FRANKFORT, Ky. (May 14, 2024) – Today, Gov. Andy Beshear highlighted continued momentum within the state’s surging manufacturing sector as SRC of Lexington will be expanding its operation with a new facility in Fayette County, investing $15.3 million and creating 60 quality, Kentucky jobs.
“What an exciting time to be a manufacturer in the commonwealth,” said Gov. Beshear. “We are seeing incredible growth within this key industry in every corner of the state, which is helping provide quality, well-paying jobs for Kentuckians and their families. SRC has had success here in Lexington for a long time, and I am excited to see that continue that for years to come. Congratulations to SRC of Lexington and its leadership team for this exciting next step as a company.”
SRC of Lexington Inc., a subsidiary of SRC Holdings Corp., is the leading remanufacturer of OEM and aftermarket products in the construction, mining, natural gas and power generation markets. The new location will help the company meet growing customer and industry demand.
The multiyear expansion project began in March with the purchase of a manufacturing facility in Lexington. The building features nearly 180,000 square feet of manufacturing, warehouse and office space on 14 acres, allowing for increased capacity to expand SRC’s teardown, machining and production capabilities. Throughout 2024, SRC plans to conduct facility renovations and improvements to meet its operational needs, followed by a multiphase move to the new facility in 2025. The $15.3 million project will create 60 new jobs, bringing the company’s total statewide employment to over 230.
“This expansion is a pivotal development for our organization,” said Tim Stack, executive vice president at SRC Holdings Corp. “This state-of-the-art facility dramatically increases our capacity and efficiency, allowing us to better serve our customers and grow. Thanks to collaboration with the Kentucky Cabinet for Economic Development, Commerce Lexington and Lexington Fayette Urban County Government, we are set to grow in the Lexington economy and push the boundaries of innovation and sustainability in the remanufacturing industry.”
SRC of Lexington was founded in the 1960s and has grown from 65 workers to over 230 employees today, while adding several new product lines and customers to their portfolio. SRC of Lexington’s parent company, Springfield Remanufacturing Corp., has become a thriving company of approximately 1,700 engaged employees spanning 10 business units across a variety of industries.
Lexington Mayor Linda Gorton congratulated SRC on its success: “We work hard to help local businesses grow. It’s especially exciting to see this growth in manufacturing in this employee-owned business. SRC’s success is Lexington’s success.”
Commerce Lexington President and CEO Bob Quick said he is thrilled to see another quality company expand within the Lexington and Fayette County communities: “SRC of Lexington has been a great corporate partner in our efforts to strengthen the greater Lexington region’s economy. We are thrilled that SRC was successful in finding a larger facility and will continue its growth right here in Fayette County. A core component of our economic development strategy involves business retention and expansion, and our team is committed to helping our existing businesses grow and prosper. Congratulations to SRC on its continued success!”
SRC of Lexington’s investment and job creation build on the best four-year period for economic growth in state history.
Since the beginning of his administration, Gov. Beshear has announced more than 1,000 private-sector new-location and expansion projects totaling over $30.6 billion in announced investments, creating more than 52,700 jobs. This is the highest investment figure secured during the tenure of any governor in the commonwealth’s history.
The robust job creation has been accompanied by rising wages across the commonwealth. The average incentivized hourly wage in 2022 and 2023 topped $26 in consecutive years for the first time.
Gov. Beshear has announced some of the largest economic development projects in state history, which have solidified Kentucky as the electric vehicle battery production capital of the United States: Ford Motor Co. and SK On’s transformative $5.8 billion, 5,000-job BlueOval SK Battery Park in Hardin County; AESC’s $2 billion, 2,000-job gigafactory project in Warren County; Toyota’s $1.3 billion investment in Scott County; and INFAC North America’s $53 million investment in Taylor County, among others.
The Governor’s administration also secured the largest General Fund budget surplus and Rainy Day Fund, as well as the most jobs filled in state history. Last year, Kentucky set the record for the longest period with the lowest unemployment rates in state history.
Kentucky also secured rating increases from major credit rating agencies Fitch Ratings and S&P Global Ratings, and Moody’s Investors Service upgraded Kentucky’s credit outlook from stable to positive.
In March, Site Selection magazine ranked Kentucky third nationally and first in the South Central economic development projects per capita in its 2023 Governor’s Cup rankings. In April, Site Selection placed Kentucky second in the South Central region and top 5 nationally in its 2024 Prosperity Cup ranking, which recognizes state-level economic development agencies for their success in landing capital investment projects.
Gov. Beshear announced a “Supply Kentucky” initiative with the goal of boosting job growth, reducing costs and providing more security in the supply chains of our Kentucky companies.
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in March 2024 preliminarily approved a 1-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $840,000 in tax incentives based on the company’s investment of $15.3 million and annual targets of:
- Creation and maintenance of six Kentucky-resident, full-time jobs across 10 years; and
- Paying an average hourly wage of $35.22 including benefits across those jobs.
By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.
In addition, SRC of Lexington can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.
For more information on SRC of Lexington, visit srclexington.com.
A detailed community profile for Fayette County can be viewed here.
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