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www.lehighvalley.org
Come here.
Start here.
Grow here.
17ANNUAL
REPORT
The mission of the Lehigh Valley Economic Development Corporation is to market the economic assets
of the Lehigh Valley an...
LVEDC ANNUAL REPORT • 2017 3
2017 marked my first year as Chair of the LVEDC Board,
and I’m pleased to say the organizatio...
LVEDC ANNUAL REPORT • 201744
Source: U.S. Census Bureau 2016, American Community Survey One-Year Estimates
Source: JobsEQ....
LVEDC ANNUAL REPORT • 2017 5
Lehigh Valley GDP Reaches Record-High $39.1 Billion
The Lehigh Valley’s gross domestic produc...
LVEDC ANNUAL REPORT • 20176
* The number of projects listed is determined by Site Selection for its rankings. The magazine...
LVEDC ANNUAL REPORT • 2017 7LVEDC ANNUAL REPORT • 2017 7
Lehigh Valley Featured in American Airlines In-Flight Magazine
Am...
LVEDC ANNUAL REPORT • 20178 LVEDC ANNUAL REPORT • 20178
“This strategic plan presents a clear vision for continued economi...
LVEDC ANNUAL REPORT • 2017 9
Lehigh Valley Featured
on Front Page of
The New York Times
The Lehigh Valley’s booming logist...
LVEDC ANNUAL REPORT • 201710
Company Municipality Product
New or
Expansion Stage Type Investment *
New Jobs
Created*
Jobs
...
LVEDC ANNUAL REPORT • 2017 11
611
611
611
191
248
212
248
100
100
309
309
378
248
191
512
946
512
946
987
987
329
329
222
...
LVEDC ANNUAL REPORT • 201712
Lehigh Valley 4.9%
Statewide Average 1.8%
Lancaster	 4.9%
Philadelphia	 3.2%
Harrisburg	 2.1%...
LVEDC ANNUAL REPORT • 2017 13
The regions that offer employees with the right skills and appropriate experience
are the on...
LVEDC ANNUAL REPORT • 201714
LVEDC 2017 Financing Projects
It’s been another successful year for LVEDC’s Finance Departmen...
LVEDC ANNUAL REPORT • 2017 15
Green Knight Economic Development Corporation
LVEDC’s single largest financing project from ...
LVEDC ANNUAL REPORT • 201716
Mack Trucks
Mack Trucks announced in December 2017
that it was adding another 400 workers to
...
LVEDC ANNUAL REPORT • 2017 17
Victaulic Highlighted at Fall Signature Event
Each year, the LVEDC Fall Signature Event high...
LVEDC ANNUAL REPORT • 201718
International Investment
The importance of international investment for the Lehigh Valley eco...
LVEDC ANNUAL REPORT • 2017 19
Existing Companies Expanding in the Lehigh Valley
While helping attracting new businesses is...
LVEDC ANNUAL REPORT • 201720
LVEDC ANNUAL REPORT • 2017 21
Industrial Buildings
by Use Type
Manufacturing
50%
Warehouse
27%
Distribution
19%
Flex
4%
Le...
LVEDC ANNUAL REPORT • 201722
Market Spotlight on Small-Footprint
Industrial Buildings
(40,000 to 80,000 square feet)
MARKE...
LVEDC ANNUAL REPORT • 2017 23
Average Asking Rent for
Class A Office Space ($/SF)
New York City Metro $75.08
Washington, D...
LVEDC ANNUAL REPORT • 201724
Lehigh Valley Comparative Data
Lehigh Valley Labor & Talent Supply Data
Average Wages for 10 ...
LVEDC ANNUAL REPORT • 2017 25
LVEDC’s Business Outreach Program (BOP) uses a customer-oriented approach
to economic develo...
LVEDC ANNUAL REPORT • 201726
LVstartup
This past summer marked the two-year anniversary
of LVstartup, a monthly e-newslett...
LVEDC ANNUAL REPORT • 2017 27
New LVEDC Videos Released
LVEDC has a long history of producing high-quality videos to help ...
LVEDC ANNUAL REPORT • 201728
Chair
Jane P. Long
Chair, Corporate, Business and
Banking Group
Fitzpatrick Lentz & Bubba, P....
LVEDC ANNUAL REPORT • 2017 29
2017 Income & Expenses*
Hotel Tax Proceeds $1,477,243
Private Sector Contributions $560,551
...
2017 Investors
The investment of these companies and organizations in 2017 helped make it possible for LVEDC to market the...
31LVEDC ANNUAL REPORT • 2017
44 Business Capital
515 Hamilton Group at
Morgan Stanley
Albarell Electric
Allied Building Co...
2158 Avenue C, Suite 200 Bethlehem, PA 18017
Phone: 610-266-6775 • Fax: 610-266-7623
www.lehighvalley.org
Our Mission
The ...
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LVEDC 2017 Annual Report

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The Lehigh Valley saw another year of historic economic growth in 2017, which speaks to the remarkable diversity among our various economic sectors, a sign of a well-balanced and multifaceted economy.

The region’s gross domestic product has surpassed the $39 billion mark for the first time in its history. That’s more economic output from the two-county region of 665,000 people than the entire states of Vermont or Wyoming, as well as 108 other countries in the world. And while transportation and warehousing is our fastest-growing sector, manufacturing still makes up a significantly larger portion of our GDP, contributing $6.9 billion, or nearly 18 percent of the total.

We’ve tracked 31 business attraction/expansion projects either announced, under construction, or completed in the Lehigh Valley in 2017, creating more than 2,200 jobs and retaining more than 1,300. LVEDC also provided access to $17.2 million in financing in 2017, resulting in another 810 jobs either created or retained.

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LVEDC 2017 Annual Report

  1. 1. www.lehighvalley.org Come here. Start here. Grow here. 17ANNUAL REPORT
  2. 2. The mission of the Lehigh Valley Economic Development Corporation is to market the economic assets of the Lehigh Valley and to create partnerships to lead the recruitment, growth, and retention of employers.
  3. 3. LVEDC ANNUAL REPORT • 2017 3 2017 marked my first year as Chair of the LVEDC Board, and I’m pleased to say the organization has a clear vision for continued economic growth and opportunity in the Lehigh Valley. LVEDC has been reaccredited by the International Economic Development Council, and has experienced another record-breaking year in investment; in fact, our best yet. We are well poised to continue building on the excellent work LVEDC’s staff and partners have done over the years. In December 2017, LVEDC’s Board approved a new three-year strategic plan to establish the organization’s priorities and initiatives as it continues its work to advance the region’s economic growth and job creation through 2020. The plan is the result of a comprehensive process that included outside consultants, key stakeholders in the Lehigh Valley, and LVEDC’s staff and Board. LVEDC is also embarking on several other important initiatives, including a much-anticipated talent supply initiative and study. This initiative has the goal of gaining a useable understanding of the Valley’s workforce – and providing a framework for regularly updating that data in this rapidly evolving sector – for the benefit of the Lehigh Valley’s employers, educators, and regional partners. It’s been a real pleasure to work with so many talented professionals in both the public and private sectors, all with the same goal of growing our region. I’d like to thank all of LVEDC’s many stakeholders for their continued support, and especially our many investors for making this a great year. The Lehigh Valley saw another year of historic economic growth in 2017, which speaks to the remarkable diversity among our various economic sectors, a sign of a well-balanced and multifaceted economy. The region’s gross domestic product has surpassed the $39 billion mark for the first time in its history. That’s more economic output from the two-county region of 665,000 people than the entire states of Vermont or Wyoming, as well as 108 other countries in the world. And while transportation and warehousing is our fastest-growing sector, manufacturing still makes up a significantly larger portion of our GDP, contributing $6.9 billion, or nearly 18 percent of the total. We’ve tracked 31 business attraction/expansion projects either announced, under construction, or completed in the Lehigh Valley in 2017, creating more than 2,200 jobs and retaining more than 1,300. LVEDC also provided access to $17.2 million in financing in 2017, resulting in another 810 jobs either created or retained. I’d like to thank the LVEDC Board of Directors and everyone who has played a part in helping LVEDC deliver on its mission of growing opportunity and creating jobs in the Lehigh Valley. Jane P. Long Board Chair Don Cunningham President & CEO
  4. 4. LVEDC ANNUAL REPORT • 201744 Source: U.S. Census Bureau 2016, American Community Survey One-Year Estimates Source: JobsEQ. This table does not include other industries that make up less than 3 percent of the total percentage of the labor force, including Wholesale Trade; Management of Companies; Public Administration; Arts, Entertainment, and Recreation; Information; Real Estate; Utilities; Agriculture, Forestry, Fishing, and Hunting; Mining and Quarrying. TOTAL POPULATION 665,441 TOTAL HOUSEHOLDS248,182 Unemployment Rate* 4.9% 2,224 Jobs Created by 2017 Business Development Projects 1,357 Jobs Retained by 2017 Business Development Projects 810 Jobs Created or Retained by 2017 LVEDC Financing Projects Source: LVEDC Research Department. These job figures are projections, and some jobs will be created over the course of multiple years. Health Care & Social Assistance Retail Manufacturing Transportation & Warehousing Accommodation & Food Service Education Administrative & Support Services Construction Professional, Scientific & Technical Services Finance & Insurance 10,111 12,572 13,488 23,880 25,166 26,597 27,832 32,388 34,380 55,830 17.4% 10.7% 10.1% 8.7% 8.3% 7.9% 7.4% 4.2% 3.9% 3.2% Employment by Industry: Labor Force 344,623 Median Household Income $59,989 Per Capita Income $30,270 Source: JobsEQ. *December 2017, seasonally adjusted.
  5. 5. LVEDC ANNUAL REPORT • 2017 5 Lehigh Valley GDP Reaches Record-High $39.1 Billion The Lehigh Valley’s gross domestic product (GDP) has once again reached an all-time high, rising to $39.1 billion. That is a more than 4 percent increase over the previous year, which itself had been a record-high number. The regional GDP saw year-over-year growth in each individual subsector, reflecting the remarkable diversity of the Lehigh Valley’s economic sectors, a sign of a well- balanced economy. The region’s GDP is now larger than that of Wyoming ($38.5 billion) and Vermont ($31.5 billion), as well as 108 other countries in the world. * Data comes from the U.S. Department of Commerce’s Bureau of Economic Analysis (BEA). Gross domestic product (GDP) is the measurement of a country’s economic output. It is the total market value of all finished goods and services produced within a country’s borders in a given year. It includes all consumer, investment and government spending and exports, minus the value of imports. The $39.1 billion figure is for 2016, the most recent year for which data is available. Data on the GDP of other countries comes from the World Bank. $5.3B $5.3B $2.3B $1.6B $1.9B Education & Health Care Professional & Business Services Retail Trade Transportation & Warehousing Information Arts, Accommodation & Food Service +$0.24B +$0.21B +$0.08B +$0.08B +$0.03B $7.9B Finance, Insurance & Real Estate +$0.44B $6.9B Manufacturing +$0.18B $1.9B +$0.16B Lehigh Valley GDP by Industry Sector: Source: U.S. Bureau of Economic Analysis (BEA). The numbers above do not include government spending or other private industry subsectors for which data was unavailable or not disclosed by the BEA. The Lehigh Valley GDP ranks 65th out of the 382 largest metros in the United States, compared to ranking 73rd the previous year. If the Lehigh Valley were a country, it would be the 87th largest country in the world. Fastest-growing sector in the regional economy, with a 9.5 percent growth year-over-year.
  6. 6. LVEDC ANNUAL REPORT • 20176 * The number of projects listed is determined by Site Selection for its rankings. The magazine does not disclose which projects it has identified, nor how the magazine reached that figure. LVEDC previously tracked 31 business attraction, expansion and retention projects for the year 2016, resulting in the creation of 4,832 new jobs and the retention of 2,205 more. Published by Conway Data, Site Selection is the oldest publication in the corporate real estate and economic development field. It is the official publication of the Industrial Asset Management Council, and has circulation base of about 44,000 executives involved in corporate site selection decisions. Lehigh Valley Ranks Among Top Five in Site Selection Magazine The Lehigh Valley was ranked one of the top five overall regions in the Northeastern United States in terms of economic development for 2016, and the number one region of its population size in the Northeast, according to Site Selection magazine. It was the only region in the population range between 200,000 and 1 million to make the top five. Site Selection is one of the highest- read and most well-respected economic development publications in the country, with a readership of power brokers who make major economic development decisions. For the magazine to recognize the region’s growth is a remarkable accomplishment. The Lehigh Valley’s lead among same-sized Northeast regions was substantial, with nearly double the amount of projects as the next region in the list (Bridgeport-Stamford-Norfolk). 1. New York-Newark-Jersey City 160
 2. Philadelphia-Camden-Wilmington 74
 3. Pittsburgh 70
 4. Boston-Cambridge-Newton 45
 5. Lehigh Valley 26
 6. Providence-Warwick 21
 2016 Top Metros Overall (Northeast) Total Projects by Region 7. Buffalo-Cheektowaga-Niagara Falls 18
 8. Bridgeport-Stamford-Norwalk 14
 9. York-Hanover 13
 10T. Youngstown-Warren-Boardman 9 10T. Harrisburg-Carlisle 9 10T. Lancaster 9
  7. 7. LVEDC ANNUAL REPORT • 2017 7LVEDC ANNUAL REPORT • 2017 7 Lehigh Valley Featured in American Airlines In-Flight Magazine American Airlines, the largest airline in the world, serves nearly 200 million passengers a year. In July 2017, as those passengers settled into their seats and picked up their in-flight magazines, they read all about the Lehigh Valley. The region was the subject of a 24-page dedicated supplement in American Way, the most read in-flight magazine in the world, highlighting the Lehigh Valley for millions of readers on an international platform bestowed on only a select few regions each year. The supplement feature, called Spotlight Lehigh Valley, is an economic development series that takes a detailed look at what makes a certain region a great place to invest, visit, or relocate, with a particular focus on global economic impact, business diversity, and innovation. Spotlight Lehigh Valley was unveiled for the first time during a June 28 launch party at the Lehigh Valley International Airport. American Airlines offers 6,700 flights daily to 350 destinations in 50 countries. The Lehigh Valley feature in American Way reached 5.4 million unique monthly readers and at least 16 million passengers in all. American Way readership is the third-highest measured in the nation for household income, and in the Top 10 for professional managerial, top-nine job titles, and C-suite executives.
  8. 8. LVEDC ANNUAL REPORT • 20178 LVEDC ANNUAL REPORT • 20178 “This strategic plan presents a clear vision for continued economic growth and opportunity in the Lehigh Valley, and puts LVEDC in the best possible position to continue building on the excellent work its staff and partners have done over the past three years.” -- Jane Long, Chair of the LVEDC Board of Directors Visit lehighvalley.org/strategic-plan to download the full LVEDC 2017-2020 Strategic Plan. LVEDC Releases New Three-Year Strategic Plan LVEDC has completed a new 2017-2020 Strategic Plan that establishes the organization’s priorities and initiatives as it continues its work to advance the region’s economic growth and job creation over the next three years. The new plan, which received its final approval from the LVEDC Board of Directors in November 2017, is the result of a comprehensive process that has included outside consultants, key stakeholder organizations in the Lehigh Valley, and the LVEDC staff and board. The LVEDC 2017-2020 Strategic Plan includes an updated mission, vision, values, principles, priorities, and four sets of initiatives in the areas of: • Recruitment • Marketing & Communications • Advocacy & Leadership • Retention, Resources, & Regional Strategies
  9. 9. LVEDC ANNUAL REPORT • 2017 9 Lehigh Valley Featured on Front Page of The New York Times The Lehigh Valley’s booming logistics ande-commercesectorwasthefocus of a front-page article in The New York Times, which touted the region’s central location, strong workforce, and well-developed transportation infrastructure. Headlined “Where Internet Orders Mean Real Jobs, and New Life for Communities,” the Oct. 23, 2017 story notes that the region “provides a gateway to the nation’s biggest metropolitan area” due to its proximity to highways and easy access to much of the Eastern Seaboard. LVEDC assisted Times writer Natalie Kitroeff during her reporting for the story. 1 2 74 6 3 5 8 9 10 PA I-78/81 Corridor “Living here in the Lehigh Valley, it’s easy to forget that this region is one of the fastest growing industrial markets in the country. It’s growing faster than the inland empires in Texas and California, and is the most desirable market in the Northeast.” – Don Cunningham, LVEDC President & CEO The 10 Fastest Growing Markets 1 Seattle 16.9% 2 PA I-78/81 Corridor 10.0% 3 Leeds/Sheffield 9.5% 4 Oakland 9.4% 5 Manchester/Liverpool 9.3% 6 LA/Orange County 9.2% 7 Atlanta 9.2% 8 Suzhou 8.7% 9 Hangzhou 7.4% 10 Ningbo 7.2% ] Source: CBRE Research, Q1 2017. (Annual percent change in prime logistics rents as of Q1 2017) Lehigh Valley Ranks Second Globally in Industrial Growth The Lehigh Valley market has ranked second globally for growth in prime industrial and logistics rents, according to a study by CBRE. This is another sign that the region is one of the fastest growing industrial markets in the country. The Lehigh Valley saw a 10 percent jump in prime logistics rents over the past year, according to the study. Only Seattle had a higher jump (16.9 percent). The Lehigh Valley benefits from strong demand due in part to its close proximity to major population centers, such as New York City and Philadelphia, according to a study by CBRE, the world’s largest commercial real estate services and investment firm.
  10. 10. LVEDC ANNUAL REPORT • 201710 Company Municipality Product New or Expansion Stage Type Investment * New Jobs Created* Jobs Retained* Square Feet Lehigh County 1 B Braun Medical Hanover Twp Medical instrument mfg. Expansion Under Construction MFG $10,000,000 400 14,100 2 City Center 520 Hamilton Allentown Multi-tenant office building New Under Construction Office 95,000 3 City Center Tower 6 Allentown Multi-tenant office building New Under Construction Office $45,000,000 142,000 4 East Penn Manufacturing Alburtis Automobile parts mfg. New Completed MFG 650,000 5 Five City Center Innovation Campus Allentown Multi-tenant office building New Announced Office 400,000 6 IBEW Local #375 Allentown Labor union Expansion Under Construction Office $2,130,000 32,000 7 Mack Trucks Customer Center Allentown Truck mfg. Expansion Completed Office $3,000,000 160,000 8 Nestle Purina South Whitehall Pet food mfg. Expansion Announced Distribution 45 53,000 9 Nestle Waters Upper Macungie Beverage mfg. Expansion Completed MFG $79,000,000 50 580,000 10 NFI Fogelsville General freight trucking New Completed Distribution 413,750 11 Royal Industries Allentown Plastics products mfg. New Announced MFG $3,730,000 80 85,000 12 Ryder Systems Alburtis General freight trucking New Completed Distribution 350 1,200,000 13 Uline Upper Macungie Office supplies wholesaling Expansion Completed Distribution $200,000,000 75 675 1,070,000 Northampton County 14 Alpla Bethlehem Plastics packaging mfg. New Announced MFG $15,200,000 59 160,000 15 Ecopax Food Packaging Bethlehem Paper products mfg. Expansion Completed MFG $20,000,000 30 144,000 16 Everson Tesla Lower Nazareth Motor and generator mfg. Expansion Completed MFG $1,000,000 5 76,960 17 FedEx Regional Hub Northampton General freight trucking New Under Construction Distribution $335,000,000 700 1,200,000 18 Fresh Pet Bethlehem Pet food mfg. Expansion Completed MFG 60 49,150 19 HoverTech Allentown Medical supplies New Completed MFG $4,200,000 67,200 20 Inditex/ZARA Easton Clothing distributor New Completed Distribution 628,475 21 Iron Mountain Easton Waste management New Completed MFG $30,700,000 25 182,000 22 Norac Easton Food mfg. New Completed MFG $25,000,000 80 79,160 23 Old Dominion Freight Line Bethlehem General freight trucking New Completed Distribution $2,650,000 120 48,500 24 Particle Sciences Hanover Twp Scientific research Expansion Completed MFG $10,000,000 30 18,000 25 Reeb Millwork Bethlehem Lumber and plywood products Expansion Completed MFG $38,000,000 147 267 250,000 26 Sharp Packaging Solutions Bethlehem Pharmaceutical packaging Expansion MFG $45,000,000 143,000 27 Straight Arrow Forks Twp Personal care products mfg. Expansion Completed MFG $2,300,000 30 70 200,000 28 The Gateway at Greenway Park Building Bethlehem Multi-tenant office building New Under Construction Office $24,000,000 127,832 29 Valley Youth House Bethlehem Children and youth services Expansion Completed Office $4,100,000 200 28,364 30 Vastex Bethlehem Printing machinery mfg. Expansion Completed MFG $3,750,000 8 25 37,500 31 Victaulic Lower Nazareth Metal valve and pipe fitting mfg. Expansion Announced MFG $3,500,000 50 25 400,000 For privacy reasons, some companies declined to provide data for its development project. These job figures are projections.
  11. 11. LVEDC ANNUAL REPORT • 2017 11 611 611 611 191 248 212 248 100 100 309 309 378 248 191 512 946 512 946 987 987 329 329 222 145 145 145 412 412 145 33 33 222 22 22 22 378 476 476 78 78 78 78 19 29 17 18 24 23 11 1 16 22 27 20 21 31 26 15 30 1428 25 7 8 13 10 9 5 2 4 12 3 6 ALLENTOWN BETHLEHEM EASTON SLATE BELT Lehigh Northampton
  12. 12. LVEDC ANNUAL REPORT • 201712 Lehigh Valley 4.9% Statewide Average 1.8% Lancaster 4.9% Philadelphia 3.2% Harrisburg 2.1% Reading 1.9% Pittsburgh 1.4% York -0.2% Scranton- Wilkes-Barre -1% Erie -4.6% Percent Change in Employment in Pennsylvania Metro Areas Source: U.S. Bureau of Labor Statistics. Seasonally adjusted, non-farm jobs. The Lehigh Valley had 362,900 seasonally-adjusted nonfarm jobs at the end of 2016, which is 4.9 percent higher than the 346,100 jobs it had in December 2007, when the Great Recession began. Lehigh Valley Has Best Post-Recession Job Growth in Pennsylvania For the fourth straight year, the Lehigh Valley ranked highest among major metropolitan areas in Pennsylvania in terms of post-recession job growth, according to an analysis by LVEDC. The Lehigh Valley had 4.9 percent more jobs by the end of 2016 than it did before the Great Recession began, which is significantly higher than the statewide average of 1.8 percent, and higher than that of seven other major regions in the state. LVEDC prepared an application on behalf of the Lehigh Valley to become the location of a second headquarters (dubbed HQ2) for Amazon, the nation’s largest Internet-based retailer. It was an extremely competitive process which drew 238 proposals from across North America. The Lehigh Valley’s bid was ultimately not selected, though LVEDC’s application received positive direct feedback from Amazon, strengthening the Lehigh Valley’s already strong ties with the company. The region and organization ultimately benefitted from the application process, which led to a detailed assessment of the region’s economic strengths, while simultaneously attracting wide media attention for the Lehigh Valley. Lehigh Valley Submits Application for Amazon HQ2 Photo Credit: Amazon
  13. 13. LVEDC ANNUAL REPORT • 2017 13 The regions that offer employees with the right skills and appropriate experience are the ones that will win the battle for new jobs and business growth. The availability of trained workers was ranked the top factor in the Site Selectors Guild’s 2016 annual survey report on what drives company location decisions. Even total operating costs of a particular region or state, which has traditionally been ranked the top factor, came in at a distance second. To that end, LVEDC’s talent supply initiative kicked off a study in 2017, in partnership with Workforce Board Lehigh Valley that identifies talent supply and demand issues and create a strategy that results in a broader, ongoing understanding of the workforce among employers, educators and others. MDB Insight was selected to lead the study, surveying and interviewing employers, educators, and others about their experiences and issues in talent supply and demand.* The results of this study and subsequent strategic action plan will be released in 2018. The initiative stems from a 2014 study, “Bridging the Workforce Gap,” which analyzed the region’s labor supply pipeline. That study was commissioned by LVEDC and the Workforce Board Lehigh Valley, and led to the creation of the LVEDC Education and Talent Supply Council, which is a major driver behind the talent supply initiative. *This study was partially funded by a grant the Workforce Board Lehigh Valley received from Pennsylvania Department of Labor and Industry. The Lehigh Valley talent supply study is focused on five specific target sectors: Lehigh Valley Talent Supply Initiative “We put a lot of effort into recruiting and retaining employers by marketing the Lehigh Valley’s economic assets. To continue the success we’ve had, it is imperative that we know our region better than other regions know themselves. That begins with understanding our challenges in the quantity and quality of our talent supply.” Don Cunningham, LVEDC President & CEO Life Sciences Research & Manufacturing High-Value Business Services Transportation & Warehousing Manufacturing Health Care
  14. 14. LVEDC ANNUAL REPORT • 201714 LVEDC 2017 Financing Projects It’s been another successful year for LVEDC’s Finance Department, which provides much-needed capital for companies looking to relocate, expand, or start in our region. LVEDC provided access to funding in excess of $17.2 million in support of investment in the Lehigh Valley that will exceed $54.6 million. These projects helped lead to the creation or retention of more than 800 jobs. LVEDC offers access to a wide variety of financing options and loan programs to address an array of business needs. Our staff of- fers a consultative approach to advising companies, not only on the resources we administer directly, but on a myriad of financing options available through traditional lenders and other public and non-profit resources, to maximize the benefit to our customers. We offer several incentive financing resources through the Lehigh Valley Lending Network, which offers a single point of entry to 16 local banks and lending institutions and more than 30 local, state and federal business financing & incentive resources to eligible companies in our region. LVEDC also works with various partners to administer local, state and federal economic development loan and grant programs. These partners include the Northampton County Industrial Development Authority, Lehigh County Industrial Development Au- thority, the Allentown Development Company, Allentown Economic Development Corporation, and the Lehigh Valley Economic Investment Corporation (formerly the Northampton County New Jobs Corp and Lehigh’s Economic Advancement Project). Company Amount Project Jobs Created* Jobs Retained* ACR Development $300,000** $2,250,000 3 9 Campbell & Strasser $218,250 $485,000 3 6 Cole’s K-9 Center $268,888 $670,000 5 13 Consolidated Storage Companies $2,204,000 $5,510,000 1 99 Green Knight Economic Development Corp/ BOS $3,944,365 $14,000,000 280 - Northampton County Development Partnership $500,000 $3,100,000 - - Royal Industries $1,250,000 $4,100,000 80 - Straight Arrow $2,000,000 $13,930,000 30 66 Straight Arrow $2,300,000 $5,155,000 - - Two Rivers Brewing $378,677 $1,113,530 15 - Valley Youth House $3,850,000 $4,350,000 - 200 TOTAL $17,214,180 $54,663,530 417 393 *For privacy reasons, some companies declined to provide data about the number of jobs created or retained by its financing projects. These job figures are projections. **Syndicated loan involving the City of Allentown, Allentown Economic Development Corporation and Allentown Development Company
  15. 15. LVEDC ANNUAL REPORT • 2017 15 Green Knight Economic Development Corporation LVEDC’s single largest financing project from 2017 (in terms of dollar amount) was the $3.94 million that the Green Knight Economic Development Corporation received for the redevelopment of the former tire recycling facility in Wind Gap. The financing was secured through Pennsylvania’s Business in Our Sites program. LVEDC wrote the economic feasibility study that served as a central component in the financing application, and worked with program administrators to promote the request. Consolidated Storage Companies This Tatamy-based company, which sells most of its products under the brand name Equipto, is a leading manufacturer of industrial and commercial storage products. LVEDC worked with Seedco to help the company obtain $2.2 million in financing through the SBA 504 program for the acquisition of the company’s building. LVEDC also previously helped the company obtain a Pennsylvania Industrial Development Authority (PIDA) loan to buy equipment that helped it better recycle excess paint from its painting process, reducing the amount of related waste and disposal costs. Straight Arrow Products This nationally-renowned manufacturer of human and equestrian cosmetic and beauty products formally completed a major expansion project last summer. Straight Arrow Products, makers of The Original Mane ‘n Tail shampoo and condi- tioner, underwent a 15,000 square-foot expansion of the 92,000-square-foot plant in Forks Township. LVEDC helped secure PIDA financing for the project, as well as for machinery and equipment. The company’s products have been praised by such celebrities as Sarah Jessica Parker, Jennifer Aniston, Demi Moore, and Kim Kardashian. Featured Financing Projects
  16. 16. LVEDC ANNUAL REPORT • 201716 Mack Trucks Mack Trucks announced in December 2017 that it was adding another 400 workers to its Lower Macungie Township plant, which had already employed about 2,000 people. This will bring employment at the facility to an all-time high. This comes in addition to the completed $3 million renovation and remodeling of its customer center, and the ongoing $70 million in investments to the Lower Macungie plant to further improve manufacturing quality and efficiency and modernize the facility Alpla Inc. Alpla Inc., an Austrian manufacturer of plastic packaging items is establishing a presence in the Lehigh Valley. Its 160,000 square-foot facility in Bethlehem will create 59 new jobs over the next three years. Alpla Inc. is investing $15.2 million into the facility at Lehigh Valley Industrial Park VII, which will produce food, household and cosmetic product containers. Vastex International Vastex International, Inc., a family-owned manufacturer of screen-printing equipment for the garment industry, held a groundbreaking in May 2017 for a new 37,500 square-foot facility in the Lehigh Valley Industrial Park VII in Bethlehem, with plans for an eventual expansion. The project is expected to create eight new jobs and retain 23 existing jobs. Vastex also drew the attention of Pennsylvania Gov. Tom Wolf in 2017, when he toured the facility as part of his statewide “Jobs That Pay” tour. Royal Industries Royal Industries International, Inc., a manufacturer of promotional products, is relocating its headquarters from Brooklyn to Allentown, purchasing an 85,000 square-foot facility and investing at least $3.73 million into the project. Royal Industries had operated in Brooklyn since its inception, but decided to move to the Lehigh Valley for efficiency reasons. Manufacturing Success Stories in the Lehigh Valley As 2017 began, LVEDC launched a bill- board campaign touting the message: “Hey, world, we still make stuff here!” We wanted to make clear that, despite any preconceived notions to the contrary, manufacturing is still going strong in the Lehigh Valley. Contributing $6.9 billion to the Lehigh Valley economy, the manufacturing sector not only grew over the previous year, but it makes up a larger portion of the total regional GDP at nearly 18 percent, compared to 15 percent a year earlier. Manufacturing output in the Lehigh Valley has increased by 34 percent in the last five years.
  17. 17. LVEDC ANNUAL REPORT • 2017 17 Victaulic Highlighted at Fall Signature Event Each year, the LVEDC Fall Signature Event highlights a Lehigh Valley company that exemplifies one of the region’s four target sectors. This year, the company was Victaulic, a Forks Township-based manufacturer of mechanical pipe joining solutions and grooved pipe joining systems, which announced during the event that it will be investing tens of millions of dollars to increase its manufacturing operations in the region. The company is expanding its Lehigh Valley manufacturing operations and adding a second shift to its Forks Township facility, adding 45 to 50 new jobs by the end of 2018. It is also purchasing 28 acres of land in Lower Nazareth Township to build a new 400,000 square-foot facility as a result of increased domestic demand for the company’s products. Other Manufacturing Highlights Gov. Wolf Tours Vastex Pennsylvania Gov. Tom Wolf stopped in the Lehigh Valley to tour the Vastex International facility as part of his statewide “Jobs That Pay” tour. LVEDC Invited to Prestigious Conference Don Cunningham spoked at the prestigious ACG Annual Manufacturing Conference in New York City, where he discussed manufacturing in the region. Gov. Wolf Announces Manufacturing Initiative Gov. Wolf chose the National Museum of Industrial History in Bethlehem to first announce an initiative to support manufacturing in Pennsylvania. “We wouldn’t have been able to have done that without the support of LVEDC, and the image that the Lehigh Valley has because of that organization. By showcasing the region’s capabilities, we’ve been able to recruit not only in the area, but around the country.” John F. Malloy, Victaulic Chairman, President, and CEO
  18. 18. LVEDC ANNUAL REPORT • 201718 International Investment The importance of international investment for the Lehigh Valley economy continues to grow. The region has long been a home to prominent companies from around the world, such as Olympus, Bosch Rexroth, B. Braun, Hydac, and others. The Lehigh Valley’s location on the East Coast, proximity to New York City and Philadelphia, and availability of talent and technical support from higher education institutions are attractive assets for internationally-based companies seeking entries into the U.S. market. Business Development Tour in China In its ongoing efforts to attract foreign direct investment to the Lehigh Valley, LVEDC embarked on a 10-day tour in China in May 2017. This marked the organization’s second international business tour in as many years.* The tour included stops in Beijing, Shanghai, and other cities and provinces to meet with representatives from Chinese manufacturers, pharmaceutical firms, medical device manufacturers, and other firms to discuss opportunities in the Lehigh Valley. International Business Investment Reps LVEDC has worked closely for years with a network of business investment representatives across the globe to attract businesses to the region. In May 2017, LVEDC hosted a visit of those representatives from more than a dozen countries, providing an overview of the regional economy and discussing why the Lehigh Valley is a perfect place for international companies seeking to establish operations in the United States. Chinese Government Officials Visit LVEDC hosted a November 2017 visit from members of China’s Ministry of Commerce to discuss foreign direct investment in the Lehigh Valley and how the organization can help Chinese companies establish future operations in the region. The group discussed the advantages for overseas companies investing in the Lehigh Valley, foreign investment trends from recent years, and regional initiatives or policies available to attract Chinese companies SelectUSA Investment Summit Don Cunningham moderated a panel discussion at the 2017 SelectUSA Investment Summit, the highest-profile event dedicated to promoting foreign direct investment in the U.S. Additionally, a representative from Fuling Plastics, China’s largest manufacturer of plastic kitchenware, participated in a discussion about “Renewed Economic Opportunity in the United States” and discussed the company’s Lehigh Valley facility. *Business development trip was organized by the Office of International Business Development, which is part of the Pennsylvania Department of Community and Economic Development.
  19. 19. LVEDC ANNUAL REPORT • 2017 19 Existing Companies Expanding in the Lehigh Valley While helping attracting new businesses is a big part of what LVEDC does, an equally important component of the organization’s mission is helping existing businesses in the region continue to grow and thrive. Bringing in new companies tends to get the bigger headlines, but 70 percent of new jobs created in the Lehigh Valley each year come organically from companies already located here. In addition to Mack Trucks and Victaulic (see pp. 16-17), below are a few examples of companies within the Lehigh Valley expanding or doubling down on their investment in the region: Air Products The Fortune 500 industrial gas company is planning a new corporate headquarters, and while the final location has not been determined, it is committed to remaining here in the Lehigh Valley. Air Products has narrowed the list of potential sites to a property in Upper Saucon Township, its existing campus in Upper Macungie Township, and another site near Trexlertown. A final decision is expected in the first half of 2018. Nestlé Waters The summer of 2017, Nestlé Waters completed a two-year, $79 million expansion of its 580,000 square-foot bottling facility in Upper Saucon Township, which included three new high-speed bottling lines and the addition of about 50 employees. Nestlé Waters employs about 500 people at its two Lehigh Valley bottling facilities, which have a combined payroll of more than $36 million, according to the company. Avantor Avantor, the global leader in integrated, tailored solutions for the life sciences and advanced technology industries, is moving from its previous Center Valley location into a new office in Tower 6 in downtown Allentown. The company looks forward to establishing a “dynamic, contemporary workspace in the heart of this growing commercial and cultural area,” according to Avantor CEO Michael Stubblefield. Sharp Packaging Solutions The global market-leading packaging company continued its growth in the Lehigh Valley, announcing in April 2017 that it acquired a 160,000 square-foot pharmaceutical packaging facility in Bethlehem from Daiichi Sankyo for $14 million. That comes in addition to the company increasing it capacity by 30 percent as the result of a $45 million expansion project at its Upper Macungie Township facility the previous year. Uline Uline, a leading distributor of shipping, industrial and packaging materials, will be purchasing two warehouses in Upper Macungie Township that it currently leases. Totaling about 1.7 million square feet, the warehouses, as well as a 44-acre site on the property that Uline is also purchasing, speaks to the company’s commitment to the Lehigh Valley, where it has operated for 14 years.
  20. 20. LVEDC ANNUAL REPORT • 201720
  21. 21. LVEDC ANNUAL REPORT • 2017 21 Industrial Buildings by Use Type Manufacturing 50% Warehouse 27% Distribution 19% Flex 4% Lehigh Valley Commercial Real Estate Each quarter, LVEDC prepares and distributes a Lehigh Valley Commercial Real Estate Report, which provides information about the region’s office, industrial, and flex markets. For Q4 2017, the report has been included with the LVEDC 2017 Annual Report, providing a year-end out- look of the real estate climate in the Lehigh Valley. 116.4 Million Total Inventory (SF) 2.7 Million 2017 Net Absorption (SF) 2.8 Million 2017 Deliveries (SF) 5.5 Million Total Under Construction (SF) 1.7% Inventory Net Growth 4.7% Vacancy Rate $5.68 Average Asking Rent 13.1% YOY Rent Growth MARKET SUMMARY Total industrial building inventory grew by 1.7 percent in 2017. The nine projects under construction represent 5.5 million additional square feet. Source: CoStar, LVEDC Research SNAPSHOT: INDUSTRIAL MARKET The Lehigh Valley has added nearly 20 million square feet of industrial and flex building space in the last five years. 4% 19% 27% 50% Source: LVEDC Research Source: CoStar Year Added Space 2017 3.8 million 2016 7.3 million 2015 4.2 million 2014 4.0 million 2013 0.5 million
  22. 22. LVEDC ANNUAL REPORT • 201722 Market Spotlight on Small-Footprint Industrial Buildings (40,000 to 80,000 square feet) MARKET SUMMARY Small-footprint buildings suitable for manufacturers are a significant need. Few have been built in recent years. With available buildings almost fully occupied, average rent has increased by 23 percent in the last five years. 611 191 248 248 248 191 512 946 512 946 987 987 329 33 22 EASTON SLATE BELT Northampton WIND GAP Total Inventory (SF) Building Occupancy Average Rent (NNN) per SF 2013 13.1 million 94.7% $4.60 2014 13.1 million 95.2% $4.68 2015 13.1 million 96.4% $4.90 2016 13.1 million 95.2% $5.50 2017 13.3 million 96.0% $5.48 Source: CoStar Small-Footprint Industrial Building Pipeline 2017 Deliveries (3) 4300 Braden Boulevard, Forks Township 2535 Brodhead Road, Bethlehem Township 4482 Innovation Way, Hanover Township (Northampton) Under Construction (1) 5000 Township Line Road, Hanover Township (Northampton) Proposed (1) 1403 Jacobsburg Road, Bushkill Township Source: CoStar, Northampton County Real Estate Tax Records, LVEDC Research
  23. 23. LVEDC ANNUAL REPORT • 2017 23 Average Asking Rent for Class A Office Space ($/SF) New York City Metro $75.08 Washington, D.C. $60.16 D.C. Suburbs $33.39 Charlotte, NC $32.02 Philadelphia $31.72 Long Island, NY $30.71 Northern New Jersey $30.40 Raleigh-Durham, NC $30.17 Philly Suburbs $29.62 Lehigh Valley $18.60 Source: CoStar, LVEDC Research Lehigh Valley Class A Office Space Inventory (SF) Total Square Feet 2013 2014 2015 2016 2017 5.6M 5.8M 6.1M 6.4M 6.5M Source: CoStar MARKET SUMMARY Overall office vacancy decreased from 9.5 percent to 7.7 percent in 2017. Class A office space vacancy dropped from 15.4 percent to 10.1 percent. SNAPSHOT: INDUSTRIAL MARKET 26.3 Million Total Inventory (SF) 625K 2017 Net Absorption (SF) 181K 2017 Deliveries (SF) 288K Total Under Construction (SF) 0.7% Inventory Net Growth 7.7% Vacancy Rate $15.80 Average Asking Rent 6% YOY Rent Growth Source: Colliers International Even with the addition of more than 900,000 square feet of Class A office space in the last five years, the vacancy rate in that period has decreased from 17 percent to 10 percent.
  24. 24. LVEDC ANNUAL REPORT • 201724 Lehigh Valley Comparative Data Lehigh Valley Labor & Talent Supply Data Average Wages for 10 Common Occupations in the Lehigh Valley Software Application Developers $97,780 Computer Systems Analysts $88,000 Accountants and Auditors $75,020 Registered Nurses $67,190 Chemical Technicians $54,090 Industrial Machinery Mechanics $48,580 Machinists $42,100 Computer-Controlled Machine Operators $37,680 Customer Service Representatives $34,430 Freight, Stock and Material Movers $30,080 Source: Bureau of Labor Statistics Degrees Awarded by Lehigh Valley Colleges, Universities & Technical Schools Cost of Living 9% < Baltimore 10% < Philadelphia & New Haven, CT 14% < Providence, RI 14% < Northern New Jersey 25% < Bethesda, MD 27% < Boston & Arlington, VA 32% < Washington, DC 42% < Brooklyn Source: Council for Community and Economic Research Compared with other metropolitan areas in the Northeast, the cost to live in the Lehigh Valley is significantly lower. Program 2-Year & Certificate 4-Year / Postgraduate Business Administration & Management 136 671 Nursing 292 248 Finance & Accounting 1 468 Psychology 28 321 Medical & Clinical Assistant 299 0 Criminal Justice / Public Safety 200 85 Biological Sciences 51 200 Mechanical Engineering 0 224 Source: Jobs EQ (Data for 2015-16 academic year) LEHIGH VALLEY
  25. 25. LVEDC ANNUAL REPORT • 2017 25 LVEDC’s Business Outreach Program (BOP) uses a customer-oriented approach to economic development designed to link Lehigh Valley businesses to resources throughout the community that will help their business become more profitable. The program combines the resources of LVEDC, government agencies, our public-sector partners, and private corporations. The goal of the program is two-fold: providing a single point-of-contact for all of your business needs, and helping to identify resources to assist you in succeeding in today’s competitive environment. Businesses have often received assistance in workforce training and recruitment, exporting, strategic and business planning, financing, and more. RedevelopmentBusiness Outreach Program “Tyber Medical relocated to the Lehigh Valley three years ago with a goal of transforming a four-person startup company into a 25-person vibrant business. This achievement was possible through the dedication, direction, and hard work of the LVEDC team in providing guidance on local growth programs such as funding and workforce recruiting. We look forward to the next three years and the future growth of Tyber Medical with our strategic alignment with the LVEDC and the state of Pennsylvania.” Jeff Tyber President, CEO & Founder, Tyber Medical The Lehigh Valley Land Recycling Initiative (LVLRI), LVEDC’s redevelopment program, is focused on promoting economic development through the reuse of abandoned and underutilized commercial and industrial properties, also known as brownfields. Fostering economic development while protecting human health and the environment is an important element of LVEDC’s efforts to support sustainable development. LVLRI is an advisory committee comprised of municipal officials from cities, boroughs, and townships in both Lehigh and Northampton counties,aswellasbrownfieldexperts, regulatory agency representatives, private developers, engineers, and consultants. Redevelopment projects in the Lehigh Valley drew national attention in 2017. Bethlehem’s SteelStacks Arts and Cultural Campus won the prestigious Rudy Bruner Award for Urban Excellence, and the Allentown Neighborhood Revitalization District won the Urban Land Institute’s 2017-18 Global Award of Excellence.Visit lehighvalley.org/BOP for more information and testimonials from some of the businesses we support.
  26. 26. LVEDC ANNUAL REPORT • 201726 LVstartup This past summer marked the two-year anniversary of LVstartup, a monthly e-newsletter about the Lehigh Valley entrepreneurial and startup community. Written and distributed by the Entrepreneurship Council of the Lehigh Valley, LVstartup provides information about local events, news stories, and resources available to help entrepreneurs grow and thrive in the region. Released every first Thursday of the month, LVstartup is one of several ways LVEDC helps provide startups with important skills and valuable expertise, as well as helping entrepreneurs refine their business goals, identify their markets, hone their business plans, and locate start-up capital. Visit lehighvalley.org/lvstartup to subscribe. “Bethlehem Makes Best Places to Retire in 2017 List” “The Region That Built 20th Century America” “Places for New College Graduates” “Lehigh Valley Top 5 in U.S. for Fastest-Growing Home Ownership Rates” “Bethlehem Among Cities That Give Worst Case of FOMO” “Lehigh Valley Sees Growth in Tech Companies” External Coverage of the Lehigh Valley Economy In addition to American Way (see p. 7) and The New York Times (see page 9), the Lehigh Valley economy drew media coverage from a wide range of publications outside of the regional market. Below are just a few examples: “Allentown Among 2017 ‘Overlooked Dream Cities’”
  27. 27. LVEDC ANNUAL REPORT • 2017 27 New LVEDC Videos Released LVEDC has a long history of producing high-quality videos to help market the Lehigh Valley’s economic assets to the largest audience possible. These efforts have received international attention, earning LVEDC an Excellence in Economic Development Award from the International Economic Development Council in 2016. LVEDC continued these efforts, producing three new videos highlighting major projects in the Lehigh Valley, including Tyber Medical, Michelman Steel, and the Guardian Life Insurance Company of America. Visit the LVEDC YouTube channel to watch these videos at youtube.com/lvedc. New LV Economic Development Magazine The third issue of the popular Lehigh Valley Economic Development magazine was released in January 2017, serving as a showcase for the regional economy. The third issue to be released since 2014, this new edition focusedspecificallyonthesuperiortalentpooltheLehigh Valley offers to incoming and existing companies. The 44-page magazine is part of a collaboration between LVEDC and Journal Communications, and has served as an important marketing tool to attract businesses and site selectors to the Lehigh Valley. LVEDC Events In addition to the LVEDC Fall Signature Event (page 15), LVEDC hosted several events in 2017, including: “The Future of Logistics” An expert panel met at the NFI Industries facility in Upper Macungie Township to discuss changes in the supply chain and logistics industry. Meet the Buyers Expo More than 200 small business representatives from around the region connected with 50 procurement professionals at the bi-annual expo. “We Just Need a Little Space” A panel of regional experts gathered to discuss the shortage of the smaller- footprint manufacturing and flex space in the Lehigh Valley. County Executive Candidate Forum LVEDC hosted a forum on economic developmentatCoca-ColaParkwithallfour candidates for Lehigh and Northampton executive.
  28. 28. LVEDC ANNUAL REPORT • 201728 Chair Jane P. Long Chair, Corporate, Business and Banking Group Fitzpatrick Lentz & Bubba, P.C. Vice Chair Dan McCarthy Secretary Lehigh Valley Partnership Secretary Ed Dougherty Chief Business Development Officer Lehigh Valley Health Network Treasurer Patricia Johnson Vice President, Finance and Administration Lehigh University Don Cunningham President & CEO Lehigh Valley Economic Development Corporation Anne Baum Lehigh Valley Executive and VP, Distribution Channels & Labor Relations Capital BlueCross Donald Bernhard Secretary Allentown Economic Development Corporation Hon. John A. Brown County Executive Northampton County Luke Cunningham Chair Bethlehem Economic Development Corporation Hon. Robert Donchez Mayor City of Bethlehem Gregory Dudkin President PPL Electric Utilities Dr. Mark Erickson President Northampton Community College Joel Fagerstrom Executive Vice President / Chief Operating Officer St. Luke’s University Health Network Cindy Feinberg Partner Feinberg Real Estate Advisors Lauren Goff Executive Director, Corporate Social Responsibility Olympus Corporation of the Americas Dr. Bryon Grigsby President Moravian College Kassie Hilgert President & CEO ArtsQuest Andrew Hines Director of Facilities Lutron Electronics Co. Inc. Silvia Hoffman President MKSD architects T. Anthony Iannelli President & CEO Greater Lehigh Valley Chamber of Commerce Mark Jobes Senior Vice President, Commercial Loans Lafayette Ambassador Bank Stephen Kalamar Senior Vice President Univest Bank and Trust Gary Kinsey Manager, Real Estate and Property Management, IG Americas Energy and Real Estate Procurement Air Products, Inc. Eric Luftig Vice President, Marketing, Corporate Communications, Training & Construction Piping Victaulic Hon. Tom Muller County Executive Lehigh County John L. Nespoli President & CEO Sacred Heart HealthCare System Hon. Brad Osborne Commissioner Lehigh County Board of Commissioners Hon. Sal Panto, Jr. Mayor City of Easton Philip Schenkel Vice President JLL Stu Shaw Vice President, Chief Actuary, Group & Worksite Markets Guardian Life Insurance Company of America Michael Stershic President Discover Lehigh Valley R. Scott Unger Chair Lehigh Valley Land Recycling Initiative Hon. Seth Vaughn Vice President Northampton County Council Barry Wentzel Director, East Region UGI Utilities, Inc. Don Cunningham President & CEO John Kingsley Vice President Finance Matthew Tuerk Vice President Economic Development & Marketing Jaime Whalen Vice President Administration & Investor Relations Lori Betters Director, Budget & Administration Melody Bradford Director, Business Outreach Programs Karianne Gelinas Director, Talent Supply Michael Keller Director, Marketing Andrew Kleiner Director, Redevelopment & External Affairs George Lewis Director, Research & Analysis Colin McEvoy Director, Communications Doug Warfel Director, Regional Lending Jennifer Weighknecht Director, Credit Risk Jarrett Witt Director, Business Development Diane Milia Administrative Assistant Kat Schneider Office Administrator Stephanie Wean Finance Administrator 2017 LVEDC Board of Directors LVEDC Staff
  29. 29. LVEDC ANNUAL REPORT • 2017 29 2017 Income & Expenses* Hotel Tax Proceeds $1,477,243 Private Sector Contributions $560,551 Finance & Administrative Fees $306,842 Public Sector Contributions $155,000 Grants $233,357 Other Income $11,012 $2,744,005 Operating Marketing Economic Development Financing Hotel Tax Proceeds Private Sector Contributions Grants Public Sector Contributions Other Income Finance & Administrative Fees 53.8% 20.4% 11.2% 5.6% 8.5% .4% 19% 29% 38% 14% Operating Marketing Economic Development Financing Hotel Tax Proceeds Private Sector Contributions Grants Public Sector Contributions Other Income Finance & Administrative Fees 53.8% 20.4% 11.2% 5.6% 8.5% .4% 19% 29% 38% 14% 2017 Unaudited Revenue 2017 Unaudited Expenses Operating $511,424 Marketing $783,314 Financing $394,674 Economic Development $1,054,820 $2,744,232 *These figures do not include pass-through grant funds managed by LVEDC LVEDC Reaccredited LVEDC has once again been recognized as an accredited economic development organization by the International Economic Development Council. This marks the third consecutive time LVEDC has received this accreditation. The organization was first accredited on Sept. 28, 2010, and reaccreditation occurs every three years. LVEDC is one of only 58 economic development organizations accredited by IEDC. “LVEDC is committed to operating at the highest level, and this accreditation recognizes our standards and our professionalism. While accreditation doesn’t get the job done, it showcases to our stakeholders and peers our commitment to excellence.” Don Cunningham, LVEDC President & CEO
  30. 30. 2017 Investors The investment of these companies and organizations in 2017 helped make it possible for LVEDC to market the economic assets of the Lehigh Valley throughout the United States and the world. LVEDC had a record-breaking year of investment, totaling more than $660,000. Thank you for your commitment to regional economic growth. A&H Sportswear Adams Outdoor Advertising Alvin H Butz Borton Lawson Computer Aid Crayola CrossAmerica Partners DeSales University Duke Realty Embassy Bank for the Lehigh Valley Feinberg Real Estate Advisors First Commonwealth Federal Credit Union Follett Corporation Griffin Industrial Realty Hillwood Investment Properties Hospital Central Services Corporation JLL JM Uliana & Associates Lafayette College Lee & Associates of Eastern PA MKSD architects Moravian College Norris McLaughlin & Marcus OraSure Technologies Peoples Security Bank Provident Bank QNB Bank Quandel Construction Group Sacred Heart Healthcare System Santander Bank Service Electric Unity Bank Northampton County Lehigh County GREEN KNIGHT ECONOMIC DEVELOPMENT CORPORATION
  31. 31. 31LVEDC ANNUAL REPORT • 2017 44 Business Capital 515 Hamilton Group at Morgan Stanley Albarell Electric Allied Building Corporation Allied Personnel Services ARCO Design/Build Northeast ArtsQuest Baker Tilly Barry Isett & Associates Berger-Epstein Associates BerkOne Bethlehem Redevelopment Authority Blue Rock Construction Bohler Engineering Broughal & Devito Buckno Lisicky & Company CBRE Cedar Crest College CF Martin & Company Communication Systems Compass Point Corporate Environments D’Huy Engineering Diefenderfer Electrical Contractors Dutch Springs EarthRes Group Easton Area Industrial Land Development Corporation Easton Coach ESSA Bank & Trust Express Employment Professionals of Lehigh County Express Employment Professionals of Northampton County FastSigns of Allentown Fedetz & Martin Associates Fishburn Realty Company Frederick Group Gelcor Realty Gilmore & Associates Good Shepherd Rehabilitation Network Graybar Electric Gross McGinley Haines & Kibblehouse Handlon Business Resources Hanover Township - Lehigh County HDR Engineering Highland Associates HMK Insurance Horwith Trucks/ Horwith Leasing Hotel Bethlehem IMC Construction Ironton Telephone Company Joshi Hotel Group Just Born Kelly Automotive Group Kitchen Magic Klunk & Millan Advertising Knopf Automotive Kreischer Miller Kressler Wolff & Miller Lehigh Carbon Community College Lehigh Career & Technical Institute Lehigh County Authority Lehigh Valley Industrial Park Lehigh Valley Rail Management Lesavoy Butz & Seitz Life Sciences Pennsylvania Lightweight Manufacturing Manufacturers Resource Center Markward Group Maser Consulting Merchants Bank of Bangor Mericle Commercial Real Estate Services Michael Baker International Modernfold of Reading Moonstone Environmental Nacci Printing NAI Summit New Tripoli Bank North Star Construction Management Northampton Community College O’Brien’s Moving & Storage Ondra-Huyett Associates Orbel Ott Consulting Pennoni Associates Regan Levin Bloss Brown & Savchak Reimer Real Estate Rettew Associates SAGE Design-Build Sperry Van Ness - Imperial Realty Spillman Farmer Architects Stevens & Lee Allentown Superior Quartz Products Synergy Environmental Talen Energy Terraform Engineering The Pidcock Company TWG Ultra-Poly Corporation Veraxia Commercial Real Estate Solutions Wacker Polymers - Americas Wind Gap Electric
  32. 32. 2158 Avenue C, Suite 200 Bethlehem, PA 18017 Phone: 610-266-6775 • Fax: 610-266-7623 www.lehighvalley.org Our Mission The mission of the Lehigh Valley Economic Development Corporation is to market the economic assets of the Lehigh Valley and to create partnerships to lead the recruitment, growth, and retention of employers. Our Vision Our vision is of a diverse Lehigh Valley economy that provides economic growth and opportunity for people of all skills and education and strengthens all our cities, boroughs, and townships. Our Priorities • Market the economic assets of the Lehigh Valley • Recruit companies in targeted economic sectors • Support the growth and retention of new and existing employers • Promote and coordinate a skilled and prepared workforce • Provide intelligence and data on the Lehigh Valley economy • Expand public and private LVEDC investment and build partnerships for economic growth Lehigh Valley Come here. Start here. Grow here. LVEDCisanaccreditedeconomicdevelopmentorganizationaccordingtotheIEDC. ©2018LehighValleyEconomicDevelopmentCorporation.AllRightsReserved.03.18 LVEDCAnnualReportdesignedbyMichelleChrin.PhotographybyMarcoCalderonorDigitalFeast.

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