Today, Gov. Andy Beshear announced further growth of the state’s distribution and logistics industry as DHL Express, a global leader in international express shipping, will expand its current operations at CVG Airport in Boone County with a $192 million total investment creating 86 quality Kentucky jobs.
“Kentucky has one of the strongest distribution and logistics sectors in the country, and DHL plays a major role in that success,” said Gov. Beshear. “The commonwealth’s ideal geographic location and access to resources make it incredibly easy for companies to reach their consumer base in a timely and efficient manner. I want to thank DHL for their continued commitment to Kentucky and look forward to many more years of their success here in the commonwealth.”
The investment will include the development of a new 305,200-square-foot aircraft maintenance facility on a 50-acre site located south of and adjacent to DHL’s current CVG Airport hub. The project will also include the addition of eight new aircraft gates at its current ramp to support CVG hub operations and repurpose the existing aviation and line maintenance space in Building 3. The project will boost the company’s total Kentucky employment to over 3,800.
“Our Americas hub at CVG is one of three DHL global superhubs and completes the backbone of our intercontinental network,” said Mike Parra, CEO for DHL Express, Americas region. “With its strategic location at the heart of our U.S. network, the CVG hub plays a vital role in our regional operations and the service we provide to our customers. We are honored and excited to be able to continue investing in the state, expanding our footprint, and adding a carbon-neutral, state-of-the-art facility for the maintenance operations of our growing fleet.”
DHL is part of DHL Group, headquartered in Bonn, Germany, and is a global leader in mail, delivery and logistics. With approximately 395,000 employees in more than 220 countries and territories worldwide, DHL connects people and businesses securely and reliably, enabling sustainable global trade flows. In 2009, DHL established its global Americas air hub at CVG and has continued to grow nearly every year since. The hub sits at the heart of the DHL U.S. network with 130 daily flights and a fleet of 60 aircraft. It is also one of three DHL global superhubs, with the other two based in Hong Kong and Germany. The CVG hub handles shipments bound for the U.S., Canada, Mexico and Latin America, processing approximately 50 million international shipments annually.
Candace McGraw, CEO at CVG Airport, noted the importance that DHL plays in Kentucky’s growing economy, “DHL is a valued long-time partner, and we’re pleased they continue to invest at CVG. DHL’s global superhub is an integral part of our regional and state economy. Its success is contingent on having the facilities and workforce able to serve the global air cargo industry, and this development aligns with our vision to expand aircraft maintenance and support services on campus.”
Boone County Judge/Executive Gary Moore welcomed DHL’s additional investment and the new jobs being created at CVG, “DHL continues to add on to the global superhub at CVG and we are grateful for the company’s commitment to Northern Kentucky. The service DHL provides from CVG is invaluable to our strong base of manufacturers and companies in the Cincinnati region.”
BE NKY Growth Partnership CEO Lee Crume shared that aviation maintenance and logistics management are top growth sectors in Northern Kentucky, “With ever-increasing cargo loads arriving at CVG, the need for additional maintenance and repair operations continues to grow. We applaud DHL’s expansion and will work with the company and the community to build on their success in the Cincinnati region.”
DHL’s investment and planned job creation furthers recent economic momentum in the commonwealth.
Gov. Beshear recently announced that his administration secured the largest General Fund budget surplus and Rainy Day Fund, as well as the most jobs filled in state history.
The General Fund budget surplus at the end of fiscal year 2023 was more than $1.55 billion. Nearly all of the $1.55 billion surplus will go into the commonwealth’s Rainy Day Fund, bringing the fund to a record balance of $3.7 billion – a 2,700% increase since Gov. Beshear took office in 2019.
Gov. Beshear also announced an increase of 6,400 jobs filled, bringing the commonwealth to 2,015,600 filled jobs in June. That is a record number of nearly 60,000 more jobs filled than before the pandemic.
This year, the Governor announced that Kentucky set the record for the longest period with the lowest unemployment rates in state history. On May 18, Gov. Beshear announced that Kentucky set a new historic low unemployment rate of 3.7%, which is the lowest rate ever recorded in the commonwealth.
Since the beginning of his administration, Gov. Beshear has announced more than 870 private-sector new-location and expansion projects totaling approximately $26.8 billion in announced investments.
The robust job creation has been accompanied by rising wages across the commonwealth. The average incentivized hourly wage in 2022 was $26.78 before benefits, the second-highest mark since 2010 and an 11.5% increase over the previous year.
The Governor also secured the best two-year period in state history for economic growth and announced the two largest economic development projects in state history. In September 2021, Gov. Beshear and leaders from Ford Motor Co. and SK On celebrated a transformative $5.8 billion investment that will create 5,000 jobs in Hardin County. In April 2022, the Governor was joined by leadership at AESC to announce a $2 billion investment that will create 2,000 jobs in Warren County. These announcements solidify Kentucky as the EV battery production capital of the United States.
That position was strengthened even further in May 2023, when the Governor and leaders at Toyota announced a $591 million investment across multiple projects as the company’s largest manufacturing operation in Georgetown introduced its first battery electric vehicle. Growth within the EV sector continued into June as Gov. Beshear joined INFAC North America to break ground on the company’s $53 million investment to support EV-related production in Campbellsville.
Over a two-month period this year, Kentucky secured two credit rating increases from major agencies. On May 12, Gov. Beshear announced that his administration obtained the first state-level credit rating upgrade in 13 years and the first-ever upgrade from Fitch Ratings. On June 29, Gov. Beshear announced the commonwealth received its first-ever rating increase from S&P Global Ratings.
Site Selection magazine recently placed Kentucky first in the South Central region and top-5 nationally in its 2023 Prosperity Cup ranking, which recognizes state-level economic development agencies for their success in landing capital investment projects. The publication also placed Kentucky second nationwide and first in the South Central region for its annual Governor’s Cup ranking for 2022, which recognizes state-level economic success based on capital investments.
Gov. Beshear also announced a new “Supply Kentucky” initiative with the goal of boosting job growth, reducing costs and providing more security in the supply chains of our Kentucky companies.
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in July 2023 approved DHL Express for up to $1 million in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.
By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.
In addition, DHL Express can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.
For more information on DHL Express, visit dhl.com.