Your Fed, Your Voice: Ashli Watts

Seema Sheth: Hey, and welcome. This is Your Fed, Your Voice. My name is Seema Sheth, and I’m the regional executive of the Louisville Branch of the St. Louis Federal Reserve. You know, one of the coolest things about the Federal Reserve is that we get to talk to people from a variety of backgrounds about how they experience and impact the economy.

Now, all of those stories become anecdotes, and those anecdotes combine with real-life data to paint a picture of what’s happening economically in real time. It’s that that we use to make monetary policy decisions and create a better economy for all of us to experience.

Today, we’re really excited, because we have a phenomenal guest joining us. Her name is Ashli Watts, and she is the president and CEO of the Kentucky Chamber. But she also does work with chambers on a national scale. She gets a very specific title as one of my favorite Kentuckians, a title that I bestow lightly. That is just because of the amazing work that she’s done for the state, and also for being such a cool person. So Ashli, welcome to Your Fed, Your Voice.

Ashli Watts: Thank you so much for having me. This is really fun. I’ve been excited to do this.

Sheth: Every time you and I meet in a professional setting, afterward we’re like: We should be friends. So, I think this is going to be a fun conversation.

Watts: I agree. This is going to be great.

Sheth: Well, OK. So, before we get into some stuff that I’m just personally curious about, I think you are a really great representation for what chambers are and what they do. At the Fed, we rely on chambers to help us understand what’s happening on Main Street. You all really have a finger on the pulse of Main Street. But could you share with us: What are chambers? Why do they exist? What do they do?

Watts: Yeah, chambers do a lot. And we have local chambers, state chambers. We have a national chamber. But here at the Kentucky Chamber, we are the state’s largest business association. And 78 years ago, when a group of businesspeople in Kentucky decided to form the Kentucky Chamber, they wanted to make sure that the Kentucky Chamber was going to be business advocates for them in Frankfort and in Washington, D.C.

So, we do a lot of things. We do professional development training; we do events. We have a really strong foundation. But the reason that we exist, the reason that we have been around for over 75 years at this point, is that we are businesses’ eyes, ears and voice at the Frankfort Capitol, as well as in Washington, D.C.

So, while businesses always say they’re busy running their business and they’re taking care of their employees and they’re contributing to their communities, we want to make sure that their voices are being represented at the Capitol where really important things are happening, important discussions are happening, and important decisions are being made. We want to make sure that we are their voice at the Capitol. And so, what we do primarily here at the Kentucky Chamber is we advocate on their behalf to the Kentucky General Assembly, as well as on the federal level with Congress.

Sheth: There are a lot of things that are happening that are super-positive. You think about the industries that are booming in Kentucky: you know, manufacturing. We have automotive, battery, bourbon. So, talk to me about those things, and how the chamber helps to support those businesses and economies.

Watts: Yeah. So our economy - the governor often says our economy is on fire, and that really is true in many ways. We have had record numbers of economic development announcements the past couple of years. The legislature over the past seven, eight years has really, I think, laid the groundwork for businesses to want to come to Kentucky, to want to invest, which of course brings more population, which is what we want at the end of the day.

And so, we have great companies here in Kentucky. Logistics is one of the strengths that we have. We are within one day’s drive of two-thirds of our nation’s population. So when you think about Kentucky and I think about chamber membership, you think about UPS and Amazon and all these logistics companies.

But that’s really important to business. Businesses want to be somewhere where it’s easy to get to their goods and services. And so, we have a boom in automotive, obviously; we are home to Ford and Toyota and GM. We have a new battery plant in my home county of Hardin County with BlueOval. And then of course, all of our signature industries: Kentucky is not Kentucky without horses and bourbon. It is who we are. It is what makes us so unique.

Sheth: We’ve talked a lot about the big guys, right? So, Logan Aluminum and Toyota, these really large employers. But it’s also, I feel like, a pretty great place for smaller employers and for startups to try and start work here in Kentucky. So, can you talk to me a little bit about: What is the chamber doing to help small to midsize businesses?

And some things are great here. We have a low cost of living, but maybe we don’t have as much access to large venture capital. So, can you talk to me about what that’s like for a new business trying to start up here in Kentucky?

Watts: Yeah. I think you really hit the nail on the head there. So, the Kentucky Chamber, the majority of our members are actually small businesses. Over three-fourths of our membership has less than 100 employees. And so, we really want to make sure that we are the voice of not only business, but of small business.

And, I think, a lot of times for small businesses, they want access to other businesses here in Kentucky. They want ways to network, ways to make sure they’re able to grow their business.

One way that, I think, that we have really found success is working with our local chambers of commerce. So, I always tell any business in Kentucky, the first thing they should do is join their local chamber of commerce. That is going to help grow their business, grow their community. They’re going to be able to network.

And so, we have over 100 local chambers of commerce here in Kentucky. And the majority of their members are also small businesses, many times those Main Street small businesses that we think about. So, helping those local chambers of commerce help their small businesses, I think, is one way.

We also work on advocacy for small businesses, making sure that they have the environment in which they can flourish. I think you mentioned access to capital; that is something that is clearly a headwind for us.

We’re not on the Coast. When you think about venture capitalists and when you think about entrepreneurs, a lot of times you think about them being on the Coast. And so, there is kind of a difference here, a little bit of a different playing field. But I think that’s where a chamber can come in and help make those connections.

Sheth: We’ve recently started doing some entrepreneur roundtables where we literally just listen to what struggles entrepreneurs are having. Do they need more connection? Do they need more training? What exactly do they need? How can the chamber facilitate that?

Watts: I think that’s one of my favorite things about running a chamber: We can be whatever businesses need in that moment. And so, if a group of small businesses or entrepreneurs say, “Hey, we need this regulation changed because it’s really a hindrance for our business,” or “We need help with angel investors,” we can help that. So, I think, a lot of us are just learning and listening to small businesses and entrepreneurs on what they need.

Sheth: And I’m curious a little bit about how you gather data to understand what the chamber folks are telling you. You just spoke about having a roundtable. Those are something that we rely on a lot at the Fed: roundtables. But how else are you gathering data from those that you represent?

Watts: That’s a great question, and I think, it’s kind of twofold: It’s both qualitative and quantitative. So, the qualitative part is literally just listening to businesses, hearing how their business is going, what impediments they may have, what suggestions they may have, what rules or regulations or laws are holding them back, or what would make it easier to do business.

And I will say, a lot of times our advocacy work comes from those conversations. We invite all chamber members to join one of our policy councils so they can have their voice be heard. We also have a board that kind of tells us the same things and what they’re working on.

And then some of it is quantitative. We do a lot of surveys. We do a lot of data analysis. We have a Center for Policy and Research here at the chamber, which I kind of describe as a mini think tank. But we do a lot of deep dives on research and data to really see what the chamber should be doing next.

Sheth: One of the things that we’re working on at the Fed is to make sure that we are supportive of the organizations that are within our footprint. So I’m curious, from your vantage point, are there ways in which we at the Fed could be helping you do your work better? Or are there ways that we could partner in the future to make more of an impact in the work that’s happening in Kentucky?

Watts: Some of our team has contacted you all about making sure that our research really does correlate, and that we’re complementary, and that we’re using data-driven analysis to help impact our advocacy and our policy decisions. And then likewise, I know you’ve reached out to me about connections in certain parts of the state, making sure that I can find businesses wherever you need to be to tell you on Main Street what’s really happening--that qualitative, kind of personal story. So, I think, continuing to keep those connections on the relationship side is really important, but also on the data side as well.

Sheth: Well, Ashli, this has just been awesome. Thank you so much for spending some time with us, and thank you so much for joining us and sharing not only the story of the Kentucky Chamber, but also a little bit about yourself and the lessons that you’ve learned as a phenomenal CEO and president here in the state of Kentucky.

Watts: Thank you so much for having me. This has just been a joy. We probably could have talked for hours, but I’m just really appreciative of the work that you do and the Fed does. And I look forward to continuing our partnership.

Sheth: Me too. And next time, we’ll continue this conversation; it will take us seven or eight hours to get through all the things that we could talk about. It’ll be great. For those of you that have stuck with us to the end of this podcast, thank you so much for being here. If you like what you see, remember to like and subscribe on YouTube so that we can show up in your feed. This has been Your Fed, Your Voice. I’m Seema Sheth.

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