In one of his first major economic policy speeches last week at the Lehigh Valley Economic Development Corporation’s Annual Meeting, Gov. Josh Shapiro held up the Lehigh Valley an example of the economic growth he wants to see across Pennsylvania.
Emphasizing his competitive nature, Shapiro said he would streamline government and make investments in innovation and manufacturing that would send the signal that Pennsylvania is open to business.
“From our Main Streets to our farms, we will have a Lehigh Valley sense of values, that sort of common sense, competitive approach that figures out how to come together to get things done,” Shapiro told the more than 700 people in attendance at the March 21 meeting at ArtsQuest Center in Bethlehem. “That will be the approach we take in the commonwealth.” 
Those values have shaped the Lehigh Valley’s identity over the last three centuries as the region welcomed new people and evolved to remain vibrant amid rapidly changing technology and economy.
Shapiro’s s 21-minute speech was punctuated by examples of the Lehigh Valley’s economic strength and potential. Here is the story behind rhetoric:
‘Rich Tradition of Manufacturing’
What Shapiro said: “Lehigh Valley, of course, has long been a driver of our economic progress here in the Commonwealth of Pennsylvania, long been an economic leader. You've got a rich tradition, of course, in manufacturing and innovation -- the worldwide commercial success of Crayola to the cutting-edge medical device manufacturing happening down the street at B. Braun.”
What it means: Lehigh Valley has had a proud history of manufacturing, dating back to colonial days when the Moravians built an industrial park featuring the first municipal pump system in Bethlehem. As technology advanced, the region continued to play a central role in industry. It was home to a high concentration of silk factories in the late 19th century and Bethlehem Steel, which grew to become the world’s No. 2 steelmaker. From Portland Cement to the Iron Works in Catasauqua, the region fueled innovation in industry. Fuller Co., now owned by FLSmidth, revolutionized the cement industry with the Fuller-Kinyon Pump. It is where the first production lines of transistors ran and where Allen Organ pioneered the first digital organ in Macungie. And companies still make stuff here. More than 750 manufacturers are producing an economic output of $8.4 billion. For the first time in 15 years, manufacturing is now the biggest contributor to the Lehigh Valley’s gross domestic product of $47 billion and employment in the sector exceeds what it was before the pandemic.
Why it matters: Manufacturing provides high-wage jobs, has economic impact for companies that supply them, and is a foundation for many kinds of innovations. Those companies contribute toward a better quality of life in the communities where they are based. There is renewed interest in manufacturing as the COVID-19 pandemic exposed supply chain weaknesses. Many companies want to position themselves closer to their markets. The Lehigh Valley is well positioned to benefit from this demand. An hour from Philadelphia and 90 minutes from New York City, the Lehigh Valley has access to a third of the population within a day’s drive. In addition, the region has a trained work force and strong pipeline of talent thanks to its 11 colleges and universities and three career and technical schools.
‘Unique Partnerships’
What Shapiro said: “One of the things I admire most about Lehigh Valley is the unique partnerships that exist between all your levels of government. Business, labor, organizations like the LVEDC. You all know how to get together and make big things happen to speak with a unified voice. And then to be able to have a plan and execute. This building is an example of how you had a vision, a dream, and you went out and executed. And now we're all able to come together in this room and celebrate the awesome success that is occurring right here in the Lehigh Valley.”
What it means: Following the demise of Bethlehem Steel, community partners organized to come up with a plan to redevelop 1,800 acres of the former plant. The centerpiece of it was a cultural an entertainment campus called SteelStacks at the foot of the blast furnaces, which now stand a monument to the region’s renaissance as a community with a diverse economy. On that campus is the ArtsQuest Center where Shapiro was speaking. That redevelopment success was made possible through the coordination of a multitude of regional partners all with their own priorities. Such partnerships require a lot of communication and coordination. Lehigh Valley includes two counties, 62 municipalities, 17 public school districts, 11 higher education institutions, three technical schools, 16,000 business establishments, and many nonprofit organizations.
Why it matters: Community partnerships are essential for economic development. Among the most important are those that foster communications between the educational institutions and employers to ensure the skilled talent businesses need are there when they need them. Access to talent is a key driver of business location decisions. The LVEDC-led talent initiative is a widely-recognized as a national best-practices model.
‘The Lehigh Valley Is A Driving Force’
What Shapiro said: B. Braun Medical and Shift4 Payments are “two very, very different companies -- two examples of where Pennsylvania is helping lead the nation, and the Lehigh Valley is the driving force behind that progress we are making.”
What it means: Shapiro is referring to B. Braun Medical, a global leader in medical device manufacturing, and Shift4 Payments, a tech company specializing in payment procession systems. The U.S. headquarters of the German-based B. Braun is located in the Lehigh Valley, and the company just completed a 310,000-square-foot expansion to its manufacturing facility in Hanover Township, Lehigh County, adding 200 jobs and producing benefits for other businesses downstream. Shift4 was launched by entrepreneur Jared Isaacman, who recently gained international attention as a commercial astronaut and Commander of Inspiration4. Shift4, which now employs 2,000 around the globe, announced it would stay in the Lehigh Valley and leased new space for its headquarters in Upper Saucon Township.
Why it matters: In his first budget address, Shapiro has called for policies that would strengthen the manufacturing and innovation with programs that would upgrade skills and streamline government rules and regulations so that companies know Pennsylvania is “open for business.” Businesses tend to cluster around similar businesses. The Lehigh Valley has a concentrated base of technology and life sciences companies on which to grow. B. Braun and Shift4 have succeeded here because of their access to markets and a skilled workforce.