AI Summary
5 min readMayor Matt Turek of Allentown, Pennsylvania, joins Odd Lots to explain how his city has pursued reindustrialization by leveraging its industrial heritage, location, and policy reforms, rather than chasing megaprojects.
Allentown's Industrial Evolution
Allentown's manufacturing peaked with early industries like cigar and silk production, followed by Mack Trucks relocating from Brooklyn in 1915, Volti bombers for World War II, and Western Electric's transistor production in the mid-20th century, which later evolved into Broadcom. Decline hit with plant closures—the Western Electric facility wound down in the 1970s, Mack shifted production to Macungie in the 1980s, and Bethlehem Steel cast its last pour in 1990—but the city avoided total collapse. Manufacturing jobs stabilized at 17% of employment, higher than national averages, through diversification into life sciences (precursor drugs, medical supplies like B. Braun), industrial gases (Air Products, founded nearby in the 1950s), and food/beverage processing. Civic leaders foresaw steel's end and pivoted with Pennsylvania's support toward tech-led development, attracting Olympus's North American surgical device headquarters in 2006.
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What you'll learn
- 1 (02:27) **Intro Banter on Allentown's Cultural Image** - Hosts discuss Billy Joel's "Allentown" song and its deindustrialization theme, setting up reindustrialization discussion
- 2 (05:27) **Guest Introduction: Mayor Matt Turek** - Mayor of Allentown shares recent Madrid marathon finish and local steel vs. semiconductors debate
- 3 (07:27) **Allentown Industrial History Timeline** - From 1762 founding to peak in cigars, silk, Mack Trucks, WWII bombers, transistors
- 4 (10:23) **Post-Decline Diversification Efforts** - Repurposed factories into incubators; shift to life sciences, Air Products industrial gases, Olympus HQ
- 5 (13:15) **Formulating Reindustrialization Strategy** - Mayor's 2008 EDC role identifies small-footprint "boutique" manufacturing opportunity amid GFC
- 6 (18:27) **2014 Reindustrialization Plan Details** - Evaluates industrial stock for 40-80k sq ft demand from Brooklyn makers fleeing high costs
- 7 (20:14) **Location Advantages for Weight-Gaining Industries** - Within day's drive of 100M+ people; recruits Ocean Spray, Sam Adams, Dr Pepper, Schles Bottles
+ Full timestamped outline available in the app
Show Notes
The residents of Allentown are still sore about that Billy Joel song. While it's true the Pennsylvania city became synonymous with deindustrialization after the US steel industry began its decline in the 1970s, Allentown should be known for more: In the 1950s, for instance, some of the first mass-produced transistors were made in the city, which were the precursor of today's semiconductors. The city is also a unique logistics and e-commerce hub — it's a day's drive from nearly 40 percent of the US population. Mayor Matthew Tuerk, who has held office since 2022, has made reindustrialization a focus of his mayorship. In today's episode, recorded in Madrid at the Bloomberg CityLab conference, we speak to Mayor Tuerk about the city's grand strategy for building back and sustaining its manufacturing base, implementing industrial policy on a local level, how rezoning has changed in the last decade, the political puzzle of data centers, recruiting companies to come to Allentown, de-risking the American supply chain, and our favorite new category of industry — weight-gaining industries — which Allentown specializes in.
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