Kentucky Business and Industry

For many years Kentucky's economy was based on its natural resources—farmland, coal, and timber. However, rapid industrial growth occurred after World War II across the nation and Kentucky made the shift as well.

Still, the older economic activities, especially mining, continue to predominate in parts of eastern Kentucky. Other major contributors to the state economy in terms of earnings and jobs include wholesale and retail trade, government (federal, state, and local), and the service industries.

Kentucky derives the greatest share of its income, however, from industry. Even Lexington, one of the world's largest loose-leaf tobacco markets, is industrialized. The state's chief manufactures include electrical equipment, food products, automobiles, non-electrical machinery, chemicals, and apparel. Printing and publishing as well as tourism have become important industries.

Unlike many bordering states which developed a widespread industrial economy, much of rural Kentucky has maintained a farm based economy, with soybeans and corn as the main crops and chicken as its main livestock.  As a result of maintaining an agriculturally based economy Kentucky has the 4th highest number of farms of any state.

For some quick facts about Kentucky’s agriculture industry, click here .

Today manufacturing provides the largest single share of the state's earnings.

Kentucky ranks 3rd among U.S. states in the number of light vehicles produced with plants in Bowling Green, Georgetown, and Louisville. The Chevrolet Corvette, Ford Escape, Ford Expedition, Ford F-Series Super Duty trucks, Lincoln Navigator, Toyota Camry, Toyota Avalon, Toyota Camry Hybrid, and Toyota Venza are assembled in plants across Kentucky.

Louisville hosts the global headquarters for General Electric Consumer and Industrial.  This center's website states that not only does the Louisville plant provide office space for many of GE's senior staff but it produces over 3.2 million units of dishwashers, top-load washers, and top-freezer refrigerators combined.

Also housed in Louisville is UPS Worldport, the main airhub for the United Parcel Service.  According to Business First, UPS World port currently handles an average of about 40,000 packages an hour but has the ability to store and sort over 205,000 packages an hour.

Other major manufacturing activities include the production of chemicals, machinery, food and beverages, and primary metals. Also produced are a variety of textile, wood, rubber, plastic, glass, and leather products. 

Kentucky is also one of the major U.S. producers of coal, the state's most valuable mineral, while stone, petroleum, and natural gas are also extracted.

Coal in Kentucky is in both Eastern Kentucky and Western Kentucky.  The largest field is located in Eastern Kentucky in the Appalachian Basin.  There is coal in 57 of our 120 counties, and Pike County has produced more coal than any other Kentucky county (1.33 billion tons).

According to the Kentucky Department of Mines and Minerals, Kentucky currently ranks third in national coal production. 

To learn more about coal  in Kentucky, please click here .

The area immediately outside Lexington is the leading region for breeding Thoroughbred racing horses, due to the high calcium content in the soil (from the underlying limestone) making the pastures especially productive. Despite being the 14th smallest state in terms of land area, Kentucky still ranks 4th in the total number of farms, with more farms per square mile than any other U.S. state.

Kentucky is historically known for the production of tobacco products and alcohol products, including one of our most famous products, Kentucky bourbon.  In fact, well over half of the world's bourbon is produced right here in the Commonwealth.  This industry attracts visitors from all over the world to learn about bourbon's history and the distillation process. Cities with large distilleries include Bardstown, Frankfort, Lawrenceburg, and Loretto.

Our state also has 52 State Parks!  Each one has its own unique features.  To learn more about any of our parks, visit their official website by clicking here .

Kentucky's official tourism website has great information on the many sites you can visit in our great state, like the Kentucky Horse Park, Abraham Lincoln's birthplace, the National Corvette Museum, the Louisville Slugger Museum, Mammoth Cave National Park, and Churchill Downs.  Click here to access the site .