Diverse industries make up Top 100 Privately Held Companies list

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What do HMK Insurance, Alvin H. Butz Inc., East Penn Manufacturing and Century 21 Keim Realtors have in common?

They’re all in different industries, insurance, construction, manufacturing and real estate sales. But they’re also among the Top 100 Privately Held Companies in the Greater Lehigh Valley.

And it’s the diversity on industries included on that list that make the region’s economy so strong, said Don Cunningham, president and CEO of the Lehigh Valley Economic Development Corp.

Noting that the Lehigh Valley has a gross domestic product of $50.2 billion – higher than some states, Cunningham said it’s the diversity of the region’s economy that is at the core of its success.

“If you look through the list, what you find is a nice balance and a healthy mix,” Cunningham said, “That’s good because no sector is recession proof. A wide variety adds stability.”

While manufacturing remains a core industry for the region, business services from car dealerships to accounting firms make up a solid base for maintaining productivity and employment.

“It’s really about the health of the companies that are in the region and growing,” Cunningham said.

While much of his organization’s work is centered around bringing new business to the Lehigh Valley, 72% of all job growth is coming from the companies that are already here and are continuing to hire and expand.

These companies are also bringing strong revenue to the region.

Penske Transportation Services in Reading, for example, reported $13.2 billion in revenue in 2022.

Meanwhile, real estate investment firm, DLP Capital in Allentown reported $154.4 million in revenue that year and manufacturer United Envelope Co. of Mount Pocono reported $140 million in revenue.

“These are the people that are showing up, professional and business services,” Cunningham said.

But new developments are still coming in, likely to add to the competition for a spot on the Top 100.

Site Selection Magazine ranked the Lehigh Valley as No. 1 in the nation for economic development among regions of its size for 2024. Last year it came in Non. 2.

So, what makes the Lehigh Valley a place where top companies want to do business.

“It comes down to three primary factors,” Cunningham said.

First, he noted that the Lehigh Valley is located in a large population center with a growing population and educated workforce.

Second, the fact that the Lehigh Valley is in a one day’s drive from 1/3 of the country’s consumers is a big selling point, he said.

Third, those in workforce development have made sure that the skills that the employees in the region have match up with what skills employers need – an ongoing challenge for employers across the nation.

But Cunningham said there is also a softer side to the draw of the Lehigh Valley, and that’s its quality of life.

“It’s about quality of life and quality of place. If it’s a good place for employees to want to be, those companies are going to want to stay and grow.”