Cabinet for Economic Development
Governor Ernie Fletcher Announces UPS Supply Chain Solutions to Locate Distribution Center in Louisville

Press Release Date:  Friday, September 30, 2005  
Contact Information:  Mandy Lambert, (502) 564-7670  

           FRANKFORT, KYReconfirming Kentucky’s competitiveness in attracting new jobs to the state, Governor Ernie Fletcher and Economic Development Cabinet Secretary Gene Strong, in conjunction with Greater Louisville Inc. - the Metro Chamber of Commerce and the City of Louisville, revealed today that UPS Supply Chain Solutions, Inc. will locate a new facility in Louisville.


The $11.7 million project, which consists of an 800,000 square foot warehouse and distribution center, will create 382 new Kentucky jobs.  Additionally, it represents UPS’s continued confidence it Kentucky to meet its ongoing demand for growth.


“We are proud of the partnership we have built between UPS, the Louisville Metro Government and Greater Louisville Inc.,” said Governor Fletcher. “The UPS world hub gives Louisville and the Commonwealth a distinct competitive advantage in attracting new manufacturers and logistics companies.”


The announcement came during a grand opening event for UPS’s new Kentucky Healthcare Logistics Center dedicated to the warehousing and distribution of pharmaceutical and other health care-related products.


            UPS has played a significant role in boosting the state’s economy since it began overnight operations in Louisville more than two decades ago.  In just the past five years, around 80 companies have either located in Kentucky or expanded their operations because of the presence of UPS, investing more than $300 million and bringing more than 7,000 new jobs.  Those numbers are even more impressive when you add the more than 20,000 employees of UPS statewide.


“We’ve been extremely pleased with the relationship we’ve had with the state of Kentucky,” said John Hindman, Vice President of Public Affairs for UPS Airlines. “We’ve helped the state and the community grow by attracting new companies to the state, and the state has made it more attractive for us to stay here and grow.”


UPS is increasingly becoming its corporate customers’ strategic partner, boosting companies’ margins while managing their supply chains, repairing their products, or even answering their phones.


Hindman says he believes the growth potential of “synchronized commerce” is unlimited.  “Sometimes small to medium-size businesses have a hard time competing.  We can provide economies of scale, with warehousing, fulfillment, and billing, and suddenly they are able to compete.”


“UPS is a huge economic engine for Kentucky.  Throughout its history here, UPS has gone through one expansion or upgrade after another, and each time it had the opportunity to take that business elsewhere, but chose to stay right here in Kentucky,” stated Secretary Strong. “I don’t mind saying we have worked hard to keep UPS happy here and obviously our efforts have been rewarded.”


As the world’s largest package delivery company, UPS moves 1 million parcels through its international air hub in Louisville each day – bound for destinations all over the world. 


"It takes great partnerships to make great things happen," said Mayor Jerry Abramson. "The Commonwealth of Kentucky, Louisville Metro Government, and Greater Louisville Inc, have worked together to help our largest employer, UPS, add more jobs and further expand our logistics industry."


“This is very exciting news," said Joe Reagan, President and CEO of Greater Louisville Inc. - the Metro Chamber of Commerce.  "This represents the third division of UPS that has chosen to make a significant investment in Louisville and we couldn't be more pleased to have them as a part of our community.  The UPS Supply Chain Solutions campus intersects two of Louisville's primary economic development strategies perfectly -- growing our health care industry and expanding our logistics capabilities."


The Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved UPS Supply Chain Solutions for tax benefits up to $5 million under the Kentucky Jobs Development Act (KJDA), an incentive program aimed at increasing service- and technology-related employment in the commonwealth.