HARRISBURG, PA — As winter settles over the Commonwealth, Pennsylvania is entering the 2026 season with a surge of economic optimism, new national recognition, major private-sector investments, and a tourism boom unlike anything the state has seen in generations. The Shapiro Administration, now completing its second year, is reporting achievements across nearly every major economic sector — manufacturing, tourism, workforce development, small business support, permitting reform, and community revitalization — culminating in the strongest statewide business climate ranking Pennsylvania has achieved in over a decade.
Last week, the Department of Community and Economic Development released a series of announcements painting a portrait of a state gaining momentum at a moment when its economic trajectory will be under intense national and global scrutiny. With America’s 250th anniversary celebrations approaching in 2026, Philadelphia preparing to host a lineup of world-class sporting events, and both private and public investments accelerating across the Commonwealth, officials say Pennsylvania is positioned to step onto the global stage with unprecedented strength.
This feature explores the layers of that transformation, tracing how Pennsylvania climbed seven spots in Site Selection Magazine’s Business Climate Rankings, secured its first-ever MICHELIN Guide stars, revived major industrial corridors, attracted more than $31.6 billion in private investment, cut taxes for nearly one million workers, and initiated reforms that officials describe as the state’s most substantial permitting and economic development overhaul in nearly two decades.
It is a story that touches 67 counties, spans agriculture to artificial intelligence, and reflects the ambitions of a state that — according to Moody’s Analytics — is the only economy growing in the Northeast.
This is the Commonwealth’s economic year in review — and a preview of the year to come.
A State Rising: Pennsylvania Jumps Seven Spots in National Business Climate Rankings
In one of the year’s most consequential economic announcements, Site Selection Magazine ranked Pennsylvania 11th in the nation for business climate — a leap of seven places from 2024 and the state’s highest position in more than a decade.
More significantly, Pennsylvania is now the top-ranked business climate in the Northeast, surpassing New York, New Jersey, Massachusetts, and Connecticut.
For DCED Secretary Rick Siger, the ranking validates the Shapiro Administration’s 10-year Economic Development Strategy launched earlier this year — the state’s first long-range economic plan in nearly twenty years.
“This new ranking from Site Selection Magazine shows our strategy is producing real results and real opportunity,” Siger said. “Under Governor Shapiro’s leadership, we are competing again by investing in our economy, strengthening communities, and making government more efficient.”
Site Selection’s methodology examines factors such as:
- Tax environment
- Regulatory efficiency
- Job growth
- Corporate expansion
- Infrastructure
- Availability of fast-growing companies
Pennsylvania stood out in several categories, including its strong showing in the Inc. 5000 list, where it placed eighth nationally for the number of high-growth private companies.
The announcement arrives less than a month after Moody’s Analytics Chief Economist Mark Zandi released a separate assessment showing Pennsylvania as the only Northeastern state with a growing economy, continuing a two-year trajectory of expansion even as other regional economies cool or contract.
Moody’s identified Pennsylvania as one of only 16 states nationwide that continue to experience economic expansion in 2025.
Area Development, another key industry evaluator, placed Pennsylvania among the Top 20 Best States for Business and ranked it ninth in the nation for site readiness programs — the highest placement of any Northeastern state.
These combined indicators suggest a statewide economic climate that has undergone structural strengthening since 2023, anchored by reductions in permitting delays, expansions of workforce training programs, and aggressive recruitment of companies seeking to relocate or expand.
A Record Year of Business Investment: $31.6 Billion and 16,700 New Jobs
Since taking office, Governor Josh Shapiro has made competitiveness, permitting reform, and business recruitment central pillars of his administration’s agenda. According to DCED, Pennsylvania has now attracted $31.6 billion in private-sector investment, resulting in more than 16,700 new jobs.
The list of major announcements in recent months is sweeping:
First Quality
- Investment: $142.2 million
- Location: Mifflin County
- New jobs: 91
- Retained jobs: 2,441
The manufacturer continues expanding its footprint, reinforcing central Pennsylvania’s strength in advanced manufacturing and life sciences.
Eos Energy Enterprises
- Investment: $352.9 million
- Location: Pittsburgh (relocating headquarters from New Jersey)
- Jobs: 1,000 created and retained
The project highlights western Pennsylvania’s growing energy-storage and innovation ecosystem.
Mint-X
- Investment: $10.5 million
- Location: Luzerne County
- Jobs: Over 100
Another example of a manufacturer relocating from outside the Commonwealth.
Imperial Systems
- Investment: $8 million
- Location: Mercer County
- Jobs: 47 new jobs, 145 retained
Nichols Portland
- Investment: $4.7 million
- Location: Elk County
- Jobs: 42 new jobs, 285 retained
Market House, Erie
- Investment: $9.5 million
- Location: Erie County
- Purpose: 27,000-square-foot marketplace
A blend of small business incubation, culinary development, and downtown revitalization expected to serve as an anchor for the region.
PA SITES Program
- Investment: $113.6 million
- Impact: 29 shovel-ready business sites statewide
And beyond these projects, one investment stands out above all:
Amazon’s $20 Billion AI & Cloud Computing Campuses
Announced earlier this year, Amazon’s initial $20 billion capital project represents the largest private-sector investment in Pennsylvania history, expected to create thousands of high-tech and construction jobs.
Governor Shapiro frequently points to Amazon’s expansion as evidence that Pennsylvania is becoming a competitive magnet for next-generation technology employers.
MICHELIN Guide Arrives in Philadelphia: A Culinary Turning Point
Perhaps the most visible symbol of Pennsylvania’s rising national profile this fall was the arrival of the MICHELIN Guide in Philadelphia — the first time the city has ever been included in the prestigious international dining guide.
Philadelphia received:
- 3 MICHELIN Stars
- 21 MICHELIN recommendations
The announcement was made during the 2025 MICHELIN Guide Northeast Cities ceremony, hosted in Philadelphia and attended by Governor Shapiro, international guests, chefs, and culinary leaders.
Deputy Secretary of Tourism Anne Ryan called the recognition “long overdue” for a city with a deep and diverse culinary legacy.
“This esteemed recognition will entice even more people from around the world to visit Philadelphia and the Commonwealth,” she said.
The timing is especially significant: in 2026, Philadelphia will be at the center of some of the world’s largest sporting and cultural events.
2026: A Historic Year for Pennsylvania Tourism
With America approaching its 250th anniversary, Pennsylvania is projected to be at the center of global attention next year. Philadelphia, the birthplace of the nation, will host a packed slate of celebrations and events including:
- Declaration of Independence 250th Anniversary (July 4, 2026)
- NCAA March Madness (Men’s Basketball)
- FIFA World Cup Matches
- MLB All-Star Game
- Multiple milestone museum events and historical commemorations
Statewide, additional events include:
- PGA Championship in Delaware County
- NFL Draft in Pittsburgh
Tourism is already one of Pennsylvania’s strongest economic sectors, generating:
- $83.9 billion in economic impact (2024)
- 514,261 jobs
- $5 billion in state and local taxes
- 201.6 million visitors
Recognizing the scale of the 2026 tourism boom, Governor Shapiro secured $50 million in the 2025–26 budget to ensure the Commonwealth can accommodate millions of visitors.
That includes:
- $10 million in support for the NFL Draft
- Additional investments for infrastructure, hospitality readiness, and national marketing campaigns
The Shapiro Administration has also invested nearly $2 million in the Philadelphia Convention and Visitors Bureau to help promote the city ahead of the events.
Main Streets, Small Businesses, and Shovel-Ready Sites: Local Revitalization
Beyond large-scale corporate investment, the 2025–26 state budget includes major expansions in community revitalization and small business support programs.
Main Street Matters Program
- $20 million investment
- Supports commercial corridors and local revitalization efforts
- Aims to strengthen small business ecosystems in boroughs, small towns, and cities
Historically Disadvantaged Business Program
- $20 million investment
- Expands access to capital for minority-owned and disadvantaged small businesses
- Intended to reduce barriers that historically limit entrepreneurship
$500 Million for Site Development
Building on last year’s site development program, the Administration will continue deploying half a billion dollars to:
- Prepare industrial and commercial development sites
- Reduce permitting obstacles
- Increase inventory of pad-ready properties
- Support future job-creating projects
Harrisburg Lands Major New Manufacturer: US Durum Products
In a development that blends Pennsylvania’s manufacturing legacy with its agricultural strengths, US Durum Products — the nation’s largest couscous manufacturer — announced plans to relocate and expand operations into Harrisburg, investing more than $8 million and creating or retaining 64 jobs.
Founded in 1993 in Lancaster County, US Durum produces:
- Couscous
- Orzo
- Rice and quinoa mixes
- Falafel and tabouli blends
- Flour and semolina
The relocation to a historic manufacturing facility on South 17th Street will allow the company to modernize equipment, improve production, and shorten supply chains for Pennsylvania farmers.
Governor Shapiro, Lt. Governor Austin Davis, DCED Secretary Siger, and Agriculture Secretary Russell Redding attended the announcement.
“Pennsylvania is one of the top states for business and is the only state in the Northeast with a growing economy,” Shapiro said. “That’s why companies like US Durum are doubling down.”
Secretary Redding emphasized the agricultural impact:
“Shortening the supply chain lowers costs and increases profit margins for farmers.”
The project received:
- $100,000 Pennsylvania First grant
- $40,000 WEDnetPA workforce training grant
Local leaders praised the investment as a key example of regional revitalization.
Workforce, Food Security, Child Care, and New Tax Relief for Nearly 1 Million People
In the week following the budget signing, Governor Shapiro conducted a statewide tour highlighting new programs included in the 2025–26 plan.
One of the most significant: the Working Pennsylvanians Tax Credit (WPTC), modeled after the federal Earned Income Tax Credit.
Beginning next tax season:
- 940,000 working Pennsylvanians will qualify
- $193 million in total tax relief
- Automatic eligibility for anyone receiving the federal EITC
Community leaders and anti-poverty advocates called the program a “lifeline” for families.
At the same time, the Administration announced historic investments in:
Child Care Workforce Stabilization
- $25 million for workforce recruitment and retention
- $7.5 million for Pre-K Counts wage stabilization
- $10 million for Early Intervention services
- $450 bonuses for 55,000 childcare workers
With 3,000 unfilled child care jobs, the sector faces urgent shortages that directly affect workforce participation across the state.
Agriculture and Food Security
During a visit to the Pennsylvania Farm Bureau’s 75th Anniversary Banquet, the Governor highlighted:
- $10 million for the Ag Innovation Grant
- Full funding for the Pennsylvania Farm Bill
- Food security initiatives strengthened through multiple budget lines
Pennsylvania’s Economic Future: What to Watch in 2026
Analysts point to 2026 as a potential inflection point for Pennsylvania’s long-term economic trajectory.
Several key dynamics will shape the year ahead:
1. Global Visibility
Philadelphia’s MICHELIN debut, combined with national and international sporting events, will elevate Pennsylvania’s profile.
2. Infrastructure and Permitting Reform
The Administration has eliminated the Department of Environmental Protection’s backlog of 2,400 permits and continues reform across all licensing agencies.
3. AI and Cloud Computing Expansion
Amazon’s AI campus investments position Pennsylvania as a rising competitor to established tech corridors.
4. Manufacturing Revitalization
Manufacturing and agriculture — which contribute a combined $248.5 billion annually — will continue receiving targeted support.
5. Small Business Growth
The Main Street Matters and Historically Disadvantaged Business programs are aimed at strengthening local economies and promoting equitable growth.
6. Economic Diversification
From energy storage to high-growth technology firms, Pennsylvania’s economy is more diversified than in previous decades.
A Commonwealth Poised for a Milestone Year
As Pennsylvania prepares for the nation’s semiquincentennial, state leaders argue that the Commonwealth’s economic momentum is the strongest it has been in a generation.
Secretary Siger offered a succinct summary of the Administration’s view:
“Pennsylvania is competing again — and winning.”
And with billions in new investments, hundreds of thousands of visitors expected next year, and national rankings shifting in the state’s favor, officials say the next 18 months may be some of the most consequential in modern Pennsylvania history.
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