Become a fan on Facebook Follow us on Twitter USDA Blog Feed Watch USDA videos on YouTube Subscribe to receive e-mail updates View USDA Photos on Flickr Subscribe to RSS Feeds

In Kentucky, a Model for Relevance

Lincoln Manufacturing USA, LLC employee, Jeff Burkett, explains product details to Kentucky State Director Tom Fern, RBS Administrator Lillian Salerno, and RBS program director in Kentucky, Jeff Jones. USDA photos.

Lincoln Manufacturing USA, LLC employee, Jeff Burkett, explains product details to Kentucky State Director Tom Fern, RBS Administrator Lillian Salerno, and RBS program director in Kentucky, Jeff Jones. USDA photos.

Kentucky is well-known for its “bluegrass” lands, horses, bountiful agriculture and mountainous hills in the Appalachian region of America. A region historically challenged economically. But today, it is a region on the cusp of new economic opportunity. I recently saw first-hand how the region’s collaborative approach to economic development is unleashing a blazoned entrepreneurial spirit that serves as a model for re-establishing the relevance of rural America to our global economy.

Stanford, Kentucky, founded in 1775 is the second oldest settlement in Kentucky. It is a community of roughly 3,500 residents with a median household income of $30,000.  It is a community where residents work hard to support their families and improve their quality of life. It is also a community that in 2009 was threatened with the potential loss of local employment as a result of anticipated layoffs at a local auto-parts manufacturing plant. After struggling to find financial capital to continue operations, the company was finally able to stave off ill-fate when it sought assistance from Kentucky Highlands Investment Corporation, the Southeastern Kentucky Economic Development Corporation and USDA Rural Development. Through President Obama’s American Recovery and Reinvestment Act, the company was able to secure $9.8 million to protect and create new jobs. Before obtaining the funds, it employed 96; today it has 117 full-time employees and 10 temporary employees and going strong.

As I toured the plant and spoke with the Owner, Masato Sugimura and the employees of Lincoln Manufacturing USA, LLC, it was clear that the survival prospects of this rural Kentucky plant would have been grim had it not been for the support it received through the Recovery Act. The key to their success was thinking and working collaboratively to secure the future of their company and the livelihood for their employees.

Rural America is critical to the success of our nation. All of us depend on rural America for food, water, energy and much more – and too many folks around the country don’t realize or appreciate this. Lincoln Manufacturing is one company that would not be where it is today had it not been for the historic investments President Obama’s Administration made during the height of the “Great Recession”. The stakes couldn’t be higher as we enter 2013 and continue our efforts to work with Congress toward passage of a comprehensive, long-term Food, Farm and Jobs Bill to help USDA support these types of efforts for businesses in rural America.

Southeast of Stanford in the community of London, Kentucky a different type of collaboration is helping budding entrepreneurs build businesses in remote areas throughout the Appalachian region of Kentucky. Through the Kentucky Highlands Innovation Center, start-up businesses are learning how to utilize cloud-computing based accounting, where they connect virtually to a secured data base of accounting services to support their day-to-day business operations. Time spent in the past gathering documents, scheduling time with their Certified Public Account and time away from their business, can now be accomplished in a virtual environment.  Originally established through financial support from USDA and other state and Federal resources, the center is now a member of the Kentucky Innovation Network, a network of thirteen innovation centers located throughout the Commonwealth of Kentucky. The London center is a state-of-the-art client facility, providing among other services: e-commerce resources; long-term connection to local/regional economic development organizations; marketing; and access to capital.  On the day of my visit, tenant businesses utilizing the center’s services, included a graphic designer, and a web-based health consultant, and other budding businesses. What struck me the most was that these are not only start-up businesses utilizing the center’s services, but they are businesses leveraging the talents and services of other start-up businesses in the center to expand their own business opportunities.

A common thread running through this region is collaboration.  Businesses, economic, and community development leaders in Central and Southeastern Kentucky are creating a model of collaborative-leveraging – knowledge, infrastructure and capital access. It is a model that mirrors USDA vision of bringing economic opportunity and an improved quality of life to rural Americans.  Kentucky may be best known for having an “Unbridled Spirit”, but in Central and Southeast Kentucky, I would characterize it as an “Unbridled Entrepreneurial Spirit”.

To learn more about USDA business programs click here.

Jeff Campbell of KRHIT explains to Administrator Salerno and State Director Tom Fern how the innovation center is benefitting his health-industry related business. USDA photos.

Jeff Campbell of KRHIT explains to Administrator Salerno and State Director Tom Fern how the innovation center is benefitting his health-industry related business. USDA photos.

2 Responses to “In Kentucky, a Model for Relevance”

  1. Dana says:

    Did you happen to see this on the USDA web site.

  2. Kathy McDonald says:

    It was a pleasure to have Lillian visit Lincoln Manufacturing USA, LLC in Stanford, KY while she was visiting Kentucky. LML’s employees were truly honored to be able to show someone of Lillian’s position what they do so well here every day at LML. Our hope is that she will take information from her visit to our rural communities back to Washington and development programs quickly to help our areas that are so badly in need of more good paying jobs. Ms. Salerno was faced with a reality here in Lincoln Co. by hearing first hand and seeing just across the road a large employer in our industrial park that is laying off another 75-100 employees at the end of March. This is after already laying off this many or more at Christmas. There has been nothing anyone locally could do to stop this loss of jobs to our local community. Lillian listened and understood the impact of needing jobs in these small rural community. It was so refreshing to speak with someone who really seems to know what life is like in a small town. Lincoln Manufacturing would welcome Lillian Salerno, Tom Fern and any of the people whom LML’s has had the pleasure of forming a partnership with over the past 18 years(SKED) all the way to the last few years (KHIC). It is always an adventure going to the next project.

Leave a Reply