUCKY 4,395,295 26 OF 50
2014
Rank State Population Population Rank
Economic Momentum
Kentucky’s jobless rate in September 2015 was 5%, the LOWEST SINCE 2001.
$6.4 billion investment Jan. 2014 – Oct. 2015, creating nearly
23,000 jobs
Kentucky’s GDP grew faster than the U.S. 2007-2015 and economic activity is
the highest ever.
5%
More than 250 location and expansion projects announced through Oct. 2015.
Source: U.S. Bureau of Labor Statistics
NEW vs. EXPANDING INDUSTRY
ANNOUNCEMENTS 2009 - Oct. 2015
15%
85%
Project Announcements
New Location Expansion
30%
70%
Jobs New Location Expansion
18%
82%
Investment New Location Expansion
THE RURAL IMPACT
49%
Announcements
40%
Jobs
44%
Investments
970 of 2000
TOTAL PROJECTS 2009 - Sept. 2015
$7.87 billion of $17.78 billion 31,809 of 80,228
Investment by Sector – 2009 – Oct. 2015
$966,020,809 | 129 ANNOUNCEMENTS
Chemical
Plastics & Rubber
Machinery Manufacturing
Food & Beverage
Motor Vehicle-Related
Distribution & Logistics
Research & Development
$1,739,715,561 | 110 ANNOUNCEMENTS
1,996,845,578 | 218 ANNOUNCEMENTS
$351,997,498 | 127 ANNOUNCEMENTS
$1,444,869,442 | 173 ANNOUNCEMENTS
$1,821,727,031 | 168 ANNOUNCEMENTS
$5,685,160,674 418 ANNOUNCEMENTS
MANUFACTURING INDUSTRY EMPLOYMENT
Kentucky's industry employment grew by 12.2%
Nationally, industry employment
increased 5.7% from 2010-2014
5.7% 12.2%
AUTOMOTIVE INDUSTRY EMPLOYMENT
Kentucky's industry employment grew by 72%
Industry employs 85,552 workers at 470+ establishments in Commonwealth
Nationally, industry employment fell 26% since 1990
Assembly plant employment INCREASED 46%
Parts manufacturing INCREASED 87%
Body and trailer manufacturing INCREASED BY 110%
26%
72%
Expanding Global Opportunities
447 Internationally
owned
facilities
International Influence
33 Nations
89,500 Employees
of Kentucky’s announced investment
came from foreign direct investment
in 2014
30%
The percentage of Kentucky’s new jobs in 2014
from FDI
20%
THE STATE OF FOREIGN DIRECT INVESTMENT
IN KENTUCKY
$2.3
$27.7 billion in 2014
191 countries
Supports 125,000
Kentucky jobs
Through September 2015, 4.5
percent ahead of September last year
On pace for $28 billion
in 2015
Shattering Export Records
for 5 Years
billion
$7.6 billion $2.3
billion
$1.7 billion
China
United Kingdom
Mexico
Canada
$2 billion
France
ENTREPRENEURSHIP
CREATING A CULTURE
OF
Kentucky’s State of Entrepreneurship
The State Entrepreneurship Index (SEI) reflects a state’s entrepreneurship environment, growth in business formation and technological innovation. In just one year, Kentucky rose 45 spots to No. 4 nationally.
> The Office of Entrepreneurship and the Kentucky Innovation Network assisted more than 1,200 Kentucky clients between Jan. 2014 and Oct. 2015 with a variety of services, including:
Small Business Tax Credit
Angel Investment Tax Credit
Angel Investors Network
Small Business Credit Initiative
Commonwealth Seed Capital Investors Summit
Entrepreneur Pitch Competition
Idea State U
Governor’s School for Entrepreneurs
KENTUCKY INNOVATION NETWORK
SMALL BUSINESS ASSISTANCE
Kentucky Small
Business Tax Credit
$1 million in tax
credits have been awarded
40% awarded to small
businesses in rural counties
Kentucky Small Business
Credit Incentive
$10.1 million in loan support
$89.3 million leveraged
64% awarded to small
businesses in
rural counties
YOUTH DEVELOPMENT
NETWORK-
SPONSORED
EVENTS
IDE
A S
TA
TE
U
GOVERNOR’S SCHOOL
FOR ENTREPRENEURS
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Creating Workforce Solutions
Kentucky’s Unemployment Rate September Unemployment Rates in KY
5.5
7.1
10.7
10.0 9.2
8.1 7.9
5.8
5.0
2007 2008 2009 2010 2011 2012 2013 2014 2015
Source: U.S. Bureau of Labor Statistics
Kentucky’s Employment vs. Unemployment June Employment/Unemployment in KY
2007 2008 2009 2010 2011 2012 2013 2014 2015
Unemployment 101,857 133,284 207,607 196,583 186,986 160,173 158,695 109,423 88,140
Employment 1,923,112 1,898,619 1,844,842 1,854,744 1,871,803 1,902,313 1,897,634 1,875,377 1,840,833
1,700,000
1,750,000
1,800,000
1,850,000
1,900,000
1,950,000
2,000,000
2,050,000
2,100,000
Total Workforce
Employment
Source: U.S. Bureau of Labor Statistics
Total Workforce 2,024,969 2,031,903 2,052,449 2,051,327 2,058,789 2,062,486 2,056,330 1,984,800 1,928,973
FILLING THE SKILLS GAP
With U.S. economic growth
on a firmer footing, and demand
ticking up, the AVAILABILITY OF
SKILLED LABOR has become
the #1 factor in site decisions, according to the latest survey of company
executives by Area Development magazine.
125 Company Members 75 Companies currently
sponsoring students 147 Current Students 65 Graduates
Owensboro
Florence
Bowling Green
Somerset
Mayfield
Hopkinsville
Madisonville
Elizabethtown
Springfield
Georgetown
Danville
Louisville
Maysville
Pikeville
Shelbyville
Budget Expenditures & Projections
Personnel
GROWTH PLANS
Next Biennium Potential Request (FY 16-17 and FY17-18)
Personnel/staff
Marketing
International business
Office of Entrepreneurship grants
Operating costs
Personnel & Partnerships
Entrepreneurship / Business
Development
International
Workforce
Marketing
Next Biennium Potential Request (FY 16-17 and FY17-18)
THANK YOU