The Lehigh Valley EconomyDON CUNNINGHAM

PRESIDENT & CEO

LEHIGH VALLEY ECONOMIC DEVELOPMENT CORPORATION

LVEDC Mission

The mission of the Lehigh Valley Economic Development Corporation is to market the economic assets of the Lehigh Valley and to serve as a regional shared services and resource center to help businesses to come, grow, and start here.

Lehigh Valley Market Trends

1. Manufacturing GDP and growth remains strong◦ 15% of regional GDP is in manufacturing

2. Industrial space being built on spec◦ 5.25 million square feet under

◦ E-Commerce driving growth

3. International interest remains strong: 1/3 of prospects are from outside United States

4. Workforce and Talent Supply is Key

$37 Billion Gross Domestic Product◦ Larger than the entire state of

Vermont and 97 other countries in the world

Lehigh Valley at a Glance

Economic base is diversified

Manufacturing in the Lehigh Valley

$5.56 billion in 2015 (15% of total GDP)

◦ Grew 11% over 2014 manufacturing output

Top 13% in U.S. for year-over-year- manufacturing growth

Lehigh Valley: Industrial Boom

Since 2014, about 10 million square feet of industrial space has been added in Lehigh and Northampton counties. Today, there is another 5 million square feet under construction.

Job creation has exploded in the logistics, e-commerce and transportation sectors. Total employment will soon exceed 30,000 jobs in that area; five years ago it was below 20,000.

Major Deliveries & Deals - Industrial

1185 Feather Way

179,000 SF

10 Emery St

880,000 SF

Primark2485 Commerce Center Blvd

677,000 SF

Major Deliveries & Deals - Industrial

SAFRAN MBD50 New Jobs

50,000 SFREEB Millwork 267 Jobs Retained

175,000 SFTYBER MEDICAL25 New Jobs

40,000 SF

Liberty Business Park IIUpper Macungie Township

East Penn Manufacturing

Ryder System, INC

Third Building to be delivered in 2017.

Major Deliveries & Deals

Major Business Expansion

MANUFACTURINGFLEXICON

91,000 SF

C&S Wholesale Grocers500 New Jobs

579,000 SF

Recent Deliveries & Deals

PAYCHEX100 New JobsOFFICE44,000 SF deliveredSouth Whitehall Township

SHARP PACKAGING50 New Jobs580 Jobs Retained112,000 SF leaseUpper Macungie Township

DevTech32 New JobsAverage Wage: 65KHanover Township, NC

Major Deliveries & Deals

Three City Center

OFFICE166,000 SF delivered

Allentown

Founder’s Building (former LSI HQ)

OFFICE247,000 SF lease Hanover Township

Pipeline Projects

INDUSTRIALFedEx Ground Hub – Largest in system

1 million+ SF

FOOD/BEVERAGENORAC79,160 SF62 jobs

Source: ChrinCommerceCentre.com

2016 Pipeline

Chrin Commerce Center 800 acres along Rt. 33 in Northampton County

Duke Realty

1.1 million SF – delivered Q1 2016

1 million SF

630,000 SF

DCT Industrial

425,000 SF – leased to FedEx and Inditex

2016 PipelineBethlehem Commerce Center

◦ LVIP VII

◦ 1000 Acres on former Steel lands

◦ Majestic Bethlehem Center

◦ Five additional buildings are planned

◦ Building #3◦ 2,000,000 SF, Building #3 is fully entitled,

shovel ready and available for lease.

◦ Intermodal

◦ First retail project recently announced

Lehigh Valley at a Glance9 of 19 projects in 2015 were international

I2R Nanowave (Canada)

Lower Macungie, Manufacturing

Malmedie (Germany)

Upper Macungie, Manufacturing

Nihon Koden (Japan)

South Whitehall, Bio-Tech

SunOpta (Canada)

Upper Macungie, Food & Beverage

Inditex (Spain)

Forks, Clothing Distribution

MBD – Safran (France)

Lower Nazareth, Aerospace

Primark Stores (Ireland)

Bethlehem, Clothing Distribution

Ricoh (Japan)

Hanover (NC), Electronics

Norac (France)

Forks, Food & Beverage

14,700 employers in the Lehigh Valley

Less than 1% have more than 500 employees

14 companies have 1,000 employees or more

71% have less than 10 employees

Source: US Census County Business Patterns 2014

Lehigh Valley Employers

Education & Talent Supply Council Origins

Pennsylvania JOBS1ST Grant funds “Bridging the Workforce Gap”, a 2014 study to inform the development of an alignment of economic and workforce development in the Lehigh Valley◦ Job growth industry sectors identified

◦ Job growth occupations identified

◦ Region’s labor supply pipeline analyzed

◦ Recommended establishment of Education & Talent Supply Council

Initial Findings: DemandMarch 2016 Lehigh Valley employment by Industry:

Total: 292,463◦ Healthcare: 54,392

◦ Retail: 32,290

◦ Manufacturing: 31,294

◦ Education: 25,365

◦ Food Service: 25,322

◦ Transportation & Warehousing: 23,535

◦ Administrative: 20,790All other occupations: 119,000

Initial Findings: SupplyPopulation 16 and over: 531,537

Labor force: 347,705

Population 25-64, by educational attainment◦ Less than HS: 28,483◦ High School: 108,592◦ Some college: 103,170◦ Bachelor’s or more: 102,250◦ Over 40% of population holds high

school diploma or less Labor Force w/in 30-minute drive of key Lehigh Valley employment centers: 477,578

Labor Inflow/Outflow

43,034 58,552

11,793

7,105 10,189

9,567

7,846

13,193 7,364

4,253 7,289 1,601

4,292 6,396

INFLOW TO LV OUTFLOW FROM LV

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