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Paychex Creates 100 New Jobs With Lehigh Valley Expansion

By Colin McEvoy on March 8, 2016

The 40,000 square-foot Paychex facility in South Whitehall Township will undergo a $1.3 million expansion. (courtesy photo)

The Paychex facility in South Whitehall Township will undergo a $1.3 million expansion, expanding to 40,000 square-feet. (courtesy photo)

For the second time in a week, a major business project has been announced in the Lehigh Valley, this one creating at least 100 new, full-time jobs.

Paychex, Inc., a provider of payroll, human resources, retirement, and insurance services, will undertake a $1.3 million expansion of its South Whitehall Township facility from 18,000 square-feet to 40,000 square-feet.

Don Cunningham, President and CEO of the Lehigh Valley Economic Development Corporation (LVEDC), lauded the expansion project, which creates jobs in the high value business services sector, one of the four targeted sectors for the Lehigh Valley.

“We’re always working to try to grow office capacity and usage,” Cunningham said. “The back office sector of the economy has been one of the focal points of our organization, and this project fits in perfectly with our target sectors for job creation.”

In addition to creating 100 jobs, the expansion project will allow Paychex to retain 444 jobs across the state, according to the company.

The Paychex announcement comes just three days after it was announced that Norac, a French manufacturer of natural bakery snacks, will be opening its first American facility in Forks Township. LVEDC was involved with both projects.

Pennsylvania Gov. Tom Wolf first announced the Paychex project on Feb. 7, and said he was pleased the company had chosen to further its commitment to Pennsylvania and expand in the Lehigh Valley.

“The company’s decision to expand a regional hub is a testament to Pennsylvania’s standing as a business leader,” Wolf said. “Our state is uniquely positioned to thrive in local and global economies to help create jobs and strong, stable communities.”

Paychex is expanding in a location previously vacated by the financial services company Morgan Stanley, which left South Whitehall Township for a new location in the Three City Center office building in the downtown Allentown’s Neighborhood Improvement Zone tax district.

“It’s good to see that the Lehigh Valley office market is dynamic enough that it’s backfilling offices that went to the NIZ,” Cunningham said. “The Lehigh Valley’s office vacancy rate is 11 1/2 percent, which falls below the national average of about 15 percent.”

High value business services was identified in an economic development study as one of the four target sectors for the Lehigh Valley based on the region’s site specific characteristics, including its central location, proximity to major U.S. Northeast markets, well-developed transportation infrastructure, availability of suitable office space, excellent health care system, and strong workforce.

“Lehigh County has proven to be a great location for us to support our clients and the continued growth of Paychex,” said John B. Gibson, Paychex senior vice president of service. “The access to a high-quality workforce and the support of the local and state governments makes this an ideal location for this expansion.”

Paychex has more than 100 locations in the United States, as well as offices in Germany and Brazil, with 13,000 employees serving about 590,000 businesses worldwide, according to the state.

Paychex is currently hiring for positions related to its South Whitehall Township expansion. Visit the company website for more information or to apply for available positions.

LVEDC had been involved with this project since early 2015, when it evaluated several markets for the possible establishment of Paychex regional hubs, which would provide service to their regional offices and customers.

LVEDC met with company representatives and their hired consultants to discuss the project, toured Paychex’s Lehigh Valley operations, and helped the company evaluate markets for the established of a shared services center, according to Jarrett Witt, LVEDC Director of Business Development.

The project was coordinated by the Governor’s Action Team, an experienced group of economic development professionals who report directly to the governor and work with businesses considering locating or expanding in Pennsylvania, in collaboration with LVEDC.

Paychex received a funding proposal from the Pennsylvania Department of Community and Economic Development that includes a $300,000 Pennsylvania First Program grant, $300,000 in Job Creation Tax Credits to be distributed upon creation of the new jobs, and $45,000 in WEDnetPA funding to train its workforce, according to the state.

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