Invest in Pittsburgh

Why Pittsburgh Means BusinessDewitt Peart

President, Pittsburgh Regional Alliance

April 30, 2012

Pittsburgh Regional Alliance (PRA)

• Markets the benefits of conducting business in the

10-county Pittsburgh region to companies all over

the world that are growing, relocating or expanding

Our Model

Pittsburgh

Regional Alliance

Marketing

Pennsylvania Economy League of Southwestern

Pennsylvania

Research & Analysis

Regional Investors Council

Providing time, talent and resources to advance the agenda.

Greater Pittsburgh

Chamber of Commerce

Advocacy

The Conference is the parent organization for its three affiliates – the Pittsburgh Regional Alliance

(PRA), the Greater Pittsburgh Chamber of Commerce and the Pennsylvania Economy League of

Southwestern Pennsylvania – that share a strategic vision and work together for regional improvement,

setting the 21st-century standard for civic stewardship:

A Great American Comeback

• Total employment, 1970-2011

1,050,000

1,100,000

1,150,000

1,200,000

1,250,000

1,300,000

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Thousands of Jobs Open Right NOW!

• Opportunities across all

sectors

• Pittsburgh Regional

Alliance created a hub

to access them all:

What Happened?

• A more diverse economy…– We built on our historic strengths in manufacturing, financial &

business services, and energy

– We invested in human capital to create new industries in health

care & life sciences and information & communications technology

– We enhanced an already high quality of life with investments in

arts & culture, outdoor recreation and green building

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 world-leading innovation and manufacturing excellence

• Assets

• World HQ for global leaders

• 120+ research centers

• Nearly 96,000 skilled workers

• Strengths

• Electrical equipment

• Industrial machinery

• Nanotechnology

• Precision machining

• Specialty chemistry

• Specialty metals

Energy

• Assets

– $19B in economic activity

– 16% of regional economy

– 800+ firms support directly and indirectly 150,000+ jobs

– Uniquely strong across 7 energy industries

• Strengths

– $1B in energy-related R&D funding

– National Energy Technology Lab

– Consol R&D Center, U.S.’s only private coal R&D facility

– University R&D

– Energy Alliance of Greater Pittsburgh

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 215,000 people at some 14,600 firms

• Strengths

– Corporate HQ and Shared Services

– Legal Services

– Mortgage Servicing

– Transaction Processing

Health Care & Life Sciences• Unique convergence of research and

clinical assets

• Assets

– 500+ HC&LS companies in the region

– $560M+ spent on Life Sciences R&D annually

– Approximately $400M in NIH Funding annually

– Specialized centers

• McGowan Center

• Quality of Life Technology Center

• Hillman Cancer Center

• Strengths

– Medical devices

– Regenerative medicine

– Tissue engineering

– Diagnostics

– Transplants

Information & Communications Technology

• Synergy between corporate and academic R&D

• Assets

– Universities

– Carnegie Mellon, University of Pittsburgh, California University of Pennsylvania (PA), Indiana University of PA, Penn State University

– 1,500 tech firms with 25,000+ employees

– Nearly $1.8B in venture capital invested in emerging regional businesses in the past decade

• Strengths

– Data storage

– Agile robotics

– Cyber-security

– Networking hardware

– Electro-optics

Why Pittsburgh?

• Strategic Location

• Educated, skilled

workforce

• Affordable cost of

doing business

• Access to world-class

innovation

• High quality of life

• Rail– Over 1,300 miles of railway

– Three Class 1 railroads

• CSX

• Norfolk Southern

• Canadian National

• Pittsburgh International

Airport – 158 average daily departures to

38 destinations across the

globe

• Three rivers– Second busiest inland port

• Within 500 miles of…– 41% of U.S. businesses

– 43% of U.S. & Canada

populations

Strategic Market Access

Highly Educated Workforce

Of the Top 40

MSAs, Pittsburgh

ranks…

5th-highest proportion of

25-34 year old workforce

with a Bachelor’s or

higher

Highest proportion of 25-

34 year old workforce

with a Graduate or

Professional degree

Lowest proportion of 25-

34 year old workforce

without a high school

diploma or equivalent

Source: U.S. Census Bureau

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Total 25 to 34 years

35 to 44 years

45 to 64 years

65 years and over

U.S. Pittsburgh Region

College Degree by Age – Ten County Region

Cost-Effective Business Location

• Compared to benchmark cities, the Pittsburgh region is a

great value with a low cost of living, an affordable real

estate market and comparable wages:

Cost of Living

Class A

Office Space/SF Wages

Pittsburgh 94.9 $22.37 $45,436

Atlanta 97.4 $22.57 $49,329

Boston 137.4 $34.22 $62,460

Charlotte 93.3 $20.84 $44,630

Chicago 114.8 $29.36 $52,271

New York 219.2 $72.77 $66,454

U.S. 100 $31.14 $46,751

Source: C2ER, April 2012; Grubb & Ellis 4Q; Bureau of Labor Statistics

World-Class Research & Development Tied to Commercialization

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

Marketing the Region for

Business Investment

How Do We Globally Market the

Region?• Select conferences,

trade shows and events

• Geographic initiatives

• Leverage regional assets

• Familiarization tours

• Media outreach

• Web-based tools

• Collateral

Target Audiences:

• Business decision makers

• Site location consultants

• Real estate executives

• Media

Key industries targeted for

growth:

• Advanced manufacturing

• Energy

• Financial and business services

• Health care and life science

• Information communications

technology

Regional Promotion

Media FAM Tours

Site Consultant FAM

Tour & Developers’

Showcase

Ribbon Cuttings &

Announcements

Wins Day

Global Marketing Strategy

• Leverage world class assets to promote the

Pittsburgh region as ideal business location

to international business leaders

• Develop international media strategies

around signature events

• Conduct one on one meetings with business

decisions makers in companies across all

five of the region’s target sectors to

generate business investment leads

Global Marketing

On the Horizon: Global Marketing• “Pittsburgh: Center of Energy Innovation” Media Study Tour,

Pittsburgh– May 2012

• 2012 Global Petroleum Show, Calgary– June 2012

• CMU Steinbrenner Media Tour – June 2012

• Information Technology Media Tour – June 2012

• ITRA Global 2012 Corporate Real Estate Symposium, London– September 2012

• fDi Media Visit– Fall 2012

• Pittsburgh Symphony Orchestra (PSO) European Tour– October 2012

Digital Resources

Social media:

Real estate website:

Career website:

pittsburghregion.org

pradata.org

Career website:

E-publications

Project Management Services

Named Top-10 U.S. Economic Development Organization

four times by Site Selection

• The PRA offers the

complete package at no

charge

– A team of professionals,

each with 10+ years of

economic development

experience

– A vast network of public

and private leaders and

professionals from across

the 10-county region

• Streamlined Services

– Site selection assistance

– Pittsburghprospector.com

– Global business assistance

– Financial assistance

– Market research and

analysis

– Talent attraction and

retention

– Peer executive meetings

Leading Sources of ProjectsSource Total Decision Projects

(2002-2011)

Local Real Estate Broker 63

Direct Inquiry 59

Site Location Consultant 56

Governor’s Action Team (GAT) 44

Economic Development Partner 38

ACCD Affiliate/Employee/Investor 29

Trade Shows & Events 18

Overseas Investment Reps 23

Current/Recent Project Contact 21

County Partner 20

National Real Estate Broker 18

Other 90

Total Decision Projects 465

Snap Shot of Current Pipeline

• 157 active projects

• Potential total investment of $1.4-2.0 billion

• Potential total employment impact of 9,200 new

and 530 retained jobs

• 59 new projects identified 2012 YTD

• 66% of active projects are in our five target

sectors

Results

We’re Outperforming the National Average

April 2012 Regional Indicators

Pittsburgh Region Nation

Unemployment Rate Jan-12 7.7% 8.8%

Jan-11 8.1% 9.8%

Civilian Labor Force (000's)

Jan-12 1,332.5 153,485.0

% Change from Jan-11 -0.1% 0.6%

Average Wage 2Q 2011 $46,064 $47,849

% Change from 2Q 2010 4.4% 3.7%

Cost of Living Index 2011 Annual 94.8 100.0

Median Home Price (000's)

4Q 2011 $120.0 $170.0

% Change from 4Q 2010 0.0% -2.9%

Average Domestic Airfare

3Q 2011 $337 $361

Unemployment Rate and Civilian Labor force reflect the 10 county region on a non-seasonally adjusted basis. Average wages reflect four quarter average.

Sources: US Bureau of Labor Statistics; PA Department of Labor & Industry; C2ER; NAHB/Wells Fargo Housing Opportunity Index; Bureau of Transportation Statistics

America’s Most Livable City

• Places Ranked and Rated

• The Economist

• Forbes Magazine

“Indeed, Pittsburgh's art scene,

job prospects, safety and

affordability make it the most

livable city in the country…”

- Forbes Magazine

And The World is Paying Attention!

Recent rankings for the region include: • Most Livable U.S. City, The Economist

• 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

• Top 10 City for Job Growth, Forbes.com

• Best Cities for Recent Graduates, Huffington Post

• Best Places for Relocating, CNBC

• America’s Best Place to Raise a Family, Forbes.com

• Best Trips for 2012, National Geographic Traveler

• Top 50 City for Quality of Life, Mercer

• Best Places For A Working Retirement, Forbes.com

• Least-Costly Place to Do Business, KPMG

Maintaining Momentum: Pittsburgh

Region Lands 286 “Wins” in 2011

• Corporate investment and development

projects announced in 2011 totaled 286 and

represented nearly $1.5 billion in capital

investment

• Total job impact is 17,000 (new and retained)

• These wins reflect a 5% increase in activity

over 2010 and a rebound that approaches the

290 wins reported, pre-recession, in 2008

Wins Were in the Region’s 5 Key Sectors

Wins Day Trends 2007-20112007 2008 2009 2010 2011

Total

Wins 308 290 197 272 286

Investment 258 257 174 252 242

Development 50 33 24 20 44

Base List Wins (PRA Research) 186 192 141 196 223

Pct of final Investment Wins 72% 75% 81% 78% 92%

Expansion/Retention 224 179 105 169 165

Attraction/Relocation 34 56 45 47 58

Start Up 22 24 36 19

Key Sector Wins

Manufacturing 112 67 46 69 53

ICT 43 55 25 42 48

Health Care & Life Sciences 24 42 15 31 17

Financial & Business Services 31 63 33 50 65

Energy - Total 44 77 79

Natural Resources 6 11 25 32 39

Other Sectors 19 45 40

Jobs Total 23,000 30,000 16,000 20,157 17,060

New 12,272 13,208 6,968 11,442 11,440

Retained 10,838 17,047 8,683 8,745 5,620

Capital Investment

Development $1,200,000,000 $1,500,000,000 $1,900,000,000 $1,142,000,000 $747,355,520

Investment $1,700,000,000 $4,200,000,000 $1,100,000,000 $430,400,000 $749,133,419

Site Selection Ranks Pittsburgh a “Top 10

Metro” for the 4th Year

• Ranked a “Top 10 Metro” by Site Selection

magazine for four years running (2008-2011)

Year Site Selection Ranking

2011 Number 3

2010 Number 8

2009 Number 7

2008 Number 7

“Pittsburgh’s rise in our ranking of Top Metros to third place from eighth the previous year is

the most significant improvement of the metros in that tier. “[The ranking of Pittsburgh as a

No. 1 metro in the Northeast] confirms that the economic development leadership of the

Pittsburgh region is delivering the location solutions required of today’s site location

decision makers.”

-Mark Arend, editor in chief of Site Selection, March 2012

Recent Wins

Alstom Grid’s disconnect switch

manufacturing facility

Westinghouse Electric Company HQ

Valerus Compression Services facility in

Smithfield, PA

Recent Wins

Three PNC Plaza

Google Pittsburgh

Range Resources new regional HQ

Recent Wins

Bakery Square Mixed Use Development

CONSOL Energy Center

Dick’s Sporting Goods HQ

For More Information

@ImaginePGH

Pittsburgh Region

Pittsburgh Regional Alliance

ImaginePittsburghNow.com

Dewitt Peart

President

412-392-4555 ext. 3109

[email protected]