This article originally appeared in the Lehigh Valley Commercial Real Estate Report in Q1 2023.
Surrounded by truck cabs and Old Glory, President Joe Biden launched his “Made in America” initiative two years ago in the Lehigh Valley plant where every Mack Truck in North America is assembled.
Owned by a Swedish company, Mack Trucks has a long, storied history here, recently expanded, and exemplifies the manufacturing might Biden aims to grow. 
Biden’s policy, along with the recent initiatives including the CHIPS Act and Trump-era tax law changes, have helped fuel foreign investment since. Foreign direct investment in the U.S. rose to a record $4.98 trillion in 2021, according to the U.S. Bureau of Economic Analysis.
Global FDI flows continue to outstrip pre-pandemic levels, and the U.S. is the world’s top destination. Interest in the Lehigh Valley, with a rich history in foreign direct investment, is growing.
Located in the heart of the lucrative Northeast region, the Lehigh Valley is on the radar because it’s an established market with “great connectivity,” said H. Robert Boehringer III, Managing Director of Site Selection and Project Development Deal Advisory & Strategy at KPMG.
Landing the companies requires support, he said.
“What these companies are concerned about is how quickly can I get into the U.S. market, stand up my facility, and be successful,” Boehringer said. “That’s the differentiator.”
In 2022 alone, companies headquartered overseas announced or completed 2 million square feet of projects in the Lehigh Valley.
From global leaders like B. Braun Medical doubling the size of its manufacturing facility to an Australian manufacturer opening its first U.S. facility, the expanding footprint of internationally owned companies helped propel the Lehigh Valley to rank as the second busiest market of its size last year.
And the interest continues. About 40% of the economic development prospects that reached out to the Lehigh Valley Economic Development Corp. (LVEDC) in 2022 were from companies internationally owned.
“The Lehigh Valley is a targeted market for international companies looking for an East Coast presence to access nearly a third of U.S. consumers in a day’s drive,” LVEDC President and CEO Don Cunningham said. “Demand has increased since the supply chain disruptions of the pandemic. Our availability of a skilled workforce, manufacturing heritage, and access to market make the Lehigh Valley a major U.S. manufacturing center.”
Cunningham said interest in the Lehigh Valley has coalesced around manufacturing, the largest segment of the region’s economy.
Many prospects are seeking spaces between 20,000 and 120,000 square feet, he said, and many seek to own.
Among them is Travaglini, a family-owned Italian company that designs equipment to cure meats and other delicacies. The company was attracted to the Lehigh Valley’s location near its customers, short drive from direct flights to Europe, affordable location, and nearby technical schools churning out 1,000 students a year with mechanical know-how.
“It was like an onion,” said Daniele Negri, Travaglini Project Manager. “Every time we peeled back a layer, we saw another advantage to choosing the Lehigh Valley.”
Easy Signs, an Australian digital sign manufacturer, put its first U.S. operation in the Lehigh Valley last year, bringing 130 jobs. Lehigh Valley’s easy access to highways puts it within a day’s drive of a third of the U.S. population.
“A big part of our business model is a fast turnaround time,” said Steph Wilbow, Chief Operations Officer at the Lehigh Valley facility. “We do everything in a 24-hour turnaround time.”
Existing companies owned overseas expanded their footprints in the Lehigh Valley.
- Braun Medical, which has been in the region for decades and has its U.S. headquarters here, opened a 310,000-square-foot expansion, adding 200 jobs in a region where it employs 2,000.
It’s part of the company’s $1 billion investment in new and updated manufacturing in North America to ensure a reliable supply of IV fluids.
“This facility represents both our commitment to the Lehigh Valley and Pennsylvania, as well as B. Braun’s strategic objective of being a leading health care technology company,” B. Braun Medical President and CEO Jean-Claude Dubacher said.
German-based Evonik, a leader in specialty gases, entered the Lehigh Valley after acquiring Air Products’ performance materials process and opened an Innovation Hub in 2022.
“I still remember how impressed I was to find so many tech companies here when I first visited,” Evonik President of North America Bonnie Tully said.
“This is in no small part due to the Valley’s outstanding universities. We found a talented workforce here and supportive civic leaders who understand our needs.”
Mack Trucks, which recently opened an $84 million expansion, is using the Lehigh Valley location to assemble electric vehicles, part of its strategy to make 35% of its global sales fully electric by 2030.
“We’re not planning to stop, either,” Gunnar Brunius, Mack Trucks Vice President & General Manager of Lehigh Valley Operations, said. “We will continue to invest in the plant going forward.”
The Lehigh Valley is home to more than 80 international companies from 23 countries, making everything from pipe fittings to confections.