It’s not an exaggeration to say that, in many respects, the global supply chain moves through Northern Kentucky. And when you consider the region’s
- proximity to the Ohio River and ports
- workforce capacity
- educational and skills training programs
- logistics capabilities
- support infrastructure
- transportation access
it is easy to see why the region has become the key logistics hub in Kentucky. In fact, these unique advantages are why the industry is expected to see a 7.4% growth in employment by 2025.
Northern Kentucky logistics companies have long known what many other companies are now finding out. From sourcing raw materials for manufacturers in a variety of industries to shipping finished goods from warehouses in Northern Kentucky, the region has the:
- expertise
- tools
- experience
to achieve supply chain and logistics success.
In this article, we’ll look at what is supporting that success. And we’ll see how companies are bringing innovation to the supply chain in Northern Kentucky. In doing so, we will come to understand why businesses choose Northern Kentucky for their supply chain and logistics needs.
Why Northern Kentucky is a Premier Logistics Hub
It would be easy to sum up Northern Kentucky’s success as a logistics hub using the old real estate adage “Location, Location, Location.” But it would only be partially true. While the region’s location is important, what’s key is how it is utilized. Northern Kentucky logistics companies and Kentucky supply chain management companies experience the benefits of the region across three key areas.
The efficiency of access
Northern Kentucky’s centralized location gives it unique access to the rest of the country. You can reach 54% of the U.S. population with just a one-day drive.
A connected community
The supply chain and logistics business in Northern Kentucky has been successful, in part, because of the connections:
- among area companies
- between the corporate and private sectors
The region is home to companies that provide services at different steps in the supply chain. This business diversity makes it easier to integrate processes and services simply by “walking down the street.”
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World-class transportation
Northern Kentucky logistics companies benefit from the region’s diverse transportation options.
- Air: Northern Kentucky is home to Cincinnati/Northern Kentucky International Airport (CVG), the 6th-largest cargo airport in North America. In 2024, CVG was named the third Best Regional Airport in North America by the Skytrax World Airport Awards.
- Rail: There are over 2,600 miles of railroad track crisscrossing the state. This access facilitates the use of warehousing across Northern Kentucky.
- Water: When goods need to be shipped out, they can utilize the state’s 1,000+ miles of navigable waterways.
- Roadways: Three major U.S. highways and three interstate roadways can be easily accessed across the region. This provides for efficient freight transportation across Kentucky.
Supply Chain and Logistics Management in Northern Kentucky
There are currently over 120 companies working with logistics and the supply chain in Northern Kentucky. They include companies involved in:
- Kentucky supply chain management
- Supply chain fulfillment
- Warehousing
- logistics management and consulting
- materials & packaging
- shipping
- equipment maintenance
- logistics technology
It is estimated that Northern Kentucky logistics companies alone employ just under 30,000 people.
An educated and skilled workforce
Employees, across all fields, can get the
- knowledge
- skills
- experience
they need to be successful in Kentucky supply chain management or logistics services through the region’s diverse education network.
In Northern Kentucky, there are:
- 25 four-year colleges and universities
- 11 community and technical colleges
These schools help students to better understand industry specifics and learn new skills.
Supply Chain OKI provides education, and training, to people looking to get started in the supply chain or to advance in their career.
Northern Kentucky University (NKU) offers students an opportunity to earn a degree in Global Supply Chain Management. In addition to class work, students benefit from
- site visits
- lectures from industry experts
- internships
Kentucky Community & Technical College System has a Supply Chain Specialist Certificate program. It was specifically developed for people interested in becoming a supply chain specialist, logistics quality technician or logistics operator.
Innovative Supply Chain and Logistics Companies
Several of the largest supply chain and logistics companies in the world have a home in Northern Kentucky. But of course, they are not the only ones finding success in the region. There are many other companies providing support and maintenance services to keep the supply chain moving. And there are still other companies that are bringing distribution innovation to Northern Kentucky.
At each step in the supply chain, businesses can find an industry leader operating in Northern Kentucky. It’s another one of the reasons why the region is a leader in supply chain and logistics solutions – you have access to everything you need to get to market.
As a third-party logistics provider, Verst can do everything from labeling and warehousing goods to providing fulfillment services. Verst takes a data-centric approach to generate efficient and effective logistics processes. And they do this based on 50+ years of experience in helping companies find success across the supply chain.
Hy-Tek Holdings, through its acquisition of AHS, is advancing material handling innovation for Northern Kentucky’s logistics companies. In 2022, AHS built a $500,000, 20,000 sq. ft. “innovation space” to explore cutting-edge robotic solutions, driving distribution advancements locally and across the global supply chain.
Whitehorse is a leader in freight transportation in Kentucky. They manage the transportation of:
- FTL
- LTL
- Expedited shipping
- Specialized freight
In 2023 they grew their workforce and operational footprint with a $5+ million expansion in the region.
A $292 million maintenance facility is being built at Cincinnati/Northern Kentucky International Airport (CVG) to enhance efficiency and reduce downtime. Scheduled to open in 2026, the state-of-the-art facility will create 300 jobs and expand the airport’s capacity for global operations.
Seeing a clear benefit to growing its presence in the region, in 2021, Amazon opened a new, dedicated hub at the Cincinnati/Northern Kentucky International Airport (CVG). The $1.5 billion project added to Amazon’s supply chain capabilities. It also brought 2,000+ jobs to the region.
Future Trends and Opportunities in Logistics and the Supply Chain
- Sustainability
- Connectivity
- Generative AI
- Deep data mining
While all of these are currently part of supply chain and logistics management, their continued development will drive the industry in new directions.
When talking about the supply chain, Verst Logistics CEO Todd Johnson said “You’ve got to be creative in finding solutions to these challenges we face.” Northern Kentucky logistics companies are doing just that and using new technologies to develop innovative solutions.
Data as a driver
Northern Kentucky logistics companies are focused on moving materials not only faster, but more efficiently. One of the ways that they can do that is by centralizing data management. This allows companies to more accurately integrate systems and services.
The connected future of the supply chain
The Internet of Things (IoT) is poised to play a big role across the supply chain. It can create previously unseen levels of connectivity. This will not only improve speed-to-market, it will also create a stronger bottom line. That’s because it can potentially cut waste-related costs and streamline processes.
Supply Chain and Logistics in Northern Kentucky
Innovation, location, experience, and access are some of the reasons Northern Kentucky has become a strong logistics and supply chain hub. And with a combination of public and private investments, that sector will only expand. And grow stronger.
As tools like AI, VR/AR, and SaaS continue to be developed along with Industry 4.0 initiatives, Northern Kentucky logistics companies are prepared to integrate those solutions. The result will be more efficient, and effective, service offerings.
To discover how your company can find success with the logistics companies and supply chain in Northern Kentucky contact BE NKY Growth Partnership.
