An influential business publication recently hailed the Lehigh Valley as “an economic pacesetter for the nation.”

Chief Executive, which bills itself as the independent voice of the CEO community, gave the Lehigh Valley top billing in its annual article ranking state business climates.

The article touted the region’s “economic vibrance” as underscoring “the dynamism that remains in state business climates in general.” 

It quoted Don Cunningham, President and CEO of the Lehigh Valley Economic Development Corp. (LVEDC), along with B. Braun of America CEO Jean-Claude Dubacher, and Easy Signs co-founder Andy Fryer.

Chief Executive highlighted how increasing investment by foreign companies, a renaissance in manufacturing, and experienced labor are keys to a high-performing economy. The Lehigh Valley epitomizes all those traits.

“It’s sort of in the middle of everything with all the distribution centers here and access to the East Coast, which makes it a great place to invest. And there’s a bit of a life sciences ecosystem, and great universities and community colleges. This is where we’re going to grow,” Dubacher said in the article, which noted B. Braun’s recent $200 million expansion.

Fryer told the magazine how the area’s manufacturing workers are so coveted that Easy Signs - an Australian company that chose Upper Macungie Township as the location for its first U.S. manufacturing operation - boosted wages by $5 an hour to secure sufficient staff.

Chief Executive annually surveys CEOs for their opinions about the best and worst states for business. Texas, Florida, and Tennessee retained the top three spots, followed by North Carolina, Arizona, and Indiana. California ranked last, preceded by New York, Illinois, and New Jersey.

Pennsylvania ranked 33^rd, an improvement of two spots since last year.

Gov. Josh Shapiro has stressed how he is trying to improve the business climate by streamlining government and investing in innovation and manufacturing. He touted his plan in March when he gave the keynote address at LVEDC’s annual meeting, one of his first major economic policy speeches.

“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,” Shapiro told the more than 700 people in attendance at the meeting at ArtsQuest Center in Bethlehem. “That will be the approach we take in the commonwealth.”

Chief Executive said the Lehigh Valley is “humming,” a pocket that stands out in Pennsylvania.

“Manufacturing has returned to its legacy status as the No. 1 sector for output regionally, at an annual clip in 2021 of $8.4 billion from about 750 different companies. The Valley has only about a 3 percent vacancy rate for industrial space. Other modern industries are right behind in job growth, including healthcare. As one result, mean wages rose to an average of $25.76 in 2021 from $23.22 just two years earlier,” the article said.

It noted how the area is growing and is the top growth market in the state for people 40 and under.

The Lehigh Valley ranked second nationally among regions of similar size for the number of economic development projects in 2022. LVEDC is building partnerships to grow the economy, including by developing a skilled and prepared workforce.

“We have definitely seen the acceleration of both internationally based and domestic companies here that want to have more supply close to large population centers, whether it’s a production facility or a distribution facility where you don’t get caught with such a short supply,” Cunningham told Chief Executive.