Lehigh Valley’s Allentown isn’t the same today as the one Billy Joel sang about in 1982.
Allentown is the largest city in Lehigh Valley, Pa., a growing region with a diverse, $50.2 billion economy where manufacturing plays an outsized role. Factories aren’t shutting down as the song goes; they’re moving here.
Locals have joked for years how the Piano Man should sing a new song about Allentown, but that inside joke got a public megaphone Jan. 30 when Pennsylvania Gov. Josh Shapiro made the light-hearted jibe during his Lehigh Valley visit to launch the state’s first economic development strategic plan in more than two decades.
Shapiro, who leads the state with the nation’s sixth-largest economy, called the Lehigh Valley a model for the “get-it-done,” partnership-based economic development he would like to replicate across the state.
Standing in a new production facility at OraSure Technologies, a homegrown medical diagnostic device maker, Shapiro made this quip:
“Think about Schless Bottles relocating to Allentown from New Jersey and creating 98 manufacturing jobs here in the Lehigh Valley,” he said. “I must say just as an aside, I think Billy Joel owes us a new Allentown song. Allentown 2.0.”
The joke provoked some laughter from the 50 business leaders, elected officials, and other dignitaries gathered for the governor’s economic development announcement, underscoring the transformation of just how far the Lehigh Valley has come.
Here’s why the Lehigh Valley isn’t Billy Joel’s Allentown:
Growing Economy
The Lehigh Valley metro region’s Gross Domestic Product topped a record $50.2 billion in 2022, the most recent data available. The region added $10 billion to its output in five years.
It’s a balanced economy where no one industry dominates the output, making the region more resilient to economic shocks. Manufacturing still plays an outsized role. While iconic companies like Mack Trucks and Crayola play an important role, more than 700 manufacturers help produce an $8.1 billion output.
Manufacturing makes up 16% of the region’s private sector output; across the nation, it comprises 12%.
More manufacturers are arriving here. In his quip about Billy Joel, Shapiro mentioned Schless Bottles, a premium jars and bottles manufacturer. Lehigh Valley Economic Development Corp. (LVEDC) collaborated with the company, state officials, and the Allentown Economic Development Corp. (AEDC) on the relocation. Schless will receive a $300,000 Pennsylvania First grant and a $196,000 grant to train new workers, from the state Department of Community & Economic Development.
A Growing Population
The Lehigh Valley is among the faster growing regions in Pennsylvania. The population in Lehigh and Northampton counties rose to more than 694,800 people in 2022 as nearby metropolitan areas lost population. The Lehigh Valley makes up the core of the nation’s 68th largest metro region.
That growth is being driven by an increase in the young adult population, which is a desirable demographic for employers, and by people moving to the region from other parts of Pennsylvania and from other states and countries. Northampton County led the state in growth of people 18-34 since 2020.
Northampton County is among the top 4% of all counties in the country in terms of the net number of people moving here from other U.S. counties and Lehigh County is among the top 4% of all counties in the country in net growth of residents from international locations.
Talented Workforce
As the population has grown, so has the labor force. In December, the labor force reached 365,900, carrying a 3.7% unemployment rate. In 1982, the labor force was 250,500 with a 12.2% unemployment rate.
Local employers also take advantage of the Lehigh Valley’s populous location in eastern Pennsylvania. The labor force within an hour’s drive is 1.7 million.
The Land of Learners
The Lehigh Valley’s talented workforce has many opportunities to develop the skills and knowledge they need to succeed. The Lehigh Valley’s 11 colleges and universities graduate more than 10,000 students annually, potential talent for the region’s advanced manufacturing companies.
And 1,000 students annually complete the programs at the region’s three career and technical schools.
Companies have come together to produce innovative programs, most recently a unique apprenticeship program called the Industrial Training and Education Consortium of the Lehigh Valley (iTEC).
iTEC is a partnership of industry, education, government, and community organizations to promote careers in advanced manufacturing. It follows the German apprenticeship model, with support from the German American Chamber of Commerce. iTEC currently is offering state-registered apprenticeship programs in mechatronics and industrial manufacturing technician career paths. Additional programs will be available soon, including machinist and chemistry lab tech.
Partnerships and Regional Cooperation
The Lehigh Valley is committed to understanding the needs of employers related to the attraction, development, and retention of talent and the challenges facing them in a rapidly changing economy.
The LVEDC Education and Talent Supply Council is a partnership of regional educational institutions, major employers, and economic development and workforce agencies. The council is focused on creating and executing data-driven regional strategies that help the Lehigh Valley maintain a competitive workforce.
This regional talent initiative has won several awards and is widely recognized as a national best practices model.