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17
ANNUAL
REPORT
The mission of the Lehigh Valley Economic Development Corporation is to market the economic assets
of the Lehigh Valley and to create partnerships to lead the recruitment, growth and retention of employers.
The Lehigh Valley saw another year of historic economic growth in 2017, which speaks to the remarkable balance
between our various economic sectors, a sign of a well-balanced and multifaceted economy.
The region’s gross domestic product has surpassed the $39 billion mark for the first time in its history. That’s more
economic output from the two-county region of 665,000 people than the entire states of Vermont or Wyoming, as
well as 108 other countries in the world. And while transportation and warehousing is our fastest-growing sector,
manufacturing still makes up a significantly larger portion of our GDP, contributing $6.9 billion, or nearly 18 percent
of the total.
We’ve tracked 31 business attraction/expansion projects either announced, under construction, or completed in the Don Cunningham
Lehigh Valley in 2017, creating more than 2,200 jobs and retaining more than 1,300 more. LVEDC also provided President & CEO
access to $17.2 million in financing in 2017, resulting in another 810 jobs either created or retained.
I’d like to thank the LVEDC Board of Directors and everyone who has played a part in helping LVEDC deliver on its
mission of growing opportunity and creating jobs in the Lehigh Valley.
2017 marked my first year as Chair of the LVEDC Board, LVEDC is also embarking on several other important
and I’m pleased to say the organization has a clear initiatives, including a much-anticipated talent supply
vision for continued economic growth and opportunity initiative and study.
in the Lehigh Valley. LVEDC has been reaccredited
by the International Economic Development Council, This initiative has the goal of gaining a useable
and has experienced another record-breaking year in understanding of the Valley’s workforce – and providing
investment; in fact, our best yet. We are well poised to a framework for regularly updating that data in this rapidly
continue building on the excellent work LVEDC’s staff evolving sector – for the benefit of the Lehigh Valley’s
and partners have done over the years. employers, educators and regional partners.
Jane P. Long
In December 2017, LVEDC’s Board approved a new It’s been a real pleasure to work with so many talented Board Chair
three-year strategic plan to establish the organization’s professionals in both the public and private sectors, all
priorities and initiatives as it continues its work to advance with the same goal of growing our region. I’d like to thank
the region’s economic growth and job creation through all of LVEDC’s many stakeholders for their continued
2020. The plan is the result of a comprehensive process support, and especially our many investors for making
that included outside consultants, key stakeholder this a great year.
businesses in the Lehigh Valley, and LVEDC’s staff and
Board.
by 2017 Business
Development
Unemployment Labor Median Per Capita Projects
Rate* Force Household Income Income
4.9% 344,623 $59,989 $30,270
Source: JobsEQ. *December 2017, seasonally adjusted.
Employment by Industry:
1,357
Jobs Retained
Health Care &
Social Assistance
55,830 17.4% by 2017 Business
Retail 34,380 10.7%
Development
Projects
Manufacturing 32,388 10.1%
Transportation
& Warehousing 27,832 8.7%
Accommodation
26,597 8.3%
810
& Food Service
Source: JobsEQ. This table does not include other industries that make up less than 3 percent of the total Source: LVEDC Research Department.
percentage of the labor force, including Wholesale Trade; Management of Companies; Public Administration; These job figures are projections, and
Arts, Entertainment, and Recreation; Information; Real Estate; Utilities; Agriculture, Forestry, Fishing, and some jobs will be created over the course
Hunting; Mining and Quarrying. of multiple years.
The Lehigh Valley GDP ranks 65th out of the 382 largest metros in the United States, compared to ranking
73rd the previous year. If the Lehigh Valley were a country, it would be the 87th largest country in the world.
+$0.44B
+$0.21B
Information $1.9B
+$0.03B
The Lehigh Valley’s lead among 2016 Top Metros Overall (Northeast) Total Projects by Region
same-sized Northeast regions 1. New York-Newark-Jersey City 160
7. Buffalo-Cheektowaga-Niagara Falls 18
was substantial, with nearly
2. Philadelphia-Camden-Wilmington 74
8. Bridgeport-Stamford-Norwalk 14
double the amount of projects
as the next region in the list 3. Pittsburgh 70
9. York-Hanover 13
(Bridgeport-Stamford-Norfolk). 4. Boston-Cambridge-Newton 45
10T. Youngstown-Warren-Boardman 9
5. Lehigh Valley 26
10T. Harrisburg-Carlisle 9
6. Providence-Warwick 21
10T. Lancaster 9
* The number of projects listed is determined by Site Selection for its rankings. The magazine does not disclose which projects it has identified, nor how the magazine reached that figure.
LVEDC previously tracked 31 business attraction, expansion and retention projects for the year 2016, resulting in the creation of 4,832 new jobs and the retention of 2,205 more. Published
by Conway Data, Site Selection is the oldest publication in the corporate real estate and economic development field. It is the official publication of the Industrial Asset Management
Council, and has circulation base of about 44,000 executives involved in corporate site selection decisions.
“This strategic plan presents a clear vision for continued economic growth and opportunity in
the Lehigh Valley, and puts LVEDC in the best possible position to continue building on the
excellent work its staff and partners have done over the past three years.”
-- Jane Long, Chair of the LVEDC Board of Directors
4 Oakland 9.4% 7
2 PA I-78/81
Corridor
5 Manchester/Liverpool 9.3%
9 10
“Living here in the Lehigh Valley, it’s easy to forget that this region is one
of the fastest growing industrial markets in the country. It’s growing faster
than the inland empires in Texas and California, and is the most desirable
market in the Northeast.”
– Don Cunningham, LVEDC President & CEO
5 Five City Center Allentown Multi-tenant office building New Announced Office 400,000
Innovation Campus
6 IBEW Local #375 Allentown Labor union Expansion Under Construction Office $2,130,000 32,000
7 Mack Trucks Customer Center Allentown Truck mfg. Expansion Completed Office $3,000,000 160,000
8 Nestle Purina South Whitehall Pet food mfg. Expansion Announced Distribution 45 53,000
9 Nestle Waters Upper Macungie Beverage mfg. Expansion Completed MFG $79,000,000 50 580,000
10 NFI Fogelsville General freight trucking New Completed Distribution 413,750
11 Royal Industries Allentown Plastics products mfg. New Announced MFG $3,730,000 80 85,000
12 Ryder Systems Alburtis General freight trucking New Completed Distribution 350 1,200,000
13 Uline Upper Macungie Office supplies wholesaling Expansion Completed Distribution $200,000,000 75 675 1,070,000
Northampton County
14 Alpla Bethlehem Plastics packaging mfg. New Announced MFG $15,200,000 59 160,000
15 Ecopax Food Packaging Bethlehem Paper products mfg. Expansion Completed MFG $20,000,000 30 144,000
16 Everson Tesla Lower Nazareth Motor and generator mfg. Expansion Completed MFG $1,000,000 5 76,960
17 FedEx Regional Hub Northampton General freight trucking New Under Construction Distribution $335,000,000 700 1,200,000
18 Fresh Pet Bethlehem Pet food mfg. Expansion Completed MFG 60 49,150
19 HoverTech Allentown Medical supplies New Completed MFG $4,200,000 67,200
20 Inditex/ZARA Easton Clothing distributor New Completed Distribution 628,475
21 Iron Mountain Easton Waste management New Completed MFG $30,700,000 25 182,000
22 Norac Easton Food mfg. New Completed MFG $25,000,000 80 79,160
23 Old Dominion Freight Line Bethlehem General freight trucking New Completed Distribution $2,650,000 120 48,500
24 Particle Sciences Hanover Twp Scientific research Expansion Completed MFG $10,000,000 30 18,000
25 Reeb Millwork Bethlehem Lumber and plywood products Expansion Completed MFG $38,000,000 147 267 250,000
26 Sharp Packaging Solutions Bethlehem Pharmaceutical packaging Expansion MFG $45,000,000 143,000
27 Straight Arrow Forks Twp Personal care products mfg. Expansion Completed MFG $2,300,000 30 70 200,000
28 The Gateway at Greenway Bethlehem Multi-tenant office building New Under Construction Office $24,000,000 127,832
Park Building
29 Valley Youth House Bethlehem Children and youth services Expansion Completed Office $4,100,000 200 28,364
30 Vastex Bethlehem Printing machinery mfg. Expansion Completed MFG $3,750,000 8 25 37,500
31 Victaulic Lower Nazareth Metal valve and pipe fitting mfg. Expansion Announced MFG $3,500,000 50 25 400,000
For privacy reasons, some companies declined to provide data for its development project. These job figures are projections.
145
512
SLATE BELT 27
22
987 946
248 33
611
20
21
248
16
145
Northampton 512
191
31
248
329 EASTON
987 18 23
17
329
19 24 22
145 29 26
Lehigh 33
476 1 22 611
11 BETHLEHEM
8 378 30
ALLENTOWN
28 14 15
3
5 6 2 25
78
100
22 222
309
9 78 7 611
145
78 10 212
13
78
222
412
412
378
309
4 12
100 476
The Lehigh Valley had 362,900 Percent Change in Employment in Pennsylvania Metro Areas
seasonally-adjusted nonfarm
Lehigh Valley 4.9% Lancaster 4.9% Pittsburgh 1.4%
jobs at the end of 2016, which
is 4.9 percent higher than York -0.2%
Philadelphia 3.2%
the 346,100 jobs it had in Scranton-
Harrisburg 2.1% Wilkes-Barre -1%
December 2007, when the
Great Recession began. Statewide Average 1.8% Reading 1.9% Erie -4.6%
“We put a lot of effort into recruiting and retaining employers by Transportation & Warehousing
marketing the Lehigh Valley’s economic assets. To continue the
success we’ve had, it is imperative that we know our region better Manufacturing
than other regions know themselves. That begins with understanding
our challenges in the quantity and quality of our talent supply.”
Health Care
Don Cunningham, LVEDC President & CEO
To that end, LVEDC’s talent supply initiative kicked off a study in 2017, in
partnership with Workforce Board Lehigh Valley that identifies talent supply
and demand issues and create a strategy that results in a broader, ongoing
understanding of the workforce among employers, educators and others. MDB
Insight was selected to lead the study, surveying and interviewing employers,
educators, and others about their experiences and issues in talent supply and
demand.* The results of this study and subsequent strategic action plan will be
released in 2018.
The initiative stems from a 2014 study, “Bridging the Workforce Gap,” which
analyzed the region’s labor supply pipeline. That study was commissioned by
LVEDC and the Workforce Board Lehigh Valley, and led to the creation of the
LVEDC Education and Talent Supply Council, which is a major driver behind the
talent supply initiative.
*This study was partially funded by a grant the Workforce Board Lehigh Valley received from Pennsylvania
Department of Labor and Industry.
*For privacy reasons, some companies declined to provide data about the number of jobs created or retained by its financing projects. These job figures are projections.
LVEDC’s single largest financing project from 2017 (in terms of dollar amount)
was the $3.94 million that the Green Knight Economic Development Corporation
received for the redevelopment of the former tire recycling facility in Wind Gap.
The financing was secured through Pennsylvania’s Business in Our Sites program.
LVEDC wrote the economic feasibility study that served as a central component in
the financing application, and worked with program administrators to promote the
request.
This Tatamy-based company, which sells most of its products under the brand name
Equipto, is a leading manufacturer of industrial and commercial storage products.
LVEDC worked with Seedco to help the company obtain $2.2 million in financing
through the SBA 504 program for the acquisition of the company’s building. LVEDC
also previously helped the company obtain a Pennsylvania Industrial Development
Authority (PIDA) loan to buy equipment that helped it better recycle excess paint
from its painting process, reducing the amount of related waste and disposal costs.
*Business development trip was organized by the Office of International Business Development,
LVEDC ANNUAL REPORT • 2017 which is part of the Pennsylvania Department of Community and Economic Development.
18
Existing Companies Expanding in the Lehigh Valley
While helping attracting new businesses is a big part of what LVEDC does, an equally important component of the organization’s mission is
helping existing businesses in the region continue to grow and thrive. Bringing in new companies tends to get the bigger headlines, but 70
percent of new jobs created in the Lehigh Valley each year come organically from companies already located here.
In addition to Mack Trucks and Victaulic (see pp. 16-17), below are a few examples of companies within the Lehigh Valley expanding or
doubling down on their investment in the region:
MARKET SUMMARY
Total industrial building inventory grew by 1.7 percent in 2017. The nine
projects under construction represent 5.5 million additional square feet.
Industrial Buildings
by Use Type 50%
Manufacturing
50% The Lehigh Valley Year Added Space
has added nearly
20 million square
2017 3.8 million
Warehouse
27% feet of industrial and 2016 7.3 million
27%
flex building space
Distribution in the last five years.
2015 4.2 million
19% 19% 2014 4.0 million
Flex 2013 0.5 million
4%
4%
Source: LVEDC Research Source: CoStar
WIND GAP
Proposed (1)
1403 Jacobsburg Road, Bushkill Township Northampton 512
191
248
329 EASTON
987
Source: CoStar, Northampton County Real Estate Tax Records, LVEDC Research
22
MARKET SUMMARY
Overall office vacancy decreased from 9.5 percent to 7.7 percent in 2017.
Class A office space vacancy dropped from 15.4 percent to 10.1 percent.
Average Asking Rent for Lehigh Valley Class A Office Space Inventory (SF)
Class A Office Space ($/SF) 6.5M
6.4M
New York City Metro $75.08
6.1M
Washington, D.C. $60.16
D.C. Suburbs $33.39 5.8M
Charlotte, NC $32.02
5.6M
Philadelphia $31.72
2013 2014 2015 2016 2017
Long Island, NY $30.71
Northern New Jersey $30.40 Total Square Feet
Raleigh-Durham, NC $30.17
Philly Suburbs $29.62 Can we add a text call out about the above data
Lehigh Valley $18.60 here?
“Tyber Medical relocated to the Lehigh Valley three years ago with a
goal of transforming a four-person startup company into a 25-person
vibrant business. This achievement was possible through the dedication,
direction, and hard work of the LVEDC team in providing guidance on
local growth programs such as funding and workforce recruiting. We look
Redevelopment projects in the
forward to the next three years and the future growth of Tyber Medical with
Lehigh Valley drew national attention
our strategic alignment with the LVEDC and the state of Pennsylvania.”
in 2017. Bethlehem’s SteelStacks
Jeff Tyber Arts and Cultural Campus won the
President, CEO & Founder, Tyber Medical prestigious Rudy Bruner Award for
Urban Excellence, and the Allentown
Neighborhood Revitalization District
won the Urban Land Institute’s
Visit lehighvalley.org/BOP for more information and testimonials from some of 2017-18 Global Award of Excellence.
the businesses we support.
Financing
Lehigh Northampton
County County
GREEN KNIGHT
ECONOMIC DEVELOPMENT CORPORATION
A&H Sportswear Embassy Bank for the JLL Peoples Security Bank
Lehigh Valley
Adams Outdoor Advertising JM Uliana & Associates Provident Bank
Feinberg Real Estate Advisors
Alvin H Butz Lafayette College QNB Bank
First Commonwealth Federal
Borton Lawson Credit Union Lee & Associates of Eastern PA Quandel Construction Group
Computer Aid Follett Corporation MKSD architects Sacred Heart Healthcare System
Crayola Griffin Industrial Realty Moravian College Santander Bank
CrossAmerica Partners Hillwood Investment Properties Norris McLaughlin & Marcus Service Electric
DeSales University Hospital Central Services OraSure Technologies Unity Bank
Duke Realty Corporation
44 Business Capital Easton Area Industrial Land Joshi Hotel Group New Tripoli Bank
Development Corporation
515 Hamilton Group at Just Born North Star Construction Management
Morgan Stanley Easton Coach
Kelly Automotive Group Northampton Community College
Albarell Electric ESSA Bank & Trust
Kitchen Magic O’Brien’s Moving & Storage
Allied Building Corporation Express Employment Professionals
of Lehigh County Klunk & Millan Advertising Ondra-Huyett Associates
Allied Personnel Services
Express Employment Professionals Knopf Automotive Orbel
ARCO Design/Build Northeast of Northampton County Kreischer Miller Ott Consulting
ArtsQuest FastSigns of Allentown Kressler Wolff & Miller Pennoni Associates
Baker Tilly Fedetz & Martin Associates Lehigh Carbon Community College Regan Levin Bloss Brown & Savchak
Barry Isett & Associates Fishburn Realty Company Lehigh Career & Technical Institute Reimer Real Estate
Berger-Epstein Associates Frederick Group Lehigh County Authority Rettew Associates
BerkOne Gelcor Realty Lehigh Valley Industrial Park SAGE Design-Build
Bethlehem Redevelopment Authority Gilmore & Associates Lehigh Valley Rail Management Sperry Van Ness - Imperial Realty
Blue Rock Construction Good Shepherd Rehabilitation Lesavoy Butz & Seitz Spillman Farmer Architects
Bohler Engineering Network
Life Sciences Pennsylvania Stevens & Lee Allentown
Broughal & Devito Graybar Electric
Lightweight Manufacturing Superior Quartz Products
Buckno Lisicky & Company Gross McGinley
Manufacturers Resource Center Synergy Environmental
CBRE Haines & Kibblehouse
Markward Group Talen Energy
Cedar Crest College Handlon Business Resources
Maser Consulting Terraform Engineering
CF Martin & Company Hanover Township - Lehigh County
Merchants Bank of Bangor The Pidcock Company
Communication Systems HDR Engineering
Mericle Commercial Real Estate TWG
Compass Point Highland Associates Services
Ultra-Poly Corporation
Corporate Environments HMK Insurance Michael Baker International
Veraxia Commercial Real Estate
D’Huy Engineering Horwith Trucks/ Horwith Leasing Modernfold of Reading Solutions
Diefenderfer Electrical Contractors Hotel Bethlehem Moonstone Environmental Wacker Polymers - Americas
Dutch Springs IMC Construction Nacci Printing Wind Gap Electric
EarthRes Group Ironton Telephone Company NAI Summit
Our Mission
The mission of the Lehigh Valley Economic Development Corporation is to market the economic
assets of the Lehigh Valley and to create partnerships to lead the recruitment, growth and
retention of employers.
Our Vision
Our vision is of a diverse Lehigh Valley economy that provides economic growth and opportunity
for people of all skills and education and strengthens all our cities, boroughs and townships.
Our Priorities
• Market the economic assets of the Lehigh Valley
• Recruit companies in targeted economic sectors
• Support the growth and retention of new and existing employers
• Promote and coordinate a skilled and prepared workforce
• Provide intelligence and data on the Lehigh Valley economy
• Expand public and private LVEDC investment and build partnerships for economic growth