Kentucky
Canada is both a major customer and supplier to the state’s four vehicle assembly plants – GM in Bowling Green, KY, Toyota in Georgetown, KY, and Ford with car and truck plants in Louisville, KY. That helps explain why Canada is the No. 1 destination for more than 60 categories of Kentucky exports.
44,300+
$6.8 billion
$6.5 billion
$237 million
Top goods exports:
- Automotive: $2.8 billion
- Computer and communications equipment: $446 million
- Resins, synthetics and plastics: $432 million
Top services exports:
- Transportation and travel: $82 million
- Financial and insurance: $47 million
- Business and professional: $44 million
Kentucky and Canada: cross-border partners in automaking
Canada buys roughly nine out of 10 of the cars and trucks Kentucky sells to the rest of the world. In 2020, Canadians bought $1.9 billion worth of Kentucky-built vehicles, including $1.1 billion worth of trucks.
Beyond vehicles, Canada is virtually the sole export market for PVC plastics and gaming consoles made in the state. Canada is also a source of several components and raw materials essential for Kentucky’s automotive sector, including motor vehicle bodies, engines, shock absorbers, styrene, injection molds, aluminum, nickel and flat-rolled steel.
Dozens of Canadian owned auto parts manufacturers operate in the state. Since the start of 2020, these companies have announced $280 million worth of investments, creating more than 400 jobs.
Canadian-owned businesses employed 10,500 people in 2018. Among the Canadian companies operating in the state are Martinrea (auto parts), Bright Spring (health care), Stella Jones (wood products), SGS&Co. (imaging and graphics), OpenText (software), BlackBerry (technology), Saputo (dairy processing), Stantec (engineering) and CGI Group (information technology consulting).
What supporters are saying
“Mexico and Canada buy $300 million of agricultural exports from Kentucky growers and producers every year. They buy $9.9 billion of our state’s manufacturing exports. An on, and on. Commerce with our neighbors is essential across the board.”
Senator Mitch McConnell (R-KY), January 16, 2020
“Kentucky is a top state for trade and many of our signature industries including bourbon, automotive, aerospace, and agriculutre have been negatively affected by recent tariffs. This bipartisan agreement shows that trade is important for economic growth and protecting business and consumers.”
Ashli Watts, President and CEO of the Kentucky Chamber of Commerce, December 19, 2019
Spotlight on Canadian business
Shoring up Kentucky’s infrastructure, environment
Edmonton-based engineering firm Stantec operates offices in Lexington and Louisville, KY, which do projects across the South and Midwest. The company, which has had an office in Kentucky for nearly half a century, has a long tradition of executing high profile infrastructure, water, environmental, planning and inspection projects for private and government customers across the region. Among them: a program to renovate and replace 1,000 bridges across the state by 2024, a project to inspect and upgrade the Kentucky River lock and dam system – the water source for 350,000 people – plus a novel double crossover diamond interchange in Lexington that has dramatically reduced accidents.
Expanding its automotive presence
Martinrea, a Canadian Tier 1 auto supplier, recently announced a $31 million, 38,500 sq. ft. expansion of its plant in Hopkinsville, KY, to make steel products for internal combustion engines and battery electric vehicles. The expansion will add 33 jobs, bringing the company’s workforce in Kentucky to nearly 2,000. Martinrea has operated in Hopkinsville since 2006, where it makes a range of products, including suspension and transmission components, as well as control arms and rockers for Ford, GM, Volkswagen, BMW and Nissan.
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Notes:
- Export data provided by Trade Partnership Group based on government sources for 2020
- All figures are in U.S. dollars
- Jobs supported refers to employment in the state that is tied to Canadian trade and investment
- Click here to learn more about the Kentucky-Canada partnership and how you or your business can help build closer ties
Top goods exports:
- Automotive: $2.8 billion
- Computer and communications equipment: $446 million
- Resins, synthetics and plastics: $432 million
Top services exports:
- Transportation and travel: $82 million
- Financial and insurance: $47 million
- Business and professional: $44 million