Breaking down the business climate in the Lehigh Valley

Similar to our previous article exploring Bucks County’s business climate, we will discuss in detail the business climate for our northern neighbors in the Lehigh Valley. Let’s briefly cover where the Lehigh Valley is, what it has to offer, and assess its Strengths, Weaknesses, Opportunities, and Threats (SWOT). For best results, try this for your town, county, or sales region.

Where is the Lehigh Valley?

North of Bucks County, the valley consists of Lehigh and Northampton County. It is located along the Delaware River in central to southeastern Pennsylvania. The valley is part of the larger Great Appalachian Valley, with gently rolling hills to the south and higher ridges to the north, extending north to Quebec and south to Alabama. The Lehigh river runs through its three principal cities: Allentown, Bethlehem, and Easton. Together, these cities are sometimes abbreviated as A.B.E. when discussing their metropolitan area.

The primary means of transport in the valley are its highways, sometimes to the chagrin of locals. Route 78 is frequently congested with freight heading into New Jersey and on to New York. Other major routes include the parallel route 22, and perpendicular routes 309 and 476. Towards Easton, routes 611 and 33 provide access north to the Poconos. The valley’s major cities run through its center, east to west. Rapidly growing suburbs flank these cities, and fade to rural communities on the outskirts. This leads to lots of options for locals and tourists alike. For businesses here, success involves capturing customer patronage before competitors do.

What is SWOT?

We’ll use SWOT to understand the business climate a little better. A SWOT analysis (SWOT an acronym for “Strengths, Weaknesses, Opportunities, Threats”) helps identify the factors that can affect the success of a business or project. Broadly speaking, strengths and opportunities are internal and external positive factors, respectively. Conversely, weaknesses and threats are internal and external negative factors. We discuss more in detail how to use this technique on your website here.

An effective SWOT Analysis is just the first step in forming a strategy. The next step is to leverage strengths, overcome weaknesses, take advantage of opportunities, and mitigate threats. It is often used as a starting point for strategic planning and decision-making.

Analysis of the Lehigh Valley Business Environment

The Lehigh Valley’s business environment reflects a mix of traditional industries, emerging sectors, and a strong focus on logistics and distribution. Its strategic location, skilled workforce, and supportive business ecosystem make it an appealing destination for businesses of all sizes. If you’re not from ‘the valley’, does this sound like where you are?

Strengths:

• Strategic location between Philadelphia and New York City. Being close to Bucks county, the Lehigh Valley has this strength as well. Both Philadelphia and New York City have major ports and international airports allowing nationwide and global access to markets and vendors.
• Supportive Ecosystem through the numerous development and advancement programs offered by the government and community groups. The people here take pride in the area and are quick to help their neighbors thrive.
• Proximity of… everything. It takes a little over a half hour without traffic to go across the valley, from Easton to Breinigsville. There is an incredible diversity of environments along the way, from bustling downtown business districts to farmers’ roadside stands surrounded by fields. If you’re considering any kind of storefront business, the Lehigh valley provides a great opportunity to do so. Travel and tour businesses operating in this area need websites to showcase all the options.
• Access to the countryside. The Lehigh Valley is surrounded by natural beauty both within the area, North to the Poconos, South to Bucks county, East to the New Jersey Skylands, and West to Berks and Lancaster Counties.
• The Lehigh Valley International Airport, which provides access to major flight hubs.

Weaknesses:

• The talent pool is limited for this region and so competition is intense for some fields. Being close to New York, New Jersey, and Philadelphia, the valley needs to grow its native industry to become a comparable powerhouse in its own right.
• Traffic and congestion. The highways and main roads slow to a crawl during rush hour. LANTA is the local bus service. There is no passenger rail service.
• Environmental concerns, in part due to the rapid development of the region. Many municipalities are pushing for regulations and zoning to preserve the remaining green spaces. Some municipalities are much more lax, however. This means that your location may essentially be chosen for you if you wanted to move into the area.
• The regional industry favors logistics and distribution, with a handful of unrelated manufacturing and services firms. The lack of diversification contributes to the valley’s role as a bedroom community for the larger cities nearby.

Opportunities:

• Diversifying its industry base can flip a weakness into a strength. The area is tooled for distribution and logistics, and businesses that involve or demand supply chain optimization will find opportunity in the valley today. If your business has expansion plans, depending on your industry, you may not have many competitors in this area.
• Since the area is rapidly growing, developers and building materials industries will see opportunities for growth. Similarly, local-focused services such as restaurants, daycare, entertainment, and wellness will have a growing customer base over time.
• Similar to neighboring Bucks County, continued growth in the tourism and hospitality industry provides opportunity. The many historic and cultural attractions across the valley will only bring in more tourism, and grow companies that cater to this demographic.
• Touched upon earlier, there is growing public concern for the local environment as the area is built up. Growing interest in local and sustainable products may provide opportunities for small businesses to differentiate themselves and attract customers.
• Increasing popularity of online shopping and delivery services presents opportunities for businesses to expand their reach and offer convenient options for customers. This will make your physical location in the valley less a make-or-break factor in success.

Threats:

• The proximity of major cities and prominence of a few industries in the valley means there is a risk for brain drain. This is possible especially if taxes increase relative to nearby jurisdictions, spurring a move.
• The transportation is not scaling with the population growth. The boom in warehouse construction means more trucks on the highways, main roads, sometimes residential neighborhoods. This may discourage tourism and recreational activity.
• Offshoring and trade. International markets which influence the supply chain focus today were the same markets responsible for the economic downturn in the 20th century. Back then, the valley was a prime manufacturing center and is considered part of the “rust belt” of areas hard-hit by offshoring.
• Changes in consumer preferences or trends may make it difficult to stay relevant and appeal to potential customers. Social media has made reaching more people easier than ever, but conversely allows competitors similar ease in influencing larger trends that can negatively impact local business.

In Summary

Overall, the Lehigh Valley presents a promising business environment. It offers a range of strengths and opportunities that make it an attractive destination for businesses. For many local firms, the trajectory is upwards. Its strategic location and business-friendly environment provide a solid foundation for growth and expansion. Successful businesses in the Lehigh Valley will need to adapt to changing market conditions. They will need to leverage available resources and partnerships, invest in workforce development, and stay agile in response to emerging opportunities and risks. Will yours be one of these businesses?