Top Industries Driving Growth in Pennsylvania

Pennsylvania offers a strong foundation for businesses of all sizes to grow and thrive. With small businesses making up 99.6% of companies in the state, entrepreneurship remains a vital part of the local economy. But it’s not just small businesses that are fueling forward momentum.

From high-tech innovation in the west to energy and manufacturing resurgence across central and northeastern regions, Pennsylvania is experiencing steady, strategic growth across diverse industries. In 2025 alone, business expansions added more than 108,000 jobs—many driven by emerging technologies, infrastructure investment, and longstanding sector strengths.

So what’s behind this momentum? In this article, we explore the top industries driving Pennsylvania’s economic growth and many of the insurance coverage options businesses in these sectors need to protect their operations.

4 Top Industries in Pennsylvania

Pennsylvania’s economic momentum isn’t happening by accident—it’s the result of strong foundational advantages and forward-looking investments. The state’s legacy infrastructure—such as energy assets, universities, and logistic corridors—allows for seamless support of modern tech and manufacturing, while strategic investments from state-backed financiers and streamlined permitting are fueling expansion across a variety of other sectors. 

Here, we break down the state’s fastest-growing industries, and identify some of the unique risks they might face—and how to protect against them.

1. Manufacturing

Manufacturing is one of the fastest-growing commercial sectors in Pennsylvania. In fact, over the past 15 years, output in this sector has increased by 49.3%, reaching a total of $116.3 billion, earning the state a rank of sixth in the nation for manufacturing growth. 

This substantial impact of the manufacturing industry on the state’s economic growth has resulted in a commitment from the state to continue pursuing opportunities in this area. The Pennsylvania Manufacturing Extension Partnership, for example, has launched a strategy intended to increase manufacturing output in Pennsylvania by 10% annually, with the goal of reaching $180 billion in 2030. 

With so much support and growth potential in the region, it’s no wonder that manufacturing facilities continue to open across the state. Currently, there are 13,005 facilities, each developing different types of products. 

Most Common Insurance Risks for Manufacturing Companies

The manufacturing industry comes with a unique set of risks, all of which have the potential for costly claims and interruption to business operations. 

Fires, for instance, are one of the most significant hazards manufacturers face. Often caused by equipment and building electrical issues, fires can cause damage to commercial property, tools, and equipment, and even workers, depending on the severity and situation. 

To help prevent or limit damage from fires at your manufacturing facility, start by:

• Ensuring your electrical systems are regularly assessed and maintained
• Investing in proper sprinkler and fire suppression systems
• Installing centrally monitored fire and smoke alarms throughout the facility
• Providing access to properly serviced and functional fire extinguishers located throughout the building

Which Policy Can Help? Commercial property coverage protects your company from property and income losses resulting from a covered cause of loss, like a fire.

Another common risk for manufacturers is broken-down equipment. Staying current on maintenance schedules and keeping accurate documentation of evaluations and procedures are two simple ways to reduce risks related to equipment breakdowns.

Which Policy Can Help? Commercial equipment breakdown coverage is designed to cover the cost of repairing or replacing certain essential systems, such as production equipment or specialty machinery, when damaged by a covered cause of loss.

The final most common insurance risk for manufacturing companies is employee injury. Even with employee training and personal protective equipment (PPE), accidents can still happen. Whether it’s a back injury from heavy lifting or a run-in with a piece of machinery, you need to be ready to assist affected employees while keeping operations moving.

Which Policy Can Help? Workers’ Compensation covers employee medical expenses, compensation, and rehabilitation costs after a workplace injury.

2. Transportation

Pennsylvania is a key player in the nation’s freight economy, and it’s only gaining momentum. In 2022 alone, nearly 900 million tons of freight valued at $1.1 trillion moved across the state. With projections showing freight value nearly doubling by 2050, Pennsylvania’s trucking and logistics sectors are positioned for continued growth and opportunity.

Part of this growth is due to the state’s central location along major freight corridors like I-76, I-80, I-95, and I-81. With easy access to key markets across the Northeast and Midwest, the area is a natural hub for logistics and distribution.

Get insights like this right in your inbox. Subscribe to the Central Blog below.

Most Common Insurance Risks for Transportation Companies

Though growth spells opportunity for transportation companies looking to expand, it also means increased risk. With more trucks on the road, there’s more competition for space and a greater opportunity for accidents, delays, and liability.

That’s why transportation companies need to take steps to stay protected in such a high-traffic environment. Here are some of the best ways to manage trucking risks:

Invest in Commercial Auto Insurance: Commercial auto policies are crucial for protecting your transportation company against loss. In case of an accident, this policy would provide both property coverage for damage to your vehicle, as well as liability coverage for bodily injury to others and damage to their personal property. 

Focus on Fleet Safety: Basic driver safety training, distracted driving prevention courses, and regular driver evaluations have been proven to reduce the number of accidents on the road.

Leverage Telematics Systems: Dash cams and other telematics tools can capture real-time footage of drivers on the road. This footage can be crucial when disputing fault after an accident.

Regular Vehicle Maintenance: Conduct routine inspections to prevent breakdowns and keep drivers safe.

3. Construction

Certain parts of Pennsylvania have seen significant growth in construction opportunities in recent years. The Greater Philadelphia region, for instance, averages a 1.5% annual growth rate and is known for employing 121,000 individuals as of 2023. 

While residential construction trends have been in flux in recent years, commercial building construction in Pennsylvania specifically has seen exponential growth across the state. 

With this increase in opportunities has come an increase in the need for skilled contractors to complete these projects. Pennsylvania employs roughly 260,000 people in the construction industry, with around 160,000 employees identifying as specialty trade contractors.

Most Common Insurance Risks for Construction Companies

Construction companies face a wide range of insurance risks due to the nature of their work, jobsite conditions, equipment use, and contractual obligations. 

On-site accidents are one of the most common risks in construction sites, where workers are exposed to heavy machinery, sharp tools, and hazardous materials. Proper loss control steps, such as providing new employee training, implementing proper accident reporting procedures, and having protocols in place for first aid and medical treatments, can help prevent injuries. If an accident does occur, leverage resources like Central’s 24/7 Nurse Hotline to help streamline care and the employee’s return-to-work process.

Which Policy Can Help? Workers’ Compensation covers employee medical expenses, compensation, and rehabilitation costs after a workplace injury.

Damages to buildings under construction are another common risk on construction sites, including accidental damage to the structure being built. Trends show an increase in these kinds of accidents due to the growing number of untrained workers being hired to help fill gaps left by the skilled labor shortage.

Which Policy Can Help? Builder’s risk policies are designed to cover structures under construction and materials and equipment to be incorporated into the building project, both on-site and during transit.

Pennsylvania continues to see an increase in larceny, motor vehicle theft, and burglary. In fact, these property crimes made up 74.5% of all incidents in 2023. As a result, equipment theft has become an increasingly common risk among construction companies. 

Which Policy Can Help? Contractor tools and equipment insurance can cover the repair or replacement of a contractor’s tools and equipment off-premises in the event they are lost, damaged, or stolen.

4. Small Businesses

Small businesses are the backbone of Pennsylvania’s economy, and the outlook is strong. With over 1.1 million small businesses operating across the state, these companies employ nearly half of Pennsylvania’s private-sector workforce. In 2024 alone, small businesses opened more than 34,000 new locations, fueling job creation and local growth.

However, this growth potential comes with a growing set of challenges. 



Most Common Insurance Risks for Small Businesses 

Commercial property damage is a growing concern among small business owners in Pennsylvania. Alongside the likelihood of on-premises losses that can lead to building, inventory, or equipment damage, there has been an increase in severe storms over the past decade that have led to growing concern for the protection of physical building structures from fire, floods, and hail.

Which Policy Can Help? Commercial property coverage can be a great fit for protecting your small business’s building and contents from covered damage. Keep in mind, many commercial property forms do not cover floods, so businesses may need a separate endorsement for flood coverage.

Small businesses also face an increased risk of liability claims that other industries do not. If a customer slips and falls on-site or your product causes an injury, you could be held liable for those damages.

Which Policy Can Help? If your business is sued, general liability insurance protects you against legal liability resulting from covered claims of others for bodily injury and damage to their property. This policy also covers your defense costs and attorney fees arising from such claims.  

Small businesses are becoming increasingly vulnerable to cyberattacks. In 2020 alone, small businesses lost $2.8 billion in damages due to over 700,000 cyberattacks. Hacking, phishing scams, and lost/stolen customer data are among the most common threats facing small businesses. While all organizations are at risk, companies that store or handle payments or other sensitive customer information are often the biggest targets for these attacks.

Which Policy Can Help? Cyber insurance can protect your business from the devastating effects of an attack on your computer systems and data breaches.

The Right Insurance Carrier is the Key to Proper Coverage in Pennsylvania

As Pennsylvania’s economy expands across manufacturing, transportation, construction, and small business sectors, the potential for long-term success is clear— but so is the need for protection. 

Every stage of growth brings new exposures, from equipment breakdowns and jobsite accidents to cyber threats and liability claims. That’s where the right insurance partner makes all the difference. 



What’s more, our loss control specialists are known industry-wide for providing hands-on support to help prevent losses like those explored in this article. And if something does happen, our claims team is here to help with fast, reliable service. 

When you work with Central, you’re not just buying a policy—you’re gaining a partner committed to protecting your momentum, every step of the way.

Take the Next Step

If you’re operating in one of these top industries in Pennsylvania, consider working with a top agent like Central for protection and support.

Connect with a Central agent today to explore coverage options tailored to your business—and gain a partner who’s with you for the long haul.



The information above is of a general nature and your policy and coverages provided may differ from the examples provided. Please read your policy in its entirety to determine your actual coverage available.

Products underwritten by Central Insurance and affiliated companies.
Copyright © 2025 Central Insurance. All rights reserved.

Like this:

Like Loading…