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Automotive Industry

Home to the General Motors Corvette Plant and found on the I-65 Corridor, South Central Kentucky is an ideal location for the automotive industry.

Low wage rates and a lower presence of unions have driven automakers south over the last two decades. In 2008, Kentucky was the number 3 automaking state in the U.S. South Central Kentucky’s business climate is competitive even when compared to other Southern locations.

  • Labor costs: Average wage rates for machinists, assemblers, production supervisors and other auto industry occupations are far lower than automaking strongholds such as Detroit and Windsor, Ontario, and compare favorably with other Southern locations.
  • Cost of doing business: In addition to low labor costs, lower utilities, buildings costs, and property taxes all make South Central Kentucky more cost-competitive for automotive suppliers.
  • Access: Interstate 65— known as “Auto Alley”—links South Central Kentucky to a large number of automotive OEM and supplier firms from the Great Lakes to the Gulf Coast.
  • Market: Over 70 automotive assembly plants are within a 500-mile radius.\
     

Recent Business Activity

Recent locations and expansions of automotive suppliers in the area include

  • Bendix Spicer (brakes)
  • Cannon Automotive Solutions, Inc. (component stampings for frames)
  • Holley Performance Products (leading manufacturer of fuel systems among racers and high performance auto enthusiasts)
  • Howa USA (dash insulators, headliners and interior products)
  • MTS, Inc. (sorting, reworking)
  • Casco (automotive power outlets)

Innovation

Applied Research and Technology Program (ARTP): WKU’s ARTP is a multidisciplinary program consisting of 14 scientific and service-oriented centers. The Engineering Services Center of ARTP has worked directly with the auto-related industry on a number of projects, including:
 

  • Vision system to inspect bolt holes
  • Plug-in hybrid electric vehicle (PHEV) conversion system
  • Support platform for cast iron transfer ladles
  • Failure analysis of cast magnesium handles
  • Transfer case crack analysis

Clients have included Arvin-Meritor, Trace Die Cast, Akebono Brake, and Magna Car Top Systems.

Central Region Innovation and Commercialization Center (ICC): The Central Region Innovation Network provides assistance to businesses and entrepreneurs. Pre-stage and seed-stage capital is available through the Kentucky Enterprise Fund.