UPS releases economic analysis showing 9-figure annual impact on Kentucky's economy

LOUISVILLE, Ky. (WDRB) -- UPS hired an independent economist to calculate the jobs and dollars it brings to the Louisville community.

"At UPS, we often refer to ourselves as the economic engine of the Bluegrass, but it's been awhile since we measured the horsepower of that engine," UPS Airlines CFO Mike Jones said Friday. "More than 62,000 jobs in Kentucky are associated with UPS presence. This includes about 57,000 jobs in Louisville and the surrounding counties."

UPS said when the airline started in 1988, it employed 3,500 workers. Two decades ago when Worldport opened, it was 15,000.

"Today, UPS employs 20,000 employees, and that number swells to 23,000 during peak times of the year," Jones said. "That includes everything from pilots to professionals to package handlers. These are great jobs with the average compensation of $77,000 a year."

More than 200 companies have relocated or moved part of their operations to the Louisville region to be closer to UPS. That includes Cologuard.

"Our partnership with UPS is critical, because UPS knows logistics, and Exact Sciences knows the science of colorectal cancer," Cologuard President Mike Stenhouse said. "We don't know how to ship over 1 million kits last year into patient's homes and get back to our lab in Madison. We had to sit down with a partner."

And when asked if Cologuard would locate in Louisville, Stenhouse was non-committal.

"What I see is a growing partnership with UPS," he said. "We are here often. As you can see, we have a large footprint in this building."

UPS said its fiscal impact is more than $300 million to Kentucky's economy, which accounts for more than 2 percent of all state taxes collected in the state.

UPS said about 40,000 indirect jobs have also been created, everything from doctors to educators to mechanics.