What are reasons for doing business in Pennsylvania?
Pennsylvania offers a number of advantages that make it an attractive location for companies looking to open or expand. Key advantages include its skilled workforce, well-developed infrastructure, access to capital, and strategic location. The city of Philadelphia is two hours away from New York and Washington, D.C. by train, and there is access to the Atlantic, the Gulf of Mexico, and the Great Lakes via ports in Philadelphia, Pittsburgh, and Erie.
In recent years, Pennsylvania has positioned itself as a place for technology and innovation. Philadelphia and Pittsburgh frequently appear on lists for top startup cities. The state is also focused on promoting its advanced manufacturing sector, including life sciences, chemicals, plastics, food, and aerospace manufacturing.
What is the cost of doing business in Pennsylvania?
The cost of living and doing business is relatively low compared to other states in the Northeast. Pennsylvania ranks 8th in housing affordability in the U.S.
Beginning January 1, 2023, the Pennsylvania corporate net income tax rate decreased 1 percentage point to 8.99 percent, which is still higher than the corporate tax rate in many other states.
What is the infrastructure rating for Pennsylvania?
Pennsylvania’s infrastructure features a comprehensive intermodal infrastructure of three major ports, six international airports, railroads covering 5,600 miles, and 120,000 miles of state and local highways. A recent report card from Pennsylvania’s civil engineers gave the state a grade of C-, indicating a need to modernize in order to support economic growth.
What are the challenges of doing business in Pennsylvania?
Although Pennsylvania is generally viewed as a business-friendly state, experts point to a need to improve the tax and regulatory environment in order to encourage investment and improve economic competitiveness.
In addition, Pennsylvania’s population shrank .17% between 2020-2022 according to U.S. Census Bureau data. Despite the decline, Pennsylvania is still the 5th most populous state in the nation.