Business and the Economy

A Japanese company is said to be considering making an offer to buy Beam, Incorporated. An official with Suntory Holdings tells Bloomberg News that the Osaka-based whiskey and beer maker could make a solo bid for the American distiller or a joint offer with Diageo, the global spirits company headquartered in Britain.

A new state program will advise young entrepreneurs on how they can turn a bright idea into a business plan.  Next June at Georgetown College, 50 high school students will learn more about innovation and creative thinking.  Liz Knapp with the Kentucky Science and Technology Corporation believes some of the ideas will later morph into profit-making products.

Despite experiencing one of the worse droughts in U.S. history, agriculture economists in Kentucky are projecting record cash receipts for the state’s farmers.  During their annual outlook during the Kentucky Farm Bureau conference, economists from the University of Kentucky say they think Kentucky will break the $5-billion barrier in revenues this year.

Fayette County’s best opportunities for job growth may lie outside manufacturing.  In a report delivered Tuesday to Lexington’s city hall, demographic specialist Ron Crouch made some predictions on job growth between now and the year 20-18.  With suitable land in short supply, Crouch says there are few places to build new factories.    “You know one of the things I hear in Lexington-Fayette County is , you need more manufacturing jobs.  Well, in fact, because of cost of the land in Fayette County and the cost of doing business, you’re probably not an area that’s gonna attract a lot of manufacturing.  It’s gonna be more health care, more retail trade, and more education,” said Crouch.

Starting this week, the Herald-Leader and four other Central Kentucky newspapers will charge for unlimited access to their websites, a growing trend as the newspaper industry continues to struggle with revenue declines. In Kentucky, more than half of newspapers now charge in some form for online access, said David Thompson, executive director of the Kentucky Press Association.

This week marks what might be called ‘prime Christmas tree’ cutting season.  At least, that’s the hope for owners at Kentucky’s 15 Christmas tree farms.  Steve McManus, who operates Cathole Bend Christmas Tree Farm in Garrard County, planted some 20 thousand trees in 2004.  However, it was another four years before any of that crop went to market.

Lexmark International’s decision earlier this year to shutter its inkjet printer operations and lay off 550 Lexington workers might have surprised some, but it was mounting evidence of a business in transition. For the past several years, the Lexington-based printer maker has been in the midst of changing strategies and made five key acquisitions since 2010 designed to take the company further from its roots only in printers and more into computer software and services.

During December, Kentucky and its business climate will be featured in a 32-page supplement featured in American Airlines' onboard magazine for passengers. American estimates there's the potential for more than 12 million passengers to see the piece in Hemispheres during the month, according to a news release from Gov. Steve Beshear's office.

Now that Toyota Motor Manufacturing Kentucky has celebrated more than 25 years of operation in Georgetown, more than 20 percent of its workforce is nearing retirement. In hopes of managing the large number of retirements, the company announced an incentive program for eligible workers if they agree to retire in intervals determined by Toyota.

Reducing homelessness in Lexington will in large part depend on the availability of affordable housing.  That’s one direction a special government commission seems to be taking.  The Mayor’s Commission on Homelessness has produced a draft report.   Co-Chair Steve Kay says affordable housing will be key component of the final report.   “If we can do a better job of providing adequate housing for those people, we can significantly reduce the numbers of people who are homeless and the number of people who are going to find themselves in a homeless situation.  Housing is one of the key parts of what we will be addressing,” said Kay.

A large number of Kentucky arts and crafts people hope consumers do more than just shop in the Commonwealth.  They are banking those holiday shoppers will also buy Kentucky-made products.  Victoria Faoro (FAIR-oh) directs Berea’s Kentucky Artisan Center.  “You know our hope is that people, new people will become aware of the wonderful products that are being made in the state and will think first about buying something Kentucky, whether it’s a Kentucky crafted quilt or mug or piece of jewelry or Kentucky Proud foods,” said Faoro.

The state government of Kentucky is spending $3 million on a tax amnesty program that officials hope will bring $55 million in revenue. In 2002, Kentucky launched an amnesty initiative that garnered $40 million. Governor Steve Beshear announced this effort in October to help balance the two-year budget that will allow citizens and businesses to make restitution.

First there was “Black Friday,” and then “Cyber Monday.”  Now, consumers are urged to shop local on Saturday.  Holiday sales are also important to small retailers.  Lexington’s Bella Rose, which is a clothing boutique near the University of Kentucky, has displayed dresses in its window for more than 30 years.  Store founder Betty Spain says the staff specializes in customer service…finding the ‘right dress’ for the ‘right woman’.

Sure, we saw the tell-tale signs of Christmas in stores right after Labor Day, and Christmas music began playing non-stop on at least one local radio station the day after Halloween, but the official start of the holiday shopping season is the day after Thanksgiving. And this will be a longer one, too — 32 days — the longest possible calendar stretch, because Thanksgiving arrives early this year (Nov. 22). This also means there will be five full weekends of shopping in the mix.

Gov. Steve Beshear on Tuesday joined company and local officials to welcome Davert USA to Bowling Green, according to a news release from the governor's office. The Canadian-based company chose Bowling Green as its first U.S. location and plans to create 20 new, full-time jobs and invest more than $2.3 million in the project.

A Constitutional Amendment guaranteeing a Kentuckian’s right to hunt and fish is on tomorrow’s ballot.  It has not gotten much attention this election season.   Pike County Representative Leslie Combs says the amendment is intended to preserve hunting and fishing rights, while also protecting the state’s wildlife populations.   Combs, along with House Speaker Greg Stumbo, is a key sponsor of the legislation

Kentucky’s manufacturers are making gains.  The manufacturing sector comprises about 16 percent of the state’s overall economy.  State economist Manoj  Shanker says factory activity is on the uptick.  “Manufacturing has grown by about three percent for the first nine months of this year versus the first nine months of last year, which is good, compared to say, total employment which has grown by just two percent,” said Shanker.