Lexington, KY - In July 2009, an economic development consultant contacted Commerce Lexington (CLX) because a multibillion-dollar company was interested in opening a new facility. Would Lexington be interested in working on an RFP? Why, yes, the CLX team was eager to promote the city. They filled out several iterations of the request for proposal. Project criteria included a building with not very much square footage to house a high number of jobs for a very expensive inventory.
What on earth could it be?
The unnamed company was known for months on end as "project craftsmanship." When company officials finally came to town for tours of Lexington and meetings with other manufacturers and city leaders, they introduced themselves as "Mike, Mike, Mike, Mike and John." By February 2010, Gina Greathouse, senior vice president of economic development at CLX, learned the company's name, Tiffany & Co., an iconic business known worldwide for producing jewelry of the highest quality, bestowed in its trademarked Blue Box. She also learned the last names of all the "Mikes," but she couldn't divulge anything until November.
"Many people don't know what we do," she said. "We keep everything confidential because the client requires us to."
Some companies never want an announcement, preferring to keep a low profile, Greathouse said.
Lexington was one of five cities - the others of which are not public knowledge - that made the cut for the Tiffany & Co. visits, out of a list of more than 50 possible sites.
"We knew we wanted to (expand) to an area outside of the northeast," said John Petterson, senior vice president of Tiffany & Co., "for cost reasons and geographic diversity." Consumer research showed that Tiffany customers expected the product to be made predominately in the United States, so Petterson and his associates spent days looking at the long list of American cities on paper - demographics, rental costs, construction costs per square foot and other numbers - and created a short list for their visits.
"It sounds silly," Petterson said, "but we finished in Lexington. The five of us were dog-tired, and I said, 'All the numbers aside, sometimes you have to go with your gut.'"
Lexington was attractive on paper and the city felt good in person, Petterson said.
"People were clearly eager to have us in the community," said Petterson. "I want Tiffany employees to be working in locations that I wouldn't mind living in."
He cited arts, sports and quality of life as deciding factors, on top of the business analysis, for Lexington's being chosen.
"There's hospitality, there's Southern hospitality - and then there's Kentucky hospitality," he said.
In the spring of 2010, the Tiffany & Co. jewelry manufacturing facility was up and running in Lexington, in temporary quarters on Bull Lea Road. Central Kentuckians were hired (90 to date), and after a nine-week training program, they began making such items as the six-prong solitaire diamond engagement ring (one of the "bread and butter iconic products," according to Petterson), "Diamonds by the Yard" necklaces and earrings, and other high-end units, with a focus on setting and finishing. The finished pieces are sent to the distribution center in Parsippany, N.J., where they are quality-inspected and shipped to 230 company-owned stores around the world.
"I can't tell you enough how the people in Lexington were one of the major decision factors," said Mike Kane, vice president of manufacturing for Tiffany & Co. "We couldn't be happier in our decision."
Lexington lays claim to the eighth Tiffany & Co. manufacturing facility. Others include Mt. Vernon and Pelham, N.Y.; Cumberland, R.I.; Parsippany and Denville, N.J.; and a small porcelain hand-painting factory in Paris, France, for place settings. The company also has diamond-cutting and polishing factories around the world.
The new building, on Innovation Drive in Bluegrass Business Park, broke ground in November 2010 and is expected to be completed in mid-August.
Founded in 1837 and known for its silver, diamonds and high-end jewelry, Tiffany & Co. is coveted by athletes as well. The company produces championship trophies for the NBA, WNBA, MLB, NFL and NASCAR. The first Tiffany trophy was the Woodlawn Vase, created in 1860 and presented at a horse race in Louisville before becoming associated with the annual Preakness winner.
In a statement, Kentucky Gov. Steve Beshear said, "I know that Tiffany & Co. went through a very competitive site selection process, and we are truly grateful to be the new home to a company whose name symbolizes style, quality and luxury to millions around the world. I couldn't speak more highly of John Petterson and the entire Tiffany & Co. team. They have been an excellent partner and true ambassadors of Kentucky."
Tiffany & Co.'s Petterson, who met with Beshear several times, said, "What has amazed us is the follow-through. We're building the factory. They've got us, but they haven't let us go. It's a very good feeling."
Click here
for a video of Tiffany & Co.'s John Petterson speaking in front of the Kentucky legislature's Interim Joint Committee on Economic Development about how Lexington went from 50th to 5th to 1st on its list of prospective locations for a new manufacturing facility.