By John Hollenbach and Greg Oakley, Hollenbach Oakley Development and Horizon Commercial Realty
It’s hard to believe that we’re nearing the end of 2024, but the new year on the horizon gives us the opportunity to reflect on the past year and look forward to what’s in store for the future here in Louisville, and Kentucky as a whole.
Because of the unprecedented growth that Louisville has seen over the past few decades, it is clear to see that the next few years will present more opportunities for the city we love to create new jobs and opportunities for its people. After Louisville was named a Top 5 U.S. Metro for Economic Development by Site Selection Magazine in 2023, it’s clear to us that the sky is the limit for the Derby City.
Louisville is growing fast, and that’s due in part to companies investing in the city. In 2023, Louisville brought in over $1 billion in capital investment and over 2,300 new jobs. When we founded our commercial real estate development firm in 1996, Louisville was mostly an afterthought to companies outside of the Commonwealth. We would often host site selectors from around the country early on in our company’s history who knew nothing about Louisville. But because of strong leadership at both the city and state levels, historic investments from companies around the world, and Louisville’s eclectic community with amenities for everyone, business continues to boom.
Our city has become a premier destination for manufacturers from all over the world. Major manufacturers of all kinds have invested in Louisville and its robust workforce. Bigelow Tea, Midea America, KCC Companies and Shady Rays Eyewear have all worked with us in the past year to build and develop new manufacturing facilities here in Louisville because of the impressive growth of our community over the past few decades.
Gone are the days of Louisville playing second fiddle in our region. Louisville is now an economic hub in our region, and people are taking notice nationally. Site Selection Magazine named Louisville the No. 1 city for economic development in the Ohio River Corridor. Those economic development efforts have yielded good jobs for Louisville’s residents, too. A recent report from Greater Louisville Inc. revealed that Louisville’s total employment at the end of the second quarter of 2023 was at the highest level of any point in the past 10 years.
Louisville’s infrastructure has also continued to improve. Improvements to our region’s highways, rail networks and airport have made our city far more attractive for new investments. Our natural infrastructure advantages have also played huge roles. Our location next to the Ohio River ensures that Louisville – and its surrounding region – has an abundant supply of water, which is very attractive to companies looking to relocate. Our power grid is sound, and we have the advantage of being located within a day’s drive of two-thirds of the U.S. population.
City leaders have been very intentional about encouraging entrepreneurs to launch businesses in Louisville. While big business is prominent in Louisville with recognizable names like Ford, UPS and Yum!, small business has thrived. Ask any economist – they will tell you that small businesses are the backbone of any local economy.
One positive thing we often hear about Louisville from site selectors is the low cost of doing business here compared to similar-sized cities in our region. According to Greater Louisville Inc., it is less expensive to do business in Louisville than in other regional cities like Columbus, Indianapolis and Nashville.
We are also fortunate to have a talented, educated workforce. Over 32% of Louisville’s workforce has attained at least a bachelor’s degree, 7% over the national average. With multiple universities in and around Louisville, young professionals looking to launch their careers know they are able to succeed here. A recent study by ADP, a human resources management company, ranked Louisville 15th out of 55 metros for new college graduates to find a job. Our talented workforce is finding opportunities right here in the Derby City, and that means great things for our future.
Working in commercial real estate has given us a front row seat to watch Louisville’s economy transform over the years. Our city has become a vibrant, eclectic place where companies – and people – want to be. We can’t wait to see what 2025 and beyond has in store.
John Hollenbach and Greg Oakley are the managing partners of Hollenbach Oakley Development and Horizon Commercial Realty.
