It turns out that five of the Lehigh Valley’s most iconic brands did not originate here. Four of them came from New York City and the other from Japan.
On Tuesday, the leaders of Lutron Electronics, Mack Defense, Olympus, C.F. Martin & Co. and Crayola explained how their predecessors came to the Valley and why the companies continue to grow decades after the moves.
The panel was part of the Lehigh Valley Development Corp.’s Fall Signature Event at Archer Music Hall in downtown Allentown. Moderator Don Cunningham, president and CEO of the LVEDC, pointed out that manufacturing makes up 16% of the Valley’s economy, which is above the U.S. average of 12%, and contributes $9 billion in gross domestic product.
“I always say it’s kind of in our DNA that we know how to make things, and it’s been our role in serving America through multiple industrial revolutions, through multiple wars,” Cunningham said. ‘The Lehigh Valley has stepped up and delivered, and we continue to do that.”
Picking the Valley
Brian Donlon, vice president and general manager of sales operations for Lutron, said the company got its start in a New York City apartment, where Joel and Ruth Spira invented the first solid-state electronic dimmer. Today, the Upper Saucon Township-based company makes thousands of products that are sold worldwide.
Ruth Spira was the daughter of J.I. Rodale — publisher, editor, author and founder of the Rodale Institute — which brought the Lehigh Valley to Joel’s attention.
“A well-placed spouse is a good part of the economic development attraction,” Cunningham quipped.
Other companies, such as Crayola — which was Binney & Smith Co. until 2007 — moved to Forks Township from New York because of the local slate quarries needed to produce pencils. President and CEO Pete Ruggiero, who grew up in Pen Argyl, said the slate in the Valley is the “best in the world.”
A common theme among the businesses was that they planted themselves in the Lehigh Valley because of the work ethic of the people and access to major East Coast markets.
Richard Reynolds, president of the Olympus of the Americas medical systems group, said the company settled on Upper Saucon Township because of those factors, and to give employees a place where they can enjoy the area.
A native of England, Reynolds settled his family in the Valley after moving around to different Olympus locations.
“I fell in love with the region immediately,” he said. “It was a really good fit.”
Continuing to thrive
Cunningham wanted to know how the companies are confronting current economic conditions.
Donlon said Lutron continues to innovate like it has from the beginning.
“We don’t sell knockoff products,” he said. “Everything must be a genuine invention to deliver a high-quality product.”
Thomas Ripsam, president and CEO of Martin Guitar, said the success is tied to the human element and their craft in building the guitars, which go put together in a process that takes a few hundred steps. Employees stayed for decades at the Nazareth company that has been in the Valley since 1839 when it moved there from Manhattan.
It’s a reason why Martin has been the guitar of choice for well-known artists, such as Elvis Presley, Hank Williams, Johnny Cash, Eric Clapton and Bob Dylan.
Reynolds said that many older people still think Olympus is a camera company, though it has since transformed into making medical equipment used for such things as endoscopy. Converting the company back to its origins — it was founded as a microscope manufacturer in 1919 — was key to its survival.
Another Lehigh Valley native, David Hartzell, president and CEO of Mack Defense, said the company has been in a constant state of evolution since the Mack Brothers founded it in Brooklyn and moved it to Allentown in 1905.
He said the trucks have evolved from mechanical devices to have more than 30 electronic controls to control motions, regulate emissions and for safety. Harztell added that 10% of sales are invested into research and development.
Ruggiero said Crayola has been diversifying into other products, such as markers and electronic-based products. He added that the automation has helped increase production from 20,000 to 120,000 markers per shift.
“The transformation and automation and productivity and cost management has really enabled us to really differentiate ourselves from our competition,” Ruggiero said.
Morning Call reporter Evan Jones can be reached at ejones@mcall.com.