At the Lehigh Valley Economic Development Corporation’s recent Annual Meeting, which celebrated the nonprofit’s 30th Anniversary, leaders recounted a regional comeback story powered by innovation, talent, and momentum.
Faced with shifting economic times in the late 20th century, the Lehigh Valley made the strategic decision to use the collective strength of the region to market the Lehigh Valley and rebuild its economy through diversification, moving away from reliance on a few titans of industry and attracting a variety of employers of all sizes.
Today, the Lehigh Valley is experiencing an economic renaissance because of those partnerships that continue three decades later.
“You haven’t relied on others to shape your destiny. You’ve stepped up. You’ve made a difference,” said Jay Garner, a national site selection consultant. “This is a model for how regions can take charge of their own future.”
Here are five facts from the Annual Meeting that reveal how the Lehigh Valley has leveled up.
Lehigh Valley’s Economy is Growing
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The region’s Gross Domestic Product hit nearly $56 billion in 2023, growing by 4% from 2022 when factoring in inflation. GDP measures the value of all goods and services produced in the region over a one-year time period. The output measures the economy in the metro region, which includes Lehigh, Northampton, and Carbon counties in Pennsylvania and Warren County in New Jersey.
Diving into the Data
- #67 in the U.S. for largest regional economies, up from #68 in 2022.
- The Lehigh Valley’s economy is bigger than that of three states: Alaska, Vermont, and Wyoming.
- If the Lehigh Valley were a country, it would be the 88th largest economy in the world.
Source: U.S. Bureau of Economic Analysis, 2022-23
Why the Lehigh Valley's Economic Growth is Important
Rick Siger, Secretary of the Pennsylvania Department of Community and Economic Development, said the Lehigh Valley is “an exceptionally powerful part of Pennsylvania's economy.”
“You can sort of feel it on the street when you're in the community, that the Lehigh Valley is doing well,” Siger said.
Manufacturing Leads the Way
In 30 years, the Lehigh Valley’s manufacturing scene went from steel mills to smart tech -- and the momentum continues to build.
Medical device, semiconductor, and other advanced manufacturing companies are building the economy of tomorrow alongside iconic brands like Crayola and Martin Guitar that have been the region’s economic cornerstone for generations.
Diving into the Data
- The Lehigh Valley is home to more than 700 manufacturers.
- It produces 16% – or $9 billion – of the region’s GDP. That’s above the national average of 12%.
- The region employs nearly 37,000 people in manufacturing.
- Manufacturing jobs represent 2,272 of the 9,080 jobs added in Lehigh and Northampton counties over the last five years.
Sources: U.S. Bureau of Economic Analysis, 2022-23, Quarterly Census of Employment and Wages, Q3 2024
Why It’s Important
"At the core, the Lehigh Valley's economy is about manufacturing. We make things here. We always have, going back to the early days of the Moravians in the 1740s who produced goods both for themselves and a growing U.S. economy," said Don Cunningham, President & CEO of LVEDC.
A Top Market for Economic Development
The Lehigh Valley’s momentum is real. Companies continue to move and expand to the region because of its location and talented workforce. Site Selection magazine, an authority on corporate real estate and economic development, ranked Lehigh Valley as one of the top mid-sized markets in the nation for economic development.
Diving into the Data
- #3 in the U.S. among mid-sized markets for new economic development projects in 2024.
- #5 in the Northeast overall, outperforming many much larger regions, in 2024.
- #1 in the U.S. among mid-sized markets in 2023, the same year GDP surpassed $55 billion.
Source: Site Selection magazine
The Important Role Partnerships Play
Jaime Whalen, Executive Vice President and Chief of Staff at LVEDC, said the Lehigh Valley’s vibrant economy is supported by award-winning programs made possible by strong coalitions and investment in economic development.
“We could not market the Lehigh Valley's assets, develop programs like those in talent supply, or recruit companies in targeted economic sectors without these combined resources,” Whalen said.
Income is Up, Poverty Rate is Down
As the economy has grown, so has the number of jobs – good-paying jobs. With employment at Lehigh Valley companies at a historic high, median household income is up and poverty is down in the Lehigh Valley.
Diving into the Data:
- Median household income: $81,709. It has grown by $15,000 in five years and has outpaced inflation. It’s also higher than both the U.S. and Pennsylvania.
- Average hourly wage: nearly $29.
- Poverty rate is 10.5%, steadily decreasing and below the U.S. average.
- The number of jobs at Lehigh Valley employers tops 340,000.
Sources: American Community Survey, 2020-23; Quarterly Census on Employment and Wages Q3 2024
Why It’s Important
“We’ve become a place where opportunity and quality of life go hand-in-hand,” Cunningham said.
Population Growth Exceeds State and U.S.
In the last decade, Lehigh Valley’s population has climbed by nearly 8% to more than 700,000. That growth has outpaced both Pennsylvania and the national average. It’s a hotspot for growth in the populous Northeast. The Lehigh Valley's growth is driven by its diverse and rich quality of life and economic opportunity.
Diving into the Data
- Lehigh Valley’s growth comes from migration. Lehigh County is among the top 5% of U.S. counties for people moving here from other countries and overseas. Northampton County ranks among the top 5% for those moving from other U.S. counties.
- Young people are growing at a faster pace. Since 2020, the number of people between the ages of 18-34 has grown by nearly 3%, outpacing the U.S. average of 0.34%. That demographic in the Northeast decreased by 2.5%.
Source: U.S. Census Population Estimates, 2020-2024
What People Are Saying About Life in the Lehigh Valley
“We fell in love with the area — it’s got everything: the arts, the location, the family feel,” said Orville Trout, Senior Vice President of Human Resources at Crayola.
(Photos by Phoenix Tube Co., Donna Fisher Photography, Rick Kintzel, The Creative Services Department, ArtsQuest)