For more information …
Want to learn more about the logistics clusters mentioned in
this article? Here’s where to find more information:
New Jersey
▪ Choose New Jersey: This independent, nonprofit economic
development organization offers a wealth of information
about New Jersey on its website, with sections on demographics, top industries, and site selection.
( www.choosenj.com)
▪ Port of New York & New Jersey: The port authority’s website outlines the port’s services and redevelopment initiatives.
( www.panynj.gov/port/)
▪ New Jersey Transportation, Logistics, and Distribution Talent
Network: Funded by the New Jersey Department of Labor
and Workforce Development, this organization seeks to help
educational institutions develop programs to fulfill employers’ needs, provide networking opportunities, and raise
awareness about jobs in the field. ( www.njtld.org/)
Lehigh Valley, Pa.
▪ Lehigh Valley Economic Development Corp.: This organiza-
tion helps companies relocate to the Lehigh Valley. Its web-
site includes information on demographics and incentive pro-
grams as well as site selection data. ( www.lehighvalley.org)
str
at
e
g
ic
i
ns
i
gh
t
R
EG
IONA
L
HU
BS
AND
S
I
TE
S
EL
E
C
TI
ON
S
E
RI
E
S
LEHIGH VALLEY, PA.
Located 80 miles from New York City and 60 miles from
Philadelphia, Pennsylvania’s Lehigh Valley sits at a sweet
spot in the Northeast Corridor. “From this location, com-
panies can reach 65 percent of the customers in the U.S. in
a day’s drive out and back,” says Don Cunningham, CEO
of the Lehigh Valley Economic Development Corp.
(LVED). “And for the most part, we offer a lower-cost
alternative [to] the larger metropolitan areas of North
Jersey and New York.”
Indeed, this section of Eastern Pennsylvania offers labor
rates and land taxes that are lower than the more urban
areas of the Eastern Seaboard. Additionally, transportation
costs are quite favorable, as the area has strong rail service
and a good road network, including I-78, which provides a
direct route into New York City, Newark, and the sur-
rounding ports. The area also has more land available than
the congested regions around the major metropolitan areas
and the ports.
All of these factors have contributed to an explosion in
DC growth in the region during the past 15 years.
According to LVED, the Lehigh Valley has gone from having
16 million square feet of total distribution space in
1997–1998 to the current total of 41 million square feet.
Companies with distribution centers in the region include
BMW, Amazon, and Walgreens. Additionally, National
Freight Industries (NFI) is constructing a 980,000-square-
foot warehousing and distribution facility that it will operate on behalf of Ocean Spray.
Interest in the region is still flourishing, as evidenced by
an industrial vacancy rate of just 6 percent and the fact that
real estate firm Liberty Property Trust recently spent $60
million on spec for a 1. 2 million-square-foot warehouse.
Development is not limited to distribution. According to
Cunningham, more and more companies are also moving
their production facilities into the region to take advantage
of cost efficiencies from producing and distributing from
the same spot.
That development will not be slowing anytime soon. “We
expect to remain hot for several years,” says Jarrett Witt, vice
president of economic development for LVED. “The issue
becomes when and if the region runs out of the land
desired by larger distributors.”
In fact, Witt and Cunningham say the region’s biggest
competition is not New Jersey, New York, or Maryland but
other, more rural areas of Pennsylvania where land is still
plentiful and prices are lower.
Where the Lehigh Valley has an advantage over these
rural areas in South and Central Pennsylvania is its labor
pool. “Our work force is bigger and better qualified,” says
Cunningham.
Due to the area’s roots in heavy manufacturing—
Bethlehem Steel was located there and Mack Trucks still
operates a plant there—the community colleges in the
Lehigh Valley have strong vocational and technical training
programs. In addition, Lehigh University, located in South
Bethlehem, has a well-known supply chain management
program at both the graduate and undergraduate level. ;
Coming up: In the December issue, DC VELOCITY will
look at emerging logistics hubs in the U.S. West.
CATCH THE WAVE: WITH THE CONSTRUCTION OF THIS 80,000-SQUARE-FOOT
DC, OCEAN SPRAY JOINS THE WAVE OF LARGE COMPANIES CONVERGING
ON PENNSYLVANIA’S LEHIGH VALLEY.
