Hopkinsville-Christian County_ KY

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					COMPETITIVE REALITIES

Hopkinsville-Christian County, KY



Submitted by:
MARKET STREET SERVICES, INC.
www.marketstreetservices.com

September 2005
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LIVE GROW WORK
Market Street brings original
insights and clarity to the
evaluation and revitalization of
the places where people live,
grow and work. Market Street
inspires trust in all community
stakeholders – citizens,
educators, leadership and
industry – because our holistic,
proactive process takes into
account all the aspects that
shape community life. Through
honest and informed
assessments, Market Street can
equip you with the tools to
create meaningful change. Our
solutions successfully merge our
unique vision with your
economic and social realities.
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TABLE OF CONTENTS
Introduction ................................................................................................ 3

Methodology ................................................................................................ 5

Executive Summary.....................................................................................6


Demographic Profile ................................................................................. 16
          Population Change ............................................................................................. 16

          Migration Patterns............................................................................................. 20

          Age Distribution .................................................................................................22

          Race and Ethnic Composition ........................................................................... 25

          Socioeconomics ................................................................................................. 26
          o Educational Attainment ................................................................................. 26
          o Poverty ...........................................................................................................28
          o Teenage Pregnancy ........................................................................................ 29



Economic Profile ....................................................................................... 32
          Labor Force ......................................................................................................... 32

          Jobs and Employment .........................................................................................33

          Unemployment Rates..........................................................................................35

          Labor Force Participation Rates.........................................................................36

          Commuting Patterns.......................................................................................... 37

          Income ................................................................................................................39
          o Per Capita Income ..........................................................................................39
          o Average Annual Wage .................................................................................... 40
          o Distribution of Income................................................................................... 40

          Economic Structure............................................................................................42
          o Location Quotients ..........................................................................................44
          o Wages by Sector ............................................................................................. 46
          o Existing Business Groupings...........................................................................47
          o Entrepreneurial Activity ..................................................................................50




Competitive Realities                                                                                                             1
September 2005
Business Competitiveness Profile .............................................................53
         Education and Workforce Development ............................................................53
         o K-12 Public Education ...................................................................................... 53
         o Hopkinsville Community College ........................................................................ 60
         o Murray State University, Hopkinsville Regional Campus...................................... 65
         o Regional Four-Year Universities ......................................................................... 65
         o Workforce Development ..................................................................................... 66
         o Labor Force Support Infrastructure ..................................................................... 69

         Infrastructure......................................................................................................70
         o    Transportation ...........................................................................................................70
         o    Telecommunications...................................................................................................76
         o    Housing .....................................................................................................................77
         o    Utilities ......................................................................................................................79

         Business Costs ................................................................................................... 80
         o    Real Estate .................................................................................................................80
         o    Utilities ......................................................................................................................82
         o    Labor Costs.................................................................................................................84
         o    Tax Rates ...................................................................................................................86
         o    Regulatory and Development Controls........................................................................87
         o    Incentives ...................................................................................................................87
         o    Small Business and Entrepreneurship ........................................................................89
         o    Capacity for Innovation .............................................................................................92

         Quality of Life .................................................................................................... 96
         o    Cost of Living .............................................................................................................96
         o    Health Care ...............................................................................................................97
         o    Public Safety ............................................................................................................100
         o    Arts, Culture and Entertainment..............................................................................101
         o    Recreation ................................................................................................................103
         o    Climate and Environment........................................................................................104
         o    Civic Participation ...................................................................................................105
         o    Rankings ..................................................................................................................107



Key Findings ........................................................................................... 108


Appendix: Glossary of Terms................................................................... 111




Competitive Realities                                                                                                                         2
September 2005
INTRODUCTION
         “We are in uncharted waters. In what sector of the economy can we
         find a driver for recovery – and how do we make it happen? We are at
         a loss.”

                                                                 Gary Shoesmith,
                                                     Center for Economic Studies
                                                          Wake Forest University

Gary Shoesmith is one of the most respected business economists and forecasters in
the country. However, he is not alone in expressing bewilderment about the recent
performance of the U.S. economy, and its prospects for future growth. The plain
reality is, the emergence of a truly global economy, and the “death of distance”
between producers, suppliers and consumers facilitated by the information-age
revolution in technology and communications, has brought about unprecedented
change in the way business is done, and, more importantly, where it is done. As
many white-collar technology workers are now discovering, seemingly no American
job is safe from outsourcing to lower-wage nations. And, with these same countries
ramping up their research and development budgets by billions annually, the long-
held U.S. advantage in innovation and design is also at risk.

So, what can regions do to proactively respond to the new realities of today’s global
economy? Because the national economy has become more diversified, and
intangibles such as quality of life now factor heavily in business location decisions,
Hopkinsville-Christian County and communities of all sizes must commit to
developing strategies that address national trends while still accounting for unique
local characteristics.

These trends further emphasize the importance of forging a consensus community
vision to inform both short-term and long-term economic and economic
development planning. To proactively address the issues that affect its
competitiveness for new jobs, residents and visitors, the Hopkinsville-Christian
County Chamber of Commerce (the Chamber) contracted with Market Street
Services, an Atlanta-based economic, community and workforce development
consulting firm, to develop a Community Vision Plan for the city-county region.

In embarking on this process, Hopkinsville-Christian County is demonstrating a
commitment to long term prosperity, and a willingness to ask the tough questions
about what needs to change in the community in order to achieve desired results.
The Hopkinsville-Christian County community visioning process will be inclusive of
the following components:




Competitive Realities                                                                    3
September 2005
   •    Competitive Realities: The first phase in the process involves a
        comprehensive, objective assessment of current trends in Hopkinsville-
        Christian County’s economic, demographic and competitive climates. The
        report will enable local stakeholders to come to a common understanding of
        the community’s recent history in key indicators, and will present a
        comprehensive look at Hopkinsville’s competitiveness as a place for residents,
        businesses and visitors.

   •    Community Input: This component will ensure that the full breadth of
        community concerns are integrated into the strategic process. This process
        will include interviews, focus groups, and an online survey.

   •    Community Vision Plan: The Plan will bring together all aspects of the
        process in the form of specific goals, objectives and action steps to position
        Hopkinsville-Christian County as a preferred location for new, existing and
        expanding companies. The document will include a statement of the
        community’s shared vision, as well as the identification of potential business
        targets for the community, taking into consideration Hopkinsville’s existing
        assets.

   •    Implementation Plan: This key final component of the process will assess
        Hopkinsville-Christian County’s current economic development efforts and
        community capacity to determine the processes and personnel necessary to
        make the plan a reality. Implementation activities will be broken down by
        priority and longer-term actions so that the community’s most pressing
        strategic necessities are immediately addressed.

Ultimately, the full breadth of Hopkinsville-Christian County stakeholders will decide
what type of community they want to live, grow and work in for the duration of their
lives, and the lives of generations to come.




Competitive Realities                                                                    4
September 2005
METHODOLOGY
For this Competitive Realities report, Market Street used the most recent data
available from reliable private, non-profit, local, state and national data sources. For
each of the indicators, Market Street made every effort to match methodologies and
units of comparison to provide the most accurate, authoritative, and informative
analysis possible of Hopkinsville-Christian County’s economic and demographic
trends, and competitive position.

In many cases, the data are presented in a chart as the percentage each component
represents of the total. In these cases, unless otherwise notes, if the summation of
the percentages of all the components does not equal 100 percent, it is due to
rounding.

For the majority of the report’s indicators, Christian County was compared against
the State of Kentucky and the United States to provide insight on the County’s
relative performance and/or capacity for that particular measurement.

Whenever possible, Market Street has included the City of Hopkinsville, the
Clarksville, TN-KY Metropolitan Statistical Area (MSA, shown below), the component
counties of the Clarksville MSA, and border counties to Christian in the analysis to
provide additional comparative information.

The ultimate goal of the assessments in this Competitive Realities report is to
determine the priority issues of concern in Hopkinsville-Christian County in order to
address them through proactive goals, objectives and action steps in the Community
Vision Plan.

                               Clarksville-Hopkinsville MSA




Competitive Realities                                                                      5
September 2005
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EXECUTIVE SUMMARY
In order to come to consensus on the optimal means to move Hopkinsville-Christian
County forward, community stakeholders must first understand the dynamics that
have affected the area in the recent past. These trends in the community’s
population, economy, and components of business competitiveness will illuminate
the realities of Hopkinsville-Christian County’s current position as a location for new
and expanding companies. These, in turn, will lead to the creation of a best-practice,
sustainable strategy for quality future growth and development.

This Competitive Realities report will be divided into three sections, with each
focusing on a specific component of the Hopkinsville-Christian County community.
The document is divided as follows:

   •    Demographic Analysis: This section will look at the current and recent
        trends affecting the community’s population, including measures of growth,
        age and diversity, poverty, and other indicators.

   •    Economic Analysis: Moving from an assessment of population trends to
        those in the local economy, this component of the report will analyze the
        dynamics of the Hopkinsville-Christian County economy over the previous
        decade.

   •    Competitive Analysis: Lastly, the report will examine the community’s
        competitive position compared to the state, nation and – in certain categories –
        the Clarksville MSA and its components, in regards to four key area of
        competitiveness: education and workforce development, infrastructure,
        business costs, and quality of life.

The following are the key findings of each component of the analysis.

DEMOGRAPHIC ANALYSIS
Current and recent demographic trends can illustrate key strengths and potential
areas of concern for the total population, and more specifically the workforce.

Population Change
         The growth of Hopkinsville-Christian County slowed from the 1980s to the
         1990s. From 2000-2004, the population began to decline (by 2.2% for the
         county).
          This recent population decline was impacted by the decrease in Fort
         Campbell military and civilian employees (and their families) by 15.3 percent
         from fiscal years 2001 to 2004. Reversing this trend, the Fort Campbell
         personnel population grew by almost 30 percent in fiscal year 2005.



Competitive Realities                                                                    6
September 2005
         From 2000 to 2004, Christian County’s population losses were due to people
         moving to elsewhere in the United States. Clearly, the military population
         affects migration patterns, with Honolulu, HI; Fayetteville, NC; Columbus,
         GA; and Fairbanks, AK being the communities receiving the highest net
         number of Christian County’s former residents.

Age Distribution
         Compared to national averages, Christian County has a proportionally small
         workforce with low percentages in the age groups of 35 to 44, 45 to 54, and 55
         to 64. From 1990 to 2003, the County’s percentages of working-age adults
         had either fallen, or grown slower than Kentucky and the U.S.
         The County’s high percentages of the population in the 14 and under, 20 to
         24, and 25 to 34 age groups is likely due to the large military population in the
         community.

Race and Ethnic Composition
         Christian County has a diverse population, with nearly 35 percent Hispanic,
                                                                 1
         African American, or another minority group in 2003. In Kentucky, the
         percentage was 11.3 percent, and in the U.S. it was 32.1 percent.
         Mirroring state and national trends, Christian County’s population has
         become more diverse over time as the percentages of African-Americans,
         Hispanics, and other minorities increased.

Socioeconomics
         Christian County’s educational attainment levels are favorable compared to
         Kentucky. In 2000, over one in five (22.8%) Christian County adults over
         age 25 did not have a high school diploma as of 2000, compared to over one
         in four (25.9%) in Kentucky. For the U.S., the percentage was 19.6 percent.
         The educational attainment levels of Christian County improved significantly
         from 1990 to 2000. The percentage of persons without a high school
         diploma decreased by 14.6 percent, compared to only a 9.2 percent decrease
         in the U.S.
         From 1993 to 2002, Christian County’s poverty rates improved. However, in
         2002, Christian County’s poverty rate (16.2%) was higher than Kentucky
         (14.8%) and the nation (12.1%). For children (ages 17 and under), Christian
         County’s poverty rate is also comparatively high – 24.0 percent compared to
         21.1 percent in Kentucky and 16.7 percent in the U.S.

1
 Hispanic is considered an ethnicity, not a race; therefore, the U.S. Census Bureau tabulates Hispanic
origin data separately from race data. In the race and ethnicity chart provided later in this report, the
White, Black, and “Other” categories include only non-Hispanics, and Hispanic includes all persons of
Hispanic origin regardless of race. The “Other” category includes persons of the following races:
American Indian and Alaska Native, Asian, Native Hawaiian and other Pacific Islander, and persons of
two or more races.




Competitive Realities                                                                                       7
September 2005
         In the 1990s, Christian County consistently had a much higher teenage
         pregnancy rate than Kentucky and the nation. The rate of “repeat” births to
         females ages 15 to 17 was also higher in Christian than Kentucky.

ECONOMIC PROFILE
An analysis of the labor force, employment opportunities, commuting patterns,
income, economic structure, and entrepreneurial activity is key to determining
Hopkinsville-Christian County’s economic strengths, trends, and challenges.

Labor Force
         As of 2004, there were 26,532 people in Christian County’s labor force.
         From 1995 to 2004, Christian County’s labor force grew by 2.7 percent
         compared to Kentucky’s 6.1 percent growth.

Jobs and Employment
         Job growth in Christian County over the past ten years has not kept up with
         the rate of growth in the Clarksville MSA, Kentucky, or the U.S.
         Major employers in the community include: Fort Campbell, Flynn
         Enterprises, Christian County Board of Education, Wal-Mart distribution
         center, and Jennie Stuart Medical Center.

Unemployment Rates
         In July 2005, Christian County’s unemployment rate was 6.9 percent, higher
         than Kentucky (5.9%) or the U.S. (5.2%). For most of 2005, Christian
         County’s unemployment rates have not been significantly higher than the
         commonwealth or nation.

Labor Force Participation Rates
         While Kentucky and the nation’s labor force participation rates declined from
         1990 to 2003, Christian County’s increased dramatically. However, in 2003,
         Christian County’s was lower (68.2%) than Kentucky (74.8%) or the U.S.
         (79.9%). The comparatively low rate in Christian County is due in part to the
         large number of military spouses in the area.

Commuting Patterns
         The percentage of the workforce that drove to work in 2000 in Christian
         County (87.8%) was very similar to the nation (87.9%). The County has a
         high percentage that walk to work (7.2%) compared to commonwealth (2.4%)
         and national averages (2.9%).
         Overall, commuting times are lower in Christian County than in Kentucky or
         the nation.



Competitive Realities                                                                  8
September 2005
Income
         Christian County’s real per capita income is substantially lower than the
         national average: $24,464 in 2003 compared to $31,472 in the nation.
         The County’s per capita income did demonstrate notable gains from 1994 to
         2003, representing 70.0 percent of the nation’s figure in 1994 and rising to
         77.7 percent of the nation’s figure for 2003.
         Christian County’s real average annual wage is closer to the nation’s than the
         per capita income figures are. In 2003, Christian’s average was nearly
         $33,000 per job, compared to the U.S. average of $37,130 (Christian’s average
         represents about 89 percent of the nation).
         From 1994 to 2003, a lower percentage of income was derived from transfer
         payments in Christian County than Kentucky, but the percentage was higher
         than the U.S.
         During the same ten-year period the percent of income derived from
         dividends, interest, and rent in Christian County was similar to that of
         Kentucky and the U.S.

Economic Structure
         The national shift from a strong manufacturing economy to one more reliant
         on services sector and retail employment than previously has not been as
         dramatic in Christian County. In 2004, Manufacturing represented a much
         higher percentage of Christian County’s economy (27.6%) than Kentucky
         (15.5%) or the U.S. (12.5%).
         Location quotients, a measure of the strength of a sector’s employment in a
         local economy compared to national averages, suggest the following are
         strengths of Christian County as of 2004: Manufacturing (2.21), Retail Trade
         (1.36), Administrative and Waste Services (1.31), and Public Administration
                2
         (1.14).
         It is advantageous that two of Christian’s largest sectors – Manufacturing
         ($37,740) and Public Administration ($40,421) – pay more than the overall
         average wage for the County ($29,238).
         The transportation equipment sub-sector is Christian County’s largest, with
         over 30 percent of total manufacturing employment. Also important is that
         the County’s three largest sub-sectors are also among the highest paying
         within manufacturing: $45,567 for transportation equipment, $41,500 for
         machinery, and $40,657 for fabricated metal.



2 Public Administration does not include sworn military personnel. Employees of the following
government entities are included in Public Administration: executive, legislative, and other general
government support; justice, public order, and safety activities; administration of human resource,
environmental quality, housing, urban planning, community development, and economic programs;
space research and technology; and national security and international affairs. The remaining public
sector employees are distributed to other sectors; for example, public school teachers are included in
educational services, and persons employed by government-owned hospitals are included in health care.




Competitive Realities                                                                                9
September 2005
         While farm employment has declined in Christian County from 1980 to
         2000, it still comprises nearly 3 percent of total employment.
         Over 90 percent of the County’s businesses employ less than 50 employees.
         Non-farm proprietors (a measure of self-employment) represent only 7.6
         percent of Christian County employment compared to 14.2 percent in
         Kentucky and 16.5 percent in the U.S.

BUSINESS COMPETITIVENESS P ROFILE
This section measures Hopkinsville-Christian County’s competitiveness in terms of
the four key components of a business climate: education and workforce
development, infrastructure, business costs, and quality of life.

Education and Workforce Development
K-12 Education System
         From the 1999-2000 to 2003-2004 school years, total public school
         enrollment has declined in Christian County (-0.7%) even as it has increased
         in Kentucky (0.9%).
         Attendance rates have been lower in Christian County than Kentucky since
         2000, but in 2004 the County surpassed the commonwealth.
         With the exception of the 2002-2003 school year, dropout rates have been
         higher in all reported years since 1999 in Christian County than Kentucky.
         For the 2003-2004 school year, Christian County’s dropout rate was 4.3
         percent compared to Kentucky’s 3.4 percent.
         From 1999 to 2004, the pupil-to-teacher ratio in Christian County has
         increased despite the decline in Kentucky; the expenditures per pupil are low
         in Christian and have not grown as much as Kentucky; and the average
         teacher salaries are also comparatively low and have not grown as much as
         Kentucky’s.
         In 2004, 61.6 percent of Christian County’s school children receive a free or
         reduced-price lunch, compared to 48.9 percent in Kentucky.
         In reading and mathematics for 2004, White, non-Hispanic students met
         adequate yearly progress standards in Christian County, but African
         American students did not. Students eligible for a free or reduced-priced
         lunch and disabled students also did not meet standards.
         A lower percentage of Christian County high school graduates are pursuing a
         four-year or two-year degree than Kentucky.

Two-Year and Four-Year Degree Opportunities
         Hopkinsville Community College enrollment rose from 2001 to 2003, with a
         slight drop in 2004. For 2004, the total full-time enrollment head count was
         3,104. Concerns have been raised by the college’s faculty and staff regarding
         the institution’s leadership.




Competitive Realities                                                                10
September 2005
         For the fall 2004, the academic programs with the most enrollees were liberal
         arts and sciences, nursing (RN training), and criminal justice/law
         enforcement administration.
         In August 2004, Murray State University opened a branch in Hopkinsville.
         The facility can accommodate up to 1,200 students in its nine classrooms.
         The school also operates the Fort Campbell Army Education Center, which
         has over 650 course enrollments in four programs.

Workforce Development
         The Pennyrile Area Development District offers a variety of workforce
         development services including training and support for adults, dislocated
         workers, and youth.
         The Breathitt Career Center has a program for at-risk youth, farm -workers,
         transitioning solders, and GED and academic upgrade classes for adults.
         The community college has a Regional Technology Center equipped with
         industry-standard software and other training materials. The college also has
         adult education services, offering GED, English as a second language, basic
         skills training, and literacy classes.
         The Workforce Excellence Partnership offers school-to careers, unemployed
         adults, school success, and Fort Campbell employment transition services.
         The City Office of Employment and Training office assists job and service
         seekers in a variety of employment related issues.

Labor Force Support Infrastructure
         Christian County has 36 day care facilities, and four night care facilities,
         offering transportation, infant care, toddler care, and school age care.
         Pennyrile Allied Community Services offers door-to-door van service for area
         residents, free of charge to senior citizens.

Infrastructure
Transportation
         Hopkinsville-Christian County has strong north-south connectivity via
         Breathitt Parkway and strong east-west connectivity via Highway 68.
         Additionally, Interstate-24 travels through Christian County south of
         Hopkinsville.
         CSX is the principal rail operating in the community. Amtrak is accessible
         roughly 90 miles to the east.
         Hopkinsville-Christian County is served by a local airport, as well as Nashville
         International Airport approximately one hour away.

Telecommunications
         Hopkinsville is served by municipal, LEC, and cable broadband service, as
         well as a number of cellular service towers.




Competitive Realities                                                                  11
September 2005
Housing
         Christian County has low homeownership rates (in 2000, 55.3 percent
         compared to the nation’s 66.2 percent).
         Housing was comparatively affordable in Christian County as of 2000, with a
         median monthly rent of $362 and median housing value of $72,300 (national
         averages are $519 and $111,800, respectively).
         The housing stock in Christian County is older than in the Clarksville MSA,
         with a median year structure built of 1973 compared to 1979 in the MSA.

Utilities
         Water is provided by the Hopkinsville Water Authority. Electricity in the City
         of Hopkinsville is provided by the Hopkinsville Electric System, which is a
         contractor of the Tennessee Valley Authority.
         City leaders are currently trying to rectify the community’s stormwater
         management system after a widespread flood in September 2005 caused
         damage in the area.



Business Costs
Real Estate
         Hopkinsville-Christian County has several available buildings and sites for
         prospective companies. The approximately 2,000-acre Tennessee Valley
         Authority-certified megasite is particular competitive, being only one of five
         such sites in the country.

Utilities
         Overall, commercial and industrial power is less expensive in Hopkinsville-
         Christian County than elsewhere, with industrial power increasing in recent
         years at a high rate (5.1%).
         Gasoline in the Clarksville MSA is more affordable than the national average
         as of September 2005 ($2.898 compared to $2.915 per gallon).
         In June 2005, natural gas prices were higher in both Kentucky and
         Tennessee than the nation. Kentucky and Tennessee’s prices were very
         comparable.

Labor Costs
         The low average annual wages in Christian County suggest a favorable labor
         market for businesses.
         With Hopkinsville’s border location, the different unionization laws and rates
         of Kentucky and Tennessee may affect labor and business locational
         decisions.

Tax Rates
         Hopkinsville-Christian County’s location on the boarder makes differences in
         Kentucky and Tennessee tax rate structures factors for business location



Competitive Realities                                                                     12
September 2005
           decisions. An individual business’ decision is based on how it weighs the
           impact of one type of tax over another.
           Property tax rates in Christian County’s cities vary from 23.4¢ to 31.7¢ per
           $100 in valuation.

Regulatory and Development Controls
           In the City of Hopkinsville, zoning changes are submitted to the Planning
           Commission, which has 60 days to approve it. Then, City Council has 30
                                             3
           days to make their final decision. There is no one-stop permitting center,
           which is a service many communities use to facilitate the process.

Incentives
           Kentucky offers a wide range of tax credits and other incentives for
           businesses seeking to locate in its communities. As a Kentucky Rural
           Economic Development Act designated community, Christian County has
           additional programs available for its economic development efforts

Small Business and Entrepreneurship
           Christian County has a Small Business Development Center to serve
           entrepreneurs, as well as programs specific to minorities interested in
           starting a business.
           For U.S. Small Business Administration-guaranteed loans, Christian County
           had a higher average loan amount, and only a slightly higher total loans per
           capita figure, than the Clarksville MSA for 2000 to 2004.
           Total bank deposits per capita were low in Christian County compared to the
           MSA, Kentucky, and U.S., further evidence of the relative low-income nature
           of the community, as well as indicative of fewer available resources for
           supporting small businesses than elsewhere.

Capacity for Innovation
           From 1990 to 1999, the U.S. Patent Office issued 30 patents to Christian
           County persons, a larger number than was issued to Cheatham or Robertson
           counties in Tennessee.
           The Clarksville MSA ranked 261 out of 332 metropolitan areas in the Creative
           Class index, a measure of the workforce’s capacity to innovate.




3
    Telephone interview. 15 September 2005.




Competitive Realities                                                                     13
September 2005
Quality of Life
Cost of Living
         The City of Hopkinsville has a low cost of living, based on the ACCRA index
         (87.3 in the second quarter 2005 compared to the national index of 100.0).

Health Care
         Based on data for the Clarksville MSA, the area is underserved compared to
         the national average in the number of hospital beds and physicians per
         100,000 people.
         Health care costs are lower in the MSA than the nation, with an average cost
         per doctor visit of $63, cost per dentist visit of $78, and cost per daily hospital
         room visit of $432.
         The Hopkinsville region’s death rate increased from 1998 to 2000. In 2000,
         the figure was very similar to that of Kentucky and Tennessee.
         Infant mortality rates are high in the Hopkinsville region, particularly for the
         African American population.

Public Safety
         Both the violent and property crime rates in the City of Hopkinsville are high
         compared to Kentucky. The violent crime rates are slightly higher than the
         nation’s, but the property crime rates of Hopkinsville are significantly higher
         than the nation’s.

Arts, Culture, and Entertainment
         There is a wide range of arts, cultural, and entertainment attractions in
         Hopkinsville – covering topics as diverse as Southwestern Kentucky history,
         the arts, Fort Campbell history, famous psychic Edgar Cayce, the Trail of
         Tears, Jefferson Davis and the Civil War, and the Kelly Green Men Festival.

Recreation
         Round Table Park, Fort Campbell Memorial Park, Land Between the Lakes
         National Recreation Area, Pennyrile Forest State Resort Park, Lake Barkely
         State Resort Park, and Christian Way Farm all offer outdoor recreational
         opportunities for residents and visitors of Christian County.

Climate and Environment
         The average temperature of the City of Hopkinsville for 2003 was 58.8
         degrees, and total precipitation was 59.47 inches (including 9.1 inches of
         snow).
         Compared to its neighbor Trigg County, Christian County’s average eight-
         hour ozone levels have been high since 2000.
         Hopkinsville has numerous facilities that release pollutants or otherwise
         potentially harm the environment that will need to be monitored.




Competitive Realities                                                                     14
September 2005
Civic Participation
         In the number of organizations per 1,000 persons, gross receipts per capita,
         and assets per capita, Christian County’s non-profit organization data is low
         compared to Kentucky.
         While voter participation increased in the presidential election years from
         2000 to 2004 in neighboring Trigg County and Kentucky as a whole, the
         percentage declined in Christian County.

Rankings
         The Clarksville MSA ranked more favorably in the “best performing cities”
         index than in the “best places for business” or Places Rated Almanac.
         Places Rated Almanac rated the Clarksville MSA as the lowest cost of living,
         most affordable metropolitan area in the nation.
         According to the Hopkinsville-Christian County Chamber of Commerce,
         National Strategy Group has listed Hopkinsville as one of the best places to
         live in the United States; Readers Digest has ranked the city in its top 50 best
         places to raise a family; and the July 2004 edition of Mobility Magazine
         ranked the Hopkinsville area as the 15th best place to relocate, compared to
                                                   4
         other small market cities in the country.

Key Findings
Overall, key strengths of Hopkinsville-Christian County include its small-town
character, its location in relation to neighboring communities and Fort Campbell,
and its competitive business and living costs. To better leverage these strengths and
achieve both short and long-term economic prosperity for Hopkinsville-Christian
County, the community will need to address:

    1. Quality of the public school system and high teenage pregnancy rates;
    2. Need for more high-wage jobs, and the training and workforce development
       resources to support them;
    3. Opportunities for small business ownership;
    4. Storm water management, other local infrastructure, and the housing stock;
       and
    5. High crime rates.




4
 City for Living. Hopkinsville-Christian County Chamber of Commerce.
http://www.commercecenter.org/community/




Competitive Realities                                                                    15
September 2005
DEMOGRAPHIC PROFILE
The first element of analysis in this Competitive Realities report is an examination of
the current and recent dynamics of Hopkinsville-Christian County’s population.


Population Change
The dynamics of a community’s population growth – or lack of growth – can indicate
whether the area is an attractive destination for new residents, or whether it is able to
retain its high school and college graduates.

                           Population Change, 1980-2004: Hopkinsville,
                           Christian County, Kentucky, and United States
             14%
                                                             13.2%
             12%
                                     9.8%                 9.7%
             10%
                        9.1%
              8%

              6%
                                                     4.8%                                 4.3%
              4%           3.1%
                                                                                    2.6%
              2%
                                  0.7%          0.9%
              0%

             -2%
                                                                                 -2.2%
             -4%
                                                                         -3.8%
             -6%
                    % Change 1980-1990         % Change 1990-2000       % Change 2000-2004
                        Hopkinsville City    Christian County, KY     Kentucky     U.S.

                                         Source: U.S. Census Bureau


Following a period of dynamic growth from 1980 to 1990 in the City of Hopkinsville
and Christian County that exceeded state averages, the region’s growth slowed in the
decade of the 1990s, and actually declined from 2000 to 2004.

In 2004, the Clarksville-Hopkinsville MSA had an estimated population of 238,897,
Christian County’s estimated population was 70,649, and Hopkinsville had an
estimated population of 28,953, according to the U.S. Census Bureau.
As the following chart attests, Hopkinsville-Christian County’s population loss
contrasted with a 15.4 percent gain for the Clarksville MSA, and smaller gains for the
three other component counties of the metropolitan area.




Competitive Realities                                                                            16
September 2005
             Population Change, 1980-2004: Clarksville, TN-KY MSA and Components
              40%
                                                                   34.1%
              35%
                                                                30.5%
              30%
              25%                                                   22.2%
                                     20.6%                 21.6%
              20%
                                                                                               15.4%
              15%
                               9.4% 12.8%
              10%    9.1% 10.4%
                                                         4.8%                      5.2%      5.5%
               5%           3.1%                                                          3.4%
                                                      0.9%
               0%
                                                                                 -2.2%
              -5%
                                                                              -3.8%
             -10%
                        % Change 1980-1990            % Change 1990-2000      % Change 2000-2004
                         Hopkinsville City                      Christian County, KY
                         Trigg County, KY                       Stew art County, TN
                         Montgomery County, TN                  Clarksville-Hopkinsville MSA

                                          Source: U.S. Census Bureau


An analysis of population growth indexed from 1995 shows clearly how Hopkinsville
and Christian County’s populations diverged from the Clarksville MSA, Kentucky
and the U.S. in the previous decade.

                                   Population Growth Index, 1995-2004

       120
       115
       110
       105
       100
        95
        90
        85
        80
              1995       1996      1997        1998      1999      2000     2001   2002        2003    2004

             Hopkinsville          Christian           Clarksville MSA        Kentucky          United States

                                           Source: U.S. Census Bureau




Competitive Realities                                                                                           17
September 2005
As shown by the following table, active-duty military personnel at Fort Campbell and
armed-services veterans are a large and important component of the local population.
Over 3 out of every 10 adults in Christian County is either a current serviceperson or
veteran. Addressing the needs of this key population group is an important element
of current and future local policy.

         Armed Forces Status for Adults 18 and Over, 2000: Hopkinsville, Christian Co.,
                      Clarksville MSA, Montgomery Co., Kentucky, U.S.
                                Christian Clarksville,           Montgomery
     Status    Hopkinsville                                                 Kentucky             U.S.
                                  Co.     TN-KY MSA                Co., TN
    In Armed
    Forces               2.7%         18.8%            14.8%                 12.7%       0.6%     0.5%
    Veteran             16.2%         13.6%            17.9%                 20.3%      12.5%    12.6%
                                       Source: U.S. Census Bureau

Federal government decisions to relocate Fort Campbell personnel to other military
bases, or from other bases to Fort Campbell, have an impact on Hopkinsville-
Christian County’s population trends. As discussed, Christian County lost 2.2
percent of its population, or 1,616 people, from 2000 to 2004. For the time period
from fiscal years 2001 to 2004, the Fort Campbell military and civilian employee
population decreased by 15.3 percent. Adding to that impact are the spouses and
children that relocate with the military and civilian employees.

       Military and Civilian Personnel at Fort Campbell, Kentucky, Fiscal Years 2001-2005
                                                                               Annual %
               Fiscal
                         Military      Civilian     Other5       Total         Change in
                Year
                                                                                 Total
               2001       23,496          2,964       4,008      30,468
               2002       23,266          3,024       4,254      30,544                0.2%
               2003       23,242          1,972           0      25,214              -17.5%
               2004       21,443          1,993       2,381      25,817                2.4%
               2005       28,753          2,031       2,611      33,395               29.4%
                                                                         6
                                    Source: U.S. Department of Defense


With the increase in military personnel by almost 30 percent from 2004 to 2005,
Hopkinsville-Christian County will likely have a noticeable impact when the U.S.
Census Bureau releases 2005 population estimates.

President Bush’s announced in September 2005 his concurrence with the Base
Realignment and Closure Commission’s (BRAC) report of recommended base
closings and realignments for the U.S. Military. Congress is currently reviewing this
most recent wave of recommended base closings. In the Commission’s report, Fort

5
  Other includes non-appropriated employees, government contractors (if identified) or foreign nationals
working at the site.
6
  U.S. Department of Defense Base Structure Reports for fiscal years 2001-2005. Accessed 20
September 2005. http://www.acq.osd.mil/ie/irm/index.html.




Competitive Realities                                                                                 18
September 2005
Campbell will remain open, but it will have a net loss of 360 military personnel and
net gain of nine civilian personnel as part of the list of recommendations. This, and
future military base realignments, will continue to impact population trends in the
                                     7
Hopkinsville-Christian County area.



COMPONENTS OF POPULATION CHANGE
This section analyzes the type of population change experienced in Hopkinsville-
Christian County during the key period from 2000 to 2004, when the local
population fell at the same time Clarksville MSA regional counties, the state and
nation added residents.

Population change can be attributed to three factors: natural change (births minus
deaths), net international migration, and net domestic migration.

                           Components of Population Change, 2000-2004:
                            Christian County, Kentucky, and United States
              100%
                                                       21.3%
               80%                                                             43.6%
                                                       21.5%
               60%
                              0.9%
               40%
                                                       57.1%                   56.4%
               20%           41.4%

                0%

               -20%
                             -57.8%
               -40%

               -60%
                         Christian County             Kentucky              United States
                         Natural Change     Net International Migration Net Domestic Migration

                                          Source: U.S. Census Bureau


The previous chart graphically demonstrates the population change dynamics of
Christian County compared to Kentucky and the U.S. Not only did the County
experience far less growth from immigration and natural change than the state or
nation, but nearly 60 percent of the County’s change was attributable to persons
leaving the area for other domestic communities. The 4,651 military personnel and
civilian employees, and their families, which were relocated from Fort Campbell

7
    Base Realignment and Closure, 2005. U.S. Department of Defense. http://www.defenselink.mil/brac/




Competitive Realities                                                                             19
September 2005
between fiscal years 2001 and 2004, were a contributing factor to this negative net
domestic migration figure.

As shown in the following graph, Christian County’s domestic population loss
contributed to the overall net domestic population loss for the Clarksville MSA.
Trigg, Montgomery and Stewart Counties, combined, saw their population grow from
both international and domestic migration, in addition to births-over-deaths.

         Components of Population Change, 2000-2004: Clarksville-Hopkinsville MSA
                                   and Metro Counties
                                                        17.8%
      100%

       80%                                                        6.7%
                                                                                       4.2%

       60%
                         0.9%
       40%                                              75.4%
                                                                                       67.7%
       20%               41.4%

        0%

      -20%
                        -57.8%
                                                                                      -28.2%
      -40%

      -60%
                  Christian County, KY           Other MSA Counties         Clarksville-Hopkinsville, TN-
                                                                                       KY MSA
                        Natural Change      Net International Migration   Net Domestic Migration

                                         Source: U.S. Census Bureau



Migration Patterns
Migration data can help determine the underlying dynamics of population growth
and/or decline. Analysis provides information on the source of in-migration and
destinations for out-migration.

The following map illustrates the net migration to and from Christian County from
2002 to 2003, according to returns filed to the Internal Revenue Service.




Competitive Realities                                                                                       20
September 2005
             Net Migration to and from Hopkinsville-Christian County, 2002-2003




                                Source: Internal Revenue Service
                                                                          Legend


The majority of population gains to Hopkinsville-Christian
County came from Montgomery County, Tennessee, in the
Clarksville MSA, and Todd County just east of Christian.

Hopkinsville-Christian County’s highest population losses in the
roughly 60-mile radius area around it were to the Bowling Green,
Owensboro and Nashville Metro areas, in addition to adjacent
Trigg County.

As discussed previously, the dynamics of population change in Hopkinsville-
Christian County are clearly influenced by the large presence of military personnel in
the community both at, and affiliated with, Fort Campbell.

As the following tables show, the area’s greatest population losses and gains – to a
large extent – were to/from destinations with equally significant military populations.
These include communities scattered far and wide across the United States,
including those in Hawaii; Alaska; Maryland; Kansas; California; Illinois; Missouri;
Texas; and New York.




Competitive Realities                                                                21
September 2005
        Top Ten Counties of Net Migrants to Hopkinsville-Christian County, 2002-2003
                  County                          Metropolitan Area              Total
          Geary County, KS             Manhattan, KS (Micro Area)                   40
          Montgomery County,
          TN                           Clarksville-Hopkinsville, TN-KY MSA          36
          Harford County, MD           Baltimore-Towson, MD MSA                     33
          Todd County, KY              (non-metro)                                  32
          Kern County, CA              Bakersfield, CA MSA                          27
          Lake County, IN              Chicago-Naperville-Joliet, IL-IN-WI MSA      24
                                       Nashville-Davidson--Murfreesboro, TN
          Sumner County, TN            MSA                                          24
          Jefferson County, NY         Watertown-Fort Drum, NY (Micro Area)         22
          Pinellas County, FL          Tampa-St. Petersburg-Clearwater, FL MSA      20
          Allegheny County, PA         Pittsburgh, PA MSA                           19
                                  Source: Internal Revenue Service


      Top Ten Counties of Net Migrants from Hopkinsville-Christian County, 2002-2003
                    County                          Metropolitan Area            Total
          Honolulu County, HI            Honolulu, HI MSA                          -173
          Cumberland County, NC          Fayetteville, NC MSA                      -121
          Muscogee County, GA            Columbus, GA-AL MSA                       -101
          Fairbanks North Star, AK       Fairbanks, AK MSA                          -86
          Bell County, TX                Killeen-Temple-Fort Hood, TX MSA           -86
          Pulaski County, MO             Fort Leonard Wood, MO, MSA                 -82
          Trigg County, KY               Clarksville-Hopkinsville, TN-KY MSA        -78
                                         Washington-Arlington-Alexandria, DC-
          Fairfax County, VA             VA-MD-WV MSA                               -71
          Anchorage Borough, AK          Anchorage, AK MSA                          -64
          Bexar County, TX               San Antonio, TX MSA                        -64
                                     Source: Internal Revenue Service



Age Distribution
An area’s age composition can also affect that community’s competitiveness in the
eyes of companies and site-selection professionals. For example, a high percentage of
adults aged 18 to 69 reflects that community’s large available workforce. However, if
the community’s percentage of working-age adults is decreasing over time, then a
location consultant might assume that adults are leaving the community for other
localities.

The following charts display the age-group dynamics of Christian County, Kentucky
and the U.S. in 1990 and 2003.




Competitive Realities                                                                     22
September 2005
                  Age Distribution, 1990: Christian County, Kentucky, and U.S.

     100%
                        9.9%             12.7%                10.7%
      90%
                        6.7%
                                         8.8%                 7.3%
      80%               7.8%                                                     65 and over
                                         10.4%                8.7%
      70%               12.0%                                                    55 to 64
      60%                                14.9%                12.9%              45 to 54
                        19.7%                                                    35 to 44
      50%
                                         16.6%                14.8%              25 to 34
      40%
                        13.7%                                                    20 to 24
                                         7.5%                 6.5%
      30%                                                                        15 to 19
                        7.7%             7.7%                 6.1%
      20%                                                                        14 and Under

      10%               22.5%            21.5%                18.4%

       0%
                    Christian           Kentucky              U.S.


                                       U.S. Census Bureau


                  Age Distribution, 2003: Christian County, Kentucky, and U.S.

     100%
                        10.1%             12.4%                12.4%
      90%
                        6.9%
                                          10.2%                 9.6%
      80%               9.6%
                                                                                   65 and Over
      70%                                 14.4%                14.0%
                        12.4%                                                      55 to 64
      60%                                                                          45 to 54
                                          15.1%                15.3%
                        17.8%                                                      35 to 44
      50%
                                                                                   25 to 34
      40%                                 13.7%                13.7%
                        10.3%                                                      20 to 24

      30%                                 7.2%                  7.1%               15 to 19
                        6.5%
                                          6.8%                  7.0%               14 and Under
      20%
                        26.4%
      10%                                 20.1%                20.9%

       0%
                    Christian            Kentucky               U.S.


                                       U.S. Census Bureau


In both years, Christian County has larger percentages of its population than
Kentucky or the U.S. in the 14 and under, 20 to 24, and 25 to 34 age groups, but has
lower percentages in the prime working-age groups of 35 to 44, 45 to 54, and 55 to 64.




Competitive Realities                                                                            23
September 2005
These population dynamics again seem to reflect Hopkinsville-Christian County’s
large military population, with high percentages of 20 to 35 year olds and 14-and-
under children potentially reflecting the presence of enlisted personnel, their spouses
and children.

However, the comparative lack of working-age adults in Christian County compared
to the state and nation may reflect negatively on the community’s available labor
force.

Changes in the age-group dynamics of Christian County, Kentucky and the U.S. from
1990 to 2003 are reflected in the following chart.

              Percent Change in Age Categories as a Percent of the Total Population,
                        1990 - 2003: Christian County, Kentucky, and U.S.

       70%

       60%

       50%

       40%

       30%

       20%

       10%

         0%

       -10%

       -20%

       -30%
                  14 &    15-19       20-24       25-34     35-44    45-54   55-64   65 and
                 Under                                                                Over

                                  Christian          Kentucky       U.S.

                                              U.S. Census Bureau


Despite a high percentage of residents ages 20 to 24, the previous chart shows that
this group has dropped noticeably in terms of its percentage of the overall
Hopkinsville-Christian County population. Conversely, the fast growing 14 and
under population in the community is confirmed by its nearly 20 percent rise in
relative percentage of the population from 1990 to 2003.

A potentially troubling trend for Christian County is the comparatively slow growth of
its prime working-age population from 25 to 64. Compared to state and national
figures, Christian County’s percentage of working-age adults has either fallen, or
grown much slower than Kentucky and U.S. equivalents.




Competitive Realities                                                                         24
September 2005
Race and Ethnic Composition
Another important demographic indicator is a community’s relative racial and ethnic
composition. Trends in the demographic make-up of an area affect voting patterns,
provision of services, and education and workforce training dynamics.

As the following graph demonstrates, Christian County became a more diverse
community from 1990 to 2003.

      Race and Ethnic Composition, 1990 to 2003: Christian County, Kentucky, and U.S.8

       100%        1.7%               4.3%            0.6%              2.1%          3.6%          6.2%
                          3.4%                        7.1% 0.6%
        90%
                                             4.5%                       7.5% 1.7%     9.0%
                                                                                                    13.7%
        80%       24.2%                                                              11.7%
                                  25.4%
                                                                                                    12.2%
        70%
        60%
        50%
                                                      91.7%         88.7%
        40%                                                                          75.6%
                  70.7%           65.8%                                                             67.9%
        30%
        20%
        10%
         0%
                   1990               2003            1990              2003          1990          2003

                          Christian                          Kentucky                        U.S.

                                              White      Black      Hispanic        Other


                                             Source: U.S. Census Bureau


With a nearly 35 percent minority population, Hopkinsville-Christian County is a
diverse community. The diversity can be a source of strength for the community, if
everyone in the community is valued equally and no one is excluded from educational
and economic opportunities.




8
 Hispanic is considered an ethnicity, not a race; therefore, the U.S. Census Bureau tabulates Hispanic
origin data separately from race data. In this chart, the White, Black, and “Other” categories include
only non-Hispanics, and Hispanic includes all persons of Hispanic origin regardless of race. The
“Other” category includes persons of the following races: American Indian and Alaska Native, Asian,
Native Hawaiian and other Pacific Islander, and persons of two or more races.




Competitive Realities                                                                                       25
September 2005
Socioeconomics
Educational attainment, poverty, and teenage pregnancy are key indicators of the
general health, well-being, and future prospects of the population. In this section,
each will be analyzed to assess how Hopkinsville-Christian County compares to
regional, state and national averages.


EDUCATIONAL ATTAINMENT
The number and type of educational degrees obtained by a community’s population
is one of the most important criteria for assessing that area’s relative skill level and
capacity to perform many of today’s highest paying, most skill-intensive jobs. In
nearly every published report of a major corporate relocation or expansion, company
officials invariably say that the community’s educational attainment and skill levels
were among the most important variables that affected the firm’s location decision.

The following two charts demonstrate that Christian County adults over age 25 made
notable gains in educational attainment from 1990 to 2000, and now are competitive
with Kentucky and U.S. averages in certain categories. With approximately 1 in 5
adults in Christian County without a high school diploma, compared to about 1 in 4
in Kentucky, Christian County’s education attainment levels are competitive within
the commonwealth.

Compared to both Kentucky and the U.S., Christian County has a high percentage in
the some college and Associate’s degree categories. As more and more employers
require a two-year degree for employment, this also is a positive factor for Christian
County. However, the community does have lower percentages of adults with a four-
year or graduate degree than Kentucky or the nation.




Competitive Realities                                                                  26
September 2005
                     Educational Attainment for the Population Over 25 Years Old, 2000:
                               Christian County, Kentucky, and United States
          100%                 4.8%                          6.9%                         8.9%
            90%                7.7%
                                                             10.3%
                               7.1%                                                      15.5%
            80%                                              4.9%
                                                                                          6.3%
            70%                24.3%                         18.5%
            60%                                                                          21.0%
            50%
                                                             33.6%
            40%                33.4%
                                                                                         28.6%
            30%

            20%
                               22.8%                         25.9%
            10%                                                                          19.6%

               0%
                        Christian County, KY                Kentucky                  United States
                            No High School Diploma                      High School Diploma/Equivalent
                            Some College                                Associate's Degree
                            Bachelor's Degree                           Grad/Prof. Degree

                                               Source: U.S. Census Bureau


    The following data illustrate the positive trends that have occurred in Hopkinsville
    and Christian County’s educational attainment levels from 1990 to 2000. The
    percentage without a high school diploma has decreased at rates greater than the
    national average. Additionally, strong growth has occurred in all of the post-
    secondary degree attainment (and some college) categories.

            Percent Change in Educational Attainment for the Population Over 25 Years Old,
              1990 to 2000: Hopkinsville, Christian County and Comparison Geographies
                                                                   Other       Clarksville-
                                   Hopkinsville      Christian                                            United
Educational Attainment Level                                     Counties      Hopkinsville   Kentucky
                                      City            County                                              States
                                                                  in MSA          MSA

No High School Diploma                   -21.1%        -14.6%          -7.2%          -8.0%      -17.1%     -9.2%
High School Diploma/Equivalent             1.6%          -0.6%         31.6%         15.6%        19.9%      9.5%
Some College                              21.6%         22.1%          66.7%         49.2%        38.4%     28.8%
Associate's Degree                         8.6%         21.4%          74.6%         51.9%        36.9%     17.6%
Bachelor's Degree                         24.8%         26.6%          50.9%         46.4%        43.2%     35.9%
Grad/Prof. Degree                         14.9%       23.0%         75.6%            57.9%        41.6%     40.7%
                                             Source: U.S. Census Bureau




    Competitive Realities                                                                                 27
    September 2005
POVERTY
While the practice of economic development is concerned with the creation of local
jobs, it is also essential that these jobs pay wages that enable the population to live
comfortably and afford life’s essentials. High community poverty rates often lead to
strained social services infrastructure, poor job performance and employability, and
other realities that affect an area’s ability to compete for jobs and income.

As evidenced in the following chart, poverty rates in Christian County have been
improving for the past decade, a positive trend for the community’s future. It will be
important that the community’s lingering comparatively high poverty rate in 2002
(compared to neighboring counties, Kentucky, and the U.S.) continues to decline.

                        Poverty Rates for Total Population, 1993, 1997, 2002:
                         Christian County, MSA Counties, Kentucky, and U.S.
   25%

   20%
                  16.2%
                                                                             14.8%
   15%
                                 12.1%                         13.5%                    12.1%
                                                  11.3%
   10%

    5%

    0%
            Christian        Trigg       Montgomery       Stew art      Kentucky     U.S.

                                           1993       1997       2002

                        U.S. Census Bureau Small Area Income and Poverty Estimates


The childhood poverty rates in Christian County also declined from 1993 to 2002.
However, the County’s childhood poverty rates in 2002 are still above all the
comparison areas profiled in this report. Nearly 1 in 4 Christian County children
under 17 lives in conditions of poverty; this figure must be reduced if all County
residents are to enjoy a high quality of life, and have opportunities for economic
advancement as adults.




Competitive Realities                                                                           28
September 2005
                  Poverty Rates for Children (17 and Under), 1993, 1997, 2002:
                          Christian, MSA Counties, Kentucky, and U.S.
   30%
                  24.0%
   25%
                                                                            21.1%
   20%
                                 17.4%                        18.1%                         16.7%
                                                14.8%
   15%

   10%

    5%

    0%
            Christian        Trigg       Montgomery     Stew art       Kentucky      U.S.

                                           1993       1997      2002

                        U.S. Census Bureau Small Area Income and Poverty Estimates


Poverty rates are higher among the City and County’s Black or African-American
residents, as the following table shows.

                    Poverty Rates by Race and Ethnicity, 2000: Hopkinsville,
                               Christian County, Kentucky, U.S.
                                                        Christian
           Race or Ethnicity         Hopkinsville                 Kentucky           U.S.
                                                          Co.
         White                                  9.7%       11.5%     14.7%             9.1%
         Black                                 33.4%       26.8%     28.2%            24.9%
         Asian                                  0.0%       15.5%     12.4%            12.6%
         Hispanic or Latino                     3.8%        6.1%     25.0%            22.6%
         Some Other Race                       11.6%        5.7%     26.6%            24.4%
         Two or More Races                      8.1%       10.4%     23.9%            18.2%
                                         Source: U.S. Census Bureau


Hispanic or Latino residents, those of “other” races, and two or more races are all
significantly below the poverty levels of these groups in Kentucky and the U.S., but
that is not the case for White, Black, or Asian residents in Christian County.


TEENAGE PREGNANCY
In addition to increased provision of social services and assistance programs, another
common reality in high-poverty communities is an elevated percentage of teen
pregnancies. Throughout the decade of the 1990s, teenagers from 15 to 17 years old
had consistently higher pregnancy rates than similar age groups in Kentucky and the
U.S.




Competitive Realities                                                                               29
September 2005
                    Teen Births, 15-17 Year Olds (Rate per 1,000), 1990-2000:
                         Christian County, Kentucky, and United States

      70

      60

      50

      40

      30

      20

      10

        0
            1990    1991       1992   1993    1994    1995    1996     1997    1998      1999      2000

                                 Christian County       Kentucky         United States

                                Source: Kentucky Cabinet for Health Services


On a more positive note, births to Christian County mothers with less than a high
school education were below state and national averages from 1990 to 2000.

            Births by Mothers with Less than a High School Education, 1990-2000:
                        Christian County, Kentucky, and United States

     30%


     25%

     20%


     15%


     10%

      5%


      0%
             1990       1991   1992   1993    1994    1995      1996   1997    1998      1999      2000

                                      Christian      Kentucky          United States

             Source: National Center for Health Statistics; Kentucky Cabinet for Health Services




Competitive Realities                                                                                     30
September 2005
Updating these numbers to reflect births up to year 2002, the dynamics from 1990
2000 have continued, with teenage pregnancies in Christian County continuing to
trend above state figures. Mothers in Christian County also continue to be more
educated than mothers in the whole of Kentucky, and are also more likely to be
married.

                        Measures of Birth, Rates per 1000 Women, 1998-2002:
                                     Christian County, Kentucky
                                                           Christian
                                Category                              Kentucky
                                                            County
                Mother not a high school graduate                  18       22
                Mother is unmarried                                24       31
                Teen births to girls ages 15-17                    43       29
                Repeat births to girls ages 15-17                  26       21
                                   Source: Kentucky Kids Count 2004


High rates of teenage pregnancy, as noted earlier, restrict the ability of those young
women from entering the workforce and achieving desired levels of economic
prosperity.




Competitive Realities                                                                    31
September 2005
ECONOMIC PROFILE
The analysis of Hopkinsville-Christian County’s economy is divided into several key
parts: employment of the resident population, jobs created by local companies,
unemployment and labor force participation rates, commuting patterns, income,
economic structure, and entrepreneurial activity. The key indicators of each of these
categories will serve to develop an understanding of the area’s key economic
strengths, trends and challenges.


Labor Force
The labor force as defined by the U.S. Bureau of Labor Statistics in their Current
Population Survey is constituted by those persons 16 years and over in the civilian
non-institutional population either employed, or unemployed and looking for work.
Availability of a significantly large labor force is an important criterion for companies
looking to expand or relocate because they want to feel confident that potential
workers are available for new jobs created in a locality.

Christian County’s labor force grew slightly from 1995 to 2004, but at nearly half the
rate of Kentucky.

                        Labor Force, 1995 to 2004: Christian County, Kentucky
                                                 Christian
                                      Year                     Kentucky
                                                   Co.
                                    1995           25,838       1,860,896
                                    1996           26,966       1,880,267
                                    1997           27,315       1,912,591
                                    1998           27,168       1,920,292
                                    1999           27,730       1,944,384
                                    2000           26,366       1,953,154
                                    2001           26,358       1,957,166
                                    2002           25,884       1,949,646
                                    2003           25,903       1,979,004
                                    2004           26,532       1,973,944
                                  Change             2.7%           6.1%
    *Civilian non-institutional population 16 years and older employed, or unemployed and looking for work.
             **Data are from the Current Population Survey conducted for BLS by the U.S. Census.
                                      Source: U.S. Bureau of Labor Statistics


Maintaining strong growth in Hopkinsville-Christian County’s labor force will be
essential to ensure that the area’s available pool of workers is sufficient to meet the
demands of existing and future companies.




Competitive Realities                                                                                         32
September 2005
It is important to note that in 2004, Fort Campbell’s military and civilian
                               9
employment total was 30,433 – greater than Christian County’s entire non-
institutional labor force of 26,532. Clearly, Fort Campbell is a major factor affecting
Christian County’s demographics and economy.



Jobs and Employment
This section analyzes the job and employment growth in Hopkinsville-Christian
County’s adult population, as well as unemployment and labor force participation
rates to assess the size of the potential workforce compared to the number of
employment opportunities available to them.


     Index of Job Growth, 1994 – 2003: Christian County, Clarksville MSA, Kentucky, and U.S.

     130


     120


     110


     100


      90


      80


      70
            1994     1995    1996         1997     1998      1999     2000      2001          2002   2003

                              Christian          Clarksville MSA     Kentucky          U.S.

                                    Source: U.S. Bureau of Labor Statistics


Although the rate of job growth in Christian County rose when measured against a
base year figure in 1994, the County’s job growth rate trailed that of the U.S. and the
overall Clarksville MSA. However, Christian’s rate reached the state level in 2003, an
indication that the County’s economic development professionals continue to foster
consistent job growth in the community.

The following table lists Christian County’s top employers as of 2004. When Fort
Campbell is included, it is far and away the area’s largest employer.


9
    Source: Hopkinsville-Christian County Chamber of Commerce.




Competitive Realities                                                                                       33
September 2005
                              Major Employers in Christian County, 2004
                                                                                           # of
       Name of Employer                                  Product or Service
                                                                                         Employees
 Ft. Campbell Military Personnel   U.S. Military                                            26,500
 Ft. Campbell Civilian Personnel   U.S. Military                                             3,933
 Flynn Enterprises (3 locations)   Manufacturer of Blue Jeans & Jackets                      1,369
 Christian County Board of
 Education                         Education                                                 1,293
 Wal-Mart                          Distribution Center                                       1,262
 Jennie Stuart Medical Center      Health Care                                                 750
 Western State Hospital            Health Care                                                 650
 Dana Corporation                  Manufacturer of Automobile Frames                           632
 Wal-Mart                          Retail Store                                                510
 Grupo Antolin Kentucky            Manufacturer of Automobile Headliners                       497
                                   Manufacturer of Auto-chassis Assemblies, Suspension
 ThyssenKrupp Hopkinsville
                                   Components & Systems                                        460
 TGASK                             Manufacturer of Automotive Sealing                          340
 U.S. Smokeless Tobacco            Tobacco Processing                                          334
 White Hydraulics, Inc.            Manufacturer of Hydraulic Motors                            296
 City of Hopkinsville              Local Government                                            274
 Hopkinsville Community College    Education                                                   272
 CoPar, Inc. (Aluminum)            Manufacturer of Industrial Radiators                        265
 Freudenberg Nonwovens             Manufacturer of Non-Woven Textiles/Air Filtration           251
 Douglas Autotech                  Manufacturer of Automobile Steering Columns                 215
 Brazeway, Inc.                    Manufacturer of Appliance Heat Exchangers                   205
 Christian County Government       Local Government                                            188
 CoPar, Inc. (Copper/Brass)        Manufacturer of Industrial Radiators                        187
 Meritor                           Manufacturer of Torsion Bars & Stabilizer Bars              183
 Emhart Fastening Teknologies      Manufacturer of Blind Rivet Fasteners                       176
 Continental Mills                 Manufacturer of Bakery Products                             164
 Ebonite International             Manufacturer of Bowling Balls & Accessories                 160
 Mid-Continent Spring Co.         Manufacturer of Industrial Springs                           155
                                                                               10
                         Source: Hopkinsville-Christian County Commerce Center


As will be seen later in this report, Christian County’s employment base is also
heavily oriented towards health care, public sector, and manufacturing jobs.




10
  Hopkinsville-Christian County Commerce Center. Accessed 29 August 2005.
http://www.commercecenter.org/community/nonindustrial_employers.asp;
http://www.commercecenter.org/edc/local_industries.asp




Competitive Realities                                                                            34
September 2005
Unemployment Rates
Unemployment rates are measured by the government as the percentage of the labor
force (previously described) that is looking for work. It does not include those
individuals who have “dropped out” of the labor force; the reality of those persons will
be discussed later in this report.

               Annual Unemployment Rates: Christian County, Kentucky, and U.S.

   8.0%

   7.0%

   6.0%

   5.0%

   4.0%

   3.0%

   2.0%

   1.0%

   0.0%
           1995         1996   1997    1998      1999      2000      2001          2002   2003   2004

                                         Christian       Kentucky           U.S.


                                  Source: U.S. Bureau of Labor Statistics


After trending below state and national percentages, Christian County’s annual
unemployment rate began to rise in 1999, and now exceeds both the Kentucky and
U.S. figures. However, the County’s unemployment rate is not dangerously high,
nor so low as to indicate a potential labor shortage.




Competitive Realities                                                                                   35
September 2005
 Monthly Unemployment Rates, July 2003 – July 2005: Christian County, Kentucky, and U.S.
   12.0%

   10.0%

    8.0%

    6.0%

    4.0%

    2.0%

    0.0%
      M '04
      Ap '04




      M '05
      Ap '05
      O '03


      D '03
      J a '03




      O '04


      D '04
      J a '04
         g 3




         g 4




              5
      J u '04




      J u '05
      Fe '04




       J u 04




      Fe '05




       J u '05
      Se '03




      Se '04
      N '03




      M '04




      N '04




      M '05
      Au l '0




          l '0




          l '0
            '
         b




         b
        ar




        ar
         n




         n




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         n
        ov
        ec




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        ec
         p




         p
        ay




        ay
        ct




        ct
         r




         r
       Ju




      Au
                                        Christian       Kentucky         U.S.

                                   Source: U.S. Bureau of Labor Statistics


As the previous graph displays, Christian County’s monthly unemployment rate has
continued to trend very closely to state and national averages in the first half of 2005.


Labor Force Participation Rates
Labor force participation rates (LFPR) illustrate a broader picture than
unemployment rates alone. The LFPR measures the percentage of the potential
                           11
workforce (ages 20 to 69) that is active in the workforce, measured as those who are
employed or unemployed and actively searching for employment/receiving
unemployment insurance.

Therefore, the remaining percentage of the potential workforce equals those who are
not actively in the workforce because they retired early, raise children, or are
otherwise no longer in the labor force, often because there is no appropriate
employment opportunity available for them. Low labor force participation rates
suggest a larger underutilized workforce availability than unemployment rates alone
do.

Christian County’s LFPR, as demonstrated by the following chart, is well below state
and national rates. However, the participation rate of the County has increased
dramatically from 1990 to 2003, even as Kentucky and U.S. rates have declined.



11
   Ideally, labor force participation rates are measured based on a potential workforce ages 18 to 69, but
that was not possible due to how data were reported for 2003. Therefore, rates are measured for the
workforce aged 20 to 69.




Competitive Realities                                                                                    36
September 2005
   Labor Force Participation Rates, 1990 and 2003*: Christian County, Kentucky, and U.S.

   90%
                                                                                  80.5%    79.9%
                                                  76.2%
   80%
                                                           74.8%
                           68.2%
   70%
                 55.9%
   60%

   50%

   40%

   30%

   20%

   10%

    0%
                    Christian                        Kentucky                           U.S.

                                                    1990      2003


                                *Labor force is defined as adults aged 20 to 69
                         Sources: U.S. Bureau of Labor Statistics; U.S. Census Bureau


The low LFPR of Christian County is likely a result of the large military spouse
population that Christian County has, and the opportunity to address their
employment needs. For both military spouses and other working-age adults who are
not participating in the workforce, addressing their workforce development and job
search needs will improve overall County wealth, boost tax receipts, and address the
persistent issues of community poverty identified earlier in this report.


Commuting Patterns
Commuting patterns enhance the understanding of the dynamics of the present
workforce, and what measures may need to be taken to address significant in- or out-
commuting to Hopkinsville-Christian County. This section of the report will analyze
the average commuting times of the workforce, as well as workers’ means of
transportation to their places of employment.

As per the following table, the vast majority of Hopkinsville-Christian County
commuters ride to work in an automobile, truck or van. This figure is consistent
with Kentucky and U.S. averages. However, the City and County both have far fewer
workers traveling to their jobs on public transportation. Local availability of transit
services will be addressed later in this report.




Competitive Realities                                                                              37
September 2005
            Means of Transportation to Work, 2000: Hopkinsville, Christian County,
                               Clarksville MSA, Kentucky, U.S.
                                               Christian Clarksville,
           Means           Hopkinsville                               Kentucky       U.S.
                                                 Co.     TN-KY MSA
Car, truck or van                     93.9%       87.8%        91.9%     92.8%        87.9%
Public Transportation                  0.6%        0.6%         0.8%      1.2%         4.7%
Walked                                 2.3%        7.2%         3.8%      2.4%         2.9%
Other Means                            1.0%        1.3%         1.0%      0.7%         0.7%
Worked at Home                         1.7%        2.5%         2.1%      2.7%         3.3%
                                      Source: U.S. Census Bureau


Interestingly, over 7 percent of Christian County residents walk to work, a figure
nearly double the next highest percentage in the comparison geographic areas.

The amount of time workers are commuting to their places of employment may shed
light on potentially unsustainable local economic patterns. For example, increasingly
long commutes may indicate that there is an imbalance between where a particular
component of the workforce lives, and where the region’s jobs are being created.

    Travel Time to Work, 2000: Hopkinsville, Christian Co., Clarksville MSA, Kentucky, U.S.
    100%        1.7%           2.5%               2.1%             2.7%     3.3%
                3.9%           3.8%               6.7%             5.9%
                3.0%           3.7%                                         7.7%
     90%
                7.2%                              6.8%             8.3%
                               7.6%
                                                                            10.4%
     80%       10.3%                              11.7%
                                                                   14.0%
                              15.2%
     70%                                                                    15.3%


                                                  21.3%                                 Worked at home
     60%                                                           20.4%
                                                                                        Over 60 minutes
                                                                            19.6%       40 to 59 minutes
     50%       50.0%                                                                    30 to 39 minutes
                              43.0%                                                     20 to 29 minutes
                                                                                        10 to 19 minutes
     40%
                                                                                        Under 10 minutes
                                                  36.5%            33.2%
     30%                                                                    29.8%


     20%


               23.9%          24.2%
     10%
                                                  14.9%            15.6%    13.9%

     0%
            Hopkinsville   Christian Co.    Clarksville, TN-KY   Kentucky   U.S.
                                                  MSA

                                           Source: U.S. Census




Competitive Realities                                                                         38
September 2005
The workforce in Hopkinsville and Christian County takes significantly less time to
reach their jobs than workers in the overall Clarksville MSA, Kentucky and the U.S.
This would indicate that there is not a high relative level of out-commuting by
Hopkinsville-Christian County residents to employment centers in the Clarksville,
Bowling Green, or Nashville regions


Income
Income levels are important to analyze to determine the overall wealth of the
community. This section studies per capita income, average annual wages, as well as
income distributional data for Hopkinsville-Christian County and the United States.


PER CAPITA INCOME
Per capita personal income represents the total incomes received by a member of a
community’s population per year. The figure is an important measure of local wealth
and buying power, and, coupled with an assessment of an area’s cost of living,
provides insight into the potential availability of local discretionary income. “Real”
per capita income (RPCI) has been indexed to the annual Consumer Price Index to
account for the effect of inflation on this measurement.

                               Real Per Capita Income: 1994 to 2003
     $35,000
     $30,000
     $25,000
     $20,000
     $15,000
     $10,000
      $5,000
           $0
                 1994   1995     1996   1997    1998    1999     2000     2001   2002   2003

                        Christian Co.                        Clarksville, TN-KY MSA
                        Kentucky                             United States
                               Source: U.S. Bureau of Economic Analysis


Christian County’s real per capita income rose over the 10 years from 1994 to 2003,
only trailing the state and metro figure by under $1,000. In 2003, Christian County’s
per capita income was $24,464, compared to $31,472 in the nation. While still well
below the U.S. average, Christian County’s RPCI has nevertheless shown notable
gains. However, with its high poverty figures, as noted earlier in this report,
Hopkinsville-Christian County appears to have a divide between low and high-
income persons.



Competitive Realities                                                                          39
September 2005
AVERAGE ANNUAL WAGE

Christian County’s real average annual wage compares even more favorably to the
state and metro average than its income figure. Christian County’s average wages in
2003 were nearly $33,000 per job, trailing only the U.S. figure of $37,130 per job.

                           Real Average Annual Wage: 1994 to 2003
   $40,000
   $35,000
   $30,000
   $25,000
   $20,000
   $15,000
   $10,000
     $5,000
         $0
                1994    1995   1996     1997    1998     1999    2000     2001   2002   2003

                        Christian Co.                        Clarksville, TN-KY MSA
                        Kentucky                             United States
                               Source: U.S. Bureau of Economic Analysis




DISTRIBUTION OF I NCOME
Analyzing the components of a population’s income can provide insight into the
dynamics of a community’s wealth base and philanthropic potential, and the amount
of financial resources that might be available to fund local economic and community
development efforts.

The following chart illustrates the percentage of total personal income represented by
transfer payments in the community as compared to Kentucky and the U.S. from
1994 to 2003. Transfer payments are obtained from government assistance
programs such as Social Security, federal retirement, Medicare, and Temporary
Assistance for Needy Families (TANF, the federal welfare program).




Competitive Realities                                                                          40
September 2005
      Percent of Total Personal Income Derived from Transfer Payments, 1994 to 2003:
                              Christian County, Kentucky, U.S.

   20.0%
   18.0%
   16.0%
   14.0%
   12.0%
   10.0%
    8.0%
    6.0%
    4.0%
    2.0%
    0.0%
             1994       1995   1996   1997    1998    1999    2000    2001     2002   2003

                                Christian County         Kentucky           U.S.

                                 Source: U.S. Bureau of Economic Analysis


While Christian County residents derive slightly more of their income from transfer
payments than the U.S. population, the County figure is well below the state
percentage.

 Percent of Total Personal Income Derived from Dividends, Interest and Rent, 1994 to 2003:
                              Christian County, Kentucky, U.S.


   24.0%
   22.0%
   20.0%
   18.0%
   16.0%
   14.0%
   12.0%
   10.0%
             1994       1995   1996   1997    1998    1999    2000    2001     2002   2003

                                  Christian Co.        Kentucky         U.S.

                                 Source: U.S. Bureau of Economic Analysis


The previous graph displays the percentage of Christian County’s income derived
from dividends, interest and rent from investments in various financial instruments
and personal property. The relative percentages for this measure of income for
Christian County, Kentucky and the U.S. converged from 1994 to 2003 to the point
that they are nearly equal.



Competitive Realities                                                                        41
September 2005
Economic Structure
The strengths and weaknesses of Hopkinsville-Christian County’s economy and their
affect on community needs can be assessed by studying the area’s economic structure
in terms of the following indicators: largest employers in the economy, the
distribution of employment by business sector, location quotients, and average
annual wages by sector.

A comparison of the Christian County and U.S. economies found in the following
two charts presents in clear detail the vast differences between the two areas’ job
structures.

                        Jobs by Business Sector, 1970-2000: Christian County
   100%
                                                                            Gov't & govt. enterprises
    90%
                                                                            Services
    80%
                                              54.6%          54.2%          Finance, insurance, & real
    70%       61.2%            60.3%
                                                                            estate
    60%                                                                     Retail trade

    50%
                                                                            Wholesale trade
    40%                                       14.0%          15.0%
              10.2%            11.6%                                        Transportation & public utilities
    30%                                       2.7%           2.3%
               2.9%            3.4%
                                              9.8%           9.4%
    20%        8.8%            9.0%                                         Manufacturing
                        1.7%                          2.8%           2.1%
                                       2.5%                          2.0%
                        2.3%           1.9%           1.6%
    10%                                       11.1%          11.6%          Construction
               9.8%            8.4%
     0%        2.5%            2.3%           2.5%           2.9%
               1970            1980           1990           2000

                                 Source: U.S. Bureau of Economic Analysis


While Christian County jobs from 1970 to 2000 have overwhelmingly been in the
government and government enterprises sector (a result of the presence of Fort
Campbell in the region, as well as traditional public-sector government employment),
the U.S. percentages in this category have decreased from nearly 18 percent, to only
14 percent of the national economy. This is a stark contrast to Christian County,
where 1 of every 2 jobs in 2000 was government-based.

The national shift from manufacturing employment to larger percentages of service
sector and retail employment is also not similarly reflected in Christian County’s
economy. The County’s manufacturing job base actually increased from 1970 to
2000, a situation not repeated in most U.S. communities. While services jobs did




Competitive Realities                                                                                           42
September 2005
increase in Christian County during this period, the County’s retail sector grew at a
much slower rate than the national figure.

                         Jobs by Business Sector, 1970-2000: United States
   100%
                                                                            Gov't & govt. enterprises
                               17.0%          15.6%          14.0%
    90%       18.4%
                                                                            Services
    80%

    70%       19.5%            22.6%                                        Finance, insurance, & real
                                              28.4%          32.4%
                                                                            estate
    60%        7.0%                                                         Retail trade
                               7.9%
    50%                                       7.9%
              15.7%                                          8.1%
                                                                            Wholesale trade
                               16.2%
    40%                                       16.8%
                        4.8%                                 16.6%
                                       5.2%                                 Transportation & public utilities
    30%                 5.6%                          4.9%
                                       5.1%                          4.6%
    20%                                               4.8%                  Manufacturing
              22.5%                                                  5.0%
                               18.8%          14.5%
    10%                                                      11.7%
                                                                            Construction
               5.0%            5.1%           5.3%           5.8%
     0%
               1970            1980           1990           2000

                                 Source: U.S. Bureau of Economic Analysis


In the year 2001, the United States economic monitoring agencies changed the way
in which they measure the economy. This switch from a system based on SIC codes
to one featuring so-called NAICS codes increased the level of measurement detail for
each economic sector, and added employment categories designed to reflect the
nation’s switch to a high-tech, high-skill economy. Additionally, the NAICS-based
employment counts do not include sworn military personnel, as the two previous
SIC-based charts do.

As a result, the following chart – using a NAICS-based measurement system – would
seem to indicate that the large government and government enterprises employment
from 1970 to 2000 in Christian County and the U.S. fell dramatically. In actuality,
the renamed Public Administration sector not only no longer includes the sizable
number of sworn military personnel based at Fort Campbell, but also certain other
government employees are now distributed into other appropriate NAICS sectors (for
example, public school teachers are included in educational services, and persons
                                                                        12
employed by government-owned hospitals are included in health care).


12 In the NAICS-based system, Public Administration includes employees of the following government
entities: executive, legislative, and other general government support offices; justice, public order, and
safety activities; administration of human resource, environmental quality, housing, urban planning,
community development, and economic programs; space research and technology; and national security
and international affairs.




Competitive Realities                                                                                           43
September 2005
              Jobs by Business Sector, 2004: Christian County, Kentucky, and U.S.13

     100%
                    7.1%                  5.3%                  6.2%            Public administration
                    3.1%                           2.7%         3.8%
     90%                                                                        Other services
                    8.3%                  8.5%                  9.3%
                               1.7%                                             Accommodation & food services
     80%                                           1.2%                1.9%
                                                                                Arts, entertainment, & recreation
                    13.4%                13.2%
     70%                                                       13.7%
                                                                                Health care & social assistance
                               1.6%
     60%            9.1%                  9.3%                                  Educational services
                                                               10.0%
            2.7%               1.1%                                             Administrative & w aste services
                                          5.3%
     50%                       1.1%                1.1%         6.9%
                                          3.9%                         1.9%     Real estate & rental & leasing
                    16.1%                          1.8%         5.1%
     40%                                                               2.8%     Finance & insurance
                                         12.6%
                    3.3%                                                        Information
     30%                                                               11.9%
                                          4.4%                                  Retail trade
     20%                                                        4.9%
                    27.6%                                                       Wholesale trade
                                         15.5%                 12.5%
     10%                                                                        Manufacturing

                               2.5%       4.9%                  6.2%            Construction
      0%
                   Christian            Kentucky                U.S.


                                      Source: U.S. Bureau of Labor Statistics


The previous chart – based on a NAICS system of measurement – includes the
additional employment categories created to provide a more accurate picture of local,
state and national economic structures. In this chart, Christian County’s high
percentage of government employment is still reflected in the large size of its public
administration sector compared to Kentucky and the U.S., while other dominant local
sectors like manufacturing and administrative and waste services are also clearly
displayed.

The percentage of Christian County’s job base made up of manufacturing
employment is especially high compared to the state and nation; Christian’s figure is
more than double the national percentage, and nearly double the state figure. While
the national manufacturing sector has been shrinking in the post-NAFTA years, this
has clearly not been the case in Christian County.


LOCATION QUOTIENTS
An important quantitative term used in this report is location quotient (LQ). A
location quotient is a ratio representing the strength of a particular local business
sector in relation to the national average. It is represented formulaically as:




13
 The following sectors were not included because they were non-disclosed or represented less than one
percent in Christian County: Agriculture, forestry, fishing, and hunting; Mining; Utilities;
Transportation and Warehousing; Professional and technical services; Management of companies and
enterprises; and Unclassified establishments.




Competitive Realities                                                                                              44
September 2005
                         (Local Employment in Sector/Total Local Employment)
LQ =
                   (National Employment in Sector/Total National Employment)

If a location quotient is greater than 1.00, the area has a larger share of employment
in that sector than the nation. The higher the LQ, the more concentrated the level of
local employment compared to its U.S. equivalent. LQs provide insight into a
community’s economic structure in terms of its comparative strengths and its level of
economic diversity. LQs greater than 1.00 suggest sectors for which the economy has
developed strength, indicating a possible comparative advantage that can potentially
be further leveraged by targeting these, or related, sectors for expansion and growth.

Conversely, if a location quotient is less than 1.00, this indicates a smaller local share
of employment than the nation. Just because a sector has a location quotient below
1.00 does not preclude it from being a target business cluster for the community.
Similarly, a LQ over 1.00 does not automatically mean the community should aim for
that sector. A number of factors, including national trends, local support services,
and regional clusters, contribute to the viability of a local business sector.

        Location Quotients by Business Sector, 2004: Christian County and Kentucky14
                                                       Christian County                   Kentucky
          Business Sector                                 % Change in
                                          Jobs ('04)                           LQ ('04)   LQ ('04)
                                                          Jobs ('01-'04)

 Construction                                599             -16.9%             0.40        0.79
 Manufacturing                              6,648             4.2%              2.21        1.25
 Wholesale trade                             797              -4.3%             0.67        0.89
 Retail trade                               3,887             -0.2%             1.36        1.06
 Transportation & warehousing                108              -6.1%             0.10        1.14
 Information                                 274                *               0.40        0.65
 Finance & insurance                         653              10.3%             0.53        0.77
 Real estate & rental & leasing              265              38.0%             0.59        0.62
 Professional & technical services            46             -94.7%             0.03        0.57
 Administrative & waste services            2,182             53.3%             1.31        0.77
 Educational services                        374             113.7%             0.16        0.93
 Health care & social assistance            3,220             7.4%              0.97        0.96
 Arts, entertainment, & recreation           405              1.8%              0.86        0.59
 Accommodation & food services              2,006             6.3%              0.89        0.91
 Other services                              754              38.3%             0.83        0.70
 Public administration                      1,707            -27.0%             1.14        0.85
 Total, All Sectors                        24,085             2.4%               n/a        n/a
                                     Source: U.S. Bureau of Labor Statistics



14
   The following sectors were not included because they were non-disclosed: Agriculture, forestry,
fishing, and hunting; Mining; Utilities; Management of companies and enterprises; and Unclassified
establishments.




Competitive Realities                                                                                45
September 2005
Christian County location quotients above 1.0 are reflected in the previous chart by
the shaded rows. As was noted in the analysis of jobs by sector, Christian County’s
manufacturing sector is the area’s largest when compared to the national figure.
Retail trade, administrative and waste services, and public administration (again,
reflective of civilian government employment, but not sworn military officers) are all
larger components of the County’s economy than their equivalents at the national
level.

Both a challenge and an opportunity for Christian County are the area’s low relative
employment concentrations in the high-paying categories of transportation and
warehousing, information, finance and insurance, and professional and technical
services. These jobs routinely pay well above the local average wage, and can
significantly raise wealth and per capita incomes if their numbers are increased in
the local economy.


WAGES BY SECTOR
Average annual wages by sector are key indicators of the quality of the employment
opportunities in Hopkinsville Christian County, and can provide the means by which
business sector targets are chosen to help raise community income levels.

            Average Annual Pay by Business Sector, 2004: Christian County and Kentucky15
                                                             Christian County                 Kentucky
              Business Sector                                 % Change in     Avg. Pay as %
                                              Avg. Pay                                        Avg. Pay
                                                               Avg. Pay        of Kentucky
                                                (’04)                                           (’04)
                                                                ('01-'04)          ('04)
     Construction                                 $29,386             -4.6%           85.3%     $34,453
     Manufacturing                                $37,740             10.5%           87.3%     $43,231
     Wholesale trade                              $36,506             16.6%           81.1%     $44,997
     Retail trade                                 $19,729             13.0%           94.5%     $20,874
     Transportation & Warehousing                 $45,388             17.8%          104.6%     $43,371
     Information                                  $27,810             83.6%           75.6%     $36,774
     Finance & insurance                          $34,188              7.9%           74.1%     $46,134
     Real estate & rental & leasing               $16,899              5.2%           63.0%     $26,835
     Professional & technical services            $33,042             -0.8%           72.3%     $45,686
     Administrative & waste services              $21,798             34.3%          106.6%     $20,457
     Educational services                         $38,471             47.1%          122.5%     $31,404
     Health care & social assistance              $27,983             10.6%           81.3%     $34,417
     Arts, entertainment, & recreation            $14,457              5.8%           77.8%     $18,587
     Accommodation & food services                  $9,997             0.5%           82.3%     $12,140
     Other services                               $22,396             25.1%           95.0%     $23,581
     Public administration                        $40,421            18.9%           112.1%     $36,070
     Total, All Sectors                           $29,238            11.0%            88.2%     $33,135
                                         Source: U.S. Bureau of Labor Statistics

15
 These sectors were not included because they were non-disclosed: Agriculture, forestry, fishing, and
hunting; Mining; Utilities; Management of companies/enterprises; and Unclassified establishments.




Competitive Realities                                                                                     46
September 2005
The sectors in which Christian County’s average wages are above Kentucky’s figures
are indicated in the previous table by the shaded columns. The County is fortunate
in that two of its largest sectors – manufacturing and public administration – both
pay well above Christian’s overall average wage. However, as noted in the previous
section of this report, diversifying Christian County’s economy with increases in
high-wage sectors such as information, finance and insurance, and professional
services will raise local average incomes, and also protect the local economy against
losses in manufacturing employment, which has proven to be especially vulnerable to
low-cost foreign competition in the new global economy.


EXISTING BUSINESS GROUPINGS
The following sections focus on two of Christian County’s largest and most
important economic sectors: manufacturing and agriculture.

Manufacturing
As has been noted in this report, manufacturing is the largest employment sector in
Hopkinsville-Christian County, with nearly 30 percent of all jobs found in this
category. This section will take a closer look at the components of the local
manufacturing sector to better understand its dynamics.

                       Manufacturing Sub-Sector Key Data16, 2004: Christian County
                                                                                           %
                                                                          % of                                  Avg.
                                                                                       Change       Location
                 Business Sub-Sector                         Jobs         Total                                Annual
                                                                                       in Jobs      Quotient
                                                                          Mfg.                                  Pay
                                                                                       ('01-'04)
     Transportation equipment                                  2,020        30.4%          7.8%         5.03   $45,567
     Machinery                                                   923        13.9%         11.7%         3.62   $41,500
     Fabricated metal product                                    587         8.8%         -8.7%         1.75   $40,657
     Food                                                        241         3.6%         11.6%         0.72   $38,075
     Primary metal                                               154         2.3%         20.3%         1.47   $37,841
     Nonmetallic mineral product                                 153         2.3%        -22.3%         1.37   $40,049
     Chemical                                                    112         1.7%            n.d.       0.57   $43,551
     Wood product                                                   55       0.8%        -45.0%         0.45   $18,086
     Furniture & related product                                    18       0.3%        -83.5%         0.14   $19,260
     Printing & related support activities                          14       0.2%        -79.7%         0.09   $17,701
     Other Manufacturing (details not disclosed)               2,371        35.7%        -60.5%         2.22       n.d.
     Total, All Manufacturing                                 6,648         100%           4.2%         2.07   $37,740
                                             Source: U.S. Bureau of Labor Statistics




16
 Note: “Other Manufacturing” includes Flynn Enterprises, manufacturer of blue jeans and jackets,
which employs 1,369, according to the Hopkinsville-Christian County Commerce Center




Competitive Realities                                                                                            47
September 2005
With a number of automotive parts manufactures in the community, the
transportation equipment sub-sector is Christian County’s largest, with over 30
percent of total manufacturing employment. Its high LQ confirms this high
concentration. Machinery and fabricated metal product manufacturing are the next
two largest sectors. Of the top three sub-sectors, only fabricated metal product
manufacturing lost employment from 2001 to 2004.

Notably, the three largest manufacturing sub-sectors are also three of the highest
paying categories in the sector – a positive trend for Hopkinsville-Christian County,
and a reason why the community’s comparative wages are above those of Kentucky
and a number of neighboring counties.

A potentially vulnerable manufacturing sub-sector is “other manufacturing,” which
includes Flynn Enterprises, a manufacturer of blue jeans and jackets and employer of
over 1,300 in Christian County. The company supplies jeans to Canyon River Blues
Corporation, which are then sold and distributed through Sears. Textile and apparel
manufacturers have been among the most vulnerable to foreign price competition,
and are struggling to survive all across the country.

Agriculture
As a traditionally agriculturally-based community, Christian County still contains a
large and active agricultural sector that contributes greatly to the dynamism of the
local economy and the expansion of area wealth. From a historical base in tobacco
production, local growers have, over the years, gradually embraced the “value-added”
movement in agriculture, embracing crops like cantaloupe and corn used to produce
ethanol.

The mild weather of Christian County’s central U.S. location allows local farmers to
squeeze three crops into two years worth of growing cycles. The same central
location means a quick path to most markets in the country, thanks to the proximity
                                                  17
of interstates, main rail lines and major rivers.

As the following graph attests, although farm employment has fallen in Christian
County in the previous decades – as it has for Kentucky and the U.S. as a whole – the
sector still comprises nearly 3 percent of local employment. That figure can also be
deceiving as to agriculture’s local impact, as the industry has increasingly become
more technologically focused and mechanized, with increasing yields being produced
by fewer and fewer employees.




17
     Stamborsky, Al. “In Hopkinsville, Farmers' Involvement Puts Them a Cut Above the Rest.” The
Regional Economist, October 2001, p. 1.



Competitive Realities                                                                              48
September 2005
              Farm Employment as a Percentage of Total Employment, 1980, 1990, 2000:
                            Christian County, Trigg County, Kentucky

      25.0%
                             21.9%
      20.0%
                                                          16.5%
      15.0%
                                                                                         12.4%
      10.0%
                             8.3%
                                                          6.5%
       5.0%                  4.6%                                                        4.8%
                                                          3.5%                           2.8%
       0.0%
                         1980                        1990                             2000

                             Christian Co.          Trigg Co.          Kentucky

                                  Source: U.S. Bureau of Economic Analysis


Christian County production and yields of its top three crops (data were not available
for tobacco production) lead all its neighboring counties in southwest Kentucky.

         Yield for Top Producing Crops, 2004: Christian County, Border Counties, Kentucky
                        Corn for Grain                   Soybeans                      Winter Wheat
         Area                       Yield                 Yield                 Yield
                     Production             Production            Production
                                  (bushels/             (bushels/             (bushels/
                      (bushels)              (bushels)             (bushels)
                                    acre)                 acre)                 acre)
 Christian            12,633,600        168   2,758,800        44   2,878,500        57
 Caldwell               2,890,600       149   1,042,800        44     522,900        63
 Hopkins                3,550,500       135   1,610,400        44     185,000        50
 Muhlenberg             1,475,600       124     615,600        38     101,200        46
 Todd                   7,735,000       170   1,921,500        45   1,650,000        55
 Trigg                  2,765,000       158     858,000        44     715,000        55
 Kentucky            173,280,000       152 57,200,000         44 20,520,000         54
                            Source: USDA - National Agricultural Statistics Service


At a recent farm technology fair sponsored by the Hopkinsville-Christian County
Chamber of Commerce Agri-business Committee and held in honor of Christian
County Agriculture Week, local officials announced the creation of a four-year ag-tech
degree in Christian County. The Bachelor of Science degree in agriculture/agri-
science technology will be coordinated through the West Kentucky Post-secondary
                                                            18
Education Center on Murray State's campus in Hopkinsville.



18
     Battah, Raed. “Ag tech degree program announced.” Kentucky New Era, July 18, 2005, p. 1.




Competitive Realities                                                                                 49
September 2005
ENTREPRENEURIAL ACTIVITY
Small businesses help diversify and strengthen local economies, and buffer the
community against the closing or downsizing of large companies. In order to
determine Hopkinsville-Christian County’s existing strengths in small business
activity, this section analyzes the distribution of establishments by number of
employees, the percentage of non-farm proprietors, the average wages of these
individuals, and self-employed persons in the area.

Establishments by Number of Employees
In the 1990s and beyond, the vast number of new jobs was created in small
companies with fewer than 50 employees. Nurturing of a community’s small and
medium-sized businesses is therefore a key component of local economic
development practice.

                        Size Distribution of Christian County Businesses, 2003


                                                10-19
                                              employees,
                                                12.7%        20-49           50-99
                                    5-9                    employees,      employees,
                                 employees,                  9.5%            3.2%
                                   20.9%                                    100+
                                                                          employees,
                                                                            3.5%


                                                 1-4
                                              employees,
                                                50.2%




                            Source: U.S. Census County Business Patterns, 2003


The previous chart confirms that the vast majority of Christian County businesses
have fewer than 50 employees – over 90 percent of local companies.

Proprietorship Employment
An additional indicator of a community’s entrepreneurial capacity is the number of
non-farm and farm proprietors in an area, measured as a percentage of total
employment. Proprietors, as defined by the U.S. BEA, are businesses with only one
employee, typically engaged in some type of sole-proprietorship commerce.




Competitive Realities                                                                   50
September 2005
As indicated by the following table, Hopkinsville-Christian County’s non-farm
proprietorship employment in 2003 constituted a significantly lower percentage of
total employment than Kentucky or the U.S. The community’s non-farm proprietors
also earned notably less than their state or national equivalents during the period.

              Proprietorship Employment, 2003: Christian County, Kentucky, U.S.
                                                                        Percent of
                                                                                          Per Capita
                 Type                               Area                  Total
                                                                                           Income
                 Proprietors Proprietors                               Employment
                                           Christian County                       2.1%        $7,361
                               Farm



                                           Kentucky                               4.1%        $3,359
                                           U.S.                                   1.3%       $11,446
                 Non-Farm




                                           Christian County                       7.6%       $12,893
                                           Kentucky                              14.2%       $23,102
                                           U.S.                                  16.5%       $29,371
                                               Source: U.S. Bureau of Economic Analysis


Farm proprietorship employment in Christian County was comparatively larger than
the U.S. figure, but nearly half of Kentucky’s percentage. However, the County’s
farm proprietors did earn over twice the Kentucky average.

Sole proprietorship employment – both farm and non-farm – is a significant
opportunity area for Christian County to augment its job growth, and provide
entrepreneurial individuals with the chance to start and grow their own businesses.

Self-Employed by Sector
Another important indicator of local small business activity is a community’s
percentage of self-employment, which is measured by the U.S. Census Bureau’s
Economic Census. The Census Bureau defines the self-employed, or “non-
employers,” as businesses that are subject to federal income taxes but have no paid
employees. These data provide an enhanced understanding of the small business
activity in a given area.

The following table provides insight into the sectoral components of Hopkinsville-
Christian County’s self-employed professionals.




Competitive Realities                                                                                  51
September 2005
           Non-Employer Establishments by Business Sector, 2002: Christian County
             Business Sector                                                          Percent
             Construction                                                              16.4%
             Other services (except public administration)                             15.6%
             Retail trade                                                              13.1%
             Health care and social assistance                                         12.6%
             Admin., support and waste management remediation services                  8.5%
             Professional, scientific, and technical services                           6.9%
             Real estate and rental and leasing                                         6.8%
             Transportation and warehousing                                            5.5%
             Finance and insurance                                                     3.9%
             Arts, entertainment, and recreation                                       2.8%
             Wholesale trade                                                           1.8%
             Manufacturing                                                             1.7%
             Forestry, fishing & hunting, and agricultural support services            1.5%
             Accommodation and food services                                           1.5%
    The following sectors are not represented because data is non-disclosed due to privacy issues: mining,
                                     information, and educational services.
                            Source: U.S. Census Bureau, Economic Census 2002


The construction, “other” services, retail, and health care sectors comprise over 50
percent of non-employment in the County. Consistent with findings in the larger
economy, Christian County’s non-employment in the high paying information and
professional services sectors are opportunities for growth in the community.




Competitive Realities                                                                                        52
September 2005
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BUSINESS COMPETITIVENESS PROFILE
The following sections assess Hopkinsville-Christian County’s business
competitiveness from the perspective of measures that expanding and relocating
companies – and site-selection professionals hired to evaluate locations for
companies – would analyze to determine the optimal community to locate their
operations.


Education and Workforce Development
The skill levels and quality of a community’s workforce is the most important issue
in economic development today. With an increasing number of jobs in the New
Economy requiring employees to have two- and four-year degrees, a community’s
supply of educated workers is its most vital asset.


K-12 PUBLIC EDUCATION
Whether one views the “customers” of public education as the students (as most
educators do), or local businesses (as many members of the private sector do), there
can be no overstating the importance of a community’s public and private
elementary, secondary and post-secondary school systems in preparing the area’s
future workforce, and supplying businesses with skilled and effective workers.

In the 2004-05 school year, fewer Christian County students made successful
transitions to adult life and more students dropped out than the previous year. While
more students are attending school, fewer students are being held back (retained) in
grades, and graduation rates of students in school since 2001 are slightly higher at
                                                       19
both Hopkinsville and Christian County high schools.

The following table highlights trends in Christian County public school enrollment
from 1999 to 2003.

                        Total Public School Enrollment, ’99-’01 to ’03-’04
                          School Years: Christian County and Kentucky
                                                                                   Percent
                                                                                   Change
                             1999 to    2000 to   2001 to    2002 to     2003 to   1999 to
                              2000       2001      2002       2003        2004      2004
          Christian County     8,794      8,777     8,782      8,755       8,735     -0.7%
          Kentucky           615,921    614,818   617,064    620,136     621,337      0.9%
                              Source: Kentucky Department of Education


19
  Campbell, Karen. “Schools rated better in some areas, worse in others.” Kentucky New Era, May 26,
2005, p. 1.




Competitive Realities                                                                            53
September 2005
Enrollment actually declined slightly during the period, contrasted with a nearly 1.0
percent increase in public school enrollment in Kentucky. The following graph
confirms the uneven growth in K-12 enrollment in Christian County public schools.

                    Percent Change in Annual Enrollment, ’00-’01 to ’03-’04
                         School Years: Christian County and Kentucky
                0.6%
                                                             0.5%
                0.5%
                0.4%
                                                0.4%
                0.3%
                                                                               0.2%
                0.2%
                0.1%
                                                0.1%
                0.0%
               -0.1%
                        -0.2%
               -0.2%
                          -0.2%                              -0.3%               -0.2%
               -0.3%

               -0.4%
                        2000-2001        2001-2002       2002-2003         2003-2004
                                          Christian County      Kentucky

                                Source: Kentucky Department of Education


On a positive note, the attendance rate of Christian County’s students has been rising
steadily over the past number of years, as the following table demonstrates.
Attendance rates are based on the aggregated days attended by a pupil divided by the
number of days the school is in session, with certain adjustments made based on
                                                     20
weather days and other similar explanatory factors.

In 2004, Christian County’s average daily attendance rate surpassed Kentucky’s in
2004 for the first time in a number of years.




20
   Pupil Attendance Manual, 2005-2006. Kentucky Department of Education.
http://www.education.ky.gov/NR/rdonlyres/eiew7qjeqfkwbonxgiyn4git6a6yyanaq7qhtbow6wj6lde33tsy
gjd7l6scnriqf4zsgk322l53o7wuwu6dd6xbgjg/20052006FinalManual.pdf.




Competitive Realities                                                                      54
September 2005
                                Attendance Rate, 2000-2004,
                                Christian County and Kentucky
                94.50
                                                    94.43
                94.40
                                                              94.31      94.31
                                                 94.29
                94.30
                        94.19                                            94.26
                94.20              94.15                        94.17

                94.10
                                        94.07
                        94.01
                94.00

                93.90

                93.80
                        2000        2001        2002        2003        2004
                                      Christian County      Kentucky

                            Source: Kentucky Department of Education

                                                                                 th
Another positive trend is the consistent decreases in the Christian County’s 9
            th
through 12 grade dropout rates. From a high of 7.3 percent in the 1999-00 school
year, the figure has steadily declined to a low of 3.3 percent for 2002-03.
Unfortunately, the percentage spiked by a full point in the following year.

                                Dropout Rate, 9-12 Grades,
                        Christian County and Kentucky, 2000-2004




                            Source: Kentucky Department of Education




Competitive Realities                                                                 55
September 2005
Christian County’s pupil-teacher ratios – an important educational criterion in that
numerous studies have determined that smaller ratios lead to more effective learning
– are notably higher than the Kentucky average, and have grown larger from 1999 to
2004. This trend must be reversed if the County’s students are to enjoy the benefits
of more one-on-one time with their teachers, and the other advantages of smaller
class sizes.

                           Pupil to Teacher Ratio, ’99-’00 to ’03-’04
                          School Years: Christian County and Kentucky
                                                                                    Percent
                                                                                    Change
                           1999 to     2000 to    2001 to     2002 to   2003 to     1999 to
                            2000        2001       2002        2003      2004        2004
            Christian
            County            17.0         16.3      16.1        18.1        18.1      6.5%
            Kentucky          15.6         15.6      15.5        15.4        15.4     -1.9%
                              Source: Kentucky Department of Education


As the following two tables show, expenditures per pupil and average teacher salaries
in Christian County are both below state averages, and have not grown as fast as
Kentucky’s figures. These are also issues that adversely affect Christian County’s
educational competitiveness.

                           Expenditures Per Pupil, ’99-’00 to ’03-’04
                          School Years: Christian County and Kentucky
                                                                                              Percent
                                                                                              Change
                        1999 to      2000 to      2001 to      2002 to        2003 to         1999 to
                        2000         2001         2002         2003           2004            2004
   Christian County       $6,679        $6,642       $6,866         $6,526         $6,824       2.2%
   Kentucky               $6,270        $6,558       $6,846         $7,033         $7,007      11.8%
                              Source: Kentucky Department of Education


                          Average Teacher Salaries, ’99-’00 to ’03-’04
                          School Years: Christian County and Kentucky
                                                                                              Percent
                                                                                              Change
                        1999 to      2000 to      2001 to      2002 to        2003 to         1999 to
                        2000         2001         2002         2003           2004            2004
   Christian County     $35,279        $35,853      $36,560       $37,397        $38,639        9.5%
   Kentucky             $36,254        $36,685      $37,950       $39,001        $40,330       11.2%
                              Source: Kentucky Department of Education


As was discussed in the Demographic Analysis section, Christian County has a
comparatively high poverty rate. This issue of concern filters into nearly every aspect
of community life, including education. The percentage of Christian County children
receiving free or reduced-price lunch is over 10 percentage points higher than
Kentucky, and has not decreased noticeably from 2000 to 2004. In fact, the



Competitive Realities                                                                                   56
September 2005
County’s percentage has actually increased by 2.1 percent over the period (Kentucky’s
figure also rose by over 2 percent).

                        Percentage of Children Receiving Free/Reduced Lunch,
                             2000-2004: Christian County and Kentucky

                70.0%
                           62.9%                   61.5%         62.1%       61.6%
                                       59.9%
                60.0%
                               47.8%       47.6%         48.4%       47.4%       48.9%
                50.0%

                40.0%

                30.0%

                20.0%

                10.0%

                  0.0%
                             2000        2001         2002         2003        2004

                                           Christian County   Kentucky

                                Source: Kentucky Department of Education


With a higher component of its student population living in poverty, Christian
County educators and school administrators will need to work even harder to ensure
that these youth are effectively prepared for college and the workplace, and that their
families are involved in their children’s education.

A key criterion for graduation and movement onto a two- or four-year college is a
student’s ability to pass a series of standardized tests. In Kentucky, under the
Commonwealth Accountability Testing System (CATS), the state requires national
norm referenced testing in reading, language arts and mathematics for students
exiting grade 3, grade 6 and grade 9. A national norm referenced test allows
comparisons between the performance of Kentucky students and the performance of
students across the country. The test used to meet this requirement is the
Comprehensive Test of Basic Skills (CTBS).

High school junior and seniors are also required to take not only state performance
tests, but also standardized exams like the SAT and ACT to determine their capacity
to enter higher educational institutions.

The State of Kentucky does not publish the SAT or ACT results of students in its
component school systems, and they were therefore not available to report in this
Competitive Realities document. In addition, the manner in which Kentucky reports
CATS results for each school system does not lend itself to presentation in an easily
understood format. Therefore, Market Street has utilized Christian County’s public




Competitive Realities                                                                    57
September 2005
school district results on the federal No Child Left Behind (NCLB) standards as a
proxy for the system’s overall performance in the 2003-04 school year.

Beginning in the current school year, Kentucky has made amendments to the
Kentucky Accountability Plan that incorporates NCLB standards into the state’s
performance-measurement system. Numerous other states are also changing their
NCLB accountability standards in response to frustrations that have emerged
nationally in response to the Act’s performance criteria and lack of federal funding to
support NCLB efforts.

As the following table shows, the overall student population in Christian County met
NCLB standards in both reading and mathematics. However, African-American
students in the County were not determined to have made Adequate Yearly Progress
(AYP) in either category of measurement. Disabled students, and those receiving
free or reduced-priced lunches also failed to meet AYP standards in reading and
math. This is an issue of concern in that over 6 in 10 County students are eligible for
these benefits.

                                   No Child Left Behind Act,
                        Adequate Yearly Progress, 2004: Christian County
                                             Met Objective          Met Participation
                                                                         Rate
                   Student Group        Reading     Mathematics
              All Students                Yes           Yes               Yes
              White (Non-Hispanic)        Yes           Yes               Yes
              African-American            NO            NO                Yes
              Hispanic                    N/A           N/A               N/A
              Asian                       N/A           N/A               N/A
              Limited English
              Proficiency                 N/A            N/A              N/A
              Free/Reduced Lunch          NO             NO               Yes
              With Disability             NO             NO               Yes
                              Source: Kentucky Department of Education


For those seniors who successfully graduate from high school, the next concern is
what they will do upon leaving secondary school. The following table details
Christian County high school graduates’ intentions from the 2001-02 to 2003-04
school year.




Competitive Realities                                                                   58
September 2005
                        Graduate Intentions, ’2001-02 to 2003-04:
                             Christian County and Kentucky
                                                                         Work &
                                    Voc/Tech                            Part-Time
                         College    Training      Military     Work      School
            2001-2002
           Christian
           County          41.9%         1.6%        3.6%       29.1%        13.8%
           Kentucky        54.0%         5.0%        2.9%       27.0%          6.1%
                                                                         Work &
                                    Voc/Tech                            Part-Time
                         College    Training      Military     Work      School
            2002-2003
           Christian
           County          50.5%         2.6%        2.9%       30.0%          6.0%
           Kentucky        54.3%         5.1%        2.8%       26.7%          6.8%
                                                                         Work &
                                    Voc/Tech                            Part-Time
                         College    Training      Military     Work      School
            2003-2004
           Christian
           County          43.3%         2.0%        2.8%       28.8%        14.5%
           Kentucky        54.8%         4.9%        2.9%       26.7%         6.7%
                           Source: Kentucky Department of Education


During this time period, over 50 percent of Christian County’s graduating seniors did
not enter college, a figure consistently below Kentucky’s rate. County officials will
need to strive to raise this percentage, as the old adage, “The more you learn, the
more you earn,” holds true today more than ever before in the nation’s history. The
consistently high rates of graduating Christian County seniors who are forced to work
and attend college part time after high school is consistent with the County’s higher
than average poverty rates, and serves to limit these student’s abilities to obtain a
college degree in a traditional amount of time and enter the local workforce full-time.

Certain programs for youth who are still in secondary school can enhance students’
ability to obtain needed professional experience, and also provide more clarity as to
their ultimate career ambitions. These so-called “school-to-work” programs have
proven successful in hundreds of U.S. communities; therefore, it is encouraging that
programs of this type exist in Christian County. Indeed, there have been many
collaborative efforts between community agencies in Christian County to develop
school-to-work programs.

Involved agencies and organizations include: the Hopkinsville/Christian County
Chamber of Commerce; the Trigg County Industrial Foundation; the Economic
Development Council; Christian County Agri-business Association; Boy Scouts of
America; 4-H Extension Services; YMCA, Walnut Street Center; Pennyrile Industrial
Managers; American Society for Quality; and APICS.




Competitive Realities                                                                 59
September 2005
HOPKINSVILLE COMMUNITY COLLEGE
The primary two-year higher educational institution in Christian County is
Hopkinsville Community College (HCC). Recently, the College has been in the news
as a result of ongoing conflicts between faculty and the school’s administration. On
September 9, 2005, faculty and staff at the local college returned an unofficial vote of
no confidence in Dr. Bonnie Rogers, the college's president.

The situation at HCC has led to concerns among Christian County community
leaders over the ability of the College to effectively train the area’s workforce. In mid-
September, 2005, State Sen. Joey Pendleton arranged a meeting between local
leaders and officials with the Kentucky Community and Technical College System.
The meeting included Dr. Keith Bird, the chancellor and second in command at
KCTCS. Bird noted that he had already met with Christian County economic
development professionals and representatives of the local agricultural and industrial
community.

Kim Schippers, an industrial recruiter for the Hopkinsville-Christian County
Economic Development Council told the Kentucky New Era that most of the
community’s concern has been centered on HCC’s technology center, and efforts to
try to get more students interested in utilizing the center’s workforce-development
           21
programs.

Serving over 3,000 credit-seeking students each year, Hopkinsville Community
College is the lynchpin in Christian County’s workforce development system. HCC
also provides instruction to over 6,000 employees who annually participate in
customized business and industry training, and offers programs for over 1,000
individuals each year through community-based, non-credit continuing education
classes.

During the period from Fall semester 2001 to Fall semester 2004, HCC’s full-time
enrollment grew over 31 percent. Part-time student enrollment also increased by 6.0,
with total enrollment growing 8 percent during the period.

The following table presents HCC’s enrollment trends from Fall 2001 to Fall 2004.




21
 Grace, Tonya S. “HCC concerns involve community, faculty.” Kentucky New Era, September 16,
2005, p. 1.




Competitive Realities                                                                         60
September 2005
                Enrollment, Hopkinsville Community College: Fall 2001 to Fall 2004

       2,000                                                 3,167                            3200
                                                                                  3,104
                                                                                              3100
       1,500                             2,995
                                                                                              3000
       1,000
                        2874                                                                  2900
         500
                                                                                              2800

            0                                                                                 2700
                        2001              2002                2003                2004

                           Full Time           Part Time           Total Head Count
                                  Source: Hopkinsville Community College


With enrollments rising – save for a slight drop from 2003 to 2004 – and tuition and
fees at the school spiking nearly 80 percent, HCC administrators and Christian
County leaders must ensure that opportunities exist for local residents to obtain free
or subsidized tuition to HCC in order to have equal access to workforce-entry as
County residents of higher incomes.

        Academic Year Prices for Full-Time, First-Time Undergraduate Students: 2005
                   Category                  2002–03       2003–04       2004–05          Change
            Tuition & fees
             In-state                         $1,536        $2,370        $2,760            79.7%
             Out-of-state                     $4,608        $7,110        $8,280            79.7%
            Books and supplies                 $800          $800          $800              0.0%
            Off-campus
             Room and board                   $5,840        $5,840        $5,840             0.0%
             Other expenses                   $1,840        $2,260        $2,260            22.8%
                               Source: National Center for Education Statistics


The following graph confirms that the majority of HCC students are receiving
financial aid of some kind. Every student who wishes to attend HCC should be
provided the means to obtain loans or some other type of assistance in order to reach
this goal.




Competitive Realities                                                                                61
September 2005
                  Financial aid to full-time, first-time undergraduate students,
                            Hopkinsville Community College: 2003-04

                                                                Percentage of     Average
                         Type of aid                              students      amount of aid
                                                                receiving aid   they received
   Federal grants (scholarships/fellowships)                            61         $2,791
   State/local grants (scholarships/fellowships)                        51         $1,287
   Institutional grants (scholarships/fellowships)                      10         $916*
   Loans to students                                                    21         $2,299
                             Source: National Center for Education Statistics


The following table contains all the programs offered by HCC in the 2005-06
academic year. School officials must work with local companies and economic
development professionals to ensure that HCC’s programs are always well aligned
with the needs of area businesses.

                        Programs, Hopkinsville Community College: 2005-06
                                     TRANSFER PROGRAMS
    (AA) Associate in Arts Degree, (AS) Associate in Science Degree, (AS) Associate in Science -
                                   Professional Careers Program
                                CAREER/TECHNICAL PROGRAMS
 Agricultural Technology                           Industrial and Engineering Technology
 (AAS) Agricultural Technology                     (AAS) Industrial and Engineering Technology
 (C) Agricultural Technician II                    - Manufacturing Option
                                                   - Electrical Option
 Business Administration                           (C) Automation Technician I
 (AAS) Business Administration                     (C) CAD Technician I
 - Management Option                               (C) Computer Technician
 (C) Advanced Business Administration              (C) Electronics Technician I
 (C) Basic Business Administration                 (C) Electronics Technician II
 (C) Business Transfer                             (C) I&ET Fundamentals
 (C) Financial Perspectives                        (C) Maintenance Technician I
 (C) General Business                              (C) Maintenance Technician II
 (C) Leadership
 (C) Management                                    Industrial Maintenance Technology
 (C) Supervisory Management                        (D) Industrial Maintenance Technician
                                                   (C) Fluid Power Technician
 Computer Aided Drafting                           (C) Industrial Maintenance Helper
 (C) Computer Assisted Drafter                     (C) Industrial Maintenance Electrical Helper
 (C) Detailer
 (C) Drafter Assistant                             Information Technology
                                                   (AAS) Information Technology
 Criminal Justice                                  - Computer Programming Option
 (AAS) Criminal Justice                            - Electronic Commerce Option




Competitive Realities                                                                           62
September 2005
                              CAREER/TECHNICAL PROGRAMS (cont’d)
 - Corrections Option                          - Network Administration Option CISCO Track
 - Criminal Justice Option                     - Network Administration Option Microsoft Track
 - Law Enforcement Option                      - Web Development and Administration Option
 - Security and Loss Prevention Option         (C) CISCO Networking (Basic)
                                               (C) CISCO Networking (Enhanced)
 Interdisciplinary Early Childhood Education   (C) Computer Programming
 (AAS) Early Childhood Education               (C) E-Commerce
 (C) Child Care Assistant Certificate          (C) Information Technology A+
 (C) Early Childhood Administrator Credential  (C) Information Technology Fundamentals
 (C) Interdisciplinary Early Childhood Tech    (C) Microsoft Networking MCSA Track
 (C) Kentucky Early Childhood Training         (C) Web Administration
 (C) Kentucky Child Care Provider Certificate  (C) Web Site Developer

 Education                                               Machine Tool Technology
 (AAS) Education                                         (D) CNC Machinist Apprentice
 - Teacher Associate Option                              (C) Machine Tool Operator II
 - Teacher Preparation Option                            (C) Machine Tool Operator I
 (C) Paraeducator Certificate                            (C) Exploratory Machining
 State-Wide 2+2
                                                         Nursing
 Electrical Technology                                   (AAS) Registered Nurse
 (D) Industrial Electrician                              (AAS) PN to RN Bridge
 (C) Electrician Apprentice                              (D) Practical Nurse
                                                         Nursing Assistant Skills
 Electronics Technology
 (D) Industrial Electronics Technician                   Office Systems Technology
 (D) Robotics Technician                                 (AAS) Office Systems Technology
 (C) Electronics Technician Apprentice                   - Administrative Option
 (C) Electronics Tester                                  - Medical Option
                                                         (C) OST - Administrative
 General Occupational/Tech Studies                       (C) OST - Data Entry Operator
 (AAS) General Occupational/Tech Studies                 (C) OST - Financial Assistant Clerk
                                                         (C) OST - Financial Assistant Trainee
 Human Services                                          (C) OST - Intergrated Office Skills
 (AAS) Human Services                                    (C) OST - Medical Administrative
                                                         (C) OST - Medical Admissions Clerk
                                                         (C) OST - Receptionist
                        *(AAS) Associate in Applied Science; (D) Diploma; (C) Certificate
                                    Source: Hopkinsville Community College




Competitive Realities                                                                            63
September 2005
                Enrollment by Major, Hopkinsville Community College: Fall 2004
                                Major                                  Number    Pct.
       Undecided                                                           446    14.4%
       Agricultural Production Operations, General                          21     0.7%
       Computer and Information Sciences, General                           66     2.1%
       Educational/Instructional Media Design                               14     0.5%
       Electromechan. Technol./Electromechan. Engineering                   14     0.5%
       Quality Control Technology/Technician                                 1     0.0%
       Child Care Provider/Assistant                                        87     2.8%
       Liberal Arts and Sciences/Liberal Studies                          1330    42.8%
       General Occupational/Technical Studies                                5     0.2%
       Criminal Justice/Law Enforcement Admin.                              91     2.9%
       Criminal Justice/Political Science                                    6     0.2%
       Social Work                                                          86     2.8%
       Electrician                                                           4     0.1%
       Industrial Electronics Technology/Technician                          1     0.0%
       Industrial Mechanics and Maintenance Technology                       9     0.3%
       Machine Shop Technology/Assistant                                    12     0.4%
       Nursing (RN Training)                                               590    19.0%
       Licensed Practical/Vocational Nurse Training                         36     1.2%
       Business Admin. And Mgmt., General                                   67     2.2%
       Executive Asst./Executive Secretary                                  56     1.8%
       Non-credential                                                      162     5.2%
                                    Total                                 3104   100.0%
                              Source: Hopkinsville Community College


As the previous table shows, the majority of HCC students in the Fall 2004 semester
took either liberal arts and sciences or nursing courses, or were undecided as to their
courses of study.

Hopkinsville Community College also has an Extended Campus area, which includes
Fort Campbell, Princeton at the Butler Annex Building, Cadiz at the Trigg County
High School, and in Elkton at the Todd County High School.

As a truly regional entity, the current controversy over HCC’s leadership is an issue
that not only affects Christian County, but thousands of neighboring residents as
well.

At HCC’s Fort Campbell campus, Kentucky in-state rates are available to military
service members, their families, and to residents of Montgomery, Robertson, and
Stewart Counties in Tennessee. Degree programs at HCC-Fort Campbell include:
Associate in Arts, Associate in Science, and technical career programs like
Agricultural Technology, Business Technology, Early Childhood Education, Human
Services, Industrial and Engineering Technology, Law Enforcement Technology,
Nursing, and Office Systems.




Competitive Realities                                                                     64
September 2005
MURRAY STATE UNIVERSITY, HOPKINSVILLE REGIONAL CAMPUS
The grand opening
ceremony of Murray State’s
West Regional
Postsecondary Education
Center took place on August
19, 2002. The new 36,000
square-foot facility was
designed to accommodate
up to 1,200 students in nine classrooms, including two interactive television rooms
and a computer lab. A multipurpose room that can be used for student gatherings or
community events further enhanced this state-of-the art facility.
                                                                        22
Among the Hopkinsville Campus’ achievements to date include :

       •     Fall 2002 enrollments increased by 55% over fall 2001;
       •     Spring 2003 enrollments increased by 53% over spring 2002;
       •     Nine students graduated from the 2+2 elementary education program; and
       •     In spring 2002, a new bachelor degree program in agri-science technology
             was developed in cooperation with Hopkinsville Community College. The
             program was named “ACCESS,” which stands for Agricultural Consortium for
             Comprehensive Educational Support and Service.

Murray State-Hopkinsville also operates a Ft. Campbell Army Education Center.
The Ft. Campbell site had over 650 course enrollments in the four programs offered
despite the mass deployment of Ft. Campbell soldiers to Iraq. This was a slight
increase from the previous year. Distance learning registrations and follow-ups were
extended to those soldiers having to deploy due to military obligations. The
emergency medical training certificate program had an increase in enrollment of
25% over the previous year. Career services options were implemented for graduate
                                                                        23
students at the site to seek further assistance upon degree completion.


REGIONAL FOUR-YEAR UNIVERSITIES
The Hopkinsville-Christian County community benefits from its strategic location
amidst a number of medium-to-large metro areas with quality universities. The
following table lists the largest of these four-year universities sited within 65 miles of
Hopkinsville.




22
 Murray State University Center for Continuing Education and Academic Outreach. Annual Report,
2002-03. 12 September 2005. < http://ceao.murraystate.edu/annual/AR2002-03.pdf>. Page 6.
23
     Ibid.




Competitive Realities                                                                            65
September 2005
                            Regional Universities, Enrollments: 2004-05
                                                                                 Distance from
              Institution                          City             Enrollment    Hopkinsville
                                                                                     (miles)
  Austin Peay State University          Clarksville, TN                 8,650          25
  Belmont University                    Nashville, TN                   3,941          63
  Lipscomb University                   Nashville, TN                   2,535          65
  Murray State University               Murray, KY                     10,121          50
  Tennessee State University            Nashville, TN                   9,100          60
  Vanderbilt University                 Nashville, TN                  11,294          63
  Western Kentucky University           Bowling Green, KY              18,485          57
                              Source: National Center for Education Statistics



WORKFORCE DEVELOPMENT
As was noted in the introduction to this section, the quality of an area’s workforce is
the number one issue in economic development today. If a community does not
have the talent to staff a potential employer’s job openings, then it will be extremely
difficult to recruit that company to the area. In addition, existing companies looking
to expand and those seeking educated, high-skill workers also depend heavily on the
quality of the local employee pool.

The following comprise Hopkinsville-Christian County’s available workforce
development resources.

Pennyrile Area Development District
The Pennyrile Area Development District (PADD) is a component of the region’s
federally-funded Workforce Investment Act system (under the aegis of the Western
Kentucky Workforce Investment Board), and coordinates services in the following
categories:

   •    Adult and Dislocated Worker Services: Core services are available to all adults
        and dislocated workers;
   •    More intensive services: Available, as necessary, for customers who have not
        obtained employment through core services programs;
   •    Additional assistance: Individuals may be eligible to receive a wide variety of
        additional training services if employment is not gained during core or
        intensive services;
   •    Youth Services: Available for eligible youths (defined by the federal Workforce
        Investment Act as a low income individual, age 14 through 21, who possesses
        a federally-defined barrier to employment), these programs must: (1) provide
        an objective assessment of each eligible youth participant; (2) develop an
        individual service strategy for each eligible youth; and (3) provide preparation
        for postsecondary educational opportunities, linkages between academic and



Competitive Realities                                                                            66
September 2005
           occupational learning, preparation for employment, and provide effective
           connections to intermediary organizations that provide strong links to the job
                                  24
           market and employers.

There are two federally-funded Job Centers located in the Pennyrile Area
Development District: the Hopkinsville Breathitt Career Center and a Job Center in
Madisonville.

The Breathitt Career Center houses the following programs, among other services:

      •    Job Corps: The Corps assists economically disadvantaged young adults by
           providing them with opportunities to develop vocational, educational and
           social skills;
      •    Kentucky Farmworkers Program: Operated by a private, non-profit
           corporation, the Program offers a full range of supportive services to area farm
           workers.
      •    Army Career and Alumni Program: The Program, commonly referred to as
           ACAP, provides job assistance for all transitioning soldiers, Department of
           Defense civilian employees, and their family members 180 days prior to
           separation through 90 days after separation.
      •    Adult Education and Literacy: Free general equivalency degree (GED) and
           academic upgrade classes are offered to assist residents with obtaining a high
           school equivalency degree, and/or additional workforce skills.

Hopkinsville Community College
HCC is a key component of Christian County’s workforce development system, and
offers a host of programs and resources to effectively train residents for local
employment. The lack of confidence among HCC faculty and staff in the college’s
president is a serious issue, and threatens to adversely affect workforce development
in the region.

As was noted in the previous section of this report, an element of the controversy
over HCC concerns the use of its Regional Technology Center. The Center is a
state of the art 60,000 square foot industrial training center located on the
Hopkinsville Community College campus. The facility is equipped with the industry-
standard software and training, and is open 24 hours a day to meet the community’s
training needs. Numerous local industries utilize the Center’s Adult Education
Program, which offers pre-employment testing and skills remediation for companies’
prospective employees.

Adult Education Services at HCC are available in the Technology Center’s Learning
Center, and offer programs for eligible individuals to earn high school equivalency


24
     Source: Pennyrile Area Development District




Competitive Realities                                                                    67
September 2005
degrees, English as a Second Language (ESL) classes, basic skills training in
preparation for enrollment in HCC, and basic literacy classes.

Workforce Excellence Partnership
Coordinated through the Hopkinsville Christian County Chamber of Commerce in
partnership with HCC and Murray State-Hopkinsville, the purpose of the alliance is
to increase the number and quality of workers throughout Christian and Trigg
Counties through development, enhancement, and support of career awareness,
education, training, and partnerships.
                                                   25
The Partnership offers the following programs :

     •   School-to-Careers: Connects classroom learning with work-based learning by
         reinforcing academics with exposure to the workplace:
     •   Unemployed/Underemployed Adults Program: Support programs designed
         to secure employment for chronically unemployed adults and help the
         underemployed become aware of opportunities that exist for higher paying
         jobs;
     •   School Success: Aims to increase the graduation rate of area high schools by
         preparing freshmen to cope with life, and connecting academics to possible
         career paths:
     •   Ft. Campbell Employment Transition Services: Works to promote a successful
         transition for military personnel to the civilian workforce, and coordinates
         employment opportunities for Ft. Campbell veterans, retirees, spouses and
         dependents entering the private sector.

Hopkinsville Office of Employment and Training
The Hopkinsville Office of Employment and Training (OET) is responsible for the
administration of a number of programs and services designed to assist job and
service seekers in a variety of employment related areas.

OET maintains a list of local job openings through the Kentucky Job Bank, and
connects residents with employment opportunities nationwide through America's
Job Bank. OET is also responsible for the administration of a number of programs
and services designed to assist individuals with specific employment needs.

At the Office’s Virtual Workshop Center, customers are given access to information
and instructions on a host of job-search-related requirements, including resume and
cover letter writing, math and vocabulary development, and job interview skills.



25
  Commerce Center. Workforce Excellence Partnership. 08 September 2005.
<(http://www.commercecenter.org/chamber/workforce_excellence.asp)>.




Competitive Realities                                                              68
September 2005
LABOR FORCE SUPPORT INFRASTRUCTURE
If a working-age adult is not able to secure affordable, reliable child care, or, if he or
she is transit-dependent and cannot utilize quality public transportation services to
reach training or employment opportunities, then that person is effectively removed
from the area’s labor force.

The below table indicates that Christian County has a total of 40 child care facilities,
with the vast majority offering daycare services.

                    Child Care Facilities in Christian County, Kentucky (2004)
                                                              Percent of facilities that offer:

             Number
  Type of                  Total     Average
                of                                                                                School
   Care                   Capacity   Capacity
             Facilities                          Transport-    Infant    Toddler     2-School      Age
                                                    ation       Care      Care       Age Care      Care
      Day
     Care      36         2437          68         41.7%      50.0%       58.3%       69.4%       80.6%
     Night
     Care       4          144          36         25.0%       100%       100%        100%         100%
         Source: Kentucky Cabinet for Health and Family Services, Division of Regulated Child Care


Local social service and community development officials must always communicate
with area stakeholders to ensure that there is sufficient local child care capacity. They
would also benefit from working with Christian County economic developers and
local companies to discuss the availability of company-sponsored child care facilities
on-site at area businesses.

Public transportation services in Christian County are fairly limited; this is very
common in small-to-medium-sized communities without a critical mass of transit
users to sustain these services. However, Pennyrile Allied Community Services
(PACS) does offer door-to-door van service for all Hopkinsville area residents.
Seniors are not charged for the service (but they are asked for a donation). Non-
seniors using the shuttle service are charged modest rates that vary according to trip
length.




Competitive Realities                                                                                      69
September 2005
Infrastructure
In today’s global economy, a community creates a competitive edge by developing
and maintaining traditional infrastructure such as transportation and utilities, as well
as the newer communications infrastructure such as broadband, wire-line, and
wireless. Additionally, housing and land use trends are an important component of a
comprehensive infrastructure analysis because the nation’s educated workforce is
increasingly choosing their most preferred living and working environments.

Companies and people are also less confined by political boundaries in their location
choices. Therefore, to assess the community’s competitiveness in terms of
infrastructure, this section will analyze transportation, communications, housing,
and other trends in Hopkinsville-Christian County.


TRANSPORTATION
For both businesses and the workforce, accessibility is a key concern in a seemingly
boundary-free global economy. This section analyzes Hopkinsville-Christian
County’s road, rail, and air transportation system.

Roads and Highways
Hopkinsville-Christian County has direct access to a primary north-south state
highway, the Breathitt Parkway. The region is also well connected in the east-west
direction via Highway 68. Interstate access is provided by way of I-24, which travels
at a diagonal through Christian County directly south of the City of Hopkinsville. As
will be discussed later in this section, future plans call for connecting the Breathitt
Parkway to I-24 via a newly constructed extension. I-24 allows Hopkinsville-
Christian County a high-capacity, easily accessible link to Clarksville and Nashville,
Tennessee.

              Vehicle Transportation, 2004: Christian County and Border Counties
                                                VMT        Total Road          Travel
                            County
                                               (000s)        Miles            per Mile
                        Christian                 2,242            1,273           0.6
                        Caldwell                    504              605           1.2
                        Hopkins                   1,641            1,035           0.6
                        Muhlenberg                1,025              852           0.8
                        Todd                        351              577           1.6
                        Trigg                       588              826           1.4
                                    Source: Kentucky Transportation Cabinet




Competitive Realities                                                                    70
September 2005
As evidenced by data in the previous table, Christian County has the most miles of
road of its neighboring counties, but the vehicle-miles-traveled on those roads are
considerably less per capita than the border counties. In fact, only Hopkins County
experienced less utilization of its road infrastructure than Christian in 2004.

                                   Hopkinsville, Kentucky




                         Distance to Market from Hopkinsville, 2005
                                            UPS Ground
                                                                    Miles to
                           City               Days to
                                                                  Hopkinsville
                                              Deliver
                    Atlanta, GA                       2                   275
                    Chattanooga, TN                   1                   176
                    Chicago, IL                       2                   344
                    Cincinnati, OH                    1                   227
                    Indianapolis, IN                  1                   215
                    Little Rock, AR                   2                   310
                    Louisville, KY                    1                   135
                    Memphis, TN                       1                   185
                    Nashville, TN                     1                    61
                    St. Louis, MO                     2                   194
                                  Source: United Parcel Service




Competitive Realities                                                                 71
September 2005
The two previous graphics demonstrate Hopkinsville-Christian County’s distance and
accessibility to communities within a 340-mile radius. Hopkinsville is within a two-
day UPS delivery time of some of the nation’s largest and most active shipping and
distribution centers.

Road Improvement Projects
As referenced earlier in this section, a planned 6.4-mile, $90 million extension of the
Edward T. Breathitt Parkway would extend the highway from its current end at the
boulevard near Bradford Square mall to Interstate 24. The first leg of the extension
would take the parkway to Lovers Lane near the Hopkinsville-Christian County
Conference and Convention Center.

An environmental study for the parkway extension has been completed, and most of
the property right-of-ways have been obtained. Although much of the project’s
funding remains to be approved, the project is expected to start within the federal
government’s current six-year transportation plan, known as the Transportation
                                         26
Equity Act: A Legacy for Users (TEA-LU).

Hopkinsville officials also want the Breathitt Parkway to be considered as an alternate
route for the proposed Interstate 69, which will be built in the future to run from
Canada to Mexico. The federal government envisions that the proposed interstate
would run from Evansville, Ind., to Henderson, Kentucky, and then further west
toward the Wendell Ford Parkway, a route that would bypass Christian County. In
their current list of strategic goals, the Hopkinsville-Christian County Chamber
pledges to work to ensure that the Breathitt Parkway is designated as an I-69
Alternative.

The map on the following page displays all the Christian County road-improvement
projects included in Kentucky’s six-year highway improvement plan taking place
from 2005 to 2010.




26
     Brown, Jennifer. “$8 million approved for parkway extension.” Kentucky New Era, April 3, 2004, p. 1.




Competitive Realities                                                                                 72
September 2005
      Improvement Projects, Christian County, State Six-Year Highway Plan, 2005-2010




                            Source: Kentucky Transportation Cabinet


A bridge replacement program, new safety programs, and an upgrade to Highway 41
– along with the aforementioned Breathitt Parkway extension – comprise the major
road improvements for the County from 2005 to 2010.

Rail Transportation
Rail transportation routes have maintained a strong role in the United States’
distribution sector – a role that is ever increasing in importance as the nation’s
highways become more congested.

The following map displays the transportation infrastructure – including rail –
available in Christian County and its adjacent regions.




Competitive Realities                                                                  73
September 2005
                  Transportation Infrastructure, Hopkinsville-Christian County
                                  and Adjacent Regions, 2004

          Hopkinsville




                            Source: U.S. Bureau of Transportation Statistics


CSX is the principal rail operator serving the Hopkinsville-Christian County
community.

                            CSX Rail Operations in Kentucky, 2005




                                             Source: CSX


While CSX does not maintain any operational
facilities in Hopkinsville-Christian County, the
trunk lines running through the area link
Hopkinsville-Christian County businesses to
major rail yards and transfer terminals located in
other Kentucky communities.

Hopkinsville-Christian County does not have
direct passenger rail service from Amtrak, as the




Competitive Realities                                                            74
September 2005
following map demonstrates, but access is available via Fulton, Kentucky, roughly 90
miles to the east.

                                       Amtrak Route Map, 2005




                                              Source: Amtrak


Air Transportation
The Hopkinsville-Christian County area is served by one local airport. The greater
region is served by Nashville International Airport, located off Interstate 24
approximately one hour away.

                        Hopkinsville-Christian County Airport Data, 2005
                          Operations (reported)                 Yearly      Avg. Daily
                   General Aviation:                            8,800          24
                   Air Taxi:                                    1,690           5
                   Commercial:                                    0             0
                   Military:                                    1,150           3
                          Aircraft based on Field                              Total
                   General Aviation Singles:                                    40
                   General Aviation Multi:                                       4
                   Jet Aircraft:                                                 1
                   General Aviation Helicopters:                                 0
                   Military Aircraft:                                            0
                   Gliders:                                                      0
                   Ultralights:                                                  0
                        Daily and annual flight data current as of September 1, 2005.
                                             Source: Fltplan.com


The Hopkinsville-Christian County airport is IFR equipped, contains an on-site fuel
maintenance facility, and maintains a principal 5,502-foot asphalt runway.

At nearby Fort Campbell, the military maintains two asphalt runways at Campbell
Army Airfield, one at 11,800 feet in length, and a smaller runway measuring 4,500
feet.




Competitive Realities                                                                    75
September 2005
The following two graphics detail operations and capacity at Nashville International
Airport, which is roughly a one-hour drive southeast on I-24 from Hopkinsville-
Christian County.

                        Nashville International Airport Facts, December 2004
                               Serving Airlines                       16
                               Markets Served                         83
                               Average Daily Flights                 424
                               Non-stop Destinations                  59
                               Total Passengers                 8.67 million
                               Total Aircraft Operations          237,223
                               Based Aircraft                        183
                               Total Cargo/(tons)                  75,340
                               Acreage                              4,460
                               Terminal Square Feet               820,000
                              Sources: Metropolitan Nashville Airport Authority


With 83 markets served, 59 via non-stop flights, Nashville International Airport is a
tremendous resource for Hopkinsville-Christian County residents and businesses,
and serves as a powerful asset for local transportation and distribution firms.

                           Traffic at Nashville International Airport- 2004
                          Passengers                                   Cargo

                                         North         2004 Cargo                    North
               2004                     American       (Thousands                   American    Number of
            Passengers       %          Ranking:         of Metric        %         Ranking:    Non-stop
             (Millions)    Change      Passengers         Tons)         Change       Cargo     Destinations
Nashville
(BNA)           8.7          8.6            46              64.1           8.2          62         59
                  Source: Airports Council International, 2004 North American Traffic Report




TELECOMMUNICATIONS
The knowledge-based New Economy has been driven in part by the ease with which
people can communicate with each other and obtain information via broadband,
wire-line, and wireless telecommunications infrastructure. Regions with the most
up-to-date telecommunication resources have a natural competitive edge in the global
economic development marketplace.

Hopkinsville and its surrounding areas are well-served by broadband
communications access, as displayed in the following map.




Competitive Realities                                                                                   76
September 2005
                        Broadband Service Area Map, 2005: Christian County




                                      Source: ConnectKentucky




A number of cellular service towers are also located in and around the City of
Hopkinsville. With its robust communications infrastructure, Hopkinsville is
positioned as a viable business location for high-tech entrepreneurs, technology-
focused businesses, and other enterprises reliant on broadband communications
capacity.


HOUSING
Housing is an important component of a community’s infrastructure, as it directly
affects the quality of life and cost of living for the workforce. Businesses are better
able to attract and attain the most qualified workers when these needs are being met.

The following table contains a number of measurements of housing occupancy, cost
and comparative age as determined in the most recent decennial U.S. Census.




Competitive Realities                                                                77
September 2005
                                Comparison Housing Data, 2000
                                                  Christian Clarksville,
           Measure               Hopkinsville                            Kentucky U.S
                                                    Co.     TN-KY MSA
 Owner-occupied                         57.8%        55.3%        60.7%     70.7% 66.2%
 Vacant                                  8.0%         8.6%         7.8%      9.2%  9.0%
 Median monthly rent                     $345         $362         $426      $366   $519
 Median value                          $72,300     $71,300      $81,400 $79,600 $111,800
 Median year structure built              1969        1973         1979      1973   1971
                                      Source: U.S. Census Bureau


Although vacancy rates in Hopkinsville and Christian County indicate that there is
not a considerable local stock of vacant houses and apartments, other housing
measures are more troubling for the community.

Median values of Hopkinsville and Christian County residences are well below the
Clarksville metro, Kentucky and U.S. values. The age of the housing stock in
Hopkinsville and Christian County is a comparative disadvantage versus Clarksville
MSA housing. With a newer residential stock, other Clarksville metro counties are
potentially better positioned to attract new residents than Hopkinsville-Christian
County.

This reality, as well as the low relative percentages of Hopkinsville-Christian County
owner-occupied residences, creates a situation in which a large number of existing,
and potential, residents are in need of affordable, quality housing to potentially draw
them into the ownership market.

In response to a locally identified need to augment residential development and
foster population growth in Hopkinsville-Christian County, the City Council
approved the creation of a five-year Residential Enterprise Zone (REZ) program. The
REZ will provide up to $500,000 a year in incentives to developers of new
subdivisions. Developers will also receive rebates on utility installation costs to be
funded by a rate increase on water rates charged by the Hopkinsville Water
Environment Authority. If the REZ generates the maximum $500,000 in rebates in
the first year, it will trigger a rate increase of about 17 cents a month on the average
residential water bill. No incentives are paid to developers until a house is sold and
occupied, a local official stressed. Local officials are already touting the influence of
                                                                      27
the REZ on two recently announced subdivisions developments.

At the regional level, the U.S. Office of Federal Housing Enterprise Oversight
calculates and tracks a House Price Index (HPI) as a broad measure of the movement
of single-family house prices. The HPI serves as an indicator of house price trends at
various geographic levels, and also provides housing economists with a useful

27
 Brown, Jennifer. “REZ supporters: Effort spurs subdivision plans.” Kentucky New Era, August 15,
2005, p. 1.




Competitive Realities                                                                              78
September 2005
analytical tool for estimating changes in the rates of mortgage defaults, prepayments
and housing affordability in specific geographic areas.

                 Housing Price Index, Quarterly Percent Change, 1Q 2001 to 2Q 2005:
                     Clarksville, TN-KY MSA, Comparison Metros, Kentucky, U.S.
         16
         14
         12
         10
          8
          6
          4
          2
          0
            01
                 01
                      01
                           01
                                02
                                     02
                                          02
                                               02
                                                    03
                                                         03
                                                              03
                                                                   03
                                                                        04
                                                                             04
                                                                                  04
                                                                                         04
                                                                                              05
                                                                                                   05
          1Q
               2Q
                    3Q
                         4Q
                              1Q
                                   2Q
                                        3Q
                                             4Q
                                                  1Q
                                                       2Q
                                                            3Q
                                                                 4Q
                                                                      1Q
                                                                           2Q
                                                                                3Q
                                                                                     4Q
                                                                                          1Q
                                                                                               2Q
                      Clarksville, TN-KY                           Bowling Green, KY
                      Nashville-Davidson-Murfreesboro, TN          Kentucky
                      U.S.

                           Source: U.S. Office of Federal Housing Enterprise Oversight


Houses in the Clarksville MSA have risen dramatically in 2004 and the first two
quarters of 2005, and now equal the price index of the Nashville MSA.


UTILITIES
Basic utilities (i.e. water, sewer, and electricity) are a critical component of a
metropolitan area’s infrastructure for serving businesses. The cost of utilities will be
discussed in the following Business Costs section of this report.

Water is provided by the Hopkinsville Water Authority. Pennyrile Rural Electric
Cooperative is the primary provider of electricity. Electricity in the City of
Hopkinsville is also provided by the Hopkinsville Electric System, which is a
contractor of the Tennessee Valley Authority. They have approximately 13,400
                                                                        28
customers with average residential usage of 1,000 hours per month.

A major infrastructure issue in Hopkinsville-Christian County is the area’s capacity
to deal with stormwater. In response to widespread local flooding in September
2005, the City of Hopkinsville is applying for a federal grant that, if approved, would
be used to purchase flood-prone properties within the Hopkinsville city limits. The
city is also considering a proposal to create a new utility that would manage
stormwater and tackle flooding problems in the city. In addition to allaying future


28
     Hopkinsville Electric System. http://www.hop-electric.com/about.




Competitive Realities                                                                                   79
September 2005
flooding concerns, the stormwater utility could also serve as a funding mechanism
                                                                                 29
for a variety of expensive flood abatement projects, according to city officials.


Business Costs
Businesses are always seeking to improve their bottom lines by cutting operating
costs. Thus, this is often a primary concern as they make relocation, expansion, or
start-up decisions. This section analyzes Hopkinsville-Christian County’s
competitive position in terms of a wide array of business costs.


REAL ESTATE
Often communities have speculative, or “spec,” buildings or industrial parks pre-
equipped with much of the needed infrastructure to alleviate the initial costs of a
business opening in their community.

As illustrated in the map on the following page, Hopkinsville has several available
buildings and sites for prospective companies. Each illustrated available building is
located along the U.S. 41 corridor, and ranges in price from $800,000 to $2.5 million
(the 455,054 square foot building illustrated on the map is no longer available, and a
sales price for the 60,000 square foot building was not provided by the Kentucky
Cabinet for Economic Development).

                               Available Industrial Buildings, Hopkinsville
                                                        Minimum
     Building                      Square                Ceiling                              Lease
        ID      Building Name       Feet    Acreage      Height        Rail        Price      Price
 047-009        Perdue Building    95,625        12.9        24.0'        No     $2,500,000       NA
                                                                                               $2.50
                Mullins                                                                        per sq
 047-010        Warehouse          90,000         6.1        24.0'        No     $1,650,000      ft/yr
                                                                                               $2.60
                                                                                                  per
                                                                                              square
 047-006        Mullins Building   60,000        20.0        26.0'   Possible           NA       ft/yr
                Hopkinsville
                Speculative
 047-005        Building 10        48,000        22.0        24.0'        No      $800,000        NA
                             Source: Kentucky Cabinet for Economic Development




29
  Brown, Jennifer. “New utility could bring in money for flood work.” Kentucky New Era, September
18, 2005, p. 1.




Competitive Realities                                                                                 80
September 2005
                          Map of Available Industrial Sites and Buildings*




                  *The 455,054 square foot building (number 047-008), which is commonly
                  known as the Phelps Dodge Magnet Wire building, is no longer available.
                           Source: Kentucky Cabinet for Economic Development




Competitive Realities                                                                       81
September 2005
The available industrial sites range in price from $18,000 to $25,000 per acre. In
particular, the Interstate 24 Industrial Park, which is a Tennessee Valley Authority
(TVA) certified megasite, is a competitive asset of Hopkinsville-Christian County. It
is one of only five such sites in the United States. The megasite has strong rail and
interstate access, and it is in relative close proximity to Nashville International
Airport. It will be served by Bellsouth for telecommunications, Pennyrile Rural
Electric for electricity, Hopkinsville Water Environment Authority for water and
                                               30
sewer service, and has natural gas service.

                                  Available Industrial Sites, Hopkinsville
                                                              Distance
                                           Largest               to                     Price
     Building     Building       Total     Possible          Interstate/    Distance     Per
        ID         Name         Acreage     Tract     Rail    Parkway      to Airport   Acre
                Interstate
                24
                Industrial
                Park (TVA
     047-012    Megasite)        2,098.4       12.9    Yes           0.0           55   $18,000
                Bradshaw
     047-007    Property           865.3      681.0    Yes           1.7           71   $18,000
                Commerce
                Industrial
     047-005    Park               345.6      135.0    Yes           4.2           71   $25,000
                Hopkinsville
     047-013    AgPark             116.0      116.0    Yes           3.2           72   $25,000
     047-010    South Park         194.0      106.3     No           2.0           60   $25,000
                Hopkinsville
                Industrial
     047-001    Park                30.0       30.0    Yes           1.6           75   $25,000
                               Source: Kentucky Cabinet for Economic Development



UTILITIES
Basic utilities (i.e. water, sewer, and electricity) are a critical component of a
metropolitan area’s infrastructure for serving businesses. This section focuses on the
existing costs of Hopkinsville-Christian County’s utilities infrastructure. The capacity
of utilities was discussed in the previous “Infrastructure” section of this report.

Electricity
Compared to Kentucky and Tennessee, the Hopkinsville region is a cost competitive
area for commercial and industrial power. Additionally, commercial power rates
have increased at a more modest rate in Hopkinsville (2.9%) than Kentucky (5.7%) or
Tennessee (3.7%). Industrial rates, however, are growing at a faster rate in
Hopkinsville (5.1%) than Kentucky (3.4%) or Tennessee (4.4%).




30
     Available Property. TVA Sites. 19 September 2005. http://www.tvasites.com.




Competitive Realities                                                                             82
September 2005
                    Weighted Average Cost of Commercial Power, 2001-2003
                               Cents per Kilowatt Hour (kWh)31
            Area Name                     2001         2002         2003       % Change
            Hopkinsville Region          $0.049       $0.050       $0.052         2.9%
            Kentucky                     $0.053       $0.054       $0.058         5.7%
            Tennessee                    $0.065       $0.066       $0.068         3.7%
                   Source: U.S. Department of Energy, Energy Information Administration


                        Weighted Average Cost of Industrial Power, 2001-2003
                                  Cents per Kilowatt Hour (kWh)32
            Area Name                     2001         2002         2003       % Change
            Hopkinsville Region          $0.032       $0.034       $0.036         5.1%
            Kentucky                     $0.035       $0.037       $0.038         3.4%
            Tennessee                    $0.045       $0.046       $0.048         4.4%
                   Source: U.S. Department of Energy, Energy Information Administration



One local energy provider, the Hopkinsville Electrical System (HES), has given the
Tennessee Valley Authority (TVA) a five-year notice that HES is potentially seeking
other electrical contractors. In October 2005, TVA's rates will increase by more than
7.5 percent. With 13,200 customers in Hopkinsville, HES has decided to pursue
cheaper costs for its clients. HES is the sixth Kentucky electric company to give
notice to TVA that they will seek cheaper electrical service; companies supplying
electric service to Paducah, Princeton, Glasgow, Monticello and portions of Warren
and surrounding counties are dissatisfied enough with TVA rate increases to seek
                         33
other provider options.

Gasoline
The cost of gasoline in the United States grew by nearly 60 percent from September
2004 to September 2005. The Tennessee portion of the Clarksville MSA (the only
gasoline price estimates available for the MSA from the American Automobile
Association) had an increase in gasoline prices of 67.2 percent over the same period.
However, as of September 2005, the cost of gasoline was still more expensive in the
U.S. ($2.915) than in the Tennessee portion of the Clarksville MSA ($2.898).




31
   Cents per kilowatt-hour (kWh) is calculated by dividing revenue (thousand dollars) by sales
(megawatthours). Cost is calculated by weighing kWh rates for the respective utilities by number of
customers, then totaled at the metro and state levels.
32
   Ibid.
33
   Campbell, Karen. “HES seeks cheaper energy.” Kentucky New Era, August 6, 2005, p. 1.




Competitive Realities                                                                                 83
September 2005
           Cost of a Gallon of Regular Gasoline, September 2004 to September 2005
                                                   September        September
      Area Name                                       2004             2005          % Change
      Clarksville-Hopkinsville (TN only)             $1.733           $2.898           67.2%
      Kentucky                                       $1.761           $2.833           60.9%
      Tennessee                                      $1.750           $2.877           64.4%
      United States                                  $1.837           $2.915           58.7%
                                Source: American Automobile Association


Natural Gas
Natural gas prices are reported at the state-level. Kentucky’s prices have maintained a
rate higher than the U.S. from 1999 to June 2005. In the most recent years,
Kentucky’s have been higher than Tennessee.

           Average Price of Industrial Natural Gas (dollars per thousand cubic feet),
                1999 to June 2005: Kentucky, Tennessee, and United States

   9.00
   8.00
   7.00
   6.00
   5.00
   4.00
   3.00
   2.00
   1.00
   0.00
              1999         2000         2001         2002          2003         2004      June-05

                               United States           Tennessee            Kentucky
                   Source: U.S. Department of Energy, Energy Information Administration



LABOR COSTS
The cost of labor can be a factor in business decisions to locate, expand, or start-up.
Although workforce quality is a key consideration of businesses, this labor cost data
should not be overlooked in analyzing a community’s competitiveness. As described
previously in this report, Christian County’s average wages in 2003 were nearly
$33,000 per job, which is higher than the combined Clarksville MSA or Kentucky.
This could be suggestive of the types of jobs in Christian County compared to
elsewhere in addition to the average pay of those jobs.




Competitive Realities                                                                               84
September 2005
The wages by sector data provide more insight into this issue. In most sectors,
Christian County’s average annual pay is lower than Kentucky’s, a comparatively
favorable environment for businesses within these sectors. The four sectors with a
higher wage in the County than the Commonwealth in 2004 were Transportation
and Warehousing; Administrative and Waste Services; Educational Services; and
Public Administration.

Union membership also can contribute to businesses’ perspectives on the
competitiveness of a labor market. A Right to Work law secures the right of
employees to decide for themselves whether or not to join or financially support a
union. However, employees who work in the railway or airline industries are not
protected by a Right to Work law, and employees who work on a federal enclave may
not be. Currently, Kentucky is not a right-to-work state, but Tennessee is. As a
border community, this could affect both labor and business location decisions in
Hopkinsville-Christian County.


                                 U.S. Right to Work States, 2005




                        Source: National Right to Work Legal Defense Foundation


Currently, legislation that could establish Kentucky as a right to work state is pending
legislature action. Kentucky remains the only state in the South without the
protections afforded by right-to-work laws. Kentucky policymakers could end union
aggression by enacting right-to-work legislation, which would both increase workers’
freedoms and strengthen the commonwealth’s economy.




Competitive Realities                                                                 85
September 2005
 As the following chart attests, the percentage of unionized workers is higher in
 Kentucky (9.6%) than Tennessee (6.7%), again, potentially affecting labor and
 business location decisions for a border community like Hopkinsville.

                                  Labor Force Unionization Rates: 2004
                                                                   Union      %
                          State               Employment
                                                                  members Unionized
             Kentucky                               1,698,972       163,687  9.6
             Indiana                                2,716,836       310,726 11.4
             Missouri                               2,546,383       314,813 12.4
             Ohio                                   4,997,665       758,560 15.2
             Tennessee                              2,465,314       164,202  6.7
             Virginia                               3,307,571       176,051  5.3
             West Virginia                            700,138        99,421 14.2
                Source: U.S. Census Bureau Current Population Survey; Hirsch and Macpherson



 TAX RATES
 As a community located on the border, Hopkinsville-Christian County’s business
 climate is also affected by differences in Kentucky and Tennessee tax and regulatory
 statutes. While Tennessee generates a larger share of its tax revenue from general
 sales and use taxes than Kentucky, Kentucky generates a larger share of its tax
 revenue from individual income taxes. An individual business’ location decision is
 based on how it weighs the impact of one type of tax over another, as well as other
 business climate factors.

                         State Tax Distribution by Type of Tax, Fiscal Year 2002
                   General Sales       Individual        Corporate        Motor                  All
     State                                                                           Licenses
                      & Use              Income           Income          Fuels                 Other

Kentucky                 29.0%           33.6%             3.8%           5.8%         6.8%     21.1%
Tennessee                60.0%            1.9%             6.5%           10.4%       10.7%     10.6%
United States            33.5%           34.7%             4.9%           6.0%         6.6%     14.3%
                                        Source: The Tax Foundation




 Competitive Realities                                                                            86
 September 2005
As of January 1, 2005, Kentucky has a graduated income tax of ranging from 2% -
6%, classified by five income brackets. The commonwealth also has a flat 6 percent
                34
sales tax rate.

There are no local sales taxes in Hopkinsville-Christian County. The following is a
breakdown of property taxes in the community.

           Property Tax Rates Per $100 in Christian County and Cities Within, 2004
                        Christian
                         County          Hopkinsville       Oak Grove           Pembroke   Crofton
     Real Estate         91.97¢              23.4¢             25.5¢             28.9¢      31.7¢
      Tangible          $1.2747              25.1¢             18.6¢             25.1¢      30.0¢
      Inventory          $1.421              25.1¢            18.6¢              25.1¢      30.0¢
                                                                           35
                               Source: Christian County Property Valuation



REGULATORY AND DEVELOPMENT CONTROLS
A community’s regulatory process can be a burden for businesses if accessibility,
availability of information, costs, or unnecessary delays compromise efficient
business operations.

In the City of Hopkinsville, zoning changes are submitted to the Planning
Commission, which has 60 days to approve it. Then, City Council has 30 days to
                          36
make their final decision. There is no one-stop permitting center, which is a service
many communities use to facilitate the process.


INCENTIVES
Local and state governments throughout the United States create customized or more
universal financial and infrastructure support incentives for new, expanding, or
                                                                                 37
relocating companies. The following are some key Kentucky incentive programs.

Tax Credit Programs
•    Bluegrass State Skills Corporation Skills Training Investment Credit: An
     income tax credit for businesses that sponsor occupational or skills upgrade
     training programs for their employees.
•    Kentucky Rural Economic Development Act (KREDA): As a KREDA designated
     county, new and expanding manufacturers in Christian County can be approved

34
   Source: Federation Tax Administrators.
35
   Tax Rates. Christian County Property Valuation. http://www.christianpva.com/wps-html/TaxRates/.
City of Lafayette not reported.
36
   Phone interview. 15 September 2005.
37
   Business incentives. Kentucky Cabinet for Economic Development.
http://www.thinkkentucky.com/kyedc/kybizince.asp.




Competitive Realities                                                                                87
September 2005
    under KREDA to potentially receive state income tax credits and job assessment
    fees for up to 100% of their capital investment for up to 15 years on land,
    buildings, site development, building fixtures, and equipment used in a project.
•   Kentucky Jobs Development Act (KJDA): Income tax credits and job assessment
    fee collections are available under this legislation to new and expanding service
    and technology related projects. For the job assessment fee, businesses can
    receive up to 5 percent of the gross wages of each employee whose job is created
    by the project and who is subject to Kentucky income tax. The local community
    must approve the project prior to the submission of an application to the
    commonwealth.
•   Kentucky Industrial Development Act (KIDA): Under this legislation, new and
    expanding manufacturing businesses can receive state income tax credits for up
    to 100% of its capital investment for up to 10 years on land, buildings, site
    development, building fixtures, and equipment used in a project. Or, the
    company may collect a job assessment fee of 3 percent of the gross wages of each
    employee whose job is created by the approved project and who is subject to
    Kentucky income tax.
•   Kentucky Economic Opportunity Zone Program (KEOZ): Areas designated as
    first class (there is one census tract in the center of Hopkinsville which is) can
    apply through Kentucky Economic Development Finance Authority (KEDFA) for
    Opportunity Zone certification. In these areas, new or expanding manufacturing
    or service/technology companies are eligible for income tax credits of up to 100%
    of the Kentucky income tax liability on income generated by or arising out of the
    project; and a job development assessment fee of up to 5% of gross wages.
•   Kentucky Investment Fund Act (KIFA): Under this legislation, Kentucky
    provides tax credits to individuals and companies that invest in approved venture
    capital funds. Investors in KIFA approved funds are entitled to a 40 percent credit
    against Kentucky individual or corporate income tax or Kentucky corporate
    license tax. KEDFA approves investment funds and fund managers.

Other Business Incentives and Financial Programs
•   Bluegrass State Skills Corporation Grant Reimbursement Program: The
    commonwealth provides matching grant funds for customized business and
    industry-specific training programs.
•   Direct Loan Program: KEDFA provides business loans to supplement other
    financing for business expansion and job creation. The loans are available at
    below-market interest rates (subject to the availability of state revolving loan
    funds) for fixed asset financing for agribusiness, tourism, industrial ventures, or
    the service industry (excluding retail).
•   Enterprise Zones: Special tax incentives and certain regulation exemptions are
    available to businesses that located in these designated zones.
•   Industrial Revenue Bonds (IRB): These bonds, which can be issued by Kentucky
    or local governments, are used to finance manufacturing projects and their
    warehousing areas, major transportation and communication facilities, most
    health care facilities, and mineral extraction and processing projects.



Competitive Realities                                                               88
September 2005
•   Angel Capital Electronic Network (ACE-NET): This listing service enables the
    exchange of information between entrepreneurs and investors in Kentucky.
•   Commonwealth Small Business Development Corporation (CSBDC): This is
    the entity responsible for the U.S. Small Business Administration 504 Loan
    Program, which will be described in more detail later in this report.
•   Community Development Block Grants Loans (CDBG): These are federally
    funded low interest loans.
•   Kentucky Tourism Development Act (KTDA): Under this legislation, Kentucky
    offers incentives for qualified new, or expanded, tourism projects.
•   Linked Deposit Program: Under this program, Kentucky offers loans up to
    $100,000 for small business and agribusiness.
•   Tax Increment Financing (TIF): TIF-designated districts, a common tool of local
    governments, provide tax incentives and infrastructure development support to
    projects within the boundaries.


SMALL BUSINESS AND ENTREPRENEURSHIP
Small businesses help strengthen an economy by helping to diversify its structure
and better protect it from large company closings. To overcome the difficult start-up
period, small-business owners need to have effective operational skills, adequate
financial resources, and a strong business plan.

Small Business Development Center (SBDC)
The Small Business Development Center is the primary resource for prospective
entrepreneurs in Hopkinsville-Christian County. In a partnership with Murray State
University, the Center leases space to university professionals at the Hopkinsville-
Christian County Commerce Center to assist small business people and
entrepreneurs with enterprise development. The SBDC program monies have been
approved by the Chamber board for the 2005-06 fiscal year.

Minority-Owned Firms
The Hopkinsville-Christian County Chamber of Commerce coordinates a staffed
program called Minority Economic Development Initiative (MEDI). MEDI is the
component of the Chamber that is focused on the development, improvement and
promotion of minority business, youth, and at-risk employment candidates.

The following chart illustrates the percentage of businesses owned by African
Americans and other minorities in Christian County, as of 1997 (the most recent
available). Combined, minority-owned firms represented 6.3 percent of all Christian
County businesses, a higher percentage than Kentucky, but lower than the Clarksville
MSA and the national averages. Christian County did, however, have the highest
percentage of firms owned by women as of 1997.




Competitive Realities                                                               89
September 2005
                               Minority and Female-Owned Firms, 1997
                                         Christian   Clarksville
                                                                   Kentucky     U.S.
                                          County        MSA

              African American-owned          4.3%        5.2%           2.0%     4.0%
              All other minority-owned        2.0%         5.3%          2.5%   10.6%
              Female-owned                    27.3%       24.8%       23.4%     26.0%
                              Source: U.S. Census Bureau Economic Census

                                                                    38
The following are the key programs coordinated by MEDI :

Minority Entrepreneurship Training Program
Existing and prospective small business owners can attend six to eight weeks of
training and information sessions in order to learn how to own and operate a
successful business. Participants graduate with certificates, business plans,
knowledge and information, presentation skills and a network of other small
business owners.

Jobs, Education and Training (JET) Program
This program focuses on employees, providing job readiness training. Topics
covered include interviewing, dressing appropriately for work, managing conflicts,
and writing resumes. When participants graduate after eight training sessions, they
are offered referrals and other assistance to obtain a job.

Focus 21st Century Minority Leadership Program
This program includes nine months of training to enhance leadership skills,
networking abilities, and resourcefulness. After completing the program, many
graduates commit their time to community boards and committees, especially in the
inner-city.

Project Challenge Youth Enrichment Program
Focus 21st Century Minority Leadership graduates began this program to focus on
providing skills training to youth ages 10 to 17. Training sessions have included
Young Entrepreneurs, Listening to Talk Back, Youth as Trustees, and Education the
Real Deal.

Minority Enterprise Development Week (MED Week)
This week focuses on celebrating and honoring minority businesses, individuals, and
organizations for their contributions to the community. Events focus on highlighting
minority businesses and their accomplishments, presenting entrepreneurial
workshops, and introducing newly enrolled Focus 21st Century Minority Leadership
participants.



38
 Commerce Center. MEDI. 04 September 2005.
<http://www.commercecenter.org/chamber/minority.asp>.




Competitive Realities                                                                    90
September 2005
Western Kentucky Minority Business Expo
In coalition with MED Week, the Expo showcases minority businesses and
organizations to the community. The Expo raises community awareness about
minority businesses, and displays a number of local and visiting businesses selling
products such as books, art, services, jewelry, and clothing. The one-day event
includes seminars, food, games, shows, and presentations.

SBA Loan Activity
The most recognized small business loan is the 7(a) program offered by the U.S.
Small Business Administration (SBA). These loans are made by commercial lending
institutions and guaranteed by the SBA for the purpose of financing small business
activities. The next table shows that from 2000 to 2004, Christian County
entrepreneurs received a larger number of loans than Trigg or Stewart. Christian
County also had a higher average loan amount than Trigg or Montgomery. However,
of the Clarksville MSA counties, Christian County’s total loan amount per capita only
exceeded Montgomery.

                          SBA Loan Activity, 7(a) Program, 2000-2004
                                        Number         Average                           Total Loan
                                           of           Loan          Total Loan          Amount
                                         Loans         Amount           Amount           Per Capita
 Christian County, KY                         17        $186,588       $3,172,000                $45
 Trigg County, KY                              7        $156,691       $1,096,840                $83
 Stewart County, TN                            4        $450,788       $1,803,153               $141
 Montgomery County, TN                        41        $110,832       $4,544,100                $32
 Clarksville-Hopkinsville MSA                 69        $153,856      $10,616,093                $44
                  Sources: U.S. Small Business Administration; 2004 U.S. Census Bureau


The other main SBA loan program is the Certified Development Company, or 504,
Program. These loans are only for “brick and mortar” financing – i.e., real estate or
machinery and equipment – and are provided through certified development
companies (non-profit development organizations established for economic
development purposes). There was no 504 loan activity for Christian County from
2000 to 2004.

Bank Deposits
Commercial banks are a primary source of small business loans. The following chart
assesses the comparative extent of financial resources of Christian County that are
insured by the Federal Deposit Insurance Corporation (FDIC). For June 2004, total
deposits per capita in Christian County ($8,974) were lower than the MSA, Kentucky,
or the U.S. However, the percent change in deposits from 1999 to 2004 in Christian
County (14.4%) exceeded the MSA and Kentucky.




Competitive Realities                                                                              91
September 2005
                   FDIC-Insured Banking Institutions and Deposits, June 2004
                                                                             Total Deposits
                            Total         Total     Total Deposits             Per Capita
                         Institutions    Offices     (in millions)
                                                                        Amount        % Change
                                                                         ('04)         ('99-'04)
      Christian County              5          20             $634          $8,974            14.4%
      Clarksville MSA             15           77            $2,208         $9,242            12.8%
      Kentucky                   265        1,724          $56,858         $13,714            14.2%
      U.S.                     9,066       89,786        $5,464,782         $18,610           37.2%
                          Source: Federal Deposit Insurance Corporation (FDIC)


Other Funding
Another source of potential funding for Christian County businesses is from
Kentucky’s Commonwealth Seed Capital LLC. (CSC). This capital fund provides seed
funding for new ideas and products developed in Kentucky. CSC will invest in a
Kentucky company to which a private capital fund has agreed to provide capital
            39
investment.


CAPACITY FOR INNOVATION
Innovation, in product or process, is one of the primary means of new business
development and expanded economic activity in an economy. A variety of measures
can serve as indicators of a community’s capacity to innovate, including research and
development (R&D) expenditures, utility patents, and measures of the workforce
                                                                      40
including educational attainment levels and the creative class index.




39
   Business Incentives. Kentucky Cabinet for Economic Development.
http://www.thinkkentucky.com/kyedc/pdfs/kybusinc.pdf.
40
   The creative class index was developed by Dr. Richard Florida, the Hirst Professor at the School of
Public Policy at George Mason University and a non-resident Senior Fellow at the Brookings Institution.




Competitive Realities                                                                                 92
September 2005
Research Licensing and Commercialization
After the passage of the federal Bayh-Dole Act in the 1990s enabling higher institutions to receive revenue from sponsored
research, colleges and universities immediately began to develop and strengthen the internal expertise needed to effectively engage
in the patenting and licensing of inventions. In many cases, institutions that had not been active in this area began to establish
entirely new technology transfer offices, building teams with legal, business, and scientific backgrounds. Now, research and
technology commercialization is considered by many in the economic development community to be one of the prime local job
and income generators for the new millennium. This is especially true for so-called “convergence industries” like biotechnology
and nanotechnology. The following table contains information on licensing and commercialization of university-sponsored
          41
research.

                                                  University Licensing and Commercialization Summary, 2003

                                         Total Sponsored                         New U.S.                    Adjusted      Licenses &
                                                                   Invention                                                                 Start-Up
                                      Research Expenditures                       Patent Licenses &            Gross         Options    U.S.
                                                                    Disclo-                                                                   Comp-
                 Institution                                                      Applic-  Options           License        Yielding Patents
                                                                     sures                                                                    anies
                                      Rank                                        ations  Executed            Income         License  Issued
                                                                     Rcvd.                                                                   Formed
                                     (out of         Total                         Filed                     Received        Income
                                      165)
           U of California syst.           1     $2,623,300,000         1,027          490           208    $61,119,000            826         323   22
           Johns Hopkins U                 2     $1,461,554,520           330          380           159     $6,572,623            218          95    5
           MIT                             3       $994,354,000           452          235           114    $24,252,109            379         152   15
           U of Illinois system            4       $785,088,000           229          118            86     $7,622,236            183          39    6
           U of Washington                 5       $784,411,974           199           73            67    $29,131,798            350          46    3
           Vanderbilt University          39       $293,953,000            112           37           27     $8,894,473             61          21    0
           U of Kentucky                  72       $146,717,396             54           21           11       $742,882             19          25    1
           U of Louisville                94        $93,924,000             38           31            6        $30,406              8           1    1
           Western Kentucky U            142         $4,263,000              3            0            2         $8,000              2           0    0
                                                         Source: Association of University Technology Managers




41
     Note: Only institutions that respond to the survey distributed by the Association of University Technology Managers are listed in the table.



Competitive Realities                                                                                                                                     93
September 2005
     Utility Patents
     Tracking utility patents granted by the U.S. Patent and Trademark Office illustrates
     the amount of research that is transformed into products with potential commercial
           42
     value. Total patents derived from individuals, companies and universities in
     Christian County from 1990 to 1999 was 30, which is a competitive amount for a
     county without a major university.

                               Number of Utility Patents Granted: 1990 to 1999
                                                                                                                 Total
     Area           1990     1991    1992     1993      1994     1995     1996     1997     1998     1999
                                                                                                               ('90-'99)
Clarksville, TN-KY MSA
Christian County,
              KY       3         4        8        2        1        4        3        1        2         2           30
     Montgomery
      County, TN       3         5        4        3        2        6        2        3        8         6           42
Bowling Green, KY MSA - No patents granted during the period.
Nashville, TN MSA
      Cheatham
          County       2         2        3        1        3        3        0        2        1         1           18
      Robertson
          County       1         2        2        2        7        6        2        3        2         1           28
 Sumner County         4         9      8         5       14      14       14         15       15       13           111
                                      Source: U.S. Patent and Trademark Office


     Creative Class
     The workforce’s capacity for innovation can be measured by the proportional size of
     the “Creative Class” in a community. Former Carnegie Mellon Professor Dr. Richard
     Florida coined the term “Creative Class” to refer to a classification of people that will
                  st
     drive the 21 century economy by using their minds to create new processes and
               43
     products. The Creative Class includes scientists, engineers, artists, actors,
     architects, researchers, and analysts. It also includes those who work in knowledge-
     intensive industries such as finance, law, health care, business management, and the
     high-tech sectors. While it is debatable whether the Created Class is the only group
     of people who drive the economy, it is reasonable to believe that today’s knowledge
     economy is heavily dependent on the human capital behind it.

     According to Florida’s theory, the Creative Class is attracted to cities with the “Three
     T’s:” Technology, Talent, and Tolerance. Florida argues that these are the key parts of
     economic development. Thus, he developed a Creativity Index of metropolitan areas

     42
        Utility patents, a classification of the U.S. Patent and Trademark Office, are for an invention or “useful
     improvement” in process, machine, element of manufacture, or composition of matter. Utility patents
     do not include plant patents, design patents, statutory invention registration documents, and defensive
     publications. U.S. Patent and Trademark Office. Accessed 20 June 2005.
     http://www.uspto.gov/main/glossary/index.html#utility.
     43
        Dr. Richard Florida is now the Hirst Professor at the School of Public Policy at George Mason
     University and a non-resident Senior Fellow at the Brookings Institution.




     Competitive Realities
     September 2005                                                                                            94
based on four factors: the Creative Class share of the workforce, innovation
(measured as patents per capita), high-tech industry (using the Milken Institute’s
Tech Pole Index), and diversity.

The next table shows Florida’s most recent rankings for the Clarksville MSA and
comparison metropolitan areas. Clarksville compared favorably to the Owensboro
metropolitan area. A total of 332 metropolitan areas were studied.

            Creative Class Rankings, Clarksville MSA and Comparison Metros, 2005
                                                        Rank
                              Overall     Creative       High           Inno-
            Region            Rank         Class         Tech           vation   Diversity
      San Francisco, CA          1           12             1              5          1
      Austin, TX                 2            7            13              6         23
      Boston, MA                 3            6             2             12         41
      San Diego, CA              3           30            14             13          4
      Seattle, WA                5           20             3             34         11
      Raleigh-Durham, NC         6            5            16              8         52
      Houston, TX                7           22            19             39         16
      Washington, DC             9            4             5             85         18
      New York, NY              10           25            15             54         20
      Lexington, KY             63          133           118             41         56
      Nashville, TN             66           79            70            171         45
      Clarksville, TN-KY       261          227           258            248        170
      Owensboro, KY            266          246           251            223        n/a
      Bowling Green, KY                                Not ranked
      Paducah, KY                                      Not ranked
                             Source: Richard Florida Creativity Group




Competitive Realities
September 2005                                                                               95
Quality of Life
Employers and employees often weigh quality of life considerations heavily into their
location decision-making process. One individual’s sense of what makes a preferred
living and working environment can be very different than another’s, but there are a
few universal considerations. The following indicators will be analyzed to measure
Hopkinsville-Christian County’s quality of life: cost of living, health care, public
safety, art and cultural amenities, recreational opportunities, environmental health,
and civic participation.


COST OF L IVING
For the past four years, The City of Hopkinsville and select Kentucky metropolitan
areas have had a cost of living estimate lower than the national average (indexed at
     44
100). From the second quarter 2002 to the same quarter of 2005, the City of
Hopkinsville’s cost of living has been consistently lower than all other illustrated
metro areas except Paducah.

          Composite Cost of Living Indices: Second Quarter 2002 to Second Quarter 2005:
                      City of Hopkinsville, Selected Kentucky Metro Areas*

             100

              98

              96

              94

              92

              90

              88

              86

              84

              82
                         2Q02                 2Q03                 2Q04                2Q05

                    Hopkinsville     Bowling Green        Lexington       Louisville   Paducah

                             *Paducah Cost of Living Indices not available for 2Q02.
                                               Source: ACCRA




44
     No data was available for Christian County as a whole.




Competitive Realities
September 2005                                                                                   96
A detailed breakdown of Hopkinsville’ cost of living for the second quarter 2005
illustrates that housing in particular, and also health care and groceries, are
affordable compared to the national average (100.0).

                Cost of Living Indices, Second Quarter 2005: City of Hopkinsville
                                                                  Health
     Grocery    Housing        Utilities   Transportation          Care        Misc.     Composite
      86.4       74.6           97.7            91.6               83.3        94.4        87.3
                                             Source: ACCRA



HEALTH CARE
Availability of and accessibility to health care services are important to consider,
especially for communities with large youth or elderly populations. With the
demographic shift caused by the aging of the Baby Boom generation, demand for
health care services is expected to increase substantially nationwide.

Hospitals and Physicians
The Clarksville MSA appears to be underserved compared to national averages, with
low hospital beds and physicians per 100,000 people estimates. The cost estimates
of the MSA compared to the nation illustrate health care is comparatively affordable
in the community.

                        Physicians and Hospital Beds per 100,000 People, 2004
                                                     Clarksville-               United States
                        Area Name
                                                  Hopkinsville, TN-KY               Avg.
         # of teaching hospitals                                    0                       4
         Hospital beds per 100,000
                                                                       411.0               432.2
         people

         Physicians per 100,000 people                                 148.9               261.1

         Cost per doctor visit                                         $63.0               $67.0

         Cost per dental visit                                         $78.0               $82.0

         Cost per daily hospital room                               $432.0               $733.0
                                                                      45
                                    Source: Cities Ranked and Rated




45
  Sperling, B. and P. Sander. Cities Ranked and Rated. Hoboken, NJ: Wiley Publishing, Inc., 2004.
Cities Ranked and Rated ranked 403 North American metropolitan areas in terms of population,
economy and jobs, cost of living, climate, education, health and health care, crime, transportation,
leisure, arts and culture, and quality of life.




Competitive Realities
September 2005                                                                                         97
Death Rates
From 1998 to 2000, death rates increased in the Hopkinsville region, such that in
2000 the figure was very similar to Kentucky and Tennessee.

            Deaths per 100,000 People, 1998-2000: Region, Kentucky, and Tennessee

  1000.0

    980.0

    960.0

    940.0

    920.0

    900.0

    880.0

    860.0

    840.0
                         1998                         1999                          2000

                              Hopkinsville Region           Kentucky         Tennessee
             Source: Kentucky Cabinet for Health Services and Tennessee Department of Health


The instances of heart disease as a cause of death in the Hopkinsville region and
Kentucky have increased from 1998 to 2000, but Tennessee’s number of instances
has been more stable. A similar pattern evolved for the number of deaths caused by
stroke. The number of deaths caused by cancer increased in both states and the
Hopkinsville region during this time period.




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September 2005                                                                                 98
                    Leading Causes of Death per 100,000 People, 1998-2000:
                               Region, Kentucky, and Tennessee

  350.0

  300.0

  250.0

  200.0

  150.0

  100.0

   50.0

     0.0
            Heart  Cancer       Stroke     Heart  Cancer       Stroke    Heart  Cancer         Stroke
           Disease                        Disease                       Disease
                        1998                           1999                         2000

                                 Hopkinsville Region     Kentucky    Tennessee
             Source: Kentucky Cabinet for Health Services and Tennessee Department of Health
                                        Rates are adjusted for age.


For infant mortality rates, the Hopkinsville region’s rates declined from 1998 to
1999, but increased again in 2000. Particularly in 2000, the infant mortality rate of
African Americans in the Hopkinsville region was high. In most instances,
Tennessee’s infant mortality rate has been higher than Kentucky.




Competitive Realities
September 2005                                                                                          99
                          Infant Mortality per 1,000 Live Births, 1998-2000:
                                  Region, Kentucky, and Tennessee

     25.0

     20.0

     15.0

     10.0

      5.0

      0.0
            Total       White    Black     Total     White     Black      Total     White      Black
                        1998                           1999                         2000

                                 Hopkinsville Region     Kentucky    Tennessee
             Source: Kentucky Cabinet for Health Services and Tennessee Department of Health



PUBLIC S AFETY
A sense of security is a key factor in many people’s definition of a favorable quality of
life. A community’s ability to provide that security can be measured in terms of the
number of police officers and firefighters, and the reported instances of property and
violent crime.

Police Officers and Firefighters
The City of Hopkinsville’s Police Department has 68 employees, and the Christian
County Sheriff Department has 34. There are eight volunteer fire districts in
                                                        46
Christian County, and 80 fire personnel in Hopkinsville.

Crime Rates
In 2003, the City of Hopkinsville had a violent crime rate that was much higher than
elsewhere in Kentucky. Additionally, from 2002 to 2003 the Hopkinsville rate
increased by 17.3 percent. Violent crimes include murder and non-negligent
manslaughter, forcible rape, robbery, and aggravated assault.




46
   Government data. Hopkinsville-Christian County Chamber of Commerce.
http://www.commercecenter.org/community/government.asp.




Competitive Realities
September 2005                                                                                         100
                         Violent Crime Rate Per 100,000 People, 2002-200347
                                                 2002         2003        % Change
                           Hopkinsville P.D.       390.6        458.3             17.3%
                           Kentucky                271.4        261.7             -3.6%
                          U.S.                    494.4        475.0           -3.9%
                         Source: FBI Uniform Crime Reports, Bureau of Justice Statistics


The City of Hopkinsville’ property crime rate is significantly higher than Kentucky or
the U.S. Hopkinsville’s rate remained stable from 2002 to 2003, with a less than one
percent change. Property crimes include burglary, larceny-theft, and motor vehicle
theft.

                        Property Crime Rate Per 100,000 People, 2002-200348
                                                 2002         2003        % Change
                           Hopkinsville P.D.     6,199.7       6,246.4         -0.75%
                           Kentucky              2,655.1       2,681.5         -0.99%
                          U.S.                   3,630.6     3,588.4           1.16%
                         Source: FBI Uniform Crime Reports, Bureau of Justice Statistics



ARTS, CULTURE AND ENTERTAINMENT
A variety of arts, culture, and recreational amenities and events can attract tourists,
prospective residents, and businesses to an area. The following are a few of
Hopkinsville-Christian County’s key amenities and annual events.

Pennyroyal Area Museum
The subject matter of the Pennyroyal Area Museum is the history and heritage of
nine-county Southwestern Kentucky.

Pennyroyal Arts Council
The Pennyroyal Arts Council promotes arts appreciation through education, support,
service, and presentation. Offerings of the Council include the landmark Alhambra
Theatre, which is used as a community performing arts center and arts exhibition
hall.

Don F. Pratt Memorial Museum
As an installation museum for Fort Campbell, the Don F. Pratt Memorial Museum
focuses on the history of the 101st Airborne Division (Air Assault) and the units
stationed at Fort Campbell from August 1942 to the present.


47
     The Christian County Sheriff’s Office did not report data for these years.
48
     The Christian County Sheriff’s Office did not report data for these years.




Competitive Realities
September 2005                                                                             101
Edgar Cayce Sites
Edgar Cayce, a man known for his psychic abilities, spent thirty-five years of his life
in Kentucky, seventeen of which in Christian County. Thus, several sites
commemorating his life remain in the area.

Cherokee Trail of Tears Commemorative Park
Located in Hopkinsville, this park is one of the few
documented actual trail and campsites used during the
“Trail of Tears” forced journey of the Cherokee people in
the 1830s. This site has been designated as part of the
National Historic Trail of Tears by the federal government.
Two Cherokee Chiefs were buried at the site, and a log
cabin serves as the Heritage Center at the park.

Jefferson Davis Monument State Historic Site
Located in Fairview, Kentucky, this site memorializes the birthplace of the President
of the Confederacy during the Civil War. The visitor’s center has exhibits on Davis’
life before and after the Civil War, as well as Civil War memorabilia.

Hopkinsville Salutes Fort Campbell Week
Each year, the Chamber’s Hopkinsville-Oak Grove-Christian County Military Affairs
Committee coordinates this week-long tribute to Fort Campbell, by offering discounts
at local establishments for military families, a golf tournament, women’s luncheon,
tour of local homes, and a holiday party.

Kelly Green Men Festival
On August 21, 1955, an “invasion” of “Little Green Men” occurred in the rural town of
Kelly, KY near Hopkinsville, and the community now hosts an annual festival
commemorating the day.

New Towne Station
A new development is planned for a site on Fort Campbell Boulevard at Lovers Lane.
Planned uses for the site include a movie theater, bowling center, restaurants, hotel,
large and small retail, and office pace on the 88-acre site. The site is adjacent to the
Hopkinsville-Christian County Conference and Convention Center and the Murray
                                    49
State University regional campus.




49
     Campbell, Karen. “Banking on new retail.” Kentucky New Era, June 11, 2005, p. 1.




Competitive Realities
September 2005                                                                          102
RECREATION
Additionally, Hopkinsville-Christian County has the following recreational amenities
for residents and visitors:

Round Table Park
This park includes a 10 1/2-ton stone Round Table, the “Sword in the Stone,” a
Medieval Wall, and a bronze replica of Tholos, the Greek muse of tragedy.

Ft. Campbell Memorial Park
This park is dedicated to the 248 soldiers who died in a plane crash in
Newfoundland. Features of the park include a larger-than-life sculpture depicting a
member of the multinational peacekeeping force in the Sinai, a waterfall, and
memorial markers.

Land Between The Lakes National Recreation Area
This 170,000 acre recreation area is between Kentucky Lake and Lake Barkley,
created by the Kennedy administration in 1961. The area is home to native deer, wild
turkeys, bobcats, bald eagles, osprey, and many other species. There is also a 750-
acre restored habitat for elk and bison herds. Over 200 miles of hiking, mountain
biking, horseback riding, and off-highway vehicle trails are open year-round. The
area is also equipped for camping, hunting, fishing, cycling, wildlife viewing,
photography, and picnicking. Other features of the recreation area include an 1850’s
farm, an environmental education center, and a planetarium.

Pennyrile Forest State Resort Park in Dawson Springs
This resort offers rustic wood and stone lodges, an 18-hole golf course, tennis, hiking,
canoeing, fishing, swimming, and mountain biking to visitors.

Lake Barkley State Resort Park
This post-and-beam wood construction lodge has views of Lake Barkley, outdoor and
indoor pools, fitness center, racquet ball court, tanning beds, sauna, whirlpool and
fitness trainers. Additionally, there is an 18-hole golf course, spacious campground,
full-service marina, a lighted airstrip, and trails for hiking and mountain biking.

Christian Way Farm
This farm is open to the public so that individuals can experience life on a farm. The
farm also is open to student field trips and others interested in an educational
experience about farming.




Competitive Realities
September 2005                                                                        103
CLIMATE AND ENVIRONMENT
The redistribution of the U.S. population to Sunbelt cities in recent years illustrates
that people (and businesses) are increasingly relocating to more temperate climates.
The Sunbelt is usually defined as stretching across the southern United States from
California to Florida. The environment is also an important consideration due to the
long-term health impacts and regulations on business activity that can occur in areas
with poor air and water quality.

Hopkinsville has a modest climate with average temperatures in the high 50s.
Annual precipitation includes over nine inches of snowfall.

                               Climate Data: City of Hopkinsville
               Average Temperature
               Normal                                                  58.9 degrees
               Year 2003                                               58.8 degrees
               Annual Precipitation
               Normal                                                      48.11 inches
               Mean Annual Snowfall                                          9.1 inches
               Total Precipitation, 2003                                   59.47 inches
                        Source: Hopkinsville-Christian County Commerce Center


Since 2000, Christian County has had higher ozone levels than its neighbor Trigg
County. Additionally, from 1996 to 2005, Trigg’s levels have declined at a greater
rate than Christian.

              Average Eight-Hour Ozone Levels (in parts per million), 1996-2005:
                               Christian County, Trigg County
                           Year         Christian Co.         Trigg Co.
                           1996                  0.079               0.082
                           1997                  0.082               0.082
                           1998                  0.086               0.083
                           1999                  0.092               0.098
                           2000                  0.081               0.076
                           2001                  0.082               0.072
                           2002                  0.093               0.078
                           2003                  0.080               0.070
                           2004                  0.074               0.067
                           2005                  0.054               0.052
                        Change
                        1996-2005               -31.6%              -36.6%
                            Source: U.S. Environmental Protection Agency


The following map illustrates that there are numerous facilities designated as
hazardous waste sites by the U.S. Environmental Protection Agency (EPA). There are




Competitive Realities
September 2005                                                                            104
also several sites that have received a pollution designation of more than one of the
following: discharges to water, superfund sites, hazardous waste, toxic releases, and
air releases.

                    Environmental Discharge Sites, 2005: City of Hopkinsville




                             Source: U.S. Environmental Protection Agency


This chart illustrates that in certain instances Hopkinsville does have fewer facilities
discharging pollutants than other neighboring cities.

                Envirofacts Data, 2005: City of Hopkinsville and Regional Cities
                              Facilities                     Facilities
                                             Facilities                                  Companies
                                 that                          that
                                                that                                   issued permits
                               produce                       reported        Superfund
          Locality                           reported                                  to discharge to
                             and release                    hazardous          sites
                                               toxic                                    waters of the
                                  air                         waste
                                             releases                                   United States
                              pollutants                     activities
Hopkinsville city                 37             22             75               1           49
Bowling Green, KY city            61             32             172              9           158
Russellville, KY city             18              7             36               1           28
Clarksville, TN city              38             17             105              2           13
                              Source: U.S. Environmental Protection Agency




CIVIC PARTICIPATION
Many value living in a place where people are committed to investing in a positive
future for their community. The following indicators serve to measure the
Hopkinsville-Christian County population’s level of involvement in their community.



Competitive Realities
September 2005                                                                                     105
Christian County has lower estimates of charitable organizations, gross receipts, and
assets per capita than Kentucky. This is additional evidence of the lower-income
nature of the community compared to elsewhere in Kentucky.

               Non-Profit Organizations, Gross Receipts, and Assets, July 200550
                                                     Gross          Gross
                                    # of Orgs.                                  Assets         Assets
                            # of                   Receipts        Receipts
           Area                     Per 1,000                                  Reported       Reported
                           Orgs.                   Reported       Reported
                                     Persons                                   (millions)     Per Capita
                                                   (millions)     Per Capita

    Christian County          247           3.5          $206         $2,915        $264          $3,737
    Kentucky               17,561            4.2     $18,233          $4,398      $24,047         $5,800
                  Sources: National Center for Charitable Organizations; U.S. Census Bureau


Voter turnout in Christian County has lagged behind both Trigg and Kentucky in
recent elections. Non-presidential election years (2002 in the following chart)
traditionally have lower turnouts than presidential election years.

                    Voter Turnout for the 2000, 2002, 2004 General Election:
                          Christian County, Trigg County, and Kentucky

   70.0%

   60.0%

   50.0%

   40.0%

   30.0%

   20.0%

   10.0%

    0.0%
                        Christian                         Trigg                      Kentucky

                                                  2000    2002       2004
                               Source: Kentucky State Board of Elections




50
   Data based on registered nonprofit organizations that filed a Form 990 to the Internal Revenue
Service within 24 months of July 2005. Per capita calculations based on U.S. Census Bureau estimates
for 2004.




Competitive Realities
September 2005                                                                                             106
RANKINGS
Several different entities rank metropolitan areas for business climate and quality of
life indicators. Of the three included in the following chart, the Clarksville MSA
ranked most favorably on Miliken’s “Best Performing Cities” index, which measures
cities based on wage and salary growth, job growth, and high-tech output growth.

                                     Business Climate Rankings

                    Measure                 Top Metros                Clarksville, TN-KY


                      Forbes                  Boise, ID
                    Magazine            Raleigh-Durham, NC
                                                                      97 out of 150 small
                  "Best Places               Austin, TX
                                                                            metros
                  for Business"          Washington, D.C.
                       2005              Albuquerque, NM



                                         Minneapolis, MN                300 out of 354
                  Places Rated      Washington, D.C. Atlanta, GA      metros; Clarksville
                 Almanac, 2000         Fort Lauderdale, FL            was #1 in the U.S.
                                        Salt Lake City, UT             for cost of living



                                           Fort Myers, FL
                      Miliken
                                          Las Vegas, NV
                  Institute "Best                                        46 out of 118
                                         Phoenix-Mesa, AZ
                    Performing                                           small metros
                                        West Palm Beach, FL
                   Cities" 2004
                                         Daytona Beach, FL

                  Sources: Forbes, Inc. Magazine, Places Rated Almanac, Milken Institute


According to the Hopkinsville-Christian County Chamber of Commerce, National
Strategy Group has listed Hopkinsville as one of the best places to live in the United
States. Additionally, Readers Digest has ranked the city in its top 50 best places to
raise a family. The July 2004 edition of Mobility Magazine ranked the Hopkinsville
area as the 15th best place to relocate, compared to other small market cities in the
         51
country.




51
 City for Living. Hopkinsville-Christian County Chamber of Commerce.
http://www.commercecenter.org/community/




Competitive Realities
September 2005                                                                              107
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KEY FINDINGS
The following points summarize Hopkinsville-Christian County’s demographics,
economic structure, and the overall competitiveness of the community and economy.


Demographic Analysis
Hopkinsville-Christian County’s proportionately small workforce compared to
national averages creates a key challenge for the community, and the population has
not demonstrated strong growth in recent years. However, the community’s
population losses can be attributed to realignments of military personnel, civilian
employees, and their families from Fort Campbell to elsewhere in the country.
Hopkinsville-Christian County’s growing minority population is an important
demographic trend that will shape and strengthen the community moving forward.

Educational attainment levels improved in Christian County from 1990 to 2000, and
the community is competitive in the attainment levels of some college and two-year
degrees. However, continued improvements are necessary in order to maintain
competitiveness in today’s knowledge-based national economy. Poverty is an issue in
the community with 16.2 percent of the population living below the poverty line as of
2002, and nearly one in four children living in poverty (24.0%). However, again,
poverty rates have improved in recent years, illustrating the community is on a
positive course moving forward. Teenage pregnancy rates, and “repeat” births to
teenage mothers, are very high in Hopkinsville-Christian County, likely further
exacerbating the poverty levels in the community.


Economic Profile
Hopkinsville-Christian County’s labor force is growing at a modest rate. The high
unemployment rates of the community and the low labor force participation rates
combined suggest the need for more job opportunities in the community. The low
labor force participation rates can be explained in part by the many military spouses
in the Christian County community. Expanding job opportunities for military
spouses and others currently not participating in the workforce would help improve
individual and collective wealth in Hopkinsville-Christian County, and also help
maintain and attract more working-age people to the County.

As the poverty-rates illustrated, Hopkinsville-Christian County is a comparatively low-
income community with a low per capita income ($24,464 in 2003) and low average
annual wage (nearly $33,000 per job). The comparable percentage of income derived
from dividends, interest, and rent between Christian County and the nation, and the
high percentage of income derived from transfer payments in the community




Competitive Realities
September 2005                                                                      108
compared to the nation, combined, suggest that there is a significant divide between
low and high-income people in Hopkinsville-Christian County.

Hopkinsville-Christian County is still heavily dependent on manufacturing jobs, even
as the national economy has become more dependent on service-oriented jobs.
These jobs are, however, comparatively well paying; therefore, they offer the potential
to raise the income-levels of the Hopkinsville-Christian County community. In
particular, Hopkinsville-Christian County’s manufacturing sector is strong in
transportation equipment, machinery, and fabricated metal. The community’s large
textile manufacturer – Flynn Enterprises – is within a sector than cannot be relied
upon to remain in this country for the long-term.

Data related to entrepreneur activity suggest the need to create stronger support
structures for the start-up and operations of small businesses in the community. In
today’s national economy, most job growth is generated from small and medium-
sized businesses, so nurturing these opportunities will be key to improving
Hopkinsville-Christian County’s long-term economic prosperity.


Business Competitiveness Profile
While the community’s educational attainment levels have improved in recent years,
Hopkinsville-Christian County’s public school systems are a key area of concern with
declining enrollment, low attendance rates, and high dropout rates. Additionally, the
community has high pupil-to-teacher ratios that are rising, low expenditures per
pupil that are growing only modestly, and low average teacher salaries that are also
growing modestly.

Two-year and four-year degree opportunities in the community are increasing.
Hopkinsville Community College enrollment has increased, and the new Murray
State University branch campus in Hopkinsville has been a positive addition to the
community’s higher educational system. Continuing to expand these opportunities,
or creating stronger support structures for students desiring to pursue a two or four-
year degree opportunity outside the county, will be important for further improving
the educational attainment levels of Hopkinsville-Christian County and meeting the
workforce needs of local employers. Additionally, concerns regarding the community
college’s leadership will need to be addressed.

In terms of infrastructure, Hopkinsville-Christian County has competitive interstate
and rail connectivity. With Nashville International Airport approximately one hour
away, for a community of its size, Hopkinsville is very strategically located. The
community has strong telecommunications broadband coverage, but there are
concerns about the community’s stormwater management systems with the
significant flooding that occurred in September 2005. The housing stock in
Christian County is affordable compared to national averages, but it is comparatively




Competitive Realities
September 2005                                                                      109
old and the homeownership rates are very low (55.3 percent in 2000 compared to
66.2 percent in the U.S.)

Hopkinsville-Christian County has a competitive business cost environment, with
several available buildings and sites (most notably the 2,000-acre Tennessee Valley
Authority-certified megasite), low electricity rates, gasoline prices, and even labor
costs. In terms of taxes, as a border community, Hopkinsville competes directly with
any Tennessee tax structures or regulations that some businesses may consider more
favorable than Kentucky’s. Kentucky does offer a wide-range of business incentives
to support business starts and expansions. As measured by bank deposits per capita,
Christian County does not have significant financial resources to support small
businesses. Expanding services and financial resources for prospective
entrepreneurs in Christian County to help their success will be important to the
community’s future economic health.

Hopkinsville-Christian County’s low cost of living makes it a favorable place to live.
Health care accessibility may be an issue for some in the community, and the high
crime rates are something the community will need to address. There are a variety of
arts, culture, entertainment, and recreation amenities available to the public, and the
climate is favorable to outdoor activities. Finally, indicative of the low income levels
of the community, gross receipts and assets per capita of the non-profit organizations
in Christian County are much lower than Kentucky.


Summary
Hopkinsville-Christian County has several distinct characteristics and advantages that
it can leverage for its economic benefit, including its small-town character, its
location in relation to neighboring communities and Fort Campbell, and its
competitive business and living costs.

However, work can be done to improve the individual and collective wealth of
Hopkinsville-Christian County. Most prominently, the issues to address are:

    1.   Improving the public school system and addressing the high teenage
         pregnancy rates;
    2.   Increasing the number of high-wage jobs, and the training and workforce
         development resources to support them;
    3.   Enhancing opportunities for small business ownership;
    4.   Improving storm water management, other local infrastructure, and the
         housing stock; and
    5.   Reducing the high crime rate.

With the successful implementation of strategic action steps, Hopkinsville-Christian
County can overcome these challenges and achieve both short and long-term
economic prosperity.




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September 2005                                                                        110
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APPENDIX: GLOSSARY OF TERMS
The following terms are defined within the context of Market Street’s work.
Glossaries from such federal websites as the Census Bureau and the Bureau of
Labor Statistics were used to define certain terms. Other government and economic
development resources were also used. Boldface type within a definition indicates
that term is also in the Glossary.

Age distribution: Published by the Census Bureau, a study of the population’s age
   characteristics by looking at what percentage of the total the different age
   groupings represent. While they can vary, typically the following groupings are
   used: 17 and under, 18-24, 25-34, 35-44, 45-54, 55-64, 65-74, and 75 and over.

Average annual pay: A statistic provided by the Bureau of Labor Statistics (BLS).
   According to BLS, the figure includes, “in addition to salaries…bonuses, the cash
   value of meals and lodging when supplied, tips and other gratuities, and, in some
   states, employer contributions to certain deferred compensation plans, such as
   401(k) plans and stock options.”

Bureau of Economic Analysis (BEA): United States government agency that
   provides economic statistical information such as personal income, per capita
   income, total earnings and employment by industry, and population.

Bureau of Labor Statistics (BLS): United States government agency that provides
   economic statistical information such as unemployment, unemployment rates,
   average annual pay, and total employment by industry.

Census Bureau: United States government agency that conducts the decennial
   census and provides that data, as well as some interim estimates and forecasted
   data, to the public. Information available on their website includes population,
   age, race, ethnicity, education, housing, and commuting data. The Bureau also
   publishes County Business Patterns, which include employment sector data
   pertaining to total employment, annual payroll, and total establishments.

Community development: A comprehensive approach to improving the quality of
  life, wealth, and competitive capacity of an area through the combined efforts of
  citizens, businesses, and the government. In The Practice of Local Government
  Planning, Edward John Kaiser and David R. Godschalk define community
  development as the “process by which citizens and local government officials
  identify and seek to achieve a desirable future for their community,” which
                                                                             52
  involves the “evolution and promotion of community goals and potential.”
52
 Kaiser, Edward John and David R. Godschalk. “Development Planning.” The Practice of Local
Government Planning, 3rd ed. (Washington, DC: International City/County Management Association,
2000) 141.




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Commuting patterns: Published by the Census Bureau, the study of such statistics
  as the percentage of individuals that work within their county of residence, their
  average travel time to work, the time of day that individuals leave home for work,
  and their mode of transportation.

Comparative advantage: When comparing two locations, this term is used to state
  that one location is preferable to another regarding a particular indicator.

Consumer price index: Published by the Bureau of Labor Statistics, a measure of
   the change in price for the consumer that occurs for a particular good or service
   in a particular place over a period of time.

Demographic information: Demography is the study of human populations.
  Market Street collects demographic data pertaining to certain key characteristics
  of a community including population size, age distribution, race and ethnic
  composition, etc.

Displaced workers: Individuals who have lost their position because a business
   closed, moved elsewhere, or laid off workers due to a shift in the amount or
   nature of its employment needs.

Disposable income: After-tax income available for saving or spending.

Domestic migration: Published by the Census Bureau, the net change in the
  number of individuals moving into and out of a community from another
  location within the United States (sometimes also referred to as internal
  migration). See also Net Migration and International Migration.

Earnings: The Bureau of Labor Statistics defines Earnings as “remuneration (pay,
   wages) of a worker or group of workers for services performed during a specific
   period of time. The term invariably carries a defining word or a combination; e.g.,
   straight-time average hourly earnings…
    Hourly, daily, weekly, annual--period of time to which earnings figures, as
    stated or computed, relate. The context in which annual earnings (sometimes
    weekly earnings) are used may indicate whether the reference includes
    earnings from one employer only or from all employment plus other sources
    of income;
         Average--usually the arithmetic mean; that is, total earnings (as defined) of a
         group of workers (as identified) divided by the number of workers in the group;
         Gross--usually total earnings, before any deductions (such as tax withholding)
         including, where applicable, overtime payments, shift differentials, production
         bonuses, cost-of-living allowances, commissions, etc.;
         Straight-time--usually gross earnings excluding overtime payments and (with
         variations at this point) shift differentials and other monetary payments.” See
         also Wages.



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Earnings to employment ratio: A comparison of total earnings to total
   employment in a given employment sector in order to determine which sectors
   provide the higher paying jobs in the local economy.

Economic development: Creating and sustaining economic activity through such
   methods as job retention, new business recruitment, and encouragement of
   entrepreneurial activity in a community. The goal of such efforts is to improve
   the wealth of the area and develop a strong economic base to ensure long-term
   prosperity.

Educational attainment: Published by the Census Bureau, the statistics used to
   measure the education levels of a community. Usually the categorized data is
   illustrated as a percentage of the total population over 25 years old. In each
   category (i.e., no high school diploma, high school diploma, some college,
   associate degree, Bachelor’s degree, graduate or professional degree), the statistic
   is referring to the percentage of the population that achieved at most that
   particular level.

Employment: The total number of individuals that currently have a job. The Bureau
  of Economic Analysis, Bureau of Labor Statistics, and the Census Bureau
  publish employment data.

Employment sectors: The classification of the types of businesses in an economy by
  general categories. The U.S. Office of Management and Budget defines that
  classification with the North American Industry Classification System
  (previously with the Standard Industry Classification). The Bureau of
  Economic Analysis, Bureau of Labor Statistics, and the Census Bureau
  publish employment sector data.

Enterprise: The conglomeration of all the establishments owned by a single firm,
   government, or non-profit.

Entrepreneur: According to the National Commission on Entrepreneurship,
   “Entrepreneurs are people who take advantage of innovative ideas, and turn those
   ideas into jobs and wealth creation.” The development of entrepreneurial activity
   is the “practice of encouraging the creation and growth of start-up companies.”

Establishment: The location at which business activity takes place. In this context,
    business activity is the provision of a good or service.

Ethnicity: In order to account for the fact that Hispanic is an ethnicity and not a race,
   the Census Bureau collects data on the number of people in the United States
   who classify themselves as part of the Hispanic ethnic group. Hispanic
   individuals can classify themselves as any race, and each race may include both
   Hispanics and non-Hispanics.




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September 2005                                                                         113
Income: The Bureau of Labor Statistics glossary states: “Income before taxes is the
   total money earnings and selected money receipts of all consumer unit members
   14 years of age or over during the 12 months [period]. It includes the following
   components: Wages and salaries; self-employment income; Social Security,
   private and government retirement; interest, dividends, rental income, and other
   property income; unemployment, workers’ compensation and veteran’s benefits;
   public assistance, supplemental security income, and food stamps; regular
   contributions for support (including alimony and child support); other income
   (including cash scholarships, fellowships or stipends not based on working, and
   meals and rent as pay).”

Inflation: The rise in prices as the value of money decreases over time.

Internal migration: See Domestic migration.

International migration: Published by the Census Bureau, the net change in the
    number of individuals moving into and out of a community from outside of the
    United States. See also Net migration and Domestic migration.

Labor force: The number of individuals employed or unemployed and actively
   seeking employment. This does not include those who are of working age, but
   have taken themselves out of the labor force because they, for example, are
   independently wealthy, retired early, raise children, or stopped looking for a job
   because they could not find a suitable opportunity. The Bureau of Labor
   Statistics, which publishes this data, defines the labor force based on individuals
   meeting these criteria who are 16 years old or over. See also Workforce.

Labor force participation rate: The percentage of the workforce (all individuals 18 –
   69 years old) that is currently in the labor force (all individuals currently
   employment or unemployed and actively seeking employment). This percentage
   does not include those who are of working age, but have taken themselves out of
   the labor force because they, for example, are independently wealthy, retired
   early, raise children, or stopped looking for a job because they could not find a
   suitable opportunity.

Location quotient: A measure of the portion an employment sector represents of
   the total economy for the area under consideration compared to the portion that
   employment sector represents of the United States’ total economy. A location
   quotient of 1.0 indicates that sector represents the same proportion of the local
   economy as it does of the national economy. A location quotient above or below
   1.0 indicates the sector represents a larger or smaller proportion, respectively, of
   the local economy than it does of the national economy.

Mean: More commonly referred to as the average, the Mean is the sum of all the data
  divided by the total number of pieces of data.




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Median: In an ordered data series, it is the figure that falls in the middle of the
  series. This is different than the Mean, or average, of the terms.

Metropolitan Statistical Area (MSA): The total suburban and urban area of a city or
   urbanized area, as defined by the U.S. Office of Management and Budget for
   statistical purposes. To qualify, a city must have at least 50,000 people or the
   urbanized area must have at least 50,000 with a broader metropolitan area
   population of at least 100,000. For example, in 2000 the population of the City
   of Atlanta was 416,474 while the 28-county Atlanta MSA population was
   4,112,198.

Migration: To change residence from one location to another. See Domestic
   Migration, International Migration, and Net Migration.

Natural change: Published by the Census Bureau, the net change in the population
   due to births and deaths in the community.

Net migration: The sum of the net domestic and net international migration.

New Economy: The information and knowledge-based economy that has rapidly and
   recently evolved due to the technology-driven shift in our capabilities. The
   national downward trend in the manufacturing sector and the upward trend in
   the professional services sector is a defining characteristic of the New Economy.

Non-farm proprietor: A proprietor is the owner of a business or other
   establishment. The Bureau of Economic Analysis publishes the total non-farm
   proprietor figure, which excludes all farm owners from the total proprietor figure
   in order to measure non-agriculture based business activity. Market Street uses
   the non-farm proprietorship data as a measure of the amount of entrepreneurial
   activity in a community.

North American Industry Classification System (NAICS): A system standardized
   by the Office of Management and Budget (OMB) in order to categorize business
   establishments in broad sectors as well as more defined sub sectors. Established
   in 1997, the NAICS code is an updated and reorganized version of the Standard
   Industry Classification.

Not seasonally adjusted: Published by the Bureau of Labor Statistics, raw
   employment data that has not been altered to reflect fluctuations that tend to
   follow the same pattern each year. See also Seasonally adjusted.

Payroll: See Average Annual Pay.

Per capita income: Published by the Bureau of Economic Analysis (BEA), an
   economic statistic considered to be one of the best overall indicators of local




Competitive Realities
September 2005                                                                        115
    wealth. To calculate, BEA divides the total income earned in a given year by the
    total number of residents, including children, seniors, and other individuals not
    working. In its analysis, Market Street adjusts historical data based on inflation
    to determine the real per capita income.

Poverty rate: The percentage of the population with a total family income below the
   poverty level, or threshold, as defined by the Census Bureau. The Bureau
   updates that level annually based on the Consumer Price Index, and that level
   varies by the total number of people within the family. For example, in 2003 the
   poverty threshold for a family of one was $8,980 but it was $30,960 for a family
   of eight.

Producer price index: A measure of the change in price for the producer that occurs
   for a particular good or service in a particular place over a period of time.

Public assistance: Government financial payments to individuals in need of
   assistance due to factors such as income levels, age, and health. It also includes
   government financial payments to businesses and other establishments that have
   demonstrated a need for help.

Quality of life: An overall, subjective measure of an individual’s satisfaction with life.
   This can include such factors as an individual’s perception of the affordability of
   necessary goods and services, transportation options, air and water quality,
   educational opportunities, health care quality, feelings of safety, entertainment
   and recreational offerings, etc.

Race: A self-classification of a distinct geographic, cultural, or physical population.
   In 2000 the Census Bureau listed the following options to choose from in the
   decennial census questionnaire: White, Black or African American, American
   Indian and Alaska Native, Asian, Native Hawaiian and Other Pacific Islander,
   Some other race, and Two or more races. See also Ethnicity.

Retirement income: Money paid to retirees from such sources as benefit pension
   plans and contribution retirement plans. Typically, such as in the case of the
   Census Bureau’s income distribution statistics, retirement income does not
   include Social Security benefits, which are considered a transfer payment.

Salaries: See Wages and salaries.

Seasonally adjusted: Changes to employment data based on fluctuations that tend to
   follow the same pattern each year. These adjustments are made in order to more
   effectively illustrate atypical trends that occur. See also Not seasonally adjusted.

Skilled workers: Adults with the education and skill sets to meet current and future
    job requirements. The term applies to all industries and occupations.




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September 2005                                                                            116
Small business: A business that has fewer employees or generates less revenue than
  a certain level. That level varies by industry. The U.S. Small Business
  Administration’s Office of Size Standards determines those levels for the purpose
  of administrating their assistance programs.

Standard Industry Classification (SIC): A system standardized by the Office of
   Management and Budget (OMB) in order to categorize businesses and other
   establishments in broad sectors as well as more defined sub sectors. In 1997,
   OMB updated and reorganized the data in a new system called the North
   American Industry Classification System.

Sustainability: In the context of Market Street’s work, it is the economic prosperity
   that is achieved when measures are taken to ensure long-term, not just short-
   term, economic success. Sustainable economic vitality also must recognize the
   interdependence of the environment and the economy.

Teenage pregnancy live birth rate: The number of live births per 1,000 female
   teenagers, published by the National Center for Health Statistics, a division of the
   Center for Disease Control. The age range is usually 15 – 19. The figure does not
   include miscarriages and early terminations.

Time series analysis: The study of historical data over a certain period of time, often
   to compare that specific geographic area to others, the state, or the nation.

Transfer payments: Government financial assistance such as Social Security,
   Medicare, Medicaid, workers’ compensation, and aid to dependent children.

Unemployment: Published by the Bureau of Labor Statistics, the total number of
  people that are without a job, but still within the labor force because they are
  actively seeking a position.

Unemployment rate: Published by the Bureau of Labor Statistics, the percentage
  of the labor force that is currently without a job.

Wages and salaries: The Bureau of Labor Statistics defines Wages as, “Hourly
  straight-time wage rate or, for workers not paid on an hourly basis, straight-time
  earnings divided by the corresponding hours. Straight-time wage and salary rates
  are total earnings before payroll deductions, excluding premium pay for overtime
  and for work on weekends and holidays, shift differentials, and nonproduction
  bonuses such as lump-sum payments provided in lieu of wage increases.” See
  also Earnings.

Workforce: Often referred to as the “potential workforce,” Market Street defines it as
  all individuals ages 18 – 69. See also Labor force.




Competitive Realities
September 2005                                                                          117

				
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