Gov. Josh Shapiro touts Lilly deal as Lehigh Valley celebrates $3.5B investment: “We’re competing again”

BETHLEHEM, Pa. — Gov. Josh Shapiro highlighted Pennsylvania’s push to speed up economic development and land major projects Tuesday as regional leaders celebrated the $3.5 billion Eli Lilly and Company manufacturing campus planned for the Lehigh Valley — the largest investment in the region’s history.

The announcement was a focal point of the Lehigh Valley Economic Development Corporation Annual Meeting, held at SteelStacks, where a standing-room-only crowd gathered to hear updates on the region’s economy and the pharmaceutical project expected to bring hundreds of high-paying jobs.

Shapiro told the crowd the Lilly project reflects a broader shift in how Pennsylvania approaches economic development.

“Today the Lehigh Valley is a leader in economic development, innovation and job creation,” Shapiro said. “When I first addressed this group, I said we needed to compete again as a commonwealth. Our permitting process was too damn slow and our programs were underfunded. That has dramatically changed over the last three years.”

The governor said the state has processed millions of business permits in recent years and has worked to move projects forward faster, helping to secure investments like Lilly’s planned campus in Upper Macungie Township.

“This is about real economic change for our people, our businesses and our communities,” Shapiro said. “When Lilly plants a flag here, the car dealerships, the Main Street stores, the small businesses — everyone benefits.”

Historic Lilly investment

Eli Lilly and Company plans to build a $3.5 billion pharmaceutical manufacturing facility that will employ about 850 workers with an average salary of around $100,000, according to regional officials. The facility is expected to be fully operational in 2031.

Daniel VonDielingen, Lilly’s senior vice president of global parenteral network expansion, said the company chose the Lehigh Valley after a competitive national search.

“These decisions are made at the highest levels of our company, and they are not taken lightly,” VonDielingen said. “We’re looking for exceptional people to make exceptional medicine, and we found a community here that can support that.”

He said roughly half of the jobs will require an associate degree, making partnerships with community colleges and technical schools a key part of the hiring strategy.

Jay Biggins, executive managing director at Biggins Lacy Shapiro & Co., said more than 300 site proposals from over 40 states were submitted before Lilly selected the Lehigh Valley.

He said workforce quality, operating costs and regional collaboration helped set the area apart.

Regional collaboration credited

LVEDC President and CEO Don Cunningham called the Lilly project the latest milestone in what he described as the Lehigh Valley’s long economic comeback.

“The Lehigh Valley’s economic renaissance is no longer a secret,” Cunningham said. “We redeveloped industrial sites, built new infrastructure, recruited employers and worked together across sectors. Lilly is the largest economic development project in our history and the largest life-sciences project in Pennsylvania history.”

Cunningham said the region’s economy now exceeds $57 billion in gross domestic product, with manufacturing once again the largest sector.

State officials also credited closer coordination between local and state governments for helping secure the project.

Ben Kirshner, Pennsylvania’s chief transformation and opportunity officer, said the state worked to streamline the process after hearing concerns from businesses about delays.

“We were too slow, we weren’t reactive, and the governor said he wanted Pennsylvania winning again,” Kirshner said. “Everyone here was rowing in the same direction, and that made the difference.”

Recognition for economic growth

During the meeting, LVEDC also announced the Lehigh Valley was ranked the No. 1 mid-sized market for economic development in the U.S. by Site Selection Magazine, marking the second time in three years the region earned the top spot.

Cunningham said the recognition reflects decades of coordinated planning and investment.

“We’ve conquered challenges before,” he said. “When others said we couldn’t, we did. The Lehigh Valley has become a middle-America success story.”

Shapiro said the Lilly project signals the region’s next chapter as a life-sciences hub.

“My focus isn’t just on Philadelphia and Pittsburgh,” he said. “It’s on communities like the Lehigh Valley.”