Advocacy for Kentucky Manufacturers

Lee Lingo Executive Director July 30, 2020

KAM WHO WE ARE Since 1911, KAM has served as the leading advocate for manufacturing interests in the Commonwealth KAM s mission is to create, support and protect a manufacturing-friendly environment for the Commonwealth through advocacy; workforce development, education and training; and cost saving benefits for members KAM represents over four hundred Kentucky businesses vital to the Commonwealth s economic success Manufacturing is the economic engine of Kentucky, representing over $38 billion in annual Gross Domestic Product and more than 250,000 employees (as of Feb. 2020)

KAM OUR INDUSTRIES KAM represents and has members from all subsectors within the manufacturing industry KAM also has three industry-focused pillars within our organization: Kentucky Chemical Industry Council (CIC) KAM Aerospace (formally the Kentucky Aerospace Industry Consortium, or KAIC) KAM Automotive (formally the Kentucky Automotive Industry Association, or KAIA)

KEEPING MANUFACTURERS OPEN KAM fought for Kentucky manufacturers to be considered essential business as designated by the federal Cybersecurity and Infrastructure Security Agency (CISA) Manufacturers responded when CDC guidelines and various Executive Orders were proposed and issued KAM worked to fully engage with policymakers to transition into a fully functioning, yet safe, sector of the economy We communicated multiple times per day with our members to solicit feedback on various recommended changes in how manufacturers operate while also working with our counterparts in surrounding states

IMPORTANCE OF CONTINUED OPERATIONS Manufacturers kept Kentucky s economy alive Our members did not take the virus lightly many already had extensive regulations in place before the Healthy at Work guidelines were issued by Governor Beshear Many Kentucky manufacturers are crucial to global supply chains for multiple industries, including the food and beverage industry, the chemical industry, and the textile industry Shutting down Kentucky manufacturers would have created additional shortfalls in the supply chain both in the state and nationally, contributing to an already-faltering economy

IMPACT OF COVID-19 Many manufacturers remained open through COVID-19 business closures, but the industry was heavily impacted* In April of 2020, manufacturing employment plummeted to 197,000 statewide, down from March s near all-time-high of 251,000 By June 2020, the sector has rebounded to 233,000 employees The trend continues upward; the quick rebound can likely be attributed to Paycheck Protection Program (PPP) loans keeping businesses open; an increased demand for local supply chains; and last but not least the ingenuity of our manufacturers retooling and refocusing to meet our nation s demand for PPE and other needed supplies *Data sourced from the Bureau of Labor Statistics and the Bureau of Economic Analysis

MANUFACTURERS STEPPING UP Kentucky manufacturers across the state retooled and stepped up. Manufacturers as large as Toyota, GE, Ford, and Carhartt transitioned some of their workforce to PPE production Small Kentucky-owned and operated businesses also repurposed, including Lynn Imaging/Monster Color out of Lexington creating barrier shields and social distancing signage; CWF Products out of Paris building desk shields for students; and the numerous Kentucky bourbon and chemical companies providing hand sanitizer There are many, many more that have asked us not to publicly promote their efforts but have quietly been working behind the front lines.

JR BUCK INDUSTRIES Their COVID-19 Story Founded as a privately owned company in 2004, JR Buck Industries started in a small facility in Georgetown, Kentucky. Within a year, they moved to a much larger facility in nearby Lexington and have evolved into a full-service custom parts manufacturing company with expertise across all relevant big-project disciplines. JR Buck is a multi-craft company and provides a wide variety of services that include MIG and TIG Welding, CNC Milling and Turning and Engineering and Design Services.

WE NEED YOUR HELP Manufacturers are crucial to the survival and growth of Kentucky s economy Manufacturers need consistent guidelines Manufacturers need targeted liability relief Manufacturers need unemployment insurance stability Manufacturers across the nation are facing a potential crisis stemming from the above issues that could cripple the sector and put American-based companies at a disadvantage.

QUESTIONS? CONTACT: Lee Lingo, Executive Director L.Lingo@kam.us.com Jena Scott, Communications Manager J.Scott@kam.us.com