The latest Allegheny Conference business investment card says job growth is recovering

Pittsburgh’s tech economy is definitely booming – but so are other sectors, according to a new report.

Wednesday morning, Allegheny Community Development Conference released his annual Indicative map for business investments in the Pittsburgh region – a compilation of data for tracking business investment activities and jobs in the region, collected by the partners of the organization for economic development in 10 counties. Now in its 15th year, the report is described as the only regional view of investment and jobs that has been captured in one place.

This year’s report card reports that these 10 counties have brought in about $ 3 billion in combined capital investment in 2021 in a total of 215 deals, an increase of seven compared to 2020. A total of 150 of these deals are investments for companies with plans to add or retention of employees while 65 are related to real estate infrastructure projects that are not specifically linked to the impact on employment.

See the report

Changes in location and industry

Outside of investment, Pittsburgh saw 39 new business attractions or relocations in the city, nearly double the 21 in 2020.

“Despite the transition to hybrid work, remote work environments, you still see the need for these more traditional types of back office operations,” Allegheny Conference Vice President of Market Research Jim Futrell said in a webinar about the scorecard.

This is in line with the significant number of office openings and expansions that the Pittsburgh region has seen in the past year alone from its technology industry. Duolingo, Sheetz, DoorDash, 3M, Aurora and yet everyone has either launched new engineering offices or expanded their existing footprints here.

“In recent years, technology, robotics and life sciences have become leading sectors,” Futrel said in a statement. “And in 2021 we saw the emergence of distribution centers and the resumption of production as key economic drivers. In this era of pandemic facilities such as manufacturing plants, distribution centers and research and development centers have captured a higher percentage of communications. These are the types of equipment that cannot be easily transferred to a remote or hybrid work environment. “

The sector analysis of the report card showed that Pittsburgh manufacturing companies attracted the most deals at 60 – almost twice as many as in 2020, and this is the first time since 2016 that manufacturing has attracted the most investment deals. . For the past four years, technology and robotics have held the best deal among the sectors. But in 2021, they recorded only 31 deals, down from a total of 38 in 2020. Technology was followed by financial and business services with 17 deals, energy with 13 deals and health and life sciences with 10 deals.

Jobs in Pittsburgh are increasing

Although some industries were more active in 2020 than others, one indisputable conclusion from this year’s scorecard is the health impact it has had on jobs in the region. Overall, the total employment impact related to regional investment is 10,123, an increase of 29% compared to the same measure in 2020. Of these, 8,405 are new jobs – the highest level since 2011 – while 1,718 jobs are reserved. On average, each investment project creates 56.3 new jobs, which is the second largest number for this data point. This job growth is largely due to four projects that announced 500 or more jobs: Amazon, Trulieve, Iron Synergy and Express Med.

Pittsburgh Regional Alliance President Mark Anthony Thomas attributes this recovery and increased investment deals to the efforts made by Pittsburgh’s economic development organizations.

“Against the backdrop of the economic recovery related to the pandemic, we doubled in 2021 – a year of transition – using the strengths of the region and their intersection with market demand. This includes greater interest from companies looking to invest in US production, logistical opportunities to alleviate supply chain difficulties and climate-related innovations such as energy storage and carbon capture, both of which are essential for a low-carbon future, “Thomas said in a statement. Investments and development projects underscore our message to companies around the world:” The Pittsburgh region is open for business. “

What lies ahead for the region

It remains unclear whether 2022 will show a continuation of the trends illustrated in this latest scorecard, but as Allegheny Conference’s market research manager. Ellen Gauss noted in the webinar, “we are seeing signs of recovery” in terms of investment volumes compared to pre-pandemic levels. She added that so far “advanced production includes a higher share of communications than in the past”, while investment reports from industries that are easier to translate into remote environments, such as financial services or branch operations, have declined recently.

“However, reports of headquarters and distribution have continued to perform well over the years,” Gauss said. “The share of energy-related communications in the first four months of 2022 exceeded pre-pandemic levels.

Sophie Berkholder is a member of the 2021-2022 Corps for Report for America, an initiative of The Groundtruth Project that brings together young journalists from local newsrooms. This position is supported by Heinz Endowments. -30-

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