“Nothing is more important to a local and regional economy than having a primary employer in the market continue to invest and expand within the community. This regional investment by UPS, UPS Healthcare, and UPS Supply Chain Solutions is a testament to their commitment to the Greater Louisville Region. We are grateful for their continued partnership and the opportunity to support this expansion from the start. We are excited for what is in store for the future!” — Sarah Davasher-Wisdom, president and CEO, GLI

Two new-location projects in Bullitt and Jefferson counties

FRANKFORT, Ky. -(LANE REPORT)- UPS Supply Chain Solutions Inc. announced it will grow its presence in the commonwealth with two new-location projects totaling $334 million in investments and creating 435 high-wage jobs in Jefferson and Bullitt counties.

The Louisville project includes a one-million-square-foot facility, with the company investing over $155 million and creating 315 high-wage jobs for local residents. UPS also will construct a one-million-square-foot facility in Bullitt County with a $178 million-plus investment, creating 120 quality jobs. The exact location of both projects is yet to be determined, and these investments have already been included in the company’s capital plans.

UPS is the largest employer in Metro Louisville, with more than 25,000 employees working in air, ground and supply chain operations. The company’s Worldport global air hub at Louisville Muhammad Ali International airport is the centerpiece of the company’s global air network, with nearly 400 flights arriving and departing each day. UPS also operates 21 Supply Chain Solutions warehouses in the region, totaling more than 8 million square feet of space dedicated to warehousing and distribution for customers. The company’s operations in Kentucky have a significant economic impact, including 62,000 direct and indirect jobs and $2.5 billion in annual payroll.

UPS is a major reason Kentucky remains a national leader in distribution and logistics, an industry that has announced more than 7,000 full-time jobs for Kentucky residents during the Beshear administration behind roughly $2 billion in new investment. The project also supports Kentucky’s healthcare sector, which includes 200 technology, service and manufacturing locations across the commonwealth, employing over 37,000 Kentucky residents. The industry includes headquarters operations, pharmaceutical makers, medical equipment design and production, medical device manufacturers and healthcare products distributors.

UPS’ investment and planned job creation further recent economic momentum in the commonwealth as the state builds back stronger from the effects of the pandemic.

To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) today preliminarily approved two 10-year incentive agreements with the company under the Kentucky Business Investment program. The performance-based agreements can provide up to $13 million in tax incentives across both projects based on the company’s combined investment of $334 million and annual targets of:

  • Creation and maintenance of 435 Kentucky-resident, full-time jobs across both projects over ten years; and
  • Respectively paying an average hourly wage of $45.59 and $43.28, including benefits across those jobs.

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, UPS 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.