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Government Resources: Economy: Manufacturing

Manufacturing

Kentucky Industrial Resource Fact Sheet

Kentucky’s economy is ranked 27th in the nation in terms of 2008 gross domestic product (GDP), generating $156 billion annually. Industrial manufacturing is an important sector of Kentucky’s economy, providing the state with 76,257 jobs and supplying $59,082 million worth of goods. The largest manufacturing sectors in the state are transportation equipment and primary metal manufacturing. Much of Kentucky’s industry is energy-intensive, as evidenced by the state’s industrial sector ranking 9th in the nation in terms of energy expended, accounting for 891.6 trillion Btu in 2007 or 44.1 percent of energy consumed statewide. In addition, the state’s industrial natural gas consumption totaled 115.7 trillion Btu, which was 17th in the nation that year. Furthermore, the industrial sector accounted for approximately 20.33 million metric tons of carbon dioxide emissions. Kentucky prides itself on having one of the lowest electricity rates in the country—45th among states in terms of dollars/million Btu. However, in 2006 Kentucky’s electrical use per industrial customer was 427 percent above the national average (ranking third highest). To combat this discrepancy, Kentucky has increased efforts to enhance energy efficiency across the state. For example, in 2008 Kentucky established a comprehensive energy plan that mandated a 16 percent reduction in overall energy consumption by the year 2025. Industrial manufacturers will play a major role in whether or not that goal is met, considering the industrial sector accounted for 44 percent of the overall energy use in the state. Industrial  manufacturers in Kentucky are increasingly being offered the opportunity to improve their energy efficiency and decrease their overall carbon emissions. Many resources are available throughout the state that plant managers can consult for energy-efficiency information, or for assistance in financing energy-efficiency improvements at their facilities, which will ultimately help the state reach its 16 percent reduction goal.  Source: U.S. Department of Energy

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