Lancaster is cultivating a bustling tech and business ecosystem alongside the quiet farms and Amish communities it’s already known for.
The county’s growth strategy is not to bring in tons of new businesses, but rather to lean into what it already has and be seen beyond rural stereotypes, said Ezra Rothman, president of the Economic Development Company (EDC) of Lancaster County. So far, it’s working, as the Lancaster of today is home to everything from large global companies to tech startups.
“Lancaster County is more than what [people] traditionally think of,” Rothman said. People and companies are realizing that “we are more than an agrarian community,” and are choosing it as the place to put down roots.
The burgeoning ecosystem embraces its rural identity, leverages regional partnerships and prioritizes slow, intentional growth rather than trying to replicate Pennsylvania’s larger cities — and it’s a strategy that the rest of Central PA is embracing.
Two hours west of Philadelphia and three hours from New York City, Lancaster’s strong business network is successful in its own right. The people in Lancaster recognize the importance of the big metros in Pennsylvania, but also that their contributions to the economy are important for the commonwealth, too.
Lancaster’s business community was recently in the spotlight when global biopharmaceutical company GSK announced last fall it would be investing $800 million into a drug manufacturing site in Marietta, Pennsylvania. The company already had an established footprint in the region, opening its first continuously operating site in the United States there.
Lancaster Laboratories is another life sciences success story, going through multiple acquisitions over the years while maintaining a presence in Lancaster. Most recently, it was acquired by Eurofins Scientific in 2011 and continues to invest in the region as the fifth largest employer in the county, according to the Pennsylvania Department of Labor and Industry.
While these are major wins that could’ve dominated the scene, Lancaster is not letting any company take over its personality, according to Rothman.
“It’s just working with our 60 municipalities to figure out where that is and how to do it the right way,” he said. “So that we can maintain what makes us special, but also allow room for these businesses to grow.”
The perks of downtown with the peace of the outdoors
While Lancaster County isn’t trying to be a big city, it definitely helps that it’s close to urban hubs on the East Coast, Rothman said. Residents can live in a quiet, rural setting with a lower cost of living, while still being a day trip away from big cities.
Lancaster also spent the last decade giving the tech workers what they often seek out when looking for a place to settle: a vibrant downtown with office spaces, restaurants and shops. The county also prioritizes maintenance of its outdoor attractions, including farmland for cycling, trail networks and the Susquehanna River, according to Rothman.
Local universities and healthcare systems spearheaded these changes, investing in the community to make it “clean, safe and walkable,” Rothman said. That momentum inspired private sector developers to also contribute to Lancaster’s downtown.
Nearby higher ed institutions are also creating a workforce pipeline for major employers and for startups. Harrisburg University, Franklin & Marshall College and Millersville University all have entrepreneurship centers for students.
“We’re still starting to feel a bit more like a Philly metro type of area, and I think you could see that, especially with this GSK project and some of the growth in life sciences,” Rothman said. “At the same time, you can get that not fully rural, but more rural quality of life.”
Cross-county collaboration
While Lancaster has many case studies of strong existing companies, the startup landscape requires more collaboration from the entire region.
Lancaster is working to provide more opportunities to startup founders, largely with the support of the state government, but the county doesn’t have the scale to warrant dedicated local resources, Rothman said.
“We need to do a better job, honestly, of capturing these folks and creating tools,” he said.
The proximity to both rural living and urban amenities is a draw for the entire region of Central Pennsylvania, including Lancaster, York and Harrisburg, said Alexis Gosik, president and CEO of the Technology Council of Central Pennsylvania. So, those regions pool their resources to reach more people.
Ben Franklin Technology Partners of Central Pennsylvania, White Rose Ventures in York and the entrepreneurship centers at local universities serve a wider audience than just Lancaster. Startups support groups like Keystone Merge are attempting to bring more entrepreneurs together across county lines too, hosting monthly events in Harrisburg, York and Lancaster to bring the ecosystem together.
But authentic community connections can’t be forced
The startup ecosystem in Lancaster is largely based on who you know, making it important to create spaces to meet people and find resources.
Serial founder Henry Yaeger has lived in Lancaster County for 17 years, choosing to stay as he made the jump from a corporate career to entrepreneurship. When he started his first company, Constance, in 2018, he was already entrenched in the community at the Candy Factory, a coworking space in Lancaster.
As he continued to pivot and make career moves, his network ultimately led him to his current venture, a workforce development program for youth interested in STEM careers called Lab Ready Workforce.
In Yaeger’s experience, Lancaster’s startup network has a density issue, meaning it’s hard to meet people and build relationships like the ones that helped him get his company started. If founders can’t find the opportunities they need to grow, Yaeger understands why they’d leave for bigger cities, he said.
But the region is taking steps to build more in-person connections. The Candy Factory hosts local entrepreneurs, offering an in-person space for founders to connect, he said. Continuing these efforts will hopefully create more connections and lead to startup growth.
“To have a good ecosystem, people have to know each other,” Yaeger said. “To get to know each other, you have to make it really easy for people to connect in person.”
