Logistics services provider LeanCor Supply Chain Group will invest $4.4 million to relocate its headquarters into a larger office building in Florence, Kentucky. The company plans to add 53 full-time jobs within Boone County.
LeanCor provides end-to-end logistics services that eliminate waste and increase efficiency for companies in a variety of industries. This includes managed transportation and supply chain consulting, as well as education and training programs for individuals, groups and customers. Expecting growth throughout the coming years, LeanCor executives plan to relocate within Boone County to meet growing customer demand. The company’s investment will include renovations and furnishings, technology and equipment upgrades.
LeanCor founder & CEO Robert Martichenko said LeanCor is eager to grow in Kentucky as it achieves its vision.“We are proud of our Kentucky home and are thrilled to be in a center of innovation for our industry,” Martichenko said. “Local and state entities have been very supportive in paving the way as we achieve our vision as a leading provider of end-to-end supply chain solutions.”
LeanCor COO Matt Melrose attributes LeanCor’s success to its valuable team members. “We have been on an amazing journey as we have grown our business over the past 15 years,” Melrose said. “It is exciting to take this next step alongside our exceptional team members who continue to drive greater customer value and enrich our unique company culture.”
Martichenko founded LeanCor in 2005 to meet the logistics needs of lean manufacturers. Lean operations methods had long been used in manufacturing but Martichenko realized they could be applied in the supply chain. Since then, the company has helped manufacturers, wholesalers, retailers, service providers and other organizations achieve operational excellence and deliver more value to their customers.
“As Kentucky’s logistics and distribution industry surges forward, it’s great to see LeanCor, a locally grown company, remain in the commonwealth to expand and create jobs,” Governor Andy Beshear said. “LeanCor’s level of expertise and its commitment to sharing its knowledge, with clients and through educational and workforce development efforts, makes the company a true asset for Kentucky’s distribution and logistics target industry.”
“The City of Florence has enjoyed a strong relationship with LeanCor for over a decade and worked closely with them on their expansion plans,” Mayor Diane Whalen said. “We could not be more pleased with LeanCor’s decision to continue their growth in Florence, and we are even more excited about the increased employment opportunities for the people of our city and region,”
Boone County Judge-Executive Gary Moore praised the company’s growth.
Lee Crume, president & CEO of Northern Kentucky Tri-ED, said he’s grateful for the company’s ongoing commitment. “Northern Kentucky Tri-ED is proud to work with LeanCor, the Cabinet for Economic Development, Boone County and City of Florence to support LeanCor’s office headquarters and new jobs,” Crume said. “LeanCor has found a strong customer base and strategic location in the Cincinnati region. I congratulate LeanCor on choosing to expand and create new jobs in the City of Florence, Kentucky.”
To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) on Thursday preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $755,000 in tax incentives based on the company’s investment of $4.4 million and annual targets of: Creation and maintenance of 53 Kentucky-resident, full-time jobs across 10 years and paying an average hourly wage of $40 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.
Additionally, KEDFA approved LeanCor for up to $45,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.
LeanCor also can receive resources from the Kentucky Skills Network. Through the Kentucky Skills Network, companies can receive no-cost recruitment and job placement services, reduced-cost customized training and job training incentives.