Company currently employs 98 Kentuckians at Covington location
FRANKFORT, Ky. (Sept. 29, 2022) – Today, Gov. Andy Beshear announced further momentum of the state’s distribution and logistics sector as BM2 Freight Services Inc. will expand in Covington with a $2.3 million investment creating 56 quality jobs.
“Our distribution and logistics sector is seeing unbelievable growth,” said Gov. Beshear. “It is no surprise that given Kentucky’s unique location and resources, companies continue to choose the commonwealth to meet their demands and growing consumer-base. I am thrilled that BM2 Freight Services will expand their operations here in Kentucky and want to thank their leadership for believing in what this great state has to offer. I am looking forward to their continued success.”
The company currently leases the entire 5th floor in Tower One of the Rivercenter Building in Covington. The project will see the company expand their current footprint by leasing another half-floor in the same tower, increasing their operational space by almost 8,000 square feet for a total of over 24,000 square feet. The project will include demolition and construction on the new floor to allow room for 56 new employees, mainly logistics account manager positions, which would bring the total number of Kentuckians employed by the company to 154.
“BM2 is pursuing aggressive growth goals by providing strategic transportation solutions and services to our customers in North America,” said BM2 President Sarah Newman. “Our priorities are service, communication and integrity. We’re thrilled to be expanding our headquarters and adding new jobs in Covington. We appreciate the support we have received from Kentucky, the City of Covington and Northern Kentucky Tri-ED.”
Founded in 2008, BM2 Freight Services is a family-owned and operated third-party logistics company that provides strategic transportation services to customers throughout North America by connecting them with a network of over 30,000 dependable carriers. The company has been a finalist for the Cincinnati Business Courier’s Fast 55 award, identifying the fastest-growing privately held companies within the 15-county region of Greater Cincinnati that have seen the highest percentage of revenue growth, for four consecutive years. Today, the company employs 130 individuals throughout their three locations in Illinois, Tennessee and Covington.
BM2’s growth builds on the state’s strength in distribution and logistics, an industry that has announced more than 6,300 full-time jobs for Kentucky residents during the administration behind $1.3 billion in new investment.
Kenton County Judge/Executive Kris Knochelmann noted that BM2 has been recognized on several regional and national lists for its success.
“It’s fantastic to see a highly successful, locally founded company expand and create new jobs in Northern Kentucky,” said Judge Knochelmann. “BM2 has been named to the Cincinnati Business Courier’s Fast 55 list and the Inc. 5000 list multiple times. Congratulations to the company’s leaders on their growth.”
Covington Mayor Joe Meyer is excited for the opportunities this partnership will bring to the community.
“Covington is committed to helping its businesses thrive and grow,” said Mayor Meyer. “We’re proud to partner with the Commonwealth and BM2 to not only help this vibrant, family-owned company expand but also create more jobs for our residents and accelerate the stunning momentum of our local economy. The City’s support of its businesses doesn’t end with a ribbon-cutting – it continues as long as they need us. We congratulate BM2 on its continued success.”
Northern Kentucky Tri-ED CEO Lee Crume recognized that BM2 is a significant contributor to the supply chain management sector in Northern Kentucky.
“Given our proximity to more than half of the consumers in the United States within a day’s drive, and the number of manufacturers we have in the Cincinnati region, logistics management is a high-growth industry,” said Crume. “We applaud BM2’s decision to expand in Covington and add new, high-paying jobs in Northern Kentucky.”
BM2 Freight Services investment and planned job creation furthers recent economic momentum in the commonwealth, as the state builds back stronger from the effects of the pandemic.
In 2021, the commonwealth shattered every economic development record in the books. Private-sector new-location and expansion announcements included a record $11.2 billion in total planned investment and commitments to create a record 18,000-plus full-time jobs across the coming years. Kentucky’s average incentivized hourly wage for projects statewide in 2021 was $24 before benefits, a 9.4% increase over the previous year.
In the past year, the Beshear administration announced the two largest economic development projects in state history. In September 2021, Gov. Beshear and leaders from Ford Motor Co. and SK Innovation celebrated a transformative $5.8 billion investment that will create 5,000 jobs in Hardin County. And in April of this year, the Governor was joined by leadership at Envision AESC to announce a $2 billion investment that will create 2,000 jobs in Warren County. These announcements solidify Kentucky as the EV battery production capital of the United States.
The economic momentum has carried strongly into 2022, with both S&P Global Ratings and Fitch Ratings upgrading Kentucky’s financial outlook to positive in recognition of the commonwealth’s surging economy.
And Site Selection magazine placed Kentucky at 6th in its annual Prosperity Cup rankings for 2022, which recognizes state-level economic success based on capital investments.
Kentucky has posted record low unemployment rates for four consecutive months, falling from 3.9% in April to 3.8% in May and 3.7% in June and July.
In July, the Governor reported the highest annual growth rate in 31 years. And for the second year in a row, Kentucky’s General Fund budget surplus has exceeded $1 billion. Also in July, Gov. Beshear reported that the state’s Rainy Day fund is up to a record balance of $2.7 billion, significantly higher than the $129 million balance the fund had when the Governor took office.
In September, Kentucky reported August 2022 General Fund receipts hit an unprecedented high for any August on record, marking 21 straight months of growing revenues for the state.
To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) on Thursday preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $600,000 in tax incentives based on the company’s investment of nearly $2.3 million and annual targets of:
- Creation and maintenance of 56 Kentucky-resident, full-time jobs across 10 years; and
- Paying an average hourly wage of $28.61 including benefits across those jobs.
By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.
In addition, BM2 Freight Services can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.
For more information on BM2 Freight Services. visit bm2freight.com.
A detailed community profile for Kenton County can be viewed here.
Information on Kentucky’s economic development efforts and programs is available at CED.ky.gov. Fans of the Cabinet for Economic Development can also join the discussion at facebook.com/CEDkygov, on Twitter @CEDkygov, Instagram @CEDkygov and LinkedIn.
Read about other key updates, actions and information from Gov. Beshear and his administration at governor.ky.gov, kycovid19.ky.gov and the Governor’s official social media accounts Facebook, Twitter and YouTube.
*Original article written by Northern Kentucky Tri-ED Economic Development and is published here.