BY ROGER SMITH
MOUNTAIN CITIZEN
INEZ — Colby Kirk, president and CEO at One East Kentucky (OEK), addressed Martin County Kiwanis Club members at their Thursday luncheon at Shufflin’ Café. The discussion focused on OEK’s role in stimulating economic development in the region and its strategies for future growth.
OEK, a privately funded, nonprofit economic development organization, serves nine counties in eastern Kentucky, including Floyd, Johnson, Knott, Lawrence, Letcher, Magoffin, Martin, Perry and Pike.
“We were created to bring new jobs and investment to our nine-county region,” Kirk said. “We are 100% privately funded. We don’t ask our cities or counties for any membership fees. A lot of our cities and counties don’t have the resources to do that. We ask the business community within this region and across the state to invest in our efforts.”
The guest speaker outlined the three main areas of OEK’s focus: attracting new industries and businesses, supporting existing industries and capacity-building within the communities.
Kirk highlighted OEK’s recent project involving revitalizing downtown areas in six cities, including Inez, Prestonsburg, Hazard, Pikeville, Jenkins and Whitesburg. Downtown Strategies, a consulting firm hired by OEK, is developing a five-year action plan to rejuvenate these downtowns.
In light of 30,000 job losses in coal and related industries, OEK conducted a study across 27 counties to identify the skills available in the workforce and the industries that could be a potential fit. The study revealed a mechanically inclined workforce apt for transition into advanced manufacturing fields such as fabricated metal products and automotive, aerospace and aviation parts manufacturing.
“This is the best story that we’re able to tell companies on why they should look at doing business in our region,” said Kirk. “We’ve known for a long time that coal miners can do just about anything, but when you go and meet with a company, you have to have data to back it up.”
Kirk mentioned the potential of Eastern Kentucky, boasting eight times the national average of fabricators, abundant resources for high-tech agriculture, and an advantageous geographical position for wood product manufacturing. Kirk indicated ongoing projects in these sectors and hinted at interest from a French company drawn to the region’s hardwood availability.
Pointing to the region’s proximity to markets in targeted industries, Kirk stated that within a day’s drive from Martin County, 25 automotive assembly plants are accessible. Within a four-hour drive, there are over 430 automotive suppliers.
“We’re well positioned to go north or south on U.S. 23 to serve customers in the northern and southern automotive corridors,” said Kirk.
The study highlighted the strength of the region’s labor shed potential.
“The unemployment rate in the 11-county labor shed is 6.4%. That tells us that between 3,000 and 6,000 people in the 11-county labor shed are looking for a job,” Kirk said. This statistic is a compelling selling point for businesses considering establishing operations in this area.
OEK primarily promotes large industrial sites, according to Kirk. Those include Eastern Kentucky Business Park in Martin County, Kentucky Enterprise Industrial Park in Pike County, Gateway Industrial Park in Letcher County, with about 250 available acres, and Coal Fields Industrial Park in Perry County, with over 380 acres on former mine lands.
Kirk presented a heat map detailing economic development projects announced during Gov. Andy Beshear’s term. Those investments amount to 30,842 jobs and nearly $19 billion in projects the state has incentivized. The map displayed the counties where the projects are located in red. Most of those are located along or west of I-75. A second heat map detailing the number of jobs created with those projects showed 85% were located along or west of I-75.
“If we’re sitting around waiting for the state to bring us projects, we’re not get them,” said Kirk. “That’s why I’m on the road a lot.”
The CEO revealed his 2023 schedule includes 11 recruitment trips, 90 meetings and five tradeshows nationwide.
Wrapping up his presentation, Kirk shared a success story of Dajcor Aluminum, a company he helped attract to Hazard that now employs over 120 people earning an average wage of $25 an hour. The company plans to increase its workforce to over 260 once fully operational.
“There are hundreds of other projects like Dajcor Aluminum out there,” said Kirk. “We just have to get in front of them and have the opportunity to tell our story.”
Kirk said that of the 40 meetings he has completed this year, he has “about 20 good leads.”