\u201cPennsylvania is quietly pulling off what many states only promise: keeping new businesses alive long enough to thrive.\u201d<\/p>\n
\u201cNew federal data shows that 56 percent of companies launched in Pennsylvania are still operating after five years \u2014 the third-highest survival rate in the nation and well above the national average of 51.6 percent.\u201d<\/p>\n
\u201cFor state leaders, the message is clear: the business climate is not only improving, it is proving resilient under pressure.\u201d<\/p>\n
Harrisburg, PA \u2013 In a recent story, MyChesCo highlighted<\/a> how efforts by the Shapiro Administration to support businesses are paying off, as new federal data<\/a> shows 56 percent of Pennsylvania businesses are operating after five years \u2014 the third-highest survival rate in the nation and well above the national average of 51.6 percent. <\/p>\n Since taking office, Governor Shapiro and his Administration have secured over $35.9 billion in private-sector investment, creating more than 18,800 jobs across the Commonwealth, and cut taxes seven times<\/a> for families, seniors, and small businesses. <\/p>\n Pennsylvania\u2019s Business Climate and Growing Economy is Getting National Recognition<\/p>\n Pennsylvania is the only state in the Northeast with a growing economy, according to a report from Axios<\/a> based on analysis done by Moody\u2019s Analytics Chief Economist Mark Zandi. This latest recognition builds on growing evidence that Pennsylvania\u2019s economy is strong, competitive, and on the rise. The Shapiro Administration has made economic competitiveness and government efficiency top priorities \u2014 launching Pennsylvania\u2019s first comprehensive Economic Development Strategy<\/a> in nearly two decades, cutting permit and licensing backlogs, and investing hundreds of millions of dollars to prepare shovel-ready sites<\/a>, strengthen Main Streets<\/a>, and support small businesses statewide.<\/p>\n The 2025-26 budget<\/a> signed by Governor Shapiro continues to make historic progress on permitting reform, funds key staff at agencies responsible for processing permits, licenses, and certifications, and invests in Pennsylvania\u2019s main streets.<\/p>\n Just last week, Johnson & Johnson<\/a> announced plans to build a next generation cell therapy manufacturing site in Pennsylvania, another example of the continued growth of Pennsylvania\u2019s biotech ecosystem. In December, Governor Shapiro announced other new investments in Pennsylvania from companies like Farm Plast<\/a>, DrinkPAK<\/a>, Calgon Carbon Corporation<\/a>, and Eurofins<\/a>, demonstrating that Pennsylvania is open for business.<\/p>\n Learn more about the Shapiro Administration\u2019s efforts to support Pennsylvania\u2019s workers and businesses and spur the economy below.<\/p>\n MyChesco: Pennsylvania\u2019s Business Boom Defies the Odds as Survival Rates Soar<\/a><\/p>\n Pennsylvania is quietly pulling off what many states only promise: keeping new businesses alive long enough to thrive.<\/p>\n New federal data shows that 56 percent of companies launched in Pennsylvania are still operating after five years \u2014 the third-highest survival rate in the nation and well above the national average of 51.6 percent. The numbers track firms that opened in early 2019 and were still operating in March 2024, a brutal window that included the COVID-19 shutdowns, inflation shocks, and global supply chain disruptions.<\/p>\n State officials say the results point to something deeper than a short-term rebound.<\/p>\n \u201cPennsylvania isn\u2019t just attracting new businesses \u2014 we\u2019re creating an environment where they can succeed,\u201d Governor Josh Shapiro said in a statement. \u201cFrom cutting red tape and streamlining permitting to investing in site development, main streets, and our workforce, my Administration is focused on making Pennsylvania the best place to start and grow a business.\u201d<\/p>\n The data, compiled by the U.S. Bureau of Labor Statistics and supported by research from the Center for American Entrepreneurship, suggests that businesses launched in Pennsylvania are not merely opening their doors but managing to stay open \u2014 even as many peers elsewhere fold.<\/p>\n Moody\u2019s Analytics Chief Economist Mark Zandi recently found that Pennsylvania is now the only state in the Northeast with a growing economy, a rare distinction in a region still wrestling with sluggish growth and high costs.<\/p>\n Since Shapiro took office, the state has secured more than $35.9 billion in private-sector investment, generating over 18,800 new jobs, according to the Department of Community and Economic Development. The administration has also cut taxes seven times for families, seniors, and small businesses, while rolling out the state\u2019s first comprehensive economic development strategy in nearly two decades.<\/p>\n Area Development recently ranked Pennsylvania among the top 20 Best States for Business, the only Northeastern state to make the list, and placed the Commonwealth in the top 10 nationally for Site Readiness Programs. Site Selection Magazine moved Pennsylvania up seven spots to 11th in its 2025 Business Climate Rankings, one of the largest jumps in the country.<\/p>\n On the ground, the state\u2019s industrial financing arm is translating that momentum into bricks-and-mortar projects.<\/p>\n In 2025, the Pennsylvania Industrial Development Authority approved $60,875,900 in low-interest loans, leveraging more than $154.9 million in private investment, creating 305 full-time jobs and preserving 883 existing positions. That pace has continued into the new year.<\/p>\n This week, DCED Secretary Rick Siger announced nearly $4 million in new PIDA loans aimed at spurring development in Blair and Westmoreland counties. The two projects are expected to inject more than $9.9 million into local economies, create 10 full-time jobs, and retain 22 more.<\/p>\n In Blair County, Yerty Auto Service Inc. will receive a $1,850,000, 15-year loan to purchase and renovate a 126,008-square-foot industrial building in Altoona, a former Lumax Industries facility that will be transformed into a modern automotive dismantling and production hub. The $4.5 million project includes a new roof, upgraded electrical, HVAC and plumbing systems, and revamped employee spaces as the company expands beyond its Roaring Spring headquarters.<\/p>\n In Westmoreland County, Weaver Investments Inc. was approved for a $2,142,000, 10-year loan to build two 30,000-square-foot, energy-efficient flex buildings in the Bushy Run Industrial Park. Sunbelt Rentals and East Penn Manufacturing have already committed to occupy the space, which will include high-ceilinged, sprinkler-equipped facilities designed for modern industrial tenants. The project carries a total cost of $5.47 million.<\/p>\n \u201cThe Shapiro Administration is committed to supporting businesses throughout Pennsylvania so that we can build a strong, diverse, and competitive economy,\u201d Siger said. \u201cThese two PIDA loans will create and secure jobs, help businesses expand and grow their operations, and help drive long-term growth and opportunity for Pennsylvanians.\u201d<\/p>\n The Commonwealth\u2019s life sciences sector is also surging.<\/p>\n Johnson & Johnson announced plans this week to build a next-generation cell therapy manufacturing facility in Pennsylvania, adding hundreds of advanced manufacturing jobs and deepening the company\u2019s already sizable footprint in the state.<\/p>\n \u201cOur investment in a next generation cell therapy manufacturing facility in Pennsylvania builds on Johnson & Johnson\u2019s 140-year legacy as an American innovation engine tackling the world\u2019s toughest healthcare challenges,\u201d said Joaquin Duato, the company\u2019s chairman and chief executive officer. \u201cThe new facility will increase our already significant footprint in the Commonwealth, adding U.S.-based jobs to manufacture cutting-edge medicines for patients.\u201d<\/p>\n The move adds to a wave of biotech and pharmaceutical expansion that includes companies such as Eurofins, Apozeal Pharmaceuticals, B. Braun, and GSK. Pennsylvania\u2019s life sciences industry now employs more than 100,000 people across nearly 3,100 companies and research institutions, and has produced more than 10,700 patents in the past five years \u2014 the fourth-highest total in the nation.<\/p>\n For state leaders, the message is clear: the business climate is not only improving, it is proving resilient under pressure.<\/p>\n With new firms surviving at one of the highest rates in America, billions in private investment flowing in, and marquee employers doubling down on the Commonwealth, Pennsylvania is increasingly positioning itself as an outlier in a region still searching for economic lift.<\/p>\n For more information about the Department of Community and Economic Development, visit DCED website<\/a>, and be sure to stay up-to-date with all of our agency news on Facebook<\/a>, X<\/a>, and LinkedIn<\/a>.<\/p>\n MEDIA CONTACT: # # #<\/p>\n
\n Recently, Area Development ranked<\/a> Pennsylvania among the top 20 \u201cBest States for Business\u201d \u2014 the only Northeastern state to make the list \u2014 and placed the Commonwealth in the top 10 for \u201cSite Readiness Programs.\u201d
\n Site Selection Magazine has named Pennsylvania one of the top business climates in the nation. The Commonwealth is 11th in the 2025 Business Climate Rankings<\/a>, up seven spots from last year. <\/p>\n
Justin Backover, dcedpress@pa.gov <\/a> or 717.418.4014\n<\/p>\n