LVEDC's Don Cunningham on LV's Economy - Is the Glass Half Full or Half Empty?

Lehigh Valley Economic Development Corp. (LVEDC) CEO Don Cunningham has always been a glass half full kind of guy. That attitude served him as Bethlehem's Mayor, when overnight, Bethlehem Steel pulled the plug and shut down. In one fell swoop, the City lost 20% of its tax base, to say nothing of residents who were out of a job. Cunningham, very much a local version of FDR, always inspired optimism when it was needed most. It paid off, too. Today, Bethlehem might actually be in a better position economically than it ever was.

Where are we economically? - The Lehigh Valley has grown from a GDP of $27.4 billion in 2003 to $55.7 billion in 2023. This actually tops Alaska, Wyoming and Vermont. Believe it or not, $9 billion is from manufacturing. The second biggest sector ($8.7 billion) comes from finance, real estate and insurance. Health care and education account for $8.4 billion, followed by professional services ($6.9 billion), wholesale trade ($3.8 billion) and retail trade ($3.8 billion).

Last year, instead of a brain drain, NorCo actually led the state in the growth of jobs for adults under 40. This is in stark contrast to the rest of the northeast. 

Median household income is $81,709, above the state's $76,081. "These are the numbers that are most relevant to us," observed Cunningham. The poverty rate is 10.5%, which is lower than the state rate of 11.8%.

Are there any recent NorCo projects?  Yes. They include (1) Have Hydraulik in Bethlehem Tp, a (manufacturer which moved to Bethlehem Tp from China; (2) FLSmidth Cement, a cement equipment manufacturer which moved its Illinois and Arizona operations to Allen Tp, creating up to 60 new jobs; (3) Gfm Manufacturing (Pharmatec), which opened its first US facility at the former IQE building in Bethlehem, creating up to 100 new jobs; (4) D. Gillette Industrial, a defense contractor that opened up in Forks Tp and created 17 jobs; (5) Bazzini, America's oldest nut company, has expanded into NorCo; (6) COHERENT, an existing semiconductor manufacturer in Forks Tp, is expanding operations, which will create up to 320 new jobs; (7) Infinera, a semiconductor manufacturer in Upper Macungie and Bethlehem, is creating a new advanced test and packaging facility

What is the strategic plan? Cunningham said that, for the first time since he's been at LVEDC, there are actually "more people who want to be in the market than we have products and places and buildings for them." 

He recognized the opposition to large footprint warehouses, but noted "that's also what houses the manufacturing economy." He suggested there needs to be a balance. Warehousing, however, is not among the types of economy that LVEDC is targeting. 

In response to a question from Council member John Brown, Cunningham said that a big challenge for the Lehigh Valley is its fragmented governance. NorCo and Lehigh have a combined 59 local governments, not including the county governments themselves. 

Its biggest strength is proximity to market, with about 1/3 of the nation's population within a 6-hour drive of the Lehigh Valley. Also, the plethora of colleges and technical schools has reduced a brain drin into a brain gain for new talent.