About 300 leaders in manufacturing and business gathered to celebrate Lehigh Valley’s success as one of the top manufacturing markets in the country, while learning how to tap innovations in artificial intelligence, navigate new tax laws, and manage power needs. 

Lehigh Valley is one of the Top 15% of manufacturing markets in the U.S., and employment in manufacturing has grown three times as fast as it has nationwide.

“What we're doing here is something so many other communities in America would love to be able to do,” Don Cunningham, President & CEO of Lehigh Valley Economic Development Corporation (LVEDC), said at the Lehigh Valley Manufacturing Forum on Oct. 1.

The manufacturing forum is presented annually by the Greater Lehigh Valley Chamber of Commerce to discuss the region’s manufacturing environment and factors that are influencing it.

Cunningham shared new data compiled by LVEDC’s research group showing that employment in manufacturing in the Lehigh Valley has grown 28.8% since 2010, the start of the rebound from the Great Recession. Over that same time, manufacturing jobs grew 9.6% nationally.

That success is the result of Lehigh Valley’s ability to work together to build a regional economy, Cunningham said.

“This collective strategy around providing services, support, investment, and having a regional approach has paid off to us being an outlier, to the good, in what's happening across the United States,” he said.

His comments were echoed by other speakers from industry and government, who heralded Lehigh Valley’s continued legacy as a manufacturing powerhouse.

October is National Manufacturing Month, and the Lehigh Valley Manufacturing Forum was held a few days prior to National Manufacturing Day (Oct. 3.)

About 700 manufacturers in the Lehigh Valley collectively produce an output of $9 billion annually, representing 16% of the region’s Gross Domestic Product. Nationally, manufacturing is 12% of GDP.

A mix of large and small companies, including global corporations and internationally recognized brands such as Crayola, Mack Trucks, Olympus, and Martin Guitar, produce a variety of items such as semiconductors and optoelectronics; food and beverages; pharmaceuticals and medical supplies; clothing and other consumer products; hydraulic systems; chemicals; metal products; mineral products; plastics; building supplies, and national defense components.

“Every Mack Truck in America is produced in the Lehigh Valley,” Cunningham said. “We're still turning out Portland cement here in the Lehigh Valley. Long legacy of semiconductors, going back to Bell Labs and Western Electric and transistors, still here and growing … We still produce steel on the Bethlehem Steel site, and Lehigh Heavy Forge is producing specialty steel products for the Navy and other defense uses.”

Making and moving products is the largest employment sector in the Lehigh Valley, with more than 73,000 people.

Employers are drawn to the Lehigh Valley by the location, within a day's drive of one-third of the U.S. population, and by the pipeline of talent, driven by 11 colleges and universities and three career and technical schools that graduate more than 11,000 students annually, Cunningham said.

Artificial Intelligence in Manufacturing

Rick Seibert, Chief Information Officer and Senior Vice President of Corporate Technical Services at Sharp Packaging Services, shared how the company has been using artificial intelligence to streamline operations and improve efficiency.

He said Sharp has been proceeding cautiously, considering factors such as regulatory obligations and data privacy issues. Sharp recognizes there is value but recognizes there are limitations, too, he said. The company has received training from Manufacturers Resource Center.

“We've been able to automate some things like purchasing, procurement, purchase order receipts, invoicing, back office,” Seibert said. “Not as much on the production floor, and that's important, I think, in the manufacturing business.”

Power Supply, Demand, and Savings

Jason Hunt, Manager of Business and Economic Development at PPL Corporation, explained how PPL is investing in its power grid to meet growing demands for power from all sorts of industrial users, including data centers. He also offered advice on how manufacturers can reduce power costs.

“We're seeing a surge in demand now driven by the electrification of everything - automation systems, electric forklifts, delivery trucks. There's more power under your roofs and supporting your operations than ever before,” Hunt said.

He said PPL has invested $13 billion in its network since 2013, with plans to invest an additional $7 billion by 2028.

It’s important for manufacturers to talk with PPL early about future power needs, Hunt said: “The sooner we understand your plans, the better we can support you.”

Rebates may be available for companies that have replaced equipment or become more energy efficient.

“If you are producing the same widget with less energy, we could give you rebates for that. That's money back in your pocket for making smart investments you might have been going to make anyway,” Hunt said.

Manufacturer of the Year

Precision Roll Grinders, Inc., headquartered in Lower Macungie Township, received the Manufacturer of the Year Award. The company produces equipment used in industries including food, paper, batteries, metals, plastics, and cement, with precision tolerances of up to 20 millionths of an inch - 200 times smaller than the diameter of a human hair. 

President & CEO Ed Gumina presented about the company’s operations and history in the Lehigh Valley, which dates to 1969.

“Our greatest strength is our people. We hire the best in the industry. Every grinder, machinist, and mechanic is carefully chosen and rigorously trained, passing on knowledge from one generation to the next. We combine advanced equipment with a culture of safety, integrity, quality, and opportunity,” Gumina said. “But Precision Roll Grinders is more. We are part of every community we work in.”

The Manufacturing Forum also featured:

• An update on data on the manufacturing workforce from Nancy Dischinat, Executive Director of Workforce Board Lehigh Valley.
• An update on tax-related issues for manufacturers to consider, from Jeffrey Chrin at CliftonLarsonAllen.
• A presentation by ESSA Bank President Joseph Bonsick about how manufacturers can build relationships with lending institutions.
• An update on federal legislation relevant for manufacturers, from Congressman Ryan Mackenzie.

The Manufacturing Forum was held at the Delta Hotel by Marriott in Upper Macungie Township.

(Top photo courtesy of OraSure Technologies, Inc. Middle photo courtesy of Lehigh Heavy Forge. Bottom photo by LVEDC).