The Lehigh Valley continued to attract new businesses in 2023, with the economy once again driven by a diverse manufacturing sector that will be boosted by a unique new workforce development program. The technology sector, specifically semiconductor development, took center stage amid a federal push to grow the industry. And more people chose to call the Lehigh Valley home, attracted by employment opportunities and a high quality of life.
Here is a look at some of the events and new economic development projects that made 2023 a successful year.
Record GDP
In early December, the U.S. Bureau of Economic Analysis released its annual Gross Domestic Product data for regions for the previous year, and the Lehigh Valley reached new heights.
The GDP in 2022 set a record at $50.2 billion.
Among regions of similar size, that makes the Lehigh Valley a Top 15 market for GDP and ranks it the 68th largest of all regional economies in the United States. 
Manufacturing continued to be a major driver of GDP, with more than 700 manufacturers generating a collective output of $8.1 billion, or 16%, of the GDP. That’s an increase from $7.3 billion in 2021.
“The Lehigh Valley’s economy continues to blossom. Manufacturers once again increased their output, despite a challenging market because of inflation. New manufacturers came to the region, drawn by the prime location and ample, talented labor force,” said Don Cunningham, President & CEO of Lehigh Valley Economic Development Corp. (LVEDC).
Other top contributors to the region’s GDP in 2022 were finance, insurance, and real estate; education, health care, and social assistance; and professional and business services.
Since 2017, the Lehigh Valley’s GDP has grown by about $10 billion. When factoring in inflation, the Lehigh Valley’s economy grew by 5.5%, nearly twice as much as Pennsylvania over that time.
“The fact that regional economic growth outpaced the rate of inflation in 2022, which was one of the worst years for inflation in recent history, shows that the Lehigh Valley economy is efficient as well as robust. That is a good sign for continued economic growth in the region as inflation eases,” Cunningham said.
Growing the Tech Sector
LVEDC led a broad coalition seeking to have the region designated by the U.S. Economic Development Administration as a Tech Hub, which could have brought up to $75 million in federal funding.
While the application was unsuccessful, the effort was fruitful. It built a coalition of tech companies, colleges and universities, government officials, and organizations in labor, economic development, community services, and workforce development. That coalition intends to continue working together to grow the sector.
The Lehigh Valley’s technology industry features about 30 companies, some of which plan to expand. Collectively employing about 1,500 people, they produce technology relied upon by brands such as Google, Microsoft, Meta, AWS, AT&T, Verizon, Netflix, and Nokia.
Semiconductor technology firms operating in the Lehigh Valley include AAYUNA, Broadcom, Cisco, Coherent, Infinera, iDEAL Semiconductor, Intel®, and POET Technologies. They are supported by Lehigh Valley firms such as Air Products, Evonik, EMD Electronics, and LBN that supply components and raw materials.
The industry was celebrated at LVEDC’s Fall Signature Event in November, sponsored by Intel®.
Significant Projects
In early 2023, Lehigh Valley was ranked second among mid-sized regions for the number of newly completed or announced economic development projects in 2022, by Site Selection magazine.
That growth continued through 2023 as new projects came online or were announced. They include:
Schless Bottles, a premium plastic jars and bottles manufacturer, announced in June that it will be relocating from northern New Jersey to Allentown. It is investing $7.5 million to acquire and renovate a production facility that will have 98 jobs. Schless needed more space to expand its operations. It chose the Lehigh Valley because of its workforce and proximity to major distribution markets.
American Millwork & Cabinetry in Emmaus is adding 20,000 square feet so it can expand production of acoustic paneling and ceiling tiles and have more room for its traditional cabinetry work. It plans to expand its workforce by 35 to 40.
United States Cold Storage in Bethlehem is investing $80 million to expand its current facility by 7.8 million cubic feet. The company plans to hire 30 new employees while retaining 180. 
The Waterfront development in Allentown opened its first building, a nearly 110,000-square-foot office building. About 400 people will work there when it is fully occupied. Multiple residential and office buildings are still to be built. The Waterfront will generate about $4 million annually in real estate taxes for Allentown, Allentown School District, and Lehigh County at full buildout.
National Magnetics Group in Bethlehem, which manufactures technical ceramics and powdered iron cores for uses in medicine, wireless technology, science, aviation, and automotive industries, is investing more than $700,000 to expand production. Five new jobs will be created and 15 will be retained.
Roberts Oxygen Co. in Bethlehem, which provides compressed industrial and medical gases, specialty gases and equipment, welding equipment and consumables, and technical support services, is investing $1.6 million in its 7,600-square-foot facility to improve distribution of compressed gases and welding supplies to customers. Two jobs will be created and retained.
BSI Corporate Benefits opened a new office in Bethlehem in the former Victory Fire House. Initially there will be 50 employees, with plans to expand to 100 over a few years.
Linde Engineering, a global gases and engineering firm, announced in March it would be opening an office in Upper Macungie Township that will employ about 50 people.
“The Lehigh Valley economy is strong because it is diverse,” Cunningham said. “The diversity of employers, from manufacturing to health care to education, is important because it provides a range of family sustaining career opportunities so everyone can benefit from the economic prosperity.”
Workforce Development
The challenge of attracting and retaining a skilled workforce resulted in a unique new solution in 2023.
A new apprenticeship program, the Industrial Training and Education Consortium of the Lehigh Valley (iTEC), was created to promote careers in advanced manufacturing. iTEC, modeled after the German apprenticeship system, is a partnership of industry, education, government, and community organizations.
Manufacturers participating in iTEC include B. Braun Medical, Lutron Electronics, Heidelberg Materials, OraSure Technologies, Bracalente Manufacturing Group, Hospital Central Services Corporation, Keurig Dr Pepper, Julabo USA, and Thread Bioscience.
Training partners include Allentown School District, Bethlehem Area School District, Bucks County Community College, Cedar Crest College, Lehigh Carbon Community College, Lehigh Career & Technical Institute, and Northampton Community College.
Collaborating partners include the German American Chamber of Commerce, Greater Lehigh Valley Chamber of Commerce, LVEDC, Manufacturers Resource Center, and Workforce Board Lehigh Valley.
Gov. Shapiro Accolades
The Lehigh Valley’s growing economy and its reputation for collaboration drew praise from Gov. Josh Shapiro twice during 2023. He said the Lehigh Valley should be a model for communities statewide.
At LVEDC’s Annual Meeting in March, Shapiro said: “From our Main Streets to our farms, we will have a Lehigh Valley sense of values, that sort of common sense, competitive approach that figures out how to come together to get things done. That will be the approach we take in the commonwealth.” 
In December, LVEDC hosted Shapiro at its offices in Bethlehem, where he met with the leadership of the Lehigh Valley Partnership. Earlier in the day, at an event at Sacred Heart Hospital in Allentown, he reiterated his statements from March.
“Everywhere I go, I have been so impressed with the way the Lehigh Valley has acknowledged that we've got to lift everyone up if we're going to really succeed as a region, if we're going to succeed as a commonwealth,” Shapiro said. “And I hope that this is no longer the exception, but this becomes the norm. It's really impressive to see the work that's going on here. And it's been an inspiration for the work we're trying to do in Pennsylvania.”
Population Growth
Census data released in 2023 showed the Lehigh Valley is among the faster growing regions in Pennsylvania, which lost population during the pandemic. The population rose to more than 694,800 people in 2022 as nearby metropolitan areas lost population.
That growth is being driven by an increase in the young adult population, a desirable demographic for employers, and by people moving to the region from other parts of Pennsylvania and from other states.
The number of residents between ages 18 and 34 grew at three times the rate of the Lehigh Valley’s overall growth rate across all age groups from 2020 to 2022. Northampton County led the state in the growth of the number of people between 20 and 24 years old.
Lehigh County ranked in the top 4% of all U.S. counties for net international migration.
Northampton County ranked in the top 4% of all counties for net domestic migration.
“The Lehigh Valley’s quality of life is a significant economic driver,” Cunningham said. “People want to live here. And companies follow people.”
International Publicity
In 2023, the Lehigh Valley’s strong economy drew the attention of several leading publications in Europe, which published articles about what is happening here.
German business news magazine WirtschaftsWoche visited the region and published an article in October under the headline: “Suddenly, American Beauty Again.” It highlighted how the resilient region known for its industrial roots now boasts a diverse economy that includes advanced manufacturing and technology and a supportive environment for small business startups. 
Neue Zürcher Zeitung, a German-language newspaper in Switzerland that is comparable to The Wall Street Journal, visited the region and published an article in August. It focused on why German and Swiss companies such as ABB and B. Braun Medical find the Lehigh Valley a good place to do business.
Le Monde, a prominent French daily newspaper, highlighted the Lehigh Valley in an article in May about why international companies are investing in the U.S.
LVEDC
Lehigh Valley Economic Development Corp.’s work to build coalitions to develop the workforce and attract and retain businesses included several new ventures in 2023.
The Hot Careers Dashboard made its debut. The interactive, online tool helps students and job seekers explore career opportunities. The dashboard can be used to explore jobs, industries, wages, educational programs, and more to shape career paths. LVEDC created a tutorial video explaining how to use the dashboard. View it here.
In July, LVEDC hosted the 5th Annual Lehigh Valley Internship Summit, in partnership with the region’s colleges and universities, at DeSales University. Attendees heard from interns and former interns about what they considered to be important, along with success stories from employers. Tips were offered for how to make sure internships include work that is meaningful for both.
LVEDC redesigned its quarterly Lehigh Valley Commercial Real Estate Reports, presenting the latest industrial and office market indicators in a more visually engaging way.
To keep the community better informed, LVEDC created two new e-newsletters in 2023.
The Talent Newsletter, published quarterly, shares news about workforce development, attraction, and retention, along with local data and information, career paths of people in the Lehigh Valley, and national trends.
The Interest Rate Newsletter, published monthly, provides up-to-date rates for loans from the U.S. Small Business Administration and the Pennsylvania Industrial Development Authority.
Sign up for LVEDC’s newsletters here.