A trio of Lehigh Valley officials told a group of business leaders why the region’s economy is humming and what must happen for that to continue.
Don Cunningham, President and CEO of Lehigh Valley Economic Development Corp. (LVEDC); Phillips Armstrong, County Executive of Lehigh County; and Lamont McClure, County Executive of Northampton County, addressed about 70 members and guests of the Executive Forum of the Lehigh Valley at the organization’s Signature Event on Oct. 4 at the Univest Public Media Center in Bethlehem. 
Cunningham, Armstrong, and McClure stressed that the region’s collaborative spirit is a primary reason why the Lehigh Valley is growing in population and economic output, with a record Gross Domestic Product of $47 billion. Governments, public schools, colleges and universities, businesses, and various organizations work together to make the community an inviting place to live, work, and open a business.
“We want to maintain the quality of life and attractiveness and authenticity that we love about this place,” Cunningham said during the 90-minute program. “And we want to have opportunity for people of every walk of life, every skill set, every education level.”
The event was moderated by Andrew Lawler, a member of the Executive Forum and President of West Side Hammer Electric, and Tom Shortell, a reporter at LehighValleyNews.com. They asked the panelists questions posed by the audience.
About 90% of Lehigh Valley businesses have fewer than 20 employees, Cunningham said, and many manufacturers have a small workforce. They rely on automation and use advanced manufacturing processes, requiring skilled workers who earn higher wages.
Cunningham said the region is attractive for businesses of all sizes because of its location, within a day’s drive of one-third of U.S. consumers. Manufacturing output exceeds the national average, making up 18% of the Lehigh Valley’s GDP, compared to 12% nationally.
There is no evidence the economy is slowing, he said, except for the commercial office sector, and that is a national trend. With a lot of people now working part of the time from home, some buildings, particularly older buildings and Class B and Class C space, probably will need to be repurposed. They possibly could be converted to residential uses, which would help meet the demand for housing.
“But in general, we don't see the GDP or the output or employment slowing down, we just see some transition going forward,” Cunningham said.
McClure and Armstrong, who are members of the Board of Directors of LVEDC, said county governments encourage business growth in ways that may not be immediately obvious, such as keeping tax rates reasonable. Neither county has raised property taxes recently. Northampton County reduced its tax rate last year and keeps its debt low, McClure said.
“That's also one of the things that makes us successful in our ability to recruit new businesses to the area. They know that their local governments are not spendthrift governments,” he said.
The counties have seasoned economic development professionals who are dedicated to helping small businesses with services that include grant funding.
“Those are the little things that counties can do,” Armstrong said. “If I can give you $7,000, you can refresh your business, maybe a new storefront, something to get people to walk into the door, that helps. It doesn't have to be a $25 million grant. It can be something small. And we have some very creative business owners in the Valley. And they know how to make sure their business survives.”
By preserving farmland and open space, counties contribute to the Lehigh Valley’s exceptional quality of life, which Cunningham said is a big driver of economic development.
“Tens of millions of dollars are spent for recreation in Northampton and Lehigh County on an annual basis. It is a huge business and industry,” McClure said. “And if we preserve that, we’ll preserve the quality of life, not just for those of us who are here, but we will have a quality of life that will be attractive to the people who will want to move here to keep our future being so great.”
The region has done well attracting newcomers between ages 18 and 34, a desired demographic for employers, according to Cunningham. Northampton County ranks first in Pennsylvania for that growth, Lehigh County No. 12.
Cunningham said the number one priority for economic development is to ensure there is an ample and skilled workforce so existing businesses can expand and new businesses will want to locate in the Lehigh Valley.
LVEDC and partners such as Workforce Board Lehigh Valley are working hard on that.
“You can't do business and economic growth without people, people with the right skills,” he said.
The panelists credited the region’s 11 colleges and universities and three career and technical schools for preparing about 11,000 students annually to join the workforce.
“We are producing a workforce for these companies to come here,” Armstrong said.
McClure said the public education system, though, has inequities between communities that must be addressed.
“I think we all have a responsibility to make sure that universal public education is not only protected but improved. Because as a small business owner, you need people who can read, write, do basic math, and that is not always guaranteed,” he said.
Armstrong, a former teacher, told the audience of business leaders that employers must get involved with schools, so they know what instruction is relevant to prepare students.
“The employer, you people, have to let the schools know what are the particular skills that you really want them to have, and become involved with the schools,” he said. “They definitely will welcome you.”
Cunningham said LVEDC and its partners are working with school districts to ensure students have the soft skills, people skills, necessary to succeed in their careers.
Affordable housing is another issue that must be addressed so the workforce has a place to live, the panelists said. McClure and Armstrong said the counties currently are working on developments that would provide some additional space, but much more will be needed, in suburban and rural communities as well as denser cities and boroughs.
McClure said there must be a balance between economic development and quality of life, as new developments such as distribution centers bring truck traffic to the area’s roads along with their jobs.
A video of the panel discussion by LehighValleyNews.com can be viewed here.
(Photos by LVEDC)