What Makes NEPA a Hotspot for Food & Beverage Manufacturing and Distribution?

           The Northeastern Pennsylvania region, commonly referred to as ‘NEPA,’ consists of Northern I-81 Corridor communities such as Wilkes-Barre, Pittston, Scranton, and Hazleton. Over the years, this region has developed into an ideal area for food and beverage manufacturing and distribution operations. There are numerous factors that contribute to NEPA’s transformation into a hotspot for food and beverage industry. These factors include quick access to raw materials, an available and quality workforce, abundant and reliable utilities, and a variety of Mericle ReadyToGo?? sites and buildings that meet companies’ real estate needs.

           Whether you’re looking for convenient access to several major highways, a talented and affordable labor force, or an abundance of business benefits, here are the numerous reasons why food and beverage companies are establishing manufacturing and distribution sites in the NEPA region.

NEPA is an ideal region for location and transportation

           At the center of the Boston/Washington Corridor, NEPA is at the junction of six major highways. Interstates 78, 80, 81, 84, 380, and 476 all meet in NEPA and provide easy access to Maine to Virginia and west to Ohio. Additionally, there are no major bridges or tunnels within the region that may cause delays to truck departures or arrivals. The Northern 81 Corridor is conveniently accessible to many major East Coast seaports. Lastly, there are more than 99 million people who live within a 500-mile radius of NEPA, and about 51 million people live within 200 miles. Cities like Philadelphia, New York City, Harrisburg, and Syracuse can all be reached in approximately two hours.

           There are plenty of trucking firms that serve the NEPA region, including Kane is Able, A. Duie Pyle, J.B Hunt Transport, Old Dominion Freight Line, NFI, Schneider, and YRC Freight.  Refrigerated trucking companies are here too including Calex Logistics, Prime Inc., R.C. Moore, and RLS Logistics. FedEx Ground, FedEx Express, and UPS also have major facilities in NEPA. In addition to interstate accessibility and trucking firm availability, there are also several rail freight carriers that serve the local region.

           Lastly, NEPA is served by two airports - the Wilkes-Barre/Scranton International Airport (AVP) and the Lehigh Valley International Airport (ABE). Both airports offer direct flights to Atlanta, Charlotte, Chicago, Newark, Detroit, and Philadelphia. The Wilkes-Barre/Scranton International Airport offers more than 450 one-stop destinations worldwide and includes carries like Delta, United, and American Airlines.

Natural resources in NEPA are accessible and allow for scalability

           The NEPA region is abundant with resources and utilities for food and beverage manufacturers and distributors. There’s a wealth of natural gas, public water and sewer, abundant power, and fiber service readily available to business parks. In fact, NEPA is located on top of one of the world’s largest unconventional natural gas reserves, the Marcellus Shale region.

           The water quality is ideal and water pressure is strong in NEPA. The primary water supplier in NEPA is the Pennsylvania American Water Company (PAWC) and since it is a part of American Water, it benefits from its central lab in Illinois which is renowned as one of the most advanced water quality labs in the US. Water is tested for over 100 regulated contaminants, as well as other emerging contaminants that aren’t currently regulated - so you know that the water in this area of highest quality. 

           Lastly, there are several local sewage treatment facilities in NEPA that accept large amounts of biochemical oxygen demand (BOD) as well as suspended solids without the need of businesses to pretreat their effluent. 

NEPA has an abundant, affordable, and talented workforce

           Having a talented, affordable, and accessible workforce is integral for any company’s success. The Interstate and local road network within NEPA enhances local commutes - for example, a 20-mile commute can usually be done in less than 30 minutes (for reference, the US Census Bureau estimates that the average commute in NEPA is about 25 minutes). There’s also a labor force in NEPA that is readily available. Despite NEPA’s strong and impressive industrial growth, the unemployment rates in the area tend to be higher than the national and state averages.

           NEPA’s labor force is also cost competitive in comparison to other PA regions and nearby major metro areas in the Northeast US. The average annual salary for Scranton-Wilkes-Barre-Hazleton, PA transportation and warehousing sector workers is slightly under $44,000, while the competing area of Harrisburg-Carlisle, PA is estimated to be around $50,000 annually.

           Lastly, a quality workforce is abundant in NEPA. The area is home to 17 college campuses - several of which offer degree and certification programs that are relevant to food and beverage manufacturers and distributors. David Hawk, whose family founded Gertrude Hawk Chocolates in Dunmore, PA, explained that, “Even though we own and operate 73 retail stores from Pennsylvania to New Jersey and upstate NY… I can tell you that the very best people we have working for us can be found right here in Northeast PA.”

There are numerous incentives for businesses in NEPA

           NEPA offers several incentives to help food and beverage companies lower their costs.  Firstly, NEPA contains Foreign Trade Zones (in fact, there are more than 2,000 acres of FTZ land situated in six NEPA business parks). These zones are designated to be outside of the US Customs territory - meaning merchandise is allowed to be stored, assembled, manufactured, and processed without being subject to formal Customs entry procedures and payment duties (until, of course, it enters the Customs territory for domestic consumption).

           The Local Economic Revitalization Tax Assistance (LERTA), Job Creation Tax Credit Program (JCTC), the PA First Program, and the PA Industrial Development Authority (PIDA) all provide great benefits for businesses that fit into their required criteria.

Are you ready to move to NEPA? 

           From an available and affordable workforce to an ideal location for transportation and shipping logistics, it’s no wonder why companies such as Cargill, Hershey Chocolate, and Pepsico have established manufacturing operations, and companies such as Bimbo Bakeries, Tootsie Roll, and Wegmans have established distribution centers in the NEPA region.

           Mericle owns and maintains more than 15 million square feet of industrial, office, and flex space in NEPA, so we like to think of ourselves as the region’s experts when it comes to commercial real estate. We’ve provided customized space to numerous food and beverage companies including Bimbo Bakeries, Mission Foods, Pepsico, Core-Mark, Nature’s Bounty, Bakkavor, and Wegmans.

           If you have your eyes set on the NEPA region, we’ll be with you every step you every step of the way. As a vertically integrated master builder, Mericle is a one-stop shop for businesses looking to set-up operations in NEPA. Unlike a traditional builder, who relies on contractors and resources that are out of their control, a master builder has everything under the same roof (machinery and equipment, engineers, architects, skilled craftsmen, and more).  That means we can guarantee that your project will be completed on-time and on-budget.

           Mericle also has numerous ReadyToGo?? sites and buildings that are fully prepped for your next operation - so you can stay one step ahead of your competition.