Recent federal data shows that Lehigh Valley’s more than 700 manufacturers collectively produced $8.1 billion worth of output in 2022.
That’s an increase from $7.3 billion the previous year, and accounts for 16% of the region’s record $50.2 billion Gross Domestic Product. 
Nationally, manufacturing makes up 12% of GDP.
What makes the Lehigh Valley’s manufacturing sector so strong? Here are five reasons.
Skilled Workforce
The Lehigh Valley has a workforce of 1.7 million people living within an hour’s drive. About 37,000 people currently work in manufacturing. Manufacturers are supported by several training programs to develop workers’ skills, including Lehigh University’s Center for Manufacturing Systems Engineering, innovative manufacturing programs at Northampton Community College and Lehigh-Carbon Community College, and the Manufacturers Resource Center.
Location
The Lehigh Valley is located within a day’s drive of one-third of the U.S. population, making it easy for producers to get their goods to market. The Lehigh Valley has an international airport and freight rail access and is within 100 miles of the Port of New Jersey and New York and the Port of Philadelphia.
Talent Pipeline
The Lehigh Valley’s 11 colleges and universities and three career and technical schools graduate more than 11,000 students annually, potential talent for the region’s advanced manufacturing companies.
iTEC
A unique new apprenticeship program, the Industrial Training and Education Consortium of the Lehigh Valley (iTEC), is a partnership of industry, education, government, and community organizations to promote careers in advanced manufacturing. It follows the German apprenticeship model, with support from the German American Chamber of Commerce. iTEC currently is offering state-registered apprenticeship programs in mechatronics and industrial manufacturing technician career paths. Additional programs will be available soon, including machinist and chemistry lab tech.
To learn more, visit the iTEC website.
Foreign Trade Zone
Companies that operate in the Lehigh Valley’s Foreign Trade Zone (FTZ) can avoid paying or delay paying duties on imported materials and merchandise, or pay lower rates.
Merchandise, while located in the FTZ, is not subject to customs duties, tariffs, and taxes. U.S. manufacturers can import foreign-sourced parts or materials into the FTZ without being responsible for paying duties on them.
While in an FTZ, merchandise may be assembled, exhibited, cleaned, manipulated, manufactured, mixed, processed, relabeled, repackaged, repaired, salvaged, sampled, stored, tested, displayed, and destroyed. If the merchandise never enters the U.S. market, then no U.S. duties or taxes are ever paid on those items.
In 2022, between $25 and $50 million worth of goods were exported from Lehigh Valley’s FTZ to markets outside of the U.S., meaning duties were not paid because the goods did not enter the U.S. market.
To learn more about the FTZ in the Lehigh Valley, click here.
Learn more about manufacturing in the Lehigh Valley here.