Gov. Beshear highlighted the continued growth of Kentucky’s distribution and logistics sector with the announcement of Pegasus Industries’ expansion of their company headquarters in Shelbyville.
The market expansion of Pegasus’ distribution facility will create 26 full-time jobs with an investment of $738,000. The expansion will allow the company to provide custom service to Kentucky’s bourbon and spirits industry.
“Kentucky’s prime geographic location and access to resources have been a driving force behind the state’s distribution and logistics sector growth,” Gov. Beshear said. “This expansion by Pegasus Industries is an incredible commitment to continue that growth and support the state’s spirits industry. I want to thank the company’s leadership for its continued support of our workforce and am excited to see the benefits that this expansion will bring.”
Pegasus will expand its current facility located at 421 Haven Hill Road in Shelbyville by almost 3,000 square feet. The project will include investing in new technology and adding machinery, shipping docks, equipment and systems to help process more orders and assist with specialized packaging and promotional items.
“We are excited to play a larger role as a more strategic partner for such a growing and important industry,” said Steve Meador, president of Pegasus Industries. “The expansion of our facility allows us to meet very unique needs with truly customized logistical solutions. When Kentucky companies committed to innovation and excellence work together anything is possible.”
For nearly 25 years, Pegasus Industries and Packaging has provided packaging and procurement services and total supply chain solutions to a wide variety of customers. In 2017, Pegasus was awarded the Kentucky Manufacturer of the Year in the mid-size category by the Kentucky Association of Manufacturers (KAM). Pegasus includes 14 facilities in four states, employing more than 400 team members.
The company’s planned investment adds to a thriving logistics and distribution sector in the commonwealth. In 2021, companies within the sector announced more than 1,000 full-time, Kentucky-resident jobs across more than 30 facility expansion and new-location projects with $181.7 million in private-sector investment in the commonwealth.
Shelby County Judge/Executive Dan Ison welcomed the company’s commitment.
“I am delighted to see the expansion of a local business here in our community,” Judge/Executive Ison said. “We wish Pegasus much success as they continue to grow.”
Shelbyville Mayor David Eaton noted the excitement surrounding Pegasus Industries and continuing to grow their relationship with the community.
“The City of Shelbyville is excited about this expansion for Pegasus Industries and Packaging. Pegasus has been an incredible corporate partner in our city for many years and is an asset to our community,” Mayor Eaton said. “We look forward to a continued positive relationship with Pegasus as they continue to expand.”
Shelby County Industrial & Development Foundation Executive Director Libby Adams is grateful for the company’s decision to expand in the commonwealth.
“We are very excited to have one of our local industries choosing to expand here. They could have taken this expansion out of state, if it were not for the incentive package offered,” Adams said. “They are a great community-minded company, and we are very pleased to have their growth happen here.”
Pegasus Industries’ investment and planned job creation furthers recent economic momentum in the commonwealth, as the state builds back stronger from the effects of the pandemic.
Gov. Beshear recently announced that on Jan. 28, S&P Global Ratings revised Kentucky’s financial outlook to positive from stable and affirmed its “A-” credit rating. S&P cited a reduced reliance on one-time items to balance the budget and a higher balance in the state’s rainy-day fund as primary factors influencing the change.
That follows a 2021 during which the commonwealth shattered every economic development record in the books. Private-sector new-location and expansion announcements included a record $11.2 billion in total planned investment and commitments to create a record 18,000-plus full-time jobs across the coming years. Kentucky’s average incentivized hourly wage for projects statewide in 2021 was $24 before benefits, a 9.4% increase over the previous year.
In September, Gov. Beshear, Ford Motor Co. Executive Chair Bill Ford, CEO Jim Farley and Dong-Seob Jee, president of SK Innovation’s battery business, announced the single largest economic development project in the history of the commonwealth, celebrating a transformative $5.8 billion investment that will create 5,000 jobs and places Kentucky at the forefront of the automotive industry’s future.
Kentucky also saw an all-time, record-setting budget surplus in fiscal year 2021 and enters 2022 with an estimated $1.9 billion more than budgeted.
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) on Thursday preliminarily approved a seven-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $210,000 in tax incentives based on the company’s investment of $738,000 and annual targets of:
- Creation and maintenance of 26 Kentucky-resident, full-time jobs across seven years; and
- Paying an average hourly wage of $22.50 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, Pegasus Industries 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 Pegasus Industries, visit PegasusPackaging.com.
A detailed community profile for Shelby County can be viewed here.
Information on Kentucky’s economic development efforts and programs is available at CED.ky.gov. Fans of the Cabinet for Economic Development can also join the discussion at facebook.com/CEDkygov, on Twitter @CEDkygov, Instagram @CEDkygov and LinkedIn.