ALLEGHENY CONFERENCE ON COMMUNITY DEVELOPMENT 2011ANNUAL REPORT GREATER PITTSBURGH CHAMBER OF COMMERCE PENNSYLVANIA ECONOMY LEAGUE OF SOUTHWESTERN PENNSYLVANIA PITTSBURGH REGIONAL ALLIANCE 11 STANWIX STREET, 17th FLOOR | PITTSBURGH, PA 15222-1312 TOLL FREE: 1 (877) 392-1300 | PHONE: (OUTSIDE OF U.S. AND CANADA) +1 (412) 281-1890 | FAX: (412) 471-2554 | www.alleghenyconference.org Mission Statement Outgoing Chair John Surma Sums Up as Incoming Chair Chuck Bunch Assumes Leadership The Allegheny Conference on Community Development and its Affiliates – the Greater Pittsburgh Chamber of Commerce, the Pennsylvania Economy League of Southwestern Pennsylvania and the Pittsburgh Regional Alliance – work together to stimulate economic growth and improve the quality of life in southwestern Pennsylvania. From The Chair Summing Up 2009 – 2011 2011 closed a chapter for the Allegheny Conference and a challenging period About the Conference for our region and for the nation as a whole. It also marked the conclusion of ounded in 1944, the Allegheny Con- Three affiliated organizations, each gion’s chief advocate at all levels of gov- our 2009-2011 agenda. Fference on Community Development is staffed by the Conference, provide re- ernment to secure public sector invest- one of the nation’s leading economic and search and analysis, advocacy and mar- ment and legislative and regulatory Three years ago we set ambitious goals for our organization and for our region: community development organizations, keting to realize the vision of the improvements to our business climate. simpler, more cost-effective government; sound transportation infrastructure; a competitive business climate; creating jobs through business investment; combining strong private sector leader- Conference leadership. The PITTSBURGH REGIONAL ALLIANCE and building a 21st-century workplace. As we implemented our plan, our na- ship with commitment from public sector tion found itself in the midst of the deepest recession since World War II. partners. Our strategic focus is on creating The PENNSYLVANIA ECONOMY LEAGUE OF (PRA), a 10-county regional economic SOUTHWESTERN PENNSYLVANIA provides development partnership, markets south- Thanks in large part to a diversified economy, we have weathered this economic a more competitive business climate and storm better than most. marketing the Pittsburgh region for invest- public policy research and analysis on the western Pennsylvania to companies ment, job creation and top talent. The most critical issues for our region’s com- across the region and around the world We have made progress against our plan. Our region has been recognized three Conference relies upon the Regional In- petitiveness. to attract capital investment and stimu- years in a row among the Top 10 in the United States for business investment. late job creation. An expanding energy industry is creating jobs and leading growth in other sec- vestors Council – leaders of more than The GREATER PITTSBURGH CHAMBER OF 300 companies and organizations – to tors, from manufacturing to financial services. The competitiveness of Penn- COMMERCE, working with private and Learn more about how our structure sylvania’s tax and regulatory climate has improved, including much-needed provide time, talent and resources to ad- public sector partners, serves as our re- works on page 2. vance our agenda. lawsuit abuse reform. And along the way, our region hosted a successful G-20 Summit and World Environment Day. We have much to be proud of. And yet, significant work remains. The future of transportation funding in the Commonwealth is unresolved, along with the long-term sustainability of the Port Authority of Allegheny County. Municipal pensions are still a problem waiting to be solved, and neighboring states are aggressively courting our energy industries, just as our region has begun to re-emerge as the center of American energy. My term as Allegheny Conference chair has come to an end, but I remain involved and continue to work with Chuck Bunch of PPG Industries, Inc., our new chair, and all of our Regional Investors and partners to realize our region’s full potential. Together, we can do it. That is the true Power of Pittsburgh. John P. Surma Chair, Allegheny Conference on Community Development Chairman & CEO, United States Steel Corporation | ALLEGHENY CONFERENCE ON COMMUNITY DEVELOPMENT | 2011 ANNUAL REPORT | 1 Leadership to Deliver Results Resilience Through Diversification Our Unique Model The Pittsburgh region’s prosperity is powered by key industry sectors 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. These organizations share a Advanced Manufacturing Health Care and strategic vision and work together to market our region for business investment and talent attraction, conduct research and Top manufacturers like Alcoa, Al- Life Sciences analysis to improve our competitiveness, and advocate on behalf of business climate and quality-of-life improvements. The legheny Technologies, Bayer, Eaton Pittsburgh’s health services Regional Investors Council, made up of more than 300 regional employers, provides the leadership, commitment and re- Corp., Heinz, Kennametal, Koppers, sector, employing almost sources to move our Agenda forward. LANXESS, MEDRAD, Mine Safety Ap- 190,000 people, builds on a pliances, NOVA Chemicals, PPG In- legacy of biomedical innova- dustries, RTI International Metals, tion to create a robust network Pittsburgh Regional Alliance Pennsylvania Economy League U.S. Steel and Westinghouse thrive that’s cultivating lifesaving The PRA makes the most of our competitive strengths, of Southwestern Pennsylvania here. Smaller precision tooling and technologies, medical device marketing the region worldwide for business investment To continue to improve our region’s competitiveness, facts machining companies meet global de- advances, regenerative medi- and working with local employers to encourage expansion about our strengths and weaknesses are essential. For al- mands for the components that keep cine and pharmaceuticals. here at home. The partnership brings together business, most 75 years, the Economy League has been a trusted the world’s machines humming. UPMC has grown into the re- economic development and government leaders from 10 resource to provide thorough and documented research, gion’s largest employer and an counties to generate leads and secure investment. analysis and recommendations on the pressing issues im- Energy $8 billion global health care en- pacting our regional and statewide competitiveness. These terprise. GlaxoSmithKline Con- Pittsburgh is the new center of are the building blocks of sound public policy. sumer Healthcare, MEDRAD, American energy, developing the Phillips Respironics and West sustainable solutions of the future. Penn Allegheny Health System The region is home to more than are also part of this sector. 750 companies in the global en- ergy supply chain, with nationally leading strengths in coal, natural Information and gas, nuclear, solar, wind, transmis- Communications Technology sion & distribution components and Almost 1,500 technology firms in- intelligent building technologies, cluding ANSYS, Apple, Black Box, along with $1 billion invested an- Confluence, Google, Intel and nually in energy-related research. Mastech are here and employ Much of that research is generated some 25,000 people. A tech-savvy by the National Energy Technology talent pipeline and robust network Laboratory located in South Park. of organizations are supporting and financing innovation, which is Financial and Business Services helping Pittsburgh’s knowledge- based economy to thrive. Global institutions with headquarters or major business units here include BNY Mellon, Citizens Bank, Federated In- vestors and The PNC Financial Services Group, Inc. Two of the world’s largest law firms – K&L Gates and Reed Smith – are based here, as is Pennsylvania’s largest health insurer, Highmark. Greater Pittsburgh Chamber of Commerce Regional Investors Council Together with numerous partners across the Common- Truly engaged leadership and successful public-private wealth, the Chamber advocates in Harrisburg, Pa., and in partnerships sustain and develop regional prosperity and Washington, D.C. for business climate improvements that energize the Conference itself. More than 300 regional enhance our region’s competitiveness, encouraging em- employers compose the Regional Investors Council. To- ployers to invest and grow here. These improvements help gether the Council imagines better things for our region, to make our region a national leader in terms of business puts action behind words and makes a real difference for investment and expansion. the future. 2 | ALLEGHENY CONFERENCE ON COMMUNITY DEVELOPMENT | 2011 ANNUAL REPORT | 3 Pittsburgh Means Business Economic Development Deals Underscore Ability to Attract, Retain Business FINANCIAL & BUSINESS SERVICES ufacturing and headquarters facility in Cheswick. The company’s technology The economic recovery continues to be sluggish in many parts of the country. In Pittsburgh, however, continued strength across CIGNA includes the world’s first fully card-pro- a diverse economy has helped the region to push ahead of its 2010 performance and maintain momentum toward pre-recession Existing business expansion grammable magnetic strip that is virtu- levels of business