why pittsburgh means business. a snapshot of the pittsburgh region 10 counties = 7,200 sq. miles...
TRANSCRIPT
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
www.pittsburghregion.org