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Pennsylvania Business Climate

Although known as the Coal and Steel State, Pennsylvania actually has a very large and diversified economy. 

Based on the “America’s Top States for Business 2016” list by CNBC, Pennsylvania made the jump from rank 40 on the previous list to No. 33.

The list is prepared by assessing the different indicators that can contribute toward creating a good climate for businesses to grow. Among these indicators are the economy, labor force, infrastructure, technology, innovation, education, cost of living, financial access, cost of doing business, and business friendliness.

The improvement in ranking speaks volumes about the reforms and policies of the state in the effort to attract and retain businesses. It also shows that the state is willing to listen to requests of adopting a uniformed tax measure.

Philadelphia, understandably, is still the top contributor to the state economy with a GDP of $105 billion in 2015. This is followed by Allegheny County, Montgomery County, Chester County, and Bucks County, which make up the top 5.

The steel industry of Pennsylvania continues to be a major growth driver. Not only is it employing thousands of workers, but it also generates indirect jobs in industrial equipment and machinery. To date, there are more than 40,000 manufacturers in the state. These manufacturers need fabricated metals and machine parts to keep their factories working smoothly, and buying a business in Pennsylvania and selling a business in Pennsylvania offers a lot of options.

The booming energy and natural gas industries will also be in high demand for qualified workers in the years to come. They will also spur new businesses in the chemical industry, particularly producers working closely in fracking technology, and refineries.

The legacy of Philadelphia’s early history with printing, through a no small effort from one of the country’s pioneering fathers Benjamin Franklin, still continues today as printing and publishing industry is contributing 7 percent to the state’s GDP.

The Tax Foundation ranks Pennsylvania 34th in terms of overall tax-friendly climate. Its strengths are incentives for individual income taxes and sales taxes, while it lags behind other states in terms of corporate taxes and unemployment insurance taxes.

The state gives value to its education and culture, due mainly to the influence of Quaker values. While hard numbers are good when it comes to the performance, cities like Philadelphia retained its spirit, which makes it one of the most livable areas in the country.

If you’re looking to buy a business in Pennsylvania, sell a business in Pennsylvania, or your just looking to have a business valuation in Pennsylvania, reach out to our qualified team and let’s start the conversation.

 

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