October is National Manufacturing Month, a time to celebrate the value manufacturing brings to communities. Manufacturing is one of the leading drivers of the Lehigh Valley’s economy, and that’s not by happenstance. 

Regional leaders have carefully and intentionally created an environment where companies that produce things can thrive and grow, building on the legacy established more than a century ago.

The result is that Lehigh Valley ranks in the top 15% of manufacturing markets nationwide. More than 700 manufacturers produce a collective output of $8.1 billion. That represents 16% of the region’s Gross Domestic Product. Nationally, manufacturing is 12% of GDP.

Here’s a look at why manufacturing is so strong in Lehigh Valley, and the value it brings to the community.

Skilled Workforce

There is a labor force of about 1.7 million people living within an hour’s drive of the Lehigh Valley, trained in a variety of disciplines.

That workforce is supported by the region’s 11 colleges and universities that graduate more than 10,000 students annually, and three career and technical schools that graduate more than 1,000 students annually.

The collaboration of business, education, government, labor, workforce development, economic development, and others has resulted in data driven, successful talent development strategies that align with current and future needs of employers.

Those strategies include nationally acclaimed initiatives by Lehigh Valley Economic Development Corporation (LVEDC), such as the Education and Talent Supply Council and the Hot Careers Dashboard.

The Industrial Training and Education Consortium of the Lehigh Valley (iTEC), a unique, multi-employer apprenticeship program that partners with education, recently celebrated its first anniversary.

Location

Manufacturers want to be in the Lehigh Valley because the location in the heart of the Northeast makes it easy for them to move their goods to market. The Lehigh Valley is within a day’s drive of one-third of U.S. consumers. The region has an intermodal center, and an international airport that is expanding its cargo operations. And it is near other international airports in New York City and Philadelphia, along with the ports in those cities.

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. 

Diversity of Producers

The Lehigh Valley’s assets for manufacturers have drawn a diversity of producers, from large global operations to mid-sized producers and entrepreneurial startups. They make food and beverages, semiconductors and other technology, vaccines and other medical products, chemicals, plastics, metals and minerals, cement, building supplies, vehicles, and a variety of consumer goods, among other products. The Lehigh Valley contributes to national defense through manufacturers that supply items to the military. 

Jobs at Family Sustaining Wages

About 37,000 people work in manufacturing roles in the Lehigh Valley. The average annual wage is about $79,000.