Why Pittsburgh Means Business

A Snapshot of the Pittsburgh Region

• 10 counties = 7,200 sq. miles • Population = 2.6 million• Gross Regional Product =

$114.6 Billion

“Pittsburgh stands as a bold example of how to create new jobs and industries while transitioning to a 21st century economy. As a city that has transformed itself from the city of steel to a center for high-tech innovation... Pittsburgh will provide both a beautiful backdrop and a powerful example for our work.”

-President Barack Obama, Pittsburgh (G-20) Summit

Why Pittsburgh?

• Strategic Location• Educated, skilled

workforce• Affordable cost of

doing business• Access to world-class

innovation• High quality of place

A Strategic Location

• Our three rivers make Pittsburgh the 3rd busiest U.S. inland port

• Within 500 miles of:– More than 53% of the

U.S. buying income– 63% of U.S. industrial

output– Nearly half of the U.S.

population and aggregate income

Skilled Workforce Human Capital

• Educated – We’ve attracted the best and brightest to 36 colleges and universities, more than 90 career and apprenticeship programs

• Innovative – We’ve supported research & development• Entrepreneurial – We’ve put in place programs to encourage

business start-ups• Committed – Pittsburgh

companies consistently describe their employees as loyal and hardworking

Recent Business Investment Testimonial

• “Smith Micro Software has offices across North America, Europe and Asia, and when we were ready to expand with a new R&D center, Pittsburgh made the top of our list. Pittsburgh and Pennsylvania have the assets we seek, including top local tech and engineering talent. The Pittsburgh Regional Alliance was integral in supporting our expansion, connecting us to the necessary local and state resources that will help build our 230+ workforce in the area.”

William W. Smith, Jr. CEO, Smith Micro Software, Inc.

International Business Investment Testimonial• “After a competitive search for relocation options, the

Pittsburgh region remained steadfast as our top choice in part because of the affordable cost of living, high quality of life and strong talent pool. The multitude of universities and technical schools in the area enable us to meet our needs for a growing workforce skilled in all areas of the nuclear power industry. In addition, the coordination of state and local government officials and economic development organizations was unsurpassed in their ability to provide us with a cost-competitive solution.”

Aris Candris, President & CEO, Westinghouse Electric Company

Cost of Doing Business – Workforce

Source: Bureau of Labor Statistics

Real Estate Costs

• “In the last two years, Pittsburgh has really been the only market to see growing fundamentals.”

– Arthur Jones, Senior Economist for CB Richard Ellis

• Best commercial real estate market according to Moody’s Economy.com

Source: Grubb & Ellis, Q2 2011

World-Class Research & Development Tied to Commercialization

We Worked Hard to Give Every Resident a High Quality of Life

Recent Pittsburgh Region RankingsMost Livable U.S. City, The Economist

Top Ten Metros, Site Selection

Most Livable U.S. City, Forbes.com

A Top America’s City of the Future, fDi

Economically Strongest U.S. Metros, The Brookings Institution

Best Commercial Real Estate Market, Moody's Investors Service

Best Places for Relocating, CNBC

Top 10 City for Job Growth, Forbes.com

Best Cities for Recent Graduates, Huffington Post

Strong Foundation in Five Strategic Sectors

Advanced ManufacturingEnergy

Financial & Business Services

Health Care & Life Sciences

Information & CommunicationsTechnology

Advanced Manufacturing • A century-long tradition of world-

leading innovation and manufacturing excellence

• Assets• World HQ for global leaders• 3,000+ advanced manufacturing

firms • Employing over 95,000 people• 120 R&D centers

• Strengths• Electrical equipment• Industrial machinery• Nanotechnology• Precision machining• Specialty chemistry• Specialty metals

Financial & Business Services • Building on 150 years of world-

leading innovation

• Largest industry contributor to Gross Regional Product

• Assets– World HQ for global leaders– Employing 53,000 people at

some 3,700 firms

• Strengths– Corporate HQ and Shared

Services– Legal Services– Mortgage Servicing– Transaction Processing

Information & Communications Technology• Synergy between corporate and academic

R&D

• Assets– Universities including two top-tier I

schools, Carnegie Mellon and University of Pittsburgh, among 34 other regional universities

– Nearly1,600 tech firms with 26,000+ employees

– $832M in venture capital invested in emerging regional businesses during the last five years

• Strengths– Data storage– Agile robotics– Cyber-security– Networking hardware– Electro-optics

 

Health Care & Life Sciences• Unique convergence of research and

clinical assets• Assets

– 500+ HC&LS companies in the region– $500M+ spent on Life Sciences R&D

annually (NSF)– $350M+ venture capital invested in life

sciences since 2002– Specialized centers

• McGowan Institute• Quality of Life Technology Center• Hillman Cancer Center

• Strengths– Medical devices– Regenerative medicine– Tissue engineering– Diagnostics– Transplants

Energy• 16% of regional economy ($19B regional

GDP)

• Ample natural resources and 150-year history of energy innovation and manufacturing expertise

• Assets– 935 firms supporting 157,000 jobs

(directly & indirectly)– Energy manufacturing supply chain– Only U.S. city with high concentration

of energy jobs and natural resources• Strengths

– Innovation– Traditional: coal, natural gas– Alternative: nuclear, solar, wind– Conservation: transmission &

distribution, intelligent building

Energy Leadership Across Seven Sectors

Positioned to Lead the Way• Pennsylvania ranks 2nd in the United States in

nuclear power generating capacity – Pennsylvania and Illinois (the other leading state) together

account for more than 1/5 of U.S. nuclear power generation

• Pennsylvania is a major coal-producing state– Sells approximately half of its coal output to other states

throughout the East Coast and Midwest

• Pennsylvania is the leading petroleum-refining state in the northeastern U.S.

• A water-rich region, home to a number of leading water technology and solution providers

We Are an Energy Innovator

$1 billion +

Government Universities Corporate

NETL Bettis

Pitt

CMU CONSOL

Westing-house

Eaton

WVU

Penn State

Coal Nuclear SystemsSource: Allegheny Conference analysis

PPG

National Energy Technology Lab (NETL) an Asset in the Pittsburgh Region• Only U.S. National Laboratory devoted to fossil

energy R&D• Intellectual resources

– 1,400 employees – More than 700 scientists/engineers; more than 450 with advanced degrees

• Recipient of three “R&D 100” awards in 2011; 13 in past 5 years – “R&D 100” award is the gold standard of recognition for research leading to

commercially viable products

• Strategic alliance with 5 major regional universities– University of Pittsburgh– Carnegie Mellon University– West Virginia University– Virginia Tech – Penn State University

Marcellus Shale PlayThe Marcellus Shale geological formation is the largest unconventionalnatural gas reserve in the world:

– Pittsburgh is the largest metro atop the Marcellus Shale

– An estimated $500B in recoverable gas– 95,000 square miles of approx. 60% of

Pennsylvania’s land mass– Reserves projected at nearly 500 trillion

cubic feet or the total U.S. demand for 19 years

– In the Marcellus Shale play alone, an estimated 1,700 wells were drilled in 2010 – increasing to 3,500 annually by 2020

– Prompted 60+ companies to expand their exploration, drilling or service operations into the Pittsburgh region since 2007

Collaborating to Unlock Potential, Create Prosperity• A collaborative mindset – across industries,

academic institutions and government – allows Pittsburgh to invent, commercialize and globalize new products and even entire industries

• We also capitalize on synergies that cut across industries and create new business opportunities

How Can the Pittsburgh Regional Alliance Help?

• Assists companies in accessing the U.S. market through southwestern PA

• Offers a central point of contact, linking businesses to opportunities and resources through an extensive network of contacts and partnerships

• Provides one-stop project management services at no charge, including:Site Selection Assistance Talent Attraction & Retention

Global Business Assistance Market Research & Analysis

Financial Assistance Peer Executive Meetings

For More Information:

Suzi Pegg

Vice President, Global MarketingPittsburgh Regional Alliance &

Allegheny Conference11 Stanwix Street, 17th Floor

Pittsburgh, PA  15222

spegg@pittsburghregion.org

www.pittsburghregion.org