Insider Guide to the Growing Kentucky Auto Industry

Bowling Green, Kentucky, is the Mecca for Corvette enthusiasts from around the globe. Picking up the latest model at the assembly plant is a rite of passage for the luxury car owner who has "arrived." What changes has the Kentucky auto industry undergone and what's up ahead?

Looking back

In 2003, Marvin E. "Gene" Strong Jr. reminded locals that 5.7 % of Kentucky's employed workers relied on the automotive industry for income. Between 1995 and 2000 alone, this private sector industry managed to record a 35 percent growth, even as other industries declined. Fast forward to 2010; the Kentucky Cabinet for Economic Development highlighted that in 2009 the car-related industries employed 1.6 percent of workers. Even so, the state clawed its way to being the third-largest vehicle producer in 2009, which is an improvement from the prior number four spot.

Setting up for Success

Dismal 2008 fourth quarter losses of the American auto industry -- the White House Blog highlights Chrysler and GM in particular -- could have paved the way for catastrophic parts manufacturing job losses in Kentucky. Indeed, the number of workers has decreased, even as manufacturing plants were saved. The Obama Administration's car industry bailout prevented plant closures in Michigan and Indiana -- as well as Kentucky -- which kept plenty of parts manufacturers in business.

Looking to the Future: 2011 and Beyond

The Kentucky automotive industry is in a bit of an upswing. Granted, it is slow-going; however, it is also rather steady and coming from a variety of sources. Case in point is Hitachi's commitment to open a third manufacturing plant in the state.

"Not only will this latest expansion bring Hitachi's Berea workforce to more than 1,070, it also enhances Kentucky's profile in the advanced hybrid automotive industry," Governor Steve Beshear told TES in the first week of September. Getting a more secure footing in the hybrid and electric car market brings 130 newly created jobs as well as an influx of $74.5 million into the local economy.

Less than a week later, the governor presided over a ribbon cutting ceremony for the ZF Steering Systems plant. The anticipated investment of $95.8 million, as outlined by Cincinnati.com, cements the company's commitment to the Florence community in particular and the Kentucky auto industry in general. Over the course of the next two years, this expansion is likely to result in the addition of 374 skilled manufacturing jobs.

It is clear that Kentucky's car manufacturing industry is not out of the woods yet; even so, the state is able to maintain its highly competitive position in the automotive manufacturing sector and actively courts company expansions in the process.