Transcript Why Pittsburgh?

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
Wage Rates for All Relevant Positions (U.S. = 100%)
137%
95%
Pittsburgh
110%
111%
Philadelphia
Chicago
125%
128%
New York
Boston
101%
Charlotte
Source: Bureau of Labor Statistics
Washington
D.C.
Real Estate Costs
• “In the last two years,
Pittsburgh has really
been the only market to
see growing
fundamentals.”
Class A Real Estate Rates
CBD
Suburban
$69.28
$56.96
– Arthur Jones, Senior Economist
for CB Richard Ellis
$48.15
$39.46
$35.86
$28.91
$28.61 $28.64
$24.91
$25.47
$24.40
$25.10
$20.64
Pittsburgh
• Best commercial real
estate market according
to Moody’s
Economy.com
$18.23
Chicago
Philadelphia
Washing ton
D.C.
Boston
New York
Charlotte
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 Rankings
Most 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 Manufacturing
Energy
Financial &
Business Services
Health Care &
Life Sciences
Information &
Communications
Technology
Advanced Manufacturing
• A century-long tradition of worldleading 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 worldleading 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
NETL
Penn
State
CMU
CONSOL
Eaton
WVU
Pitt
Westinghouse
PPG
Bettis
Coal
Nuclear
Source: Allegheny Conference analysis
Corporate
Systems
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 Play
The Marcellus Shale geological
formation is the largest unconventional
natural 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
Global Business Assistance
Financial Assistance
Talent Attraction & Retention
Market Research & Analysis
Peer Executive Meetings
For More Information:
Suzi Pegg
Vice President, Global Marketing
Pittsburgh Regional Alliance &
Allegheny Conference
11 Stanwix Street, 17th Floor
Pittsburgh, PA 15222
[email protected]
www.pittsburghregion.org