What I learned at KAED’s 2025 Collaboration Conference
What I learned at KAED’s 2025 Collaboration Conference
Driving through the country side of West Kentucky is a pleasure I hope everyone gets to experience. As I headed north, rolling forests and open fields gradually gave way to the vibrant city of Paducah, KY—a place where creativity and history live side by side. Designated a UNESCO Creative City in 2012, the city boasts a thriving population of artists, small businesses, and creative entrepreneurs. A meander through its downtown reveals a mural-covered flood wall depicting the city’s history while charming cafes, boutiques, and galleries line its streets with a welcoming energy.
But Paducah is more than just picturesque. Its strategic location along the Ohio River has long made it a hub for transportation, energy, and industry. This city’s historicity and industrial spirit made an excellent backdrop for the 2025 Kentucky Association for Economic Development (KAED) Collaboration Conference where economic developers from across the state gathered to discuss emerging issues, address shared challenges, and explore new opportunities for the state of Kentucky.
Site Selection: Meet the Consultants Panel
The conference kicked off with the highly anticipated Meet the Consultants Panel. The room was alive with energy as five expert consultants shared what economic developers can do to make their communities more competitive in today’s economic landscape—and these panelists did not hold back.
They stressed first and foremost the necessity of a deep knowledge of available sites and buildings. When asked what they would do with a one-time $1 million gift, all the panelists concurred that spending that money on updating data analysis on community assets would be their top priority. They also noted that as business deals get more complex, companies need flexible and creative incentive structures—gone are the days when a standardized incentive matrix makes a community competitive. Selling a community and telling its story has to begin with an accurate picture of who they are, what resources they have, and what they can offer.
They also emphasized repeatedly that the key to success was talking to existing industry. Open and frequent communication with current employers often reveals the most strategic growth opportunities for a community as these are the people who know what it takes to succeed and what challenges need to be overcome.
Kentucky’s position as a bridge between the South and Midwest was highlighted as a key strength by the consultants. This geographic advantage allows communities to learn from the strengths of both regions and build partnerships across borders. While the consultants were candid about the areas where Kentucky still has room to grow, they were also optimistic about the potential of the state’s communities. With strong, diverse populations and a deep commitment to progress, there is momentum for growth and prosperity.
In the conversations I had following this session, I sensed a hunger among Kentucky’s economic developers—a commitment to collaboration, a drive for innovation, and a deep pride in their communities. That energy is what will propel the state forward in the decades to come.
Featured Industries and Emerging Challenges
In addition to this high-level conversation about growth strategy, the conference featured deep dives into several of Kentucky’s most critical industries and challenges.
Energy and Data Centers
As the world moves further into AI technology and advanced digital infrastructure, Kentucky developers parsed through the particulars of the mounting demands these technologies place on communities. Questions around power, water, and land were central during these conversations. How are these new data-intensive industries going to get the electricity and space they need? What part is nuclear power going to play in meeting these demands? And most importantly, how are communities going to respond to these shifts?
The urgency in these questions was palpable. Again, the answer to these questions was communication. Effective engagement with utility providers, site consultants, and most critically, local communities will be essential. The 21st century is a time of rapid change, so having up-to-date and easily available information is indispensable for economic developers who need to make informed strategic decisions.
In conjunction with this conversation, questions about NIMBY-ism (Not In My Backyard) reinforced the need for better partnerships with local communities, especially when it comes to nuclear energy. The perception of nuclear power can be clouded by fear and uncertainty, but given the growing need for power, it is going to be a necessary step for our nation as it pursues sustainable, large scale energy production. Educating the public about this industry’s safety standards and its potential for increasing quality of life will help ease fears and improve community buy-in which is an essential factor for long-term success.
Healthcare
Healthcare is another challenge Kentucky is facing head on. With a projected shortage of physicians by 2037 nation-wide, two major universities in the state, the University of Louisville and Murray State University, have partnered along with the hospital Baptist Health in Paducah to start building a medical program in West Kentucky. This program, in conjunction with an internal medicine residency, is going to be an important node in the healthcare network of the state.
The impact of this effort will be transformative. Currently, West Kentucky has no endocrinologists, so residents must travel to Madisonville, KY or even across state lines to Clarksville, TN to receive care. This partnership aims to retain talent in this underserved area and improve quality of life for West Kentuckians. As Dr. Kelli Dunn, Vice Dean of Community Engagement & Diversity at the University of Louisville’s School of Medicine, stated during this session, most doctors start practicing within 100 miles of their residency. With that is a powerful statistic in mind, this initiative which will train doctors closer to where they are most needed.
Chemicals
The Chemical industry has flourished in West Kentucky due to its robust transportation connections via rail and river as well as its ability to meet demanding utility requirements. These advantages have made the region a natural fit for large-scale industrial operations. Now as this sector shifts toward automation, decarbonization, and digitalization, leaders are asking how the up-and-coming workforce will be able to respond to new opportunities and challenges.
Workforce challenges are arising in many industries, but they present a unique dilemma in this space. Younger professionals are emphasizing quality-of-life factors more and more, which can clash with the 24/7 shift schedules required by many chemical manufacturing companies. Yet, these jobs can make excellent careers because companies are willing to pay well with amazing benefits, and long-term career growth. Economic developers just need to market these jobs effectively.
The task to shape perception dovetails with the need to attract real talent. Success in this industry is more than technical skills—it requires safety awareness, a strong work ethic, the ability to lead and collaborate, and the confidence to think independently. Not only do these companies need help finding enough people, they have to find the right people. These careers require bright young people who want to work hard and innovate while learning from the older generation who have built this industry. The refrain echoing across the entire session was: make manufacturing interesting to young people again.
Federal Policy and Tariffs
Federal policy continues to shake up the business landscape, and communities across the country are asking the same questions: How will shifting tariffs, changing international partnerships, and evolving energy strategies impact local economies? These themes took center stage during a panel dedicated to federal policy and its effects on economic development.
Kentucky professionals are watching these developments closely. Even amid policy uncertainty, they are doubling down on building strong relationships with existing industry, staying informed, and preparing their communities to remain competitive—both domestically and on the global stage.
The KAED Community
The conference concluded with KAED sharing its initiatives and goals for the upcoming year, including a strong emphasis on mentoring women and young professionals to become the next generation of leaders in the field. Members from the Kentucky Cabinet for Economic Development also presented updates from the state, including an overview of the GRANT program, which can help communities secure matching funds for federal grant opportunities. Both organizations are taking clear, practical steps to turn conference insights into action.
Beyond the policy updates and strategic initiatives, the conference offered something equally and essentially valuable: connection. With attendees from vibrant rural communities to bustling urban centers, the KAED conference was a fantastic opportunity to connect with a statewide community of professionals who are passionate about building a stronger Kentucky. By day, they worked through complex issues with attention and determination; by night, they laughed over appetizers and a glass of Ingram Bourbon.
What struck me especially was how open and genuinely warm everyone was. Walking into the Grand Reception at the 1857 Hotel in Paducah’s historic downtown felt like a family reunion. That spirit of camaraderie is a testament to the passion and leadership guiding this organization. KAED, in partnership with Greater Paducah Economic Development, has done a wonderful job of fostering a sense of unity—a quality essential for success in this business.
As these professionals head back to their own communities, it is clear that collaboration will remain central to their development strategy as they take on what is next for Kentucky.