Penn's Northeast reports historic regional growth

Apr. 30—PITTSTON — John Augustine, president/CEO of Penn's Northeast, said Northeastern PA is on a fast track for historic growth when it comes to economic development.

"Because of our strategic location and talented workforce, we are seeing more companies looking to locate here than ever before," Augustine said. "Our region was just picked as one of the top 10 locations in the United States. Last year alone, the largest deals in the country took place in Northeastern PA."

But Augustine quickly added, "We're not stopping there."

He said in the past 10 years, Penn's Northeast has cataloged 245 industrial and office projects representing close to 53 million square feet of leases and sales. Most of the industrial space is built on former coal lands, restoring them with current economic benefits.

Currently, Augustine said there are plans for more than 45 million square feet of new industrial development planned along the I-81 corridor.

That is more space than anywhere else in the country.

And Augustine said this is in addition to the 27 industrial and business parks which are home to more than 350 businesses, employing more than 35,000 local people. Manufacturing and warehousing jobs account for nearly 25% of all non-government employment. Regional manufacturers employ more than 45,000 people with a collective annual payroll of more than $3 billion dollars.

"Because of this growth industrial wages are rising, with many local employers offering starting wages of $20 to $25 per hour with benefits," Augustine said. "And there is also the new job ripple effect to consider. Per the U.S. Economic Policy Institute, every 100 manufacturing jobs creates 744 indirect jobs."

Augustine said the next 10 years will be about growth across multiple industry sectors.

"As more consumers turn towards ecommerce, we will continue to add warehouse and distribution centers," Augustine said. "Our region is one of the most centrally located areas in the United States. Companies continue to choose our location because they can reach one-third of the United States and half of Canada within one day's drive."

Augustine said this is an industry that people love to hate because of large building sizes and truck traffic. Yet, he said, these are the folks who turn to the internet to purchase everyday products and then want those items as fast as possible.

Augustine said there are more than 275 million online buyers in the United States and more than 81% of the total population in the United States is shopping online.

"Those numbers will only increase," he said.

This is also an industry that has the fastest growth rate of wages for entry level jobs. Less than 6 years ago, Augustine said the average pay for warehouse and distribution positions was approximately $9/hour — today, the average is $18/hour with benefits and often sign-on bonuses.

"I do not see manufacturing slowing down either," Augustine said. "We have shifted from an overseas everything to more and more products being made in the United States. And many of these international companies, like American Paper Bag and Wren Kitchens, are setting up their U.S. headquarters right here in Northeastern PA."

Throughout 2023, Augustine said the Northeastern Pennsylvania Industrial Resource Center (NEPIRC) provided assistance to 183 regional small and mid-sized manufacturers — 74 of the companies surveyed attributed a total of $157.9 million of incremental revenue in 2023 to the assistance and advisement they obtained from NEPIRC. These additional revenues, coupled with $12.8 million of annual savings, allowed those same companies to create and retain 1,051 regional manufacturing jobs and invest more than $56.4 million in expansion, modernization, and workforce training.

"We are just beginning to see the effects of robotics and automation, but it will definitely become a game changer," Augustine said. "While replacing some jobs, it will allow people to work smarter and not harder."

Augustine said our region is also experiencing growth in new clusters.

"For many years we have been known for plastics and metal fabrication," he said. "The fastest growing segment now is in the food and beverage markets. More and more consumers are looking for healthier options and want products that are made in the United States. And yes, they also want them yesterday."

Augustine said new growth will happen across a variety of industry sectors. Production of batteries for renewable energy and electric vehicles to large data centers that house the massive amounts of storage needed for daily activities and artificial intelligence will locate in Northeastern PA.

"This growth will require investment and build out of our utility infrastructure," he said. "We are fortunate to have strong reliable and affordable utilities in Northeastern PA. We are also extremely fortunate to be sitting next to the Marcellus Shale, which is the largest source of natural gas in the United States. Not only does this gas provide inexpensive and reliable energy, it is also the foundation for a large percentage of the products we use every day."

Augustine said our colleges and universities will continue to evolve in order to meet the demand of both today and tomorrow.

"Imagine having to teach and train for jobs that do not even exist yet," he said.

Augustine said we are fortunate to have more than 19 higher education options enrolling more than 45,000 students annually. Schools like Lackawanna College and Luzerne County Community College are able to create innovative programs quickly and adapt to an ever-changing workforce.

"When you look at these collective resources, there is no doubt that our region and economy will continue to grow and prosper for many years to come," he said.

Reach Bill O'Boyle at 570-991-6118 or on Twitter @TLBillOBoyle.