Allentown's steel pipe manufacturing sector, historically a cornerstone of the region's economy, has faced significant decline due to globalization and automation. Major firms like Allentown Steel Products and former industry giants such as Lehigh Valley Steel Company reduced operations in the late 20th century. Today, the sector focuses on niche markets, including custom fabrications for energy infrastructure and industrial applications. Employment in the industry dropped by 40% between 2000 and 2010, from 12,000 to 7,200 workers (U.S. Bureau of Labor Statistics), though recent recovery efforts have spurred modest growth in specialized production.

The decline stems from foreign competition, particularly from China, which accounted for 25% of U.S. steel imports by 2015 (American Iron and Steel Institute). Automation adoption further reduced labor needs, with 60% of Pennsylvania steel manufacturers integrating robotics by 2020 (Pennsylvania Department of Labor). However, recent investments in high-performance alloys and pipeline projects have revitalized activity. For example, the 2022 Infrastructure Investment and Jobs Act allocated $1.2 billion to U.S. steel infrastructure, boosting demand for Allentown’s specialized pipe products. Local firms now serve 15% of the nation’s oil and gas pipeline needs, with revenue growth of 15% in 2022 (Pennsylvania Economic Development Agency). Despite challenges, the sector remains integral to regional supply chains, supported by partnerships with rail and construction industries. Government incentives and technological adaptation have positioned Allentown as a hub for advanced steel solutions, though long-term viability depends on navigating global trade dynamics and energy transition trends.