What do HMK Insurance, Alvin H. Butz Inc., East Penn Manufacturing and Century 21 Keim Realtors have in common?
They all operate in a variety of industries, including insurance, construction, manufacturing and real estate sales, but they are also among the 100 largest private companies in the greater Lehigh Valley.
And it’s the diversity of industries on that list that makes the region’s economy so strong, says Don Cunningham, president and CEO of the Lehigh Valley Economic Development Corp.
Cunningham pointed out that the Lehigh Valley’s gross domestic product is $50.2 billion – more than some states – and said the core of the region’s success lies in the diversity of its economy.
“If you look at the list, you find a nice balance and a healthy mix,” said Cunningham. “That’s good because no sector is recession-proof. A lot of diversity ensures stability.”
While manufacturing remains a core industry in the region, business services ranging from car dealerships to accounting firms provide a solid foundation for maintaining productivity and employment.
“It’s really about the health of the companies that are in the region and growing,” Cunningham said.
While much of his organization’s work is focused on attracting new business to the Lehigh Valley, 72% of all job growth comes from companies already here that continue to hire and expand.
These companies also generate high sales in the region.
Penske Transportation Services in Reading, for example, reported revenue of $13.2 billion in 2022.
Meanwhile, Allentown-based real estate investment firm DLP Capital reported revenue of $154.4 million this year and Mount Pocono-based manufacturer United Envelope Co. reported revenue of $140 million.
“These are the people who come, professional and business services,” Cunningham said.
However, new developments continue to emerge that are likely to increase competition for a place in the top 100.
Site Selection Magazine has ranked the Lehigh Valley No. 1 among regions of its size for economic development in 2024. Last year, it ranked No. 2.
What makes the Lehigh Valley a place where top companies want to do business?
“It comes down to three main factors,” Cunningham said.
First, he noted that the Lehigh Valley is located in a major population center with a growing population and a well-educated workforce.
Second, the fact that a third of the country’s consumers are within a day’s drive of the Lehigh Valley is a big selling point, he said.
Third, those involved in workforce development have ensured that the skills of the region’s workforce match the needs of employers – a constant challenge for employers across the country.
But Cunningham said the Lehigh Valley’s appeal also has a softer side: its quality of life.
“It’s about quality of life and location quality. If it’s a good place for employees to work, companies will want to stay and grow.”
