ANNUAL REPORT2014-2015

200 East 3rd Street Owensboro, KY 42302

270.926.4339edc.owensboro.com

2014-2015 Annual Reportedc.owensboro.com2

Greater Owensboro FAME Chapter Formed This year, the Greater Owensboro Economic Development Corporation, in cooperation with Owensboro Community and Technical College developed the Greater Owensboro chapter of the state’s “Federation for Advanced Manufacturing Education” or FAME.

The Greater Owensboro chapter, which is the first in Western Kentucky, joined chapters in Lexington, Louisville, Northern Kentucky and Elizabethtown as the FAME network begins to expand statewide.

GO-FAME is a partnership of manufacturing companies that have joined forces to address the shortage of skilled workers needed in an advanced manufacturing environment. The 18-month program offers education and training designed to not only meet the needs of the companies, but to create a local workforce that is second to none.

The chapter’s thirteen founding companies are from Daviess, Hancock and Ohio counties, and include Omico Plastics, Kimberly Clark, Precision Roll Grinders, The Hines Group, Metalsa, TTMA, Ken-tron Mfg., Castlen Steel, Hunter Douglas, Inc, Sun Windows, WPT Non Wovens, Domtar and National Office Furniture.

Accomplishments2014-2015A Letter from

the President & CEODear Investor:

This has been and will continue to be a year of planning. We began the year embarking on an ambitious 50-year master-planning project centered around Transportation, Health & Wellness, Energy, and Education. While the full results of the process, which included participation from

over 200 citizens, will not be available until later this year, the process has already yielded some important results. If nothing else, it has our community thinking about what our real needs and challenges are, and what it will take to succeed in the next half century.

Planning and preparing for success are what the Greater Owensboro Economic Development Corporation’s mission is all about. Creating a diversified and stable economy does not happen in a vacuum. It requires careful planning and attention.

Based on feedback from not only our planning groups but also many employers, site selectors, and businesses looking to expand, if there is one challenge that you will be hearing about most in the coming year, it is “workforce.” This past year, we chartered the first KY FAME chapter in Western Kentucky, reinvigorated our CEO and Plant Manager Roundtable program, and have worked in partnership with the Owensboro Public Schools on an exciting new innovation academy to help prepare tomorrow’s workers.

This has been an important year for workforce development, but we are just getting started. With one of the lowest unemployment rates in the state, we need to ensure that our future job growth is from quality, stable and higher wage jobs—and this starts with a better workforce.

Thank you for your continued support. We look forward to serving you in the coming year.

Very truly yours,

Madison C. Silvert, J.D., AICPPresident/CEO

10-Year Income GrowthA Comparison with Peer Regions and the U.S.

Peer Regions Per Capita Income

10-Year-Average Growth

Victoria, TX $46,197 5.90%

Elmira, NY $39,096 5%

Owensboro, KY $38,898 4.80%

Dubuque, IA $41,229 4.40%

Jonesboro, AK $35,014 3.80%

Sumter, SC $33,310 3.80%

Albany, GA $34,154 3.30%

US $44,543 3.70%

Lewiston-Auburn, ME $37,680 2.80%

Komoko, IN $34,488 1.80%

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Boarman promoted to Workforce Development ManagerJessica Boarman, who has been with the Economic Development Corporation since 2010, has been promoted to the newly created position of Workforce Development Manager.

The position was created not only to demonstrate the EDC’s increased commitment to the workforce issues increasing raised by employers, but also to tie together a number of programs which the EDC already operates or with which the organization is affiliated.

The move marks the first time in at least a decade the EDC has had a full-time staff member dedicated solely to workforce issues. Among Jessica’s duties will be maintenance of Daviess County’s Work Ready Status, staffing the Greater Owensboro chapter of KY FAME, working closely with our partners at the Workforce Solutions division of OCTC, and developing new and exciting workforce opportunities for employers and employees.

Owensboro Region of the Kentucky Innovation Network Leads by Example In his first full year as Vice President of Entrepreneurship and Director of the Owensboro Region of the Kentucky Innovation Network, Joe Berry had a number of goals set out before him. First, turn-around the Centre for Business and Research making it more cost-effective for the City and more beneficial for its clients; second, expand the outreach of the innovation network providing more services to outlying areas, and; third maintain Owensboro’s status as a leader in the network.

This past year has proven that Owensboro’s status as a leader in the Kentucky Innovation Network will not soon change. Upon this region’s annual review from the Kentucky Science and Technology Corporation (the State’s manager of the Kentucky Innovation Network), the Owensboro Region ranked first overall out of thirteen offices. In five categories of measurement, the

Owensboro office exceeded all requirements. This leadership is exemplified in the quality of companies formed and jobs created since the Owensboro region’s inception in 2008.

Specialty Foods Group Celebrates 100 years with ExpansionAs we celebrate the Bicentennial of Daviess County, it is only fitting that we celebrate also those corporate citizens that have been an important part of our community’s growth for much of that time. One such company, Specialty Foods Group, has been a part of our economy for 100 years.

This was not the only reason to celebrate Specialty Foods Group this year. In October, the company was granted preliminary approval for incentives towards a $6,095,000 expansion project from both the Daviess County Fiscal Court and the Kentucky Economic Development Finance Authority. The project, which will create an additional 95 jobs, comes on the heels of the company’s decision to move its corporate headquarters operations to Owensboro as well.

Kentucky BioProcessing Proof of Owensboro’s Life Sciences CommitmentW h e n t h e G r e a t e r Owensboro Economic Development Corporation embarked on a life science strategy in 2007, Kentucky BioProcessing was just forming with a total staff of about seven employees. Now with a staff of 34 they are making headlines all over the world with their product, Zmapp. The product, which is a collaboration with Mapp Biopharmaceutical, was used in the treatment of multiple relief workers stricken with ebola during last year’s outbreak.

The product not only made headlines, but it proved that the process KBP has been pioneering works and has a path to success. As KBP has grown, so has Owensboro’s infrastructure to assist the life sciences industry. From the labs at the Centre for Business and Research, to the Owensboro Cancer Research Program, to students at the Community Campus Life Sciences Academy, the EDC’s commitment to growing Owensboro’s life sciences sector has never been stronger.

Innovation Network Results 2008-2015

New companies formed 59

Investments $92.8 million

Jobs Created 244

New Clients Fiscal Year 2015 57

Joe Berry

Jessica Boarman

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EDC MissionAs the Owensboro regional economic development agency, the Greater Owensboro Economic Development Corporation is a public-private partnership formed to create a diversified, sustainable economy generating wealth, quality jobs and improving quality of life of the Greater Owensboro metropolitan region.

Board MembersScott McCain (Chair) – BB&TTom Mischel (Vice Chair) – Boardwalk Pipeline PartnersWade Jenkins (Secretary/Treasurer) – Old National Bank Bob Berry – Big Rivers Corp.Malcolm Bryant – The Malcolm Bryant Corp.Matt Castlen – Kentucky Farm BureauBart Darrell – Kentucky Wesleyan CollegeJoan Duncan – AT&TSteve Clark – CRS OneSourceKevin Dobbs – Atmos EnergyJohn Hackbarth – Owensboro HealthDavid Hamilton – Kenergy CorporationDarrell Higginbotham – Independence BankJason Kyle – Red Pixel StudiosAl Mattingly – Daviess County Judge/ExecutiveFrederick May – US BankTerry Naulty – Owensboro Municipal UtilitiesKrista Niehaus – 5/3 BankRon Payne – Mayor, City of OwensboroJoe Schepers – Regional Water Resource Agency Dean Stanley – Owensboro/Daviess Co. Industrial FoundationScott Tooley – South Central BankDavid Wills – Hafer AssociatesBrian Wright – Owensboro Riverport AuthorityJohn Yager – Yager Materials

Board CounselR. Michael Sullivan – Sullivan, Mountjoy, Stainback & Miller, P.S.C.

Chamber RepresentativeRick Kamuf

Hancock County RepresentativeMike Baker

Green River Regional Industrial Development Authority RepresentativeKim Logsdon

StaffMadison Silvert, J.D., AICP – President/CEOJoe Berry – Vice President of EntrepreneurshipPatty Osborne – Vice President of Business DevelopmentJessica Boarman – Workforce Development ManagerBecky McCubbins – Data, Marketing, and Incubation Manager

Budget

Income 2014-2015

City of Owensboro $210,853.05

Daviess County Fiscal Court $164,000

Commonwealth of Kentucky $175,000

Industrial Foundation $35,000

Private Investment $164,000

Total $748,853.05

Expenses 2014-2015

Salaries, Staff Expenses, Contracts $466,935.74

Marketing, Recruitment $84,339.03

Existing Business Support $48,083.38

Operational Expenses $ 132,972.06

Total $732,330.21

Centre for Business and Research

The Centre for Business and Research, now with twelve companies, has begun a transformation this year that will soon put it at the leading edge of business incubation. Starting this fall, Owensboro Public Schools will occupy the lower level of the facility for its Innovation Academy. The Academy, which is the first Kentucky school to be a part of the nationally renowned New Tech Network, will have 100 students in its inaugural year. Every program of the Innovation Academy will have built into its curriculum an entrepreneurship component. Some students will also have the opportunity to intern or shadow a CBR tenant business.

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Source: US Bureau of Economic Analysis

$0

$5000

$10000

$15000

$20000

$25000

$30000

$35000

$40000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

$24,530 $24,671 $24,816 $25,375$26,458

$27,787$29,042

$30,381

$32,684 $32,817$33,900

$36,098$37,227

$38,898Per Capita Personal Income2000-2013 Current Dollars

Unemployment: Owensboro and Peers 2014

UNEMPLOYMENT UNEMPLOYMENT RATE

City April 2014 May 2014 March 2015 April 2015 April 2014 March 2015 April 2015

Dubuque, IA 2390 2110 2413 1910 4.3 4.3 3.4

Victoria, TX 1923 2098 1870 1801 3.9 3.7 3.6

Owensboro 3157 3267 2567 2245 5.8 4.8 4.2

Lewiston-Auburn, ME 3333 3024 2918 2536 5.9 5.3 4.6

Komoko, IN 2167 2360 2241 1728 5.9 6.1 4.7

Jonesboro, AK 3131 3348 3183 2964 5.4 5.2 4.8

Elmira, NY 2332 2328 2299 2231 6.1 6.1 5.8

Albany, GA 5325 5732 4710 4501 8 7.1 6.9

Sumter, SC 2734 3015 3106 3095 6.2 7 7

Pine Bluff, AK 3067 3112 2773 2664 8.4 7.6 7.4

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Investment in Economic Development Pays Dividends

Investment 2020Investment 2020 is the private investment program at the EDC to encourage investment from businesses and other stakeholders supporting the mission of the EDC in improving the quality of life of the Owensboro Metropolitan Region. In the past five years, private contributions through the Investment 2020 effort has increased from $95,000 to $164,000 annually. The following companies provide financial support at the investor and trustee levels to the EDC:

Signature InvestorsCity of OwensboroDaviess County Fiscal CourtKentucky Science and Technology CorporationOwensboro/Daviess County Industrial Foundation

Executive TrusteesAtmos EnergyBB&T Big Rivers Corp.Boardwalk Pipeline PartnersIndependence BankKenergy CorporationOld National BankOwensboro HealthOwensboro Municipal UtilitiesUS Bank

Trustees5/3 BankAT&TCRS OneSourceDaviess County Farm BureauHafer AssociatesThe Malcolm Bryant Corp.Owensboro Riverport AuthorityRed Pixel StudiosRegional Water Resource AgencySouth Central BankYager Materials

InvestorsChampion FordEM FordSouthern Star

Investment supporting the work of the Greater Owensboro Economic Development Corporation continues to pay dividends for the Owensboro region. Over the past three years $1,146,016 has been invested by local government and $453,000 has been invested by private sources through the Investment 2020 program to support the operating expenses of the professional economic development staff for the region. This financial support has led to over $529 million in direct private business investment by firms supported by the EDC.

On a 3-year average, every dollar spent in support of the EDC

translates to $331 in new business investment in the regional economy.

Return on Investment

2012-13 2013-14 2014-15

Private Investment supporting EDC operations through Investment 2020

$112,500 $176,500 $164,000

Public Investment supporting EDC operations from local governments

$381,764 $389,399 $374,853

Direct business investment in the region from firms assisted by the EDC

$39,905,540 $434,358,798 $55,244,077

Y O U R R E S O U R C E C O N TA C T S

How Can We Assist You?

Madison SilvertPresident

msilvert@owensboro.com270-926-7888

New Industry& LocationAssistance

BusinessExpansion &

Retention

EntrepreneurialAssistance

Patty OsborneVP Business Development

posborne@owensboro.com270-663-1045

Joe BerryVP Entrepreneurship

jberry@owensboro.com270-663-1046

Special Thanks to All of Our Investors that Help Our Region Grow and Prosper.

Signature Investors

Executive Trustees

Trustees

Investors

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Owensboro/Daviess County

Industrial Foundation