News

2025 Year-in-Review: Lehigh Valley, Where Companies Can Grow and People Can Build Their Futures

Published Tuesday, December 23, 2025
by Paul Muschick

 

The Lehigh Valley continued to build momentum in 2025, strengthening its position as one of the nation’s top mid-sized markets while enhancing the quality of place that continues to attract residents, businesses, and investment. 

Manufacturing expansion, community advancement, job growth, and population gains reinforced the region’s reputation as a place where companies can grow and people can build their futures.

Here is a look at some of the key events that strengthened the Lehigh Valley in 2025 and readied the region for the new year and beyond.

A Growing, Top Market

In March, Lehigh Valley was ranked as the No. 3 mid-sized market in the U.S. for economic development, by Site Selection magazine, an authority in the field. The ranking is based on the number of projects that invest at least $1 million or create at least 20,000 square-feet of space, or create at least 20 new jobs.

While updated Gross Domestic Product data has been delayed because of the federal government shutdown, data collected and tracked by Lehigh Valley Economic Development Corporation (LVEDC) shows the region saw significant investment from existing companies through expansions, and from new companies entering the market.

LVEDC tracked 46 notable economic development projects that meet at least one of the criteria established by Site Selection magazine. That’s a 50% increase from 2024.

That growth included a diversity of manufacturers, solidifying the Lehigh Valley’s reputation as a powerhouse of makers and movers of goods.

In addition, the Lehigh Valley experienced growth in the value of its exports during the first nine months of the year. Exports grew to $4.5 billion, up from $4 billion during that same period in 2024, according to the U.S. Census Bureau. The exports have now surpassed those of similar-sized markets in the Northeast, Bridgeport in Connecticut as well as Buffalo and Rochester in New York.

More Manufacturing Muscle

B. Braun announced a $20 million expansion to its manufacturing center in Hanover Township, Lehigh County, where it makes medical equipment including components for IV treatments. It is the second expansion there in three years and is expected to create 200 new jobs.

Filter King opened a facility to produce HVAC filters for residential, commercial, and industrial use. Located in Bethlehem Township, the investment will create up to 120 jobs.

FLSmidth Cement, which manufactures equipment for cement and other industries, opened a 122,000-square-foot factory in Allen Township that will employ 60.

Kervan USA, a Turkish candy company, broke ground on a $20 million, 90,000-square-foot manufacturing and packaging facility in Bethlehem and Lower Nazareth townships. 

Myers Emergency & Power Systems expanded with a new facility in Bethlehem Township to produce battery energy storage systems. About 45 jobs are expected to be created.

Kerry Group, a global food and beverage company based in Ireland, announced plans to open a coffee roasting and extraction operation in Hanover Township, Northampton County, creating 61 jobs.

Bosch Rexroth Corporation broke ground on a $20 million, 50,000-square-foot logistics center adjacent to its North American hydraulics manufacturing hub in Bethlehem.

Phoenix Tube, a manufacturer of stainless-steel tubing and other products, increased its production operations with a new 75,000-square-foot building adjacent to its previous location in Bethlehem.

Ecopax, which makes food packaging products that are made using energy-efficient processes and eco-conscious materials, announced an expansion of its operations in Bethlehem. 

Quality of Place

Lehigh Valley’s reputation as a place where people want to live, work, and learn grew in 2025 with numerous accolades of amenities and attractions that make the community special.

The Downtown West neighborhood in Allentown, planned by City Center Group with new apartments and condos, restaurants, office space, the Moxy hotel, and Archer Music Hall, was recognized with an Award for Excellence by the Urban Land Institute for “revitalizing a previously underutilized area into a vibrant hub.”

Live entertainment options are growing nationwide and have become an economic asset for regions seeking to attract the creative class, a key driver of the 21st century economy. In the Lehigh Valley, this movement is more pronounced. Employment in the arts, spectator sports, and related industries grew by 138% from 2001 to 2025, about 2.5 times the national rate.

Also in Allentown, Da Vinci Science Center also received an Award for Excellence from the Urban Land Institute, for serving “as a community hub for lifelong learning to foster a vibrant, inclusive, forward-thinking ecosystem in the Lehigh Valley.”

For the fifth consecutive year, a Lehigh Valley community made Realtor.com’s list of hottest ZIP codes. This year, it was the 18104 ZIP code that includes parts of Allentown and Whitehall, South Whitehall, North Whitehall, Upper Macungie, and Lower Macungie townships.

Also for the fifth consecutive year, Bethlehem was named one of the “Top 100 Best Places to Live” by Livability.com.

Five Lehigh Valley attractions were rated highly by readers of USA Today, winning accolades in the publication’s “10 Best” Readers’ Choice Awards.

Lehigh Valley International Airport was voted one of the best small airports in the country in Newsweek’s Readers’ Choice Awards, finishing second (for the second consecutive year).

Bethlehem was ranked by Forbes as one of the Best Places to Retire.

Growing Market Attracting Young Adults

Lehigh Valley’s population surged past 708,000, and Lehigh and Northampton counties both ranked in the top 8% of all U.S. counties for growth since 2020.

The Lehigh Valley’s growth is driven by people who are moving here from other countries and from elsewhere in the U.S. Lehigh County ranks within the top 5% of all counties for net international migration, and Northampton in the top 5% for net domestic migration.

The Lehigh Valley is drawing young people in numbers that few regions can match. Since 2020, the population of residents between ages 18 and 34 has grown by nearly 9,000, placing Lehigh and Northampton counties in the top 10% of all counties nationwide for growth in that age range.

Record Employment, Household Income

Growth in employment has followed accordingly. There are now 342,488 people employed in the Lehigh Valley, a record high.

With an increase in manufacturing jobs, making and moving goods is now the leading employment sector of the economy, with nearly 74,000 jobs.

Manufacturing employment in the Lehigh Valley has grown three times the national rate since 2010, the start of the rebound from the Great Recession, 28.8% compared to 9.6%.

As the economy grew, so did household income. The median household income for the Lehigh Valley reached a high of $81,709, exceeding Pennsylvania ($76,081) and the U.S. ($78,538).

Developing Tomorrow’s Workforce

Vocational and technical education got a huge boost when the Bethlehem Area Vocational-Technical School purchased a location in Bethlehem to expand its offerings. The new facility will include a space for culinary arts, electronics technology, health care, sports medicine, and welding programs.

The Bethlehem Area School District launched a new pre-apprenticeship program, the first of its kind in the Lehigh Valley and a model that other districts are eyeing to potentially follow. The program, for juniors and seniors at the district’s two high schools, aims to train students for in-demand careers and is a partnership with employers, Northampton Community College, and the Industrial Training and Education Consortium (iTEC).

The 7th Annual Lehigh Valley Internship Summit, presented by LVEDC in partnership with the Lehigh Valley’s colleges and universities, drew a record audience of about 150 people. The event featured panel discussions and speakers who shared tips about how to start and grow internship programs; how to ensure they benefit both interns and employers; and how to incorporate artificial intelligence. 

LVEDC began work on its latest Talent Study, by surveying employers about their evolving workforce needs. The information will be used to identify opportunities for educators and employers to partner to ensure that today’s students are being prepared with the skills for careers that are most in-demand.

People who are considering moving to the Lehigh Valley to work in the region’s growing economy may have a lot of questions, and a new initiative was created to provide answers. “Ask a Lehigh Valley Local” is an online portal that allows people to ask questions and receive answers within two business days. The initiative is a partnership of LVEDC and the Lehigh Valley Inter-Regional Networking & Connecting Consortium (LINC),

Stronger Communities

One of the strengths of the Lehigh Valley is the diversity of communities. From large to small, old to new, and urban to rural, the region offers a variety of lifestyles for everyone. In 2025, many of those communities added new opportunities to support those who call them home, as well as to attract visitors and new business.

In Allentown, Archer Music Hall opened as the region’s new entertainment venue. A few blocks away, work began to reimagine Center Square by expanding it as a public space and improving walkability. Along the Lehigh River, renovations progressed at turning the former Neuweiler Brewery into new housing and commercial space. And The Waterfront lifestyle center began construction of its first housing building.

In Bethlehem, the first stage of the redevelopment of the former site of Martin Tower site was completed, with two medical buildings by Lehigh Valley Health Network, part of Jefferson Health. On the city’s South Side, ArtsQuest began work on its Creative Factory, at the site of the former Banana Factory, and began renovating the former Bethlehem Steel Turn and Grind Shop into its newest venue in the SteelStacks complex. And the new parking garage on Walnut Street opened, to accommodate visitors to the Historic Main Street.

In Easton, The Marquis opened as the city’s newest downtown housing opportunity, offering 264 units atop street level retail space. Construction continued on additional living space downtown as well, and plans were launched to upgrade Center Square with more public amenities.

In Emmaus, JuxtaHub opened at the former Rodale Publishing location, offering a variety of arts and entertainment programming and maker space.

In Upper Macungie Township, a new community center neared completion that soon will provide residents with athletic fields, meeting space, fitness and other classes, and room for concerts and community events. 

Supporting Entrepreneurs

The inaugural Lehigh Valley Entrepreneur Summit featured workshops, networking, and opportunities for entrepreneurs to meet with support organizations to learn about the resources they offer, such as funding, training, and incubator space.

About 100 people attended the summit, a vision of veteran entrepreneur Catherine Bailey of SCORE Lehigh Valley. She spearheaded the planning and execution of the event, with the support of members of the Entrepreneurship Council of the Lehigh Valley. 

Led by LVEDC, the council is comprised of organizations, agencies, and colleges and universities that work together to improve the region's environment for start-up businesses by identifying services they need and connecting them to a wide range of resource providers.

Regional and National Thought Leader

LVEDC executives were asked to share their expertise and experiences about Lehigh Valley’s economic renaissance with peers from around the world, the nation, and the state.

President & CEO Don Cunningham was one of three American delegates invited to join economic development leaders and corporate executives from around the world at the FDI Leaders Network Forum in Vienna to discuss the global economy and international trade and investment. The Lehigh Valley was selected because it is a hub of manufacturing, a key sector impacted by global policy debate.

Cunningham also was invited to deliver a keynote address to the Maryland Economic Development Association. He explained what it takes to guide a community through transformation, offering an honest look at the leadership, partnerships, and vision behind Lehigh Valley’s post-industrial economic revitalization.

Karianne Gelinas, Vice President of Talent Strategies, shared insights about Lehigh Valley’s award-winning talent strategies in a presentation to the Pennsylvania Economic Development Association, “Conquering the Talent Conundrum.

Gelinas also was invited to present at the Association of Chamber of Commerce Executives annual conference in Philadelphia, which draws from more than 1,300 chambers nationwide. She spoke on how it is critical for leaders to identify their community’s strengths and to look for opportunities to change the narrative, by inviting broad and diverse participation and by sharing accurate and compelling stories and data.

And Gelinas participated in the multi-state Middle School Career Exploration Catalyst Impact and Learning Network program, one of the drivers that resulted in Pennsylvania ranking as the top state in a national study for preparing middle school students for careers.

Looking Ahead – LVEDC’s Strategic Plan

LVEDC adopted a new strategic plan for 2025-2027 that calls for sharper recruitment of companies in high-value industries, the reuse of former industrial sites, and stronger regional coalitions to build the talent and visibility the region needs to compete in tomorrow’s economy.

The industry sectors targeted for development are:

  • Life sciences, pharmaceuticals, and biomedical
  • Advanced manufacturing, technology, and production
  • Professional and creative services
  • Food and beverage processing

At its core, the strategic plan emphasizes talent, a critical asset employers look for when locating a business. The plan calls for expanding education and employer coalitions, addressing skills gaps, and linking students more directly to employers. LVEDC also intends to broaden its role as an important source of economic data and to elevate the “Made in Lehigh Valley” brand.

Celebrating 30 Years

LVEDC marked three decades of service to the Lehigh Valley community during the organization’s Annual Meeting in March, which drew a record turnout of more than 800 people to hear how far the Lehigh Valley has come and how it is primed for more growth in the years ahead.

The Lehigh Valley, like the rest of America, was facing shifting economic times in 1995. Pioneering business executives laid the groundwork, with support of county and municipal elected leaders, for an economic comeback by creating LVEDC. Founded to act with a regional mindset, the organization was charged with rebuilding, revitalizing, and repositioning the region to compete in the changing global economy and to build opportunity for those living here.

LVEDC Achievements

LVEDC was reaccredited by the International Economic Development Council (IEDC), one of only 90 economic development agencies in the world to earn that stamp of approval. 

The reaccreditation process involves a comprehensive peer review measuring operations against industry standards. IEDC reviews programming, financials, and community impact, including seeking feedback from partners. LVEDC was first accredited in 2010, and since been reaccredited five times. Each accreditation lasts three years.

LVEDC won three Excellence in Economic Development Awards from IEDC – Gold Awards for the organization’s Annual Report and Lehigh Valley Commercial Real Estate Report, and a Bronze Award for its Lehigh Valley Talent Strategies Initiative.

In recognition of LVEDC’s 30th Anniversary, the National Museum of Industrial History presented LVEDC with its Spirit of Innovation Award during the Museum’s Annual Gala celebration in September, for the organization’s “long-standing commitment to fostering innovation and improving quality of life and economic vitality in our community.”

Cunningham was named to the inaugural class of “Trailblazers in Economic & Workforce Development” by City & State Pennsylvania. Cunningham and LVEDC Board Member Sal Panto, Jr., Mayor of Easton, were named to City & State’s “Fifty Over 50.”

Director of Research & Data Management Frank Alvarado was named a Certified Economic Research Professional, one of only four researchers in Pennsylvania to achieve the CERP designation from The Council for Community & Economic Research, the nationally recognized, trusted leader in the community, economic, and workforce research field.

“Made in Lehigh Valley”

Efforts to increase awareness of the Lehigh Valley and what it is today continued in 2025, with a series of marketing and advertising campaigns including “Made in Lehigh Valley” billboards along highly traveled routes. 

The billboards on Interstate 78 and Route 22 anchor the region’s name to the world-class products and companies that have helped define the community. The year-long campaign launched with Crayola, which has been making its iconic crayons here since 1903, and will also include Freshpet, Mack Trucks, Martin Guitar, and other Lehigh Valley companies. 

Some of those same companies starred in LVEDC’s Fall Signature Event, “Lehigh Valley: Making Products & Making Places,” held at Archer Music Hall in November before a record audience of about 450.

The event celebrated five local manufacturers – Crayola, Mack Trucks, Martin Guitar, Lutron Electronics, and Olympus – who produce some of America’s most iconic products and help to make the Lehigh Valley one of the nation’s top manufacturing markets and a community that people are proud to call home. 

Global Headlines

The Lehigh Valley’s economic gains and its desirable quality of life made headlines across the nation and around the world in 2025.

One of England’s most-read newspapers, the Daily Mail, published an article about Allentown’s affordability, schools, and attractions, noting the region has seen an uptick in new residents relocating from New York City.

German business publication Welt highlighted the Industrial Training and Education Consortium of the Lehigh Valley in an article about apprenticeships and workforce development programs.

The National Catholic Register reported how Pope Leo’s favorite candy is Made in Lehigh Valley – Peeps from Just Born Quality Confections.

The New York Times also featured Allentown, with a lengthy profile of how the city is bursting with new housing, offices, and entertainment venues where “the economy is on fire.” 

Highlights about the Lehigh Valley economy were featured by Forbes, MSN, and The Associated Press,

A variety of industry trade journals and publications in manufacturing, food and beverage, health care, real estate, technology, plastics, the environment and other sectors published nearly 100 articles about Lehigh Valley companies opening and expanding. Over just one month, sixteen leading trade publications, with a combined monthly audience of a million readers, showcased critical expansions by Lehigh Valley manufacturers, underscoring the region’s competitive edge for making and moving products. 

(Photos by Donna Fisher Photography, Jaindl Enterprises, Alive Coverage for Live Nation, OraSure Technologies, Marco Calderon Photography, Rick Kintzel, City of Easton Department of Engineering, Adams Outdoor Advertising, LVEDC)

Tags:Featured, News Releases