What Makes Kentucky Unique

Looks can be deceiving. When it comes to states, Kentucky is the definition of average.

Compared with the collective United States, it ranks 37th in total area and 26th in total

population. In 2019, US News ranked Kentucky as 41st. That’s it, just, like, the 41st best state

because of some arbitrary set of information. Nobody can even define, and therefore

pigeonhole, what region of the country Kentucky sits in. Nobody can agree. The state’s marquee

universities associate with both the Southeastern and Atlantic Coast Conferences, respectively.

Some would say it’s midwestern. The folks at the Little League World Series would even have

you believe Kentucky is part of the Great Lakes Region. Kentucky was once seen as the

boundary between both the east and west and north and south. Despite the average-ness and

ambiguity of Kentucky, however, the commonwealth is superior when it comes to doing

business. In fact, its indistinctiveness is precisely what makes it uniquely susceptible to business

success. It’s just… different.

Few states boast industries as easily identifiable as Kentucky. From bourbon to

basketball to thoroughbreds to coal, the commonwealth is as rooted in culture and tradition as

any state. But the real reasons for Kentucky’s idyllic business disposition are more practical, if

also unique. It’s hard to say what region of the U.S. Kentucky belongs to because it is virtually right

in the middle. Bordering seven states – only Tennessee and Missouri border more – Kentucky is

within a day’s drive of 2/3 of the country’s population and consequently serves a 34-state

distribution area comprising every major metro area east of the Mississippi River (and several

to its west). Further, because of its central location, Kentucky is in company rare housing

multiple hubs for UPS, FedEx, DHL, and Amazon, and is served by more than 20 major land

thoroughfares, the Ohio and Mississippi Rivers, major rail networks, and plenty of airports. Not

only can products get just about anywhere overnight, but business expansion opportunities

across the local supply chain seem ever-expanding as each new facility pops up.

In addition to its convenient and efficient location, Kentucky has long been ranked

among the states with the lowest cost to do business. From tax incentives and financial

assistant programs to low utility costs – roughly 20% below the national average – Kentucky

businesses are able to accomplish more for less and grow at faster rates than most other states.

The cost of labor is significantly lower as well, also about 20% less than national averages.

Because of its many advantages, the overall business outlook for Kentucky has trended

positively for a number of years and is recognized accordingly. In Site Selection magazine’s

2021 Prosperity Cup rankings for the nation’s top business climates, Kentucky moved from 9th to

4th from the previous year. Based on multiple criteria, including job creation, business

expansion, capital investments, career readiness certificates, and wage figures, among other

metrics, Kentucky is also 2nd in the south region. Indeed, business in Kentucky is anything but

average.