There’s a reason that the logistics industry in Northern Kentucky has become a world leader — innovation. Due to its unique geographical position, the Northern Kentucky region has long been a thriving logistics hub. Recently, logistics technology companies in Northern Kentucky have experienced new opportunities for growth thanks to:
- Technological innovations
- A knowledgeable workforce
- Increased transport options
- Streamlined fulfillment operations
- Strong economic opportunities
- Strategic advances in areas like load-matching and FTL/LTL
And now the region is well-positioned to help define the future of the logistics industry with:
- The emergence of AI-powered solutions
- The advancement of robotics
- Dedicated tech research labs
In this article, we’ll look at how logistics technology companies in Northern Kentucky are redefining supply chain support. We’ll –
- Discover the vital statistics behind the logistics technology companies of Northern Kentucky
- See how the industry is evolving
- Meet some of the companies driving Northern Kentucky’s logistics innovation
The Logistics Industry of Northern Kentucky: A Growing Success
Paul Verst, CEO of Verst Logistics says when it comes to the business of logistics, Northern Kentucky is the “foremost…corridor in the Midwest.” Site Selection magazine agrees. It called Northern Kentucky one of the most competitive locations in the country for logistics and transportation. It’s easy to see why.
There are 100+ logistics-focused companies in the region. These companies are split between the core segments of the logistics industry as follows:
- 39% logistics
- 24% distribution
- 23% fulfillment
- 14% eCommerce
These companies operate 540 facilities and employ a staggering 75,000+ people. And it’s an industry that is expected to grow by over 7% through 2025. The use of logistics technology in Northern Kentucky is driving this success.
Logistics as an economic engine
While supply chain management in Northern Kentucky is a big business on its own, it’s also a big driver of business. It’s estimated that in the past ten years, Northern Kentucky’s logistics innovation has been a key factor in the growth of the region. In that time:
- Manufacturers
- Life science companies
- Technology businesses
invested over $30 billion in regional growth and expansion projects.
The broad impact of logistics
The logistics industry in Northern Kentucky, and specifically freight technology companies in Northern Kentucky, handles $21 billion in exports on an annual basis.
The Advantage for the Logistics Industry in Northern Kentucky
The Northern Kentucky region has 3 unique advantages that make it a strategic logistics location.
Near (almost) everyone
54% of the U.S. population is within a one-day drive from the Northern Kentucky region.
Multiple road, rail, water, air access points
Northern Kentucky’s transportation infrastructure can easily support supply chain growth.
- Kentucky can be accessed by 20 major highways and interstates.
- There are over 2,600 miles of railroad track crisscrossing the state.
- 1,000+ miles of accessible waterways increase the ease of direct global imports and exports.
The region is home to an impressive:
- 3 commercial airports
- 2 commercial/international airports
- 3 global shipping hubs — Amazon, DHL and UPS
One of those airports is the Cincinnati/Northern Kentucky International Airport (CVG) which has been recognized with:
- A Best Regional Airport in North America award by Skytrax World Airport Awards
- A Diamond Award from Air Cargo World for Air Cargo Excellence
An educated workforce
The region has 1.5 million potential workers. There are also many career training and certification programs available. These help the workforce prepare for the next generation of logistics.
- Northern Kentucky University (in partnership with Verst Logistics) offers a Supply Chain and Logistics degree track.
- Toyota established the Ignite Institute. It focuses on developing STEM skills that can help drive Northern Kentucky logistics innovation.
- Students can obtain a Supply Chain Management AAS degree from Bluegrass Community & Technical College.
The region is not just a good place to learn, it’s a great place to build a career. Forbes recently ranked the Cincinnati region as the top metro area for young professionals.
Strong Supply Chain
The strength of Northern Kentucky’s logistics industry, and its growth overall, is in many ways driven by the efficiency of its supply chain management companies.
While Logistics = the movement of goods
Supply Chain = the management of the movement of goods
AI and other new technologies are driving the supply chain forward. Some of the companies finding success with supply chain technology in Kentucky include:
Brightpick – Using advanced robotic systems, Brightpick helps warehouses and supply chain companies move materials faster and more efficiently. Their technology uses AI to create precise and custom solutions, improving how businesses handle and fulfill orders.
Total Quality Logistics – TWL is one of the largest freight brokerage and third-party logistics firms in the country. Headquartered in Cincinnati, TQL is finishing a series of expansion projects across the state of Kentuck including a new facility right here in Northern Kentucky from which they continue to solve shipping needs for companies across some of the biggest industries in the nation.
Atlas Air Worldwide – Using state-of-the-art supply chain technology, Atlas provides charter services to help maintain continuity along the supply chain. With regular flights out of CVG, Atlas is able to manage flight patterns for efficiency and speed.
Uber Freight – Uber Freight is one of the newer companies involved in supply chain management in Northern Kentucky. Their recent purchase of Transplace moved them into the region and they quickly became “one of the world’s largest digitally-enabled carrier networks.” They are focused on bringing sustainability to the supply chain.
Logistics Technology Companies in Northern Kentucky Find Success
Nearly 75,000 residents in the region are working in the logistics industry in Northern Kentucky. They work for global and local companies across the supply chain. Some of the top companies include:
Amazon – This global giant not only has multiple warehouses in the region, they also have a dedicated hub at the Cincinnati/Northern Kentucky International Airport. This 600-acre space employs over 2,000 people who manage thousands of packages daily.
Verst Logistics – Verst is a 50+-year-old omnichannel fulfillment and transportation management company. This MCM Top 3PL company has multiple locations across the region and employs over 2,000 people.
FEAM Aero – With teams of aviation maintenance experts, FEAM keeps deliveries moving. In 2024 they expanded their footprint at CVG. Their $45 million dollar investment includes cutting-edge technology to help increase maintenance responses.
Whitehorse Freight – This FTL/LTL shipping firm invested over $5 million in 2023 in a facility expansion that created 400+ new jobs.
Hy-Tek Intralogistics – A software platform and technology solutions company. Hy-Tek’s innovative systems make it one of the leading freight technology companies in Northern Kentucky.
Novolex – An innovative packaging solutions company. Novolex has offices around the globe. Their three Kentucky locations are focused on using technology to bring sustainability to the logistics industry.
Innovations Drive Growth
DHL announced plans to make a nearly $200 million investment in expanding their operations base at CVG. Construction on the 305,000 sq. ft. space is expected to be completed in 2025. This addition will increase employment opportunities with a technologically advanced, “…carbon-neutral, state-of-the-art facility…”.
Future Trends in Logistics
“The future of our industry will rely on emerging technologies…”
– Dave Tavel Sr., Vice President of Sales, Hy-Tek
The logistics industry used to be simple — put the product on a truck and drive it somewhere. Today there is a sophistication and precision that makes the work more efficient and effective. That’s due in large part to innovative advances in future-focused logistics technology.
Artificial Intelligence (AI)
- AI can be used to drive maintenance cycles with data analysis. This enables it to do things like predict the best time periods to perform maintenance.
- AI can also power automation practices which can streamline order fulfillment.
- Using GPS data and driver logs, AI can generate optimal delivery routes. This can:
- Decrease delivery times
- Decrease driver fatigue
- Create a lower cost of delivery thanks to decreased fuel needs and equipment wear
Robotics
Robots are being used to handle many basic logistics tasks including:
- Inventory counts
- Sorting
- Pick-and-pack
- Automated retrieval
- Transportation
Drone delivery
The use of drones for single-stop delivery is quickly moving from the concept table to practical implementation. Drone use greatly improves delivery times. As an added benefit drone deliveries can lower the energy output of the company.
It’s estimated that using a drone (vs. internal combustion engine vehicles) results in a company using 94% less energy.
Real-time reporting
Across the supply chain infrastructure in Kentucky, companies are turning to data to make decisions that will strengthen their businesses. When that data can be captured in real-time with APIs, it can dramatically improve business plans.
Developing logistics ecosystems
Efficiencies can be found when logistics needs can be centralized. But this doesn’t necessarily mean one company doing it all. Instead, it’s about having companies in:
- Labeling
- Packaging
- Fulfillment
- Shipping
- Tracking
- Management services
all working in a concentrated, coordinated way. A strong fulfillment ecosystem can utilize SaaS to manage tracking, handoff points, and timelines across suppliers.
Exploring Northern Kentucky’s Logistics Innovation
The logistics industry in Northern Kentucky has strong potential. It’s not only an important part of existing business operations, it’s also why new companies are deciding to call Kentucky home.
What’s exciting about the logistics industry in Northern Kentucky is its focus on innovation. In order to meet manufacturer needs and consumer demands, more and more companies are turning to tech-driven logistics in Northern Kentucky.
Contact BE NKY Growth Partnership to discuss how you can take advantage of the region’s world-class logistics professionals.