#164 – Inside Our Industry – BlueOval Multiplier Effect
Posted on | Inside Our Industry
We have discussed the multiplier effect before. The multiplier effect is an economic term, which measures the impact that a change in economic activity—like investment or spending—will have on the total economic output of something. A recent study shares the impact that BlueOval SK’s two new EV battery plants will have on the central Kentucky region where construction is presently taking place. Below are highlights-
Numbers address impact of BlueOval
The News-Enterprise editorial board, Elizabethtown, KY
A wide-ranging study of the impact of the $5.8 billion investment and promised 5,000 full-time manufacturing jobs at BlueOval SK puts the region on alert.
Anyone driving along Interstate 65 south of Elizabethtown can see the massive structures rising from the ground at Exit 86 and observe changes being made at the interchange to handle the commuter traffic.
Anyone listening to Gov. Andy Beshear’s election rhetoric know its the largest investment in state history and puts Kentucky on the global map in the electric vehicle industry.
Anyone who was paying attention during the previous two decades knows community leaders and state officials have been banking on the 1,536.8-acre industrial megasite to have just this kind of impact.
It’s changing more than one interstate exit. It will transform the county, region and state. The study completed by L.B. Schmidt and Associates provides a better idea of the scope of the change.
• Population growth is anticipated to be 22,380 with Elizabethtown seeing most of that impact. For perspective, the 2020 census shows Radcliff with a population of 22,953. So it’s like squeezing another Radcliff into the local map.
• Based on population projections, Hardin County will have a need for 8,811 new housing units, classroom space for another 3,900 school-age children and an estimated 75 more hospital beds.
• By the end of 2026, when the twin battery plants are fully operational, direct plant payroll will be $265 million. Factoring in fringe benefits, the BlueOval payroll is computed at $363 million.
• BlueOval’s 5,000 jobs is only part of the employment picture. Already, the area has welcomed announcements about LOTTE Aluminium Materials USA and Woowon Tech coming to meet supply chain needs. Household spending increases also will create just as many jobs as new industrial employment, the study indicates.
• Even now, employment is influenced. The total construction payroll is expected to reach $1.6 billion with spending of $75 million on local materials and services.