Image Source: Eli Lilly and Company
The Lehigh Valley is poised to enter a transformative new chapter in its long manufacturing history following a record-setting $3.5 billion investment by Eli Lilly and Company, marking the largest single economic development project in the region’s history and the largest life sciences investment ever announced in Pennsylvania.
The Fortune 100 pharmaceutical leader will develop a 925,000-square-foot advanced manufacturing campus across multiple buildings at the Fogelsville Corporate Center near Interstate 78 in Upper Macungie Township. The project is expected to create 850 high-quality jobs over the next five years and significantly expand domestic production capacity for next-generation weight-loss and diabetes medications.
Regional leaders say the announcement positions the Lehigh Valley as a national hub for pharmaceutical and biotechnology manufacturing, building on the area’s deep industrial roots while accelerating diversification into high-growth life sciences sectors.
“This investment writes the first page of a new life sciences chapter in the Lehigh Valley’s proud history of making things in America,” said Don Cunningham, President and CEO of Lehigh Valley Economic Development Corporation.
Major State Partnership Fuels Competitive Win
Pennsylvania assembled a more than $100 million incentive package to secure the project, including:
- $50 million in tax credits
- $25 million through a PA SITES grant for site development
- $25 million through a Pennsylvania First grant
Governor Josh Shapiro called the investment a defining moment for the state’s innovation economy.
“Lilly’s commitment to Pennsylvania will bring billions in investment and hundreds of good-paying jobs, solidifying our position as a leader in the growing life sciences industry,” Shapiro said.
Lilly Chair and CEO David Ricks emphasized the company’s patient-focused mission and the strategic importance of expanding U.S. manufacturing.
“To meet increasing demand, we’re expanding our U.S. manufacturing network, with Lehigh Valley adding capacity for next-generation weight-loss medicines,” Ricks said. “We’re creating high-quality jobs and partnering across the region to make critical medicines in the United States.”
The Lehigh Valley facility is part of Lilly’s broader national manufacturing expansion, with additional projects planned in Virginia, Texas, and Alabama.
Workforce Pipeline and Infrastructure Readiness
To support long-term talent development, additional state funding will equip Lehigh Carbon Community College to expand biotechnology and advanced manufacturing training programs. Upgraded labs, specialized pharmaceutical equipment, and customized curricula will create a direct pipeline of skilled workers for the new facility.
The project will move through Pennsylvania’s Permit Fast Track Program to accelerate approvals for complex, high-impact developments.
A New Industrial Age for a Historic Manufacturing Region
The Lehigh Valley’s economy, valued at approximately $56 billion, has long been anchored by manufacturing. Today, the region’s 700 manufacturers generate roughly $9 billion in GDP annually, placing it among the top 15% of U.S. production centers.
Life sciences is one of the fastest-growing segments of that economy. More than 180 life sciences establishments now employ about 5,800 workers locally, with employment in the sector rising roughly 35% over the past decade.
Lilly joins a strong roster of advanced manufacturers and global brands already operating in the region, including:
- Air Products
- Crayola
- Mack Trucks
- Thermo Fisher Scientific
- B. Braun
- Olympus Corporation
- OraSure Technologies
- Piramal Critical Care
Manufacturing employment in the Lehigh Valley has been growing at roughly three times the national rate, supported by a workforce of 1.8 million people within an hour’s drive and proximity to one-third of all U.S. consumers within a single day’s truck trip.
Competitive Site Selection and Regional Collaboration
The winning site was assembled through a multi-year, multi-partner effort led by LVEDC in coordination with state and local stakeholders, utilities, educators, and infrastructure providers to meet Lilly’s stringent requirements for speed, scale, and reliability.
The company plans to acquire the property from Jaindl Land Development, with local approvals pending in Upper Macungie Township.
Economic developers note that beyond the headline job numbers, projects of this scale generate substantial secondary impacts through construction activity, supplier growth, logistics demand, and long-term tax base expansion.
With Lilly’s arrival, the Lehigh Valley transitions from a legacy steel and heavy manufacturing powerhouse into a next-generation center for pharmaceutical and biotech production.
As Cunningham summarized, “We punch above our weight class. Today that punch got stronger.”
