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CBC Luncheon discussion on aviation/aerospace growth features Lt. Gov. Hampton, industry leaders


By Mark Hansel
NKyTribune managing editor

The topic at the March Covington Business Council luncheon was the tremendous growth in the aviation/aerospace industry in Kentucky.

“Thrusters On:  A Rocketing Industry Group in Kentucky,” included a panel discussion featuring Lt. Gov. Jenean Hampton and a group of industry leaders.

Left to right, panelists Steve Barnett of Indy Honeycomb, Stewart Ditto of KAIC, Kenneth Kinn of Safran and Lt. Gov. Jenean Hampton discuss the impressive growth in Kentucky’s aviation/aerospace industry. The discussion was moderated by CBC President Pat Frew (photos by Mark Hansel).

According to 2015 estimates, companies representing the aviation/aerospace industry in Kentucky exported $8.7 billion in products, which ranked third nationally.  Last year, that number increased by 19 percent to $10.85 billion, moving Kentucky past California and behind only Washington state.

Panelists joining Hampton included Kenneth Kinn of Safran Landing Systems, Kentucky in Walton, Kentucky Aerospace Industry Consortium (KAIC) CEO Stewart Ditto and Steve Barnett, CEO of Covington-based Indy Honeycomb.

The group provided some insights into how the industry has grown and what needs to be done to manage future expansion.

Hampton, who grew up in the era of space exploration, said she has always been fascinated with space and technology. She said the industry has really grown organically in the Commonwealth.

“Various companies who don’t even comport themselves as being an aerospace or aviation company make some piece of an aircraft, or rocket, or something that is used in that industry,” Hampton said. “The reason we formed the KAIC last year is to really put some fire underneath (that growth) and put it on afterburners.”

The KAIC is a Lexington trade group organized in October to provide leadership and represent businesses in the industry. Ditto said most people don’t realize how many major companies that are large producers in the aerospace industry, including Raytheon, Safran, Belcan, GE Engines and Lockheed Martin, have a strong presence in the Kentucky.

“A significant portion came from these small companies that just seemingly came out of nowhere,” Ditto said. “A lot of that has to do with Kentucky’s history of manufacturing and with the automobile industry. A lot of companies that had the capability saw the opportunities in aviation-aerospace and began to produce aviation and aerospace parts.”

Initially the KAIC estimated there were about 60 companies involved in the aerospace industry in Kentucky. As its research progressed, the organization identified more than 600 aviation/aerospace companies in the Commonwealth. The goal of KAIC is to educate all of the companies in the state about each other, so they can take advantage of the resources that are available here.

Lt. Gov. Jenean received a standing ovation from those in attendance at the March CBC Luncheon, which included a panel discussion on the aviation/aerospace industry.

“At Raytheon, they didn’t know about all of these companies in Kentucky and they are always looking for suppliers, and the same thing with Safran,” Ditto said. “The biggest thing we want to do is promote it internally first in the state so that everybody knows who is involved and what the potential, is because it has the potential to be a huge industry for the Commonwealth.”

As quality director at Safran Landing Systems, Kentucky, Kinn’s responsibilities include purchasing, supplier development and supplier quality. He said when Safran, which is headquartered in France, decided it wanted to develop a presence in the United States, it began scouting locations and settled on Northern Kentucky for several reasons.

“The raw materials come into play and with our product, and one of our main raw materials is the people that we needed,” Kinn said. “We needed a skilled workforce, we needed, from a utility standpoint, good electricity cost, (and) good natural gas cost. When you take those three together, that’s really what drove the location of where we wanted to be.”

Kentucky’s central location in the United States was also a key factor in the decision for Safran and others to locate here.

“We are within a day’s drive of two-thirds of the United States population,” Kinn said. “We have three big shipping companies in Kentucky with UPS, DHL and now Amazon. We have this great supply chain based here in our state that has really helped bolster this industry.”

Indy Honeycomb serves welded-metallic Honeycomb users in the aerospace industry. Barnett said one challenge in developing and maintaining a skilled workforce is misconceptions about the industry and its work environment.

“There is an interesting idea that seems to prevail still in 2017 that manufacturing is damp, dark and dangerous,” Barnett said. “If you come to our plant, it’s clean, it’s bright, concise, it’s organized. It’s the kind of place I’d want my kid to work.”

By getting out in the community and bringing students into the plants, he said that misconception is starting to fade, but there is still a ways to go.

Hampton agreed and said workforce development has been a priority for the administration since Gov. Matt Bevin took office.

“One of the things we are hearing from all over the Commonwealth, when you talk about people being a huge resource, that’s been a little lacking,” Hampton said. “Companies are telling us they are having trouble finding qualified people even to train. There seems to be a lack of the so-called soft skills.”

The monthly Covington Business Council Luncheon provides opportunities for members to interact with each other, as well elected officials and community leaders. Luncheons generally include a presentation on a topic of local interest to the community and take place at the Madison Event Center in Covington.

Contact Mark Hansel at mark.hansel@nkytrib.com


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