A Conversation With: Richard Hobbs, president and CEO of the Manufacturers Resource Center of the Lehigh Valley

Stacy Wescoe//October 5, 2021

Stacy Wescoe//October 5, 2021//

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LVB: The Lehigh Valley has a very strong manufacturing sector. Where are the strong areas right now?

Hobbs: At this point, most all manufacturing areas in the Lehigh Valley are doing well. We see a lot of consistency with strong order demand, both in the short and longer term.

LVB: Is the manufacturing industry still growing in the region? Where are the hot spots?

Hobbs: It may be a slight stretch, but I’d say that right now virtually all manufacturing is a hot spot. No specific hot areas, again, all seem to be doing well with very few exceptions.

LVB: What are the biggest challenges facing manufacturers in the Lehigh Valley right now?

Hobbs: We see the same two challenges from our manufacturing clients mentioned all the time – people issues and supply chain interruptions. On the people side, it’s the ongoing difficulty to attract new workers, as well as retaining existing staff. These same issues were happening prior to the pandemic, but the pandemic has made them worse.

On the supply chain side, there are many raw materials and other parts that have been difficult to source consistently. Logistics and transportation issues are impacting everyone in manufacturing. Costs to ship products, in and out, have risen dramatically and lead times are tough to count on reliably.

LVB: How is the MRC trying to help manufacturers with their challenges?

Hobbs: We are being as responsive and flexible as possible with all our clients. The MRC prides itself on listening to our clients’ needs. We are augmenting all our standard offerings with programs and deliverables to help our manufacturing clients as they need.

We are offering supply chain scouting to help manufacturers find sources for materials, as well as stepping up efforts in our workforce development areas.

All that said, these challenges are big issues that can’t be solved overnight. There are lots of macro dynamics at play which make solving these challenges difficult as we adjust to the infamous new normal.