UPPER MACUNGIE TWP. — The Lehigh Valley has seen a large amount of developments in recent years, and the trend is set to follow, with projected population growth and the need to manage it, area business leaders were told Thursday.
With that growth, housing challenges and the need for collaboration remain at the forefront of challenges that must be tackled in years to come, speakers at the Greater Lehigh Valley Chamber of Commerce's 2023 Real Estate Outlook event said.
- The Greater Lehigh Valley Chamber of Commerce's 2023 Real Estate Outlook brought together business leaders from throughout the area Thursday
- The Lehigh Valley has seen a large amount of development in recent years, and population growth and the need to manage it set to follow, attendees were told
- Manufacturing is the top sector in The Lehigh Valley for the first time in 15 to 20 years
LehighValleyNews.com was a sponsor of the event.
Speakers from the Lehigh Valley Development Corporation and Lehigh Valley Planning Commission remained joyous and optimistic about the region's growth.
"Our projects last year ranged in every sector of our economy, from the life sciences to technology to health care, to advanced manufacturing and lots of different sub sectors in between," LVEDC President Don Cunningham said.
He highlighted the wide range recent growth observed in the Lehigh Valley, even over the past year.
"The Lehigh Valley today in the 21st century, unlike where we were at the end of the 20th century, is a very balanced economy."
Manufacturing takes top spot
Cunningham spotlighted numbers discussed in the LVDC's 2022 Annual Report, published in March, which paints a picture of a Lehigh Valley economy "stronger than ever."
"Last year in the Lehigh Valley, we hit $8.4 billion in manufacturing GDP, which launched manufacturing back up to our top sector for the first time in about 15 or 20 years," Cunningham said.
Manufacturing, when combined with ecommerce, logistics and transportation, has more than 75,000 workers — which he said dwarfs the days of Bethlehem Steel in terms of number of workers.
Cunningham highlighted that the region now has more than 750 manufacturers and a job growth outpacing typical markets in the United States.
Beyond the big names such as Mack Trucks and Crayola, Cunningham said the numbers are driven in large part by smaller manufacturers, with companies outside the United States eyeing the area for its day's-drive proximity to a third of the United States population and ways to eliminate future potential supply chain disruptions.
According to the LDEC, more than 80 international companies from 23 countries have a presence in the valley, and more than 40% of the companies working with the LDEC in 2022 were international businesses.
"Through every century of American history, the Lehigh Valley has found a way to produce the goods that are consumed by ... the population across our whole country and across the world," Cunningham said.
"The pandemic has only increased that demand and that secret sauce. Why the Lehigh Valley? Well trained and large workforce, good infrastructure with access to the market and historically available land."LVEDC President Don Cunningham
"The pandemic has only increased that demand and that secret sauce. Why the Lehigh Valley? Well trained and large workforce, good infrastructure with access to the market and historically available land."
Cunningham said more than 50% of Lehigh Valley workers are under the age of 40, and the age of brain drain has come and gone as younger people look to move or return here.
Planning commission initiatives on housing, transit given highlight
More growth in the region is anticipated, even in the face of recent inflationary pressures and higher interest rates, speaker said.
Still, Cunningham said, with the opportunity for further growth comes the need to be strategic between public, private and other regional entities to manage continuing expansion of the economy and population.
Lehigh Valley Planning Commission Executive Director Becky Bradley echoed much of Cunningham's optimism for the future, highlighting many of the planning commission's annual report's findings.
"We did more than 1,200, subdivision land development and other types of reviews, including 547 that were directly related to development projects," Bradley said. "That's the most since 2008."
In 2022, there was 4,192,334 square feet of warehouse development and 360,441 of industrial development approved by regional municipalities.
There's still 21,517,705 square feet of warehouse space and 1,056,520 of industrial space in the proposal process.
Bradley said more than 500 plans for development were reviewed by Lehigh Valley Planning Commission during 2023's first quarter alone.
In regards to residential development, Bradley noted continuing challenges with cost and an estimated 9,000-unit housing shortage. Since 2015, median home prices increased 60% to $280,000 from 2015.
"Combined with rising interest rates, that put more than 78,000 Lehigh Valley households in a cost burden situation," Bradley said. "That's actually nearly three in 10 households, or 195,000 people region-wide. It's a condition that remains an issue into this year."
There were 6,400 new homes proposed — the most since 2007 — along with the most apartments proposed this century, Bradley said.
Over the past year, Bradley said, the planning commission noticed fewer single-family detached homes and apartments being developed, compared with a trend toward more joined townhouses and twin units.
A housing attainability strategy is being developed bringing together financial, public and private stakeholders, with work to kick off in the third quarter of this year, Bradley said.
"All communities need to prepare themselves to take an honest look at housing attainability within their jurisdictions," she said. "Otherwise, where you have populations like seniors and your young adults, your own children who grew up in the community, they may not be able to afford to live there."
Bradley also highlighted the trajectories that the planning commission sees for the region in its studies, such as estimates that the population is set to grow nearly 100,000 people by 2050, largely driven by migration.
"That's a statement for the region's attractiveness and why it will continue to grow," Bradley said. "As most Pennsylvania counties shrink."
Health care would continue to be the largest industry based on projections. Transportation, infrastructure and warehousing is projected to continue to grow, going from the current state of about 36,000 jobs to grow to more than 46,000 by 2050.
Bradley also highlighted other collaborative efforts emerging to tackle freight and housing concerns in the region, such as the 10-county freight infrastructure plan being developed for the region that stretches beyond Reading, the Lehigh Valley and Scranton.
Also highlighted was the planning commission's 2024 Access to Opportunity and Justice Project and various climate initiatives undertaken in partnership with state and federal agencies.
Awards granted
The Chamber of Commerce also granted two awards for businesses in the region it sees as making a difference in investment and impact.
With a $200 million investment in a 310,000-square-foot expansion project, German medical technology company B. Braun Medical was given the Lehigh Valley Community Investment Award by the Chamber for its continued growth and investment in the area.
B. Braun's U.S. company is headquartered in Bethlehem, with more than 30 locations throughout North America.
"B. Braun is proud to call the Lehigh Valley home," B. Braun Chief Executive Officer of America Jean-Claude Dubacher said.
"We are fortunate to be part of a region where innovation flourishes, where sustainability is the standard for doing business, where hard work and perseverance are rewarded, and where charity and community spirit are expected.
"It's what makes our region such an easy choice for new investments."
The Real Estate Lab, a company launched in 2020 that trains and supports those interested in becoming real estate entrepreneurs, was given the chamber's Impact Award.
