Allentown: Economy

Major Industries and Commercial Activity

Manufacturing, at one time the dominant activity in the Allentown metropolitan area, continues to decline to just 15 percent of total employment in the area. The service sector now dominates employment in the area, concentrated in the area of health services. Jobs in this sector continue to grow at a rapid pace; many businesses report having trouble finding qualified workers available positions. According to the Lehigh Valley Economic Development Corporation, 33,000 new jobs were created between 1996 and 2004. The metropolitan area has been selected as the headquarters or principal plant locations for major corporations such as Mack Trucks and Bethlehem Steel, as well as Fortune 500 companies Air Products and Chemicals, and PPL Corporation.

Items and goods produced: steel products, industrial equipment, food products, electrical and mechanical equipment, clothing and textiles, trucks, chemical and mineral processing equipment, fabricated metals, furniture

Incentive Programs—New and Existing Companies

Local programs

The Allentown Economic Development Corporation (AEDC), a nonprofit corporation managed by a board of directors representing the leaders of business, industry, civic groups, and city government, has as its mission the long-range economic growth and diversity of the city of Allentown. AEDC operates the Bridgeworks Enterprise Center, a facility that offers tenants shared centralized services such as educational business counseling and management and financial assistance. Relocation assistance is available for those companies that outgrow the incubator space. The Lehigh Valley Economic Development Corporation (LVEDC) offers a variety of financing options, education and training venues, and technology support services. Three enterprise zone programs are available in the region to help stimulate growth. These programs emphasize assisting industrial, manufacturing, and export service firms. Tax credits of up to $250,000 are also available for eligible projects. The Small Business Development Center at Lehigh University and the Team Pennsylvania Lehigh Export Network also help companies with expansion and growth.

State programs

Funding programs offered by the state include bond financing, grants, loans and loan guarantees, tax credits and abatements, and technical assistance. The Lehigh Valley Keystone Opportunity zone consists of 642 acres of land within Lehigh and Northampton counties, including a technology-ready corridor in downtown Allentown. These areas will remain virtually tax-exempt until 2013. Four state Enterprise Zones in Philadelphia are eligible for numerous incentives, including state tax credits, security rebates, low-interest loans, and technical assistance. The state's Job Creation Tax Credits program provides $1,000-per-job tax credit to approved businesses that agree to create jobs within three years.

Job training programs

The region has available a network of specialized training programs, numerous recruitment assistance packages, connections to a variety of workforce training providers and innovative partnerships between education and industry, including Eastern Pennsylvania Training WORKS Partnership, Lehigh Valley Team Pennsylvania CareerLink, and WEDNet Pennsylvania's Guaranteed Free Training Program. The most widely used state and federal programs to help employers reduce the costs of hiring and training workers include the federal Workforce Investment Act (WIA), customized job training funded by the Commonwealth of Pennsylvania, Targeted Jobs Tax Credit Program, and a state tax credit Employment Incentive Payment Program.

Development Projects

Plans are underway in Allentown for an ambitious downtown revitalization project that includes a new attraction, Lehigh Landing. One of the projects planned is a multipur-pose complex on a former industrial property along the Lehigh River. Several turn-of-the-century industrial facilities will be renovated for the complex, using a combination of public and private funds. The anchor for this project will be the America On Wheels Transportation Museum, to be located in a former Lehigh Valley Transit Company building. A ground-breaking ceremony was held for the museum in April 2005. Over-the-road transportation exhibits have already been promised by the Smithsonian Institution, as well as from Mack Trucks, whose headquarters is located in Allentown. The Lehigh Landing project includes a river walk and a tie-in to the Delaware and Lehigh Canal, as well as boating activities along the river.

The Pennsylvania Expo Center at Lehigh Valley is the region's newest and largest exhibition facility. This state-ofthe-art facility offers more than 95,000 square feet of contiguous ground-level exhibition space.

In March 2005, Lehigh Valley Economic Development Corporation (LVEDC) announced the approval of funding for the development of the Allentown Brew Works. The build-ing's first three floors will house the restaurant, microbrewery, and a banquet facility for up to 200 people, along with a lounge in the basement. The fourth and fifth floors will be converted into commercial office space.

In August 2006, Olympus, a technology leader in healthcare and consumer electronics, will relocate its North American headquarters facility and distribution centers to the Lehigh Valley. The high-tech firm CryOptics, which designs, develops, and manufactures optical engines, has also announced plans to relocate its headquarters to the area.

Economic Development Information: Allentown Economic Development Corporation, 718 Hamilton Street, Allentown, PA 18101; telephone (610)435-8890

Commercial Shipping

Twenty-five percent of the nation's population lives within a 250-mile radius of the Allentown-Bethlehem-Easton metropolitan area, linked to it by major highways, Lehigh Valley International Airport, and Queen City Municipal Airport. More than 50 motor freight carriers provide daily service in the area, and Norfolk Southern operates a major rail classification yard in Allentown.

Labor Force and Employment Outlook

The labor pool in the Lehigh Valley is described as highly skilled and possessing a strong work ethic. Jobs in the business services sector have accounted for a large increase in the area's employment. Severe workforce shortages of qualified candidates in the healthcare occupations continue in the region. Employment projections for the area show a continuing decline in the number of jobs in manufacturing, agriculture, and mining, though a recent burst of new construction projects has meant a slight increase in some manufacturing jobs. Jobs in the retail and service sectors are projected to increase, particularly high-tech jobs.

The following is a summary of data regarding the Allentown metropolitan area labor force, 2004 annual averages.

Size of nonagricultural labor force: 329,100

Number of workers employed in . . .

construction and mining: 15,800

manufacturing: 45,300

trade, transportation, and utilities: 66,700

information: 7,700

financial activities: 16,200

professional and business services: 35,300

educational and health services: 57,500

leisure and hospitality: 29,000

other services: 15,200

government: 40,300

Average hourly wage of production workers employed in manufacturing: $14.54

Unemployment rate: 4.4% (April 2005)

Cost of Living

The following is a summary of data regarding key cost of living factors in the Allentown area.

2004 ACCRA Average Home Price: Not reported

2004 ACCRA Cost of Living Index: Not reported

State income tax rate: 3.07%

State sales tax rate: 6%

Local income tax rate: 1%

Local sales tax rate: None

Property tax rate: $7.31 per $1,000 of market value

Economic Information: Allentown Economic Development Corp., 718 Hamilton St., 7th Floor, PO Box 1400, Allentown, PA 18105-1400; telephone (610)435-8890. Allentown City Planning Commission, 435 Hamilton St., Allentown, PA 18101; telephone (610)437-7611

Allentown: Recreation

Sightseeing

One of the most popular sights in Allentown is the Liberty Bell Shrine Museum in the Zion Reformed Church, which contains a replica of the bell. Trout Hall, built in 1770 by the son of the founder of Allentown, is the city's oldest building; Lehigh County Historical Society sponsors tours of it. Tours are available at the Frank Buchman House, founder of the Moral Rearmament movement, and the Haines Mill Museum, an operating grist mill, adjacent to a county park. Two railroads offer nostalgic rides through the area's scenic wonders, and the Covered Bridge (driving) Tour culminates at the Trexler-Lehigh County Game Preserve, where native and exotic fauna roam 1,500 acres of rolling countryside. Several historic structures in nearby Bethlehem, which was a center for the religious group known as Moravians, are open to tourists. Easton also preserves historic buildings and homes.

Arts and Culture

Allentown has long been supportive of artistic and cultural activities. Symphony Hall is home to the Allentown Band, which has been providing musical entertainment since 1829. Concerts are presented by the Allentown Symphony Orchestra at Symphony Hall; the Pennsylvania Sinfonia Orchestra is the only year-round orchestra in the Valley. The Lehigh Valley Chamber Orchestra performs great music from the traditional to the contemporary. A Community Concert series brings nationally-known artists to the city, and musical and theatrical performances are sponsored by area colleges. The Theatre Outlet is the Lehigh Valley's award winning "Off Broadway" company, performing at its own arts center. Rounding out the musical, theatrical, and dance offerings are the Civic Theatre of Allentown, and the Cedar Crest College Stage Company, the State Theatre, and Muhlenberg College's Center for the Arts.

The Allentown Art Museum houses the Samuel H. Kress collection of Renaissance paintings. Lehigh County Historical Museum displays artifacts pertaining to local history and traditions and maintains a Geology Garden. The Open Space Gallery offers juried exhibitions of contemporary regional arts and crafts. The Lenni Lenape Historical Society of Pennsylvania has restored an eighteenth-century stone farmhouse to display Indian artifacts. It is called the Museum of Indian Culture and features a traditional village and garden.

Festivals and Holidays

The Lehigh Valley offers an array of annual festivals, primarily during the summer months, that appeal to a broad range of interests. Allentown's Mayfair, a three-day celebration of the arts, is held over the Memorial Day weekend at various city parks. All activities, which range from dancing to crafts to musical performances and fiddling competitions, are free. July brings the traditional Independence Day fireworks celebration, as well as SportsFest. This action-packed sporting event featuring more than 25 competitive events attracts athletes from all over the world. Lehigh County Council on the Arts sponsors an Arts Festival each summer. August is an event-filled month as Allentown presents the Great Allentown Fair, and Das Awkscht Fescht (The August Festival), featuring an antique car show, and Bethlehem celebrates its nine-day Musikfest. From the Wednesday before Thanksgiving until January 1, more than a half-million visitors enjoy holiday displays at Lights In the Parkway. Bethlehem is a popular destination during the Christmas season, which is celebrated there in the serene, noncommercial style traditional to the Moravians, a group of religious, middle-European missionaries.

Sports for the Spectator

At the Lehigh Valley Velodrome, national and international bicycle racing meets are held annually on its Olympic standard cycling track. Adjacent to the Velodrome is the Bob Rodale Cycling & Fitness Park. Live horse racing via satellite is offered year round at the Downs at Lehigh Valley. The Allentown Ambassadors minor league baseball team is also located in Allentown.

Sports for the Participant

Allentown's park system, which at 13 percent of the city's acreage is said to consist of more acres per capita than any other city its size, and a network of area tennis courts, swimming pools, golf courses, ski slopes, and campgrounds offer year-round recreational opportunities for the sports enthusiast. Cedar Creek Parkway's 127 acres include Lake Muhlenberg, where pedal boating, fishing, and picnicking go on; also located there is the Rose Garden, with its old-fashioned gardens and lagoons. The proximity of the Poconos and other ski resorts make the Lehigh Valley a popular winter destination. Among the more than 100 rides at Dorney Park and Wildwater Kingdom is one of the world's tallest wooden roller coasters; at Wildwater, families enjoy giant slides, river rides, and an enormous wave pool. Gymnastic and exercise programs are offered at Parkettes National Training Center. The Lehigh Valley's streams, forests, and winding roads offer sites for fishing, swimming, hunting, hiking, ice skating, water skiing, and cycling. Allentown is home to SportsFest, an annual event featuring local, national, and international competitors who participate in team and individual sporting events.

Shopping and Dining

Essential and luxury items are available in the Lehigh Valley's many malls and shopping centers. Dozens of national brand factory outlets operate within a short drive of the area, as do several farmers' markets, featuring a wide variety of local produce. Bethlehem and its environs offer many unusual shops specializing in Christmas items, candles, and silk flowers; one is housed in an 1803 mansion.

Restaurants in Allentown offer varied cuisines and entertainment.

Visitor Information: Lehigh Valley Convention and Visitors Bureau, PO Box 20785, Lehigh Valley, PA 18002-0785; telephone (610)882-9200; toll-free (800)633-8437

Allentown: History

Eight thousand years before European settlers crossed the Atlantic, ancestors of the Delaware tribe were thriving in the Lehigh Valley. The city now known as Allentown stands on a tract of land purchased in 1735 by William Allen from a friend of the family of William Penn, founder of Pennsylvania. William Allen, who served for several years as chief justice of Pennsylvania, built a hunting and fishing lodge on the geographically isolated site, which was first known as "Allen's little town." Allen and his son had hoped to turn the lodge into a trading center but the river was too shallow for boat traffic and the American Revolution of 1776 intervened. When the British captured Philadelphia in 1777, the Liberty Bell was carried to Allentown where it was concealed in a local church and later returned to Philadelphia upon British evacuation of that city.

By the early 1800s Allentown was little more than a sleepy marketing town for local farmers. However, when the Lehigh Canal was opened in 1829 to carry coal from the area north to the Delaware Canal and east to New York, and south to Philadelphia, Allentown for the first time had access to outside markets. Even more important was the availability of water power, and a growing number of businesses began to settle in the Lehigh Valley, including the country's first commercially successful iron furnace powered by anthracite coal. The resulting boom in the production of pig iron began to fade by the turn of the century when English advances in steel technology lessened the demand for iron. Nearby Bethlehem Iron was the only Lehigh Valley metals industry to successfully make the transition from iron to steel. Allentown, earlier than other northeastern industrial areas, was forced to diversify its economic base. With the arrival of the silk industry in the 1880s Allentown came to be known as "silk city." Other light industries followed and Allentown leaders determined to never again depend on one business for the city's survival. In the early 1900s Mack Trucks, Inc., moved to the city and remained one of the city's largest employers for most of the century.

World War II gave a boost to the Lehigh Valley's economy, but thereafter synthetics began to replace silk in the manufacture of clothing, the cement works phased out many operations, and the steel companies began to lay off workers. As has been the case with many industrial cities, improved highways, large tracts of available, affordable land, and the demand for larger homes encouraged development outside the city. The 1980s saw expansion in suburban shopping centers, industrial parks, and office buildings. Allentown and the surrounding region have benefitted from the completion of an interstate highway in 1989, which has promoted economic development, and from an influx of persons fleeing high prices and overcrowding in New York City, Philadelphia, and elsewhere.

Today the Lehigh Valley supports a diversity of businesses and industries, having moved from what was once a primarily manufacturing base. The city has also begun an intensive revitalization of its downtown area, which includes plans for a multi-purpose complex on what was once industrial property along the Lehigh River. Numerous industrial facilities will be renovated at the same time, providing the area with a much-needed facelift and tying into Mayor Afflerbach's plan to create a "safer, cleaner, more prosperous city in which to live, work, play, and invest."

Historical Information: Lehigh County Historical Society and Museum, Old Courthouse, PO Box 1548, Allentown, PA 18105; telephone (610)435-1074

Allentown: Education and Research

Elementary and Secondary Schools

The Allentown School District (A.S.D.) is the fourth largest in the state. The district is said to have pioneered the neighborhood school concept and has offered a program for gifted students since 1924. A.S.D. is in the high range of national norms in the percentage of students testing at high IQ levels.

The following is a summary of data regarding the Allentown public schools as of the 2002–2003 school year.

Total enrollment: 15,966

Number of facilities

elementary schools: 17

secondary schools: 4

high schools: 2

Student/teacher ratio: 18.8:1

Teacher salaries

average: $50,831

Funding per pupil: $7,207

Public Schools Information: Allentown School District, 31 South Penn Street, PO Box 328, Allentown, PA 18105; telephone (610)821-2641

Colleges and Universities

The Lehigh Valley is home to 11 colleges and universities, 3 of them located within Allentown city limits. Lehigh University, located in Bethlehem, is nationally recognized for its science, engineering, business, and economic programs. Muhlenberg College in Allentown offers numerous undergraduate majors, including a premedical program. Cedar Crest College and Lehigh College Workforce Training Center are also located in the city. A campus of Pennsylvania State University is located near Allentown.

Libraries and Research Centers

The Allentown Public Library's two branches house nearly a half-million volumes, and offers free public access to the Internet. The Lehigh County Historical Society Library maintains a collection of the publications of local history scholars, and a Frank Lloyd Wright Library is part of the Allentown Art Museum.

The Lehigh Valley's colleges and universities maintain extensive holdings, including the Lehigh University collection of more than 870,000 volumes featuring a special collection of engineering laboratory research project reports. Muhlenberg College's library houses 330,000 volumes, including a special collection of "best" works of fiction and nonfiction.

At the heart of the Lehigh Valley's research activities is Lehigh University, one of the country's leading technological universities. The university is home to the North East Tier Ben Franklin Advanced Technology and the Advanced Technology for Large Structural Systems program, the first large-scale structure testing facility in the country. A number of private companies maintain research and development programs, including Rodale, of organic gardening fame, whose center is located in Kutztown.

Public Library Information: Main Library, 1210 Hamilton St., Allentown, PA 18102; telephone (610)820-2400

Allentown: Population Profile

Metropolitan Area Residents

1980: 635,481

1990: 595,081

2000: 637,958

Percent change, 1990–2000: 7.5%

U.S. rank in 1990: 64th

U.S. rank in 2000: 65th

City Residents

1980: 103,758

1990: 105,301

2000: 106,632

Percent change, 1990–2000: 1%

U.S. rank in 1980: 155th

U.S. rank in 1990: 184th (State rank: 4th)

U.S. rank in 2000: 240th

Density: 6,011.5 people per square mile (2000)

Racial and ethnic characteristics (2000)

White: 77,361

Black: 8,370

American Indian and Alaska Native: 356

Asian: 2,421

Native Hawaiian and Other Pacific Islander: 78

Hispanic (may be of any race): 26,058

Other: 14,260

Percent of residents born in state: 64% (2000)

Age characteristics (2000)

Population under 5 years old: 7,586

Population 5 to 9 years old: 7,723

Population 10 to 14 years old: 7,288

Population 15 to 19 years old: 7,301

Population 20 to 34 years old: 15,777

Population 35 to 44 years old: 15,988

Population 45 to 54 years old: 12,415

Population 55 to 59 years old: 4,282

Population 60 to 64 years old: 3,722

Population 65 to 74 years old: 7,587

Population 75 to 84 years old: 6,326

Population 85 years and over: 2,228

Median age: 34.5 years (2000)

Births (2002, Lehigh County)

Total number: 13,956

Deaths (2003, Lehigh County)

Total number: 3,186 (of which, 29 were infants under the age of 1 year)

Money income (1999)

Per capita income: $16,282 (1999)

Median household income: $32,016

Total households: 42,051

Number of households with income of . . .

less than $10,000: 2,305

$10,000 to $14,999: 1,572

$15,000 to $24,999: 3,885

$25,000 to $34,999: 3,969

$35,000 to $49,999: 4,688

$50,000 to $74,999: 5,328

$75,000 to $99,999: 1,989

$100,000 to $149,999: 1,234

$150,000 to $199,999: 157

$200,000 or more: 229

Percent of families below poverty level: 14.6% (55.7% of which were female householder families with children under the age of 5 years)

2002 FBI Crime Index Total: 5,944