ANNUAL REPORT ALLEGHENY CONFERENCE ON COMMUNITY DEVELOPMENT AND ITS AFFILIATES GREATER PITTSBURGH CHAMBER OF COMMERCE PENNSYLVANIA ECONOMY LEAGUE OF SOUTHWESTERN PENNSYLVANIA PITTSBURGH REGIONAL ALLIANCE About the Conference Founded in 1944, the Allegheny Confer- The PENNSYLVANIA ECONOMY ence on Community Development is one of LEAGUE OF SOUTHWESTERN the nation’sleading economic and commu- PENNSYLVANIA provides public policy nity development organizations. Combin- research and analysis on the most critical is- ing strong private sector leadership with sues for our region’s competitiveness. public sector partners, we work to stimulate economic growth and improve the Pitts- The GREATER PITTSBURGH burgh region’s quality of life. Our strategic CHAMBER OF COMMERCE, work- focus is on creating a more competitive ing with private and public sector partners, business climate and marketing the Pitts- serves as our region’s chief advocate at all burgh region for investment and job cre- levels of government to secure public sector ation. The Conference relies upon the investment and legislative and regulatory Regional Investors Council – leaders of improvements to our region’s business cli- more than 300 companies and organiza- mate. tions – to provide time, talent and resources to advance our agenda. The PITTSBURGHREGIONAL ALLIANCE, a 10-county regional eco- Three affiliated organizations, each staffed nomic development partnership staffed by by the Conference, provide research and the Conference, markets southwestern analysis, advocacy and marketing to realize Pennsylvania to companies across the re- the vision of the Conference leadership. gion and around the world to attract capital investment and stimulate job creation. From The Chair As we enter our region’s 250th anniversary year, twice deemed “America’s Most Livable City” Each of us can play a role in achieving regional it is the perfect opportunity to celebrate all that by Places Rated Almanac. In addition to lower excellence by encouraging every individual here, we have accomplished and to take aim at the housing costs and more bang for their buck, our across the country and around the world to challenges that remain ahead of us. This past year residents enjoy short commutes and unparalleled imagine what they can do here. has been a strong year for business development arts, sports and recreation opportunities when activity,a year in which we laid the groundwork compared to similar-sized regions. A strengthen- Join me in 2008 in celebrating where we are, for further improvement in our region’scompet- ing urban core is attractive to today’s young how we got here and – above all – where we are itiveness, and launched a new initiative to en- knowledge workers. This is also one of the safest going together. courage our children and grandchildren to places in the country in which to live and raise a imagine a bright future here. family. James E. Rohr Chair of the Board Two hundred and fifty years ago, our region was Weare building on a strong foundation laid dur- Allegheny Conference on a global prize for its strategic location as the gate- ing our region’scomeback from a deep industrial Community Development way to the west. Today we are poised to be a recession. Today, total employment is near an gateway to opportunity for young people from all-time high, with 70,000 more jobs than at the Chairman and Chief Executive Officer around the world. peak of industrial employment 25 years ago. We The PNC Financial Services Group, Inc. are following key principles designed to foster What gives us confidence that we can deliver on continuous improvement in our region’sbusiness this promise? climate and quality of life. We are counting on James E. Rohr We are a leader in key industries of the future. engaged private sector leadership to make great The 2006 – 2008 Agenda: things happen for our region. Chair of the Board We continue to experience growth among the Marketing the Region Life Sciences, Advanced Manufacturing, and In- Yet we know there is much more to be done. In • Regional Promotion formation and Communications Technology in- 2006 we set an agenda for action to address is- • Economic Development dustries. Meanwhile, world leaders such as sues that weaken our regional competitiveness. Westinghouse, Bayer, Google and EDMC are As illustrated by Pennsylvania’sCorporate Net In- Competitiveness thriving and expanding here, which shows the come tax rate – the second-highest in the nation • Taxes and Regulations confidence business leaders have in our region’s – our tax structure puts businesses at a disadvan- • Workforce Quality assets. tage. We also need to strengthen our transporta- tion network, particularly through a financially • Transportation and We boast strengths in energy and the environ- Infrastructure ment. In line with our worldwide reputation for sound Port Authority and direct air service to Eu- rope. We must make government simpler and • Local Government environmental transformation, we are emerging Function and Structure as America’s “green” region; behind only Port- more cost effective. And, critical to our future, land, Ore., and Seattle, Wash., in total number we must develop a workforce capable of com- Special Initiative peting long term in the dynamic global economy. of green buildings, we promise a more energy- • Pittsburgh 250 efficient future. Addressing these challenges will reinforce our strong foundation. In the following pages, we Our quality of life is second to none, which, in report on our progress on each front. 2007, made the region the only location to be | ALLEGHENY CONFERENCE ON COMMUNITY DEVELOPMENT | 2007 ANNUAL REPORT | 01 From The Chief Executive Officer As one of the nation’spremier civic leadership area that was one of the largest economic de- Our region’s250th anniversary is also a call to organizations, the Allegheny Conference be- velopment projects in the country last year. action to build a better Pittsburgh region for lieves that combining engaged leadership But you might not know about many others the future. Our competitiveness activities do with a focused agenda for change is the way from Mitsubishi and Eaton Corporation to just that by improving the business climate to move our region forward. By adopting our TechAssist and SYCOR. You’ll find highlights to be competitive in today’s– and tomorrow’s 2006-2008 Agenda, our Regional Investors from the year on page 9. – global economy. We’re working on reduc- put their vision for our future into action. ing business taxes, improving business regu- We’re proud to share the impact of their lead- We believe that this level of business activity lation, reforming the Port Authority, ership and commitment in the following is not a one-time event but an indication of a strengthening air service, enhancing local pages. much broader trend of continuing reinvest- government efficiency and educating a ment in our local economy.Bill Flanagan, our strong, well-qualified workforce for our re- 2007 was marked by success and continued executive vice president of Corporate Rela- gion. hard work in promoting our 10-county re- tions and the host of our weekly TV program gion, assisting business investment and tak- “Our Region’s Business,” discusses this his- And, we have an anniversary of our own to ing steps to improve the competitiveness of toric shift from disinvestment to reinvestment celebrate. It’s been 65 years since our com- our business climate. We’ve seen success in with CEOs Steve Tritch of Westinghouse munity leaders – public and private – first the reach and impact of the Pittsburgh: Imag- Electric, Attila Molnar of Bayer and John Friel came together to lay the groundwork for the ine what you can do here campaign to com- of MEDRAD on page 11. Allegheny Conference. One thing that we’ve Michael Langley municate our region’s rich history of learned over the years is that real change Chief Executive Officer innovation and its future potential in the The Conference leadership and staff have also takes engaged leadership, clear priorities and evolving global marketplace. Take a look at been carrying out a special assignment – focused resources. We invite you to partner the campaign, that we’ve been promoting na- working in partnership with the Senator John with us in imagining what we can do to- tionally and internationally,on page 8 of this Heinz History Center, VisitPittsburgh and gether for the future of the Pittsburgh region. report. numerous other partners – to plan the Pitts- burgh region’s 250th anniversary in 2008. Michael Langley The Pittsburgh Regional Alliance – our busi- We have provided resources and solicited Chief Executive Officer ness development affiliate – had a record funding to support the vision of the Pitts- Allegheny Conference on year, directly assisting 35 companies in burgh 250th Anniversary Commission – Community Development choosing our region as the place for their fu- more than 200 high-level volunteers under ture growth. You may already know about the leadership of Conference Chair Jim Rohr. the Westinghouse Electric expansion in our 02 Great Allegheny Passage, Big Savage Tunnel | ALLEGHENY CONFERENCE ON COMMUNITY DEVELOPMENT | 2007 ANNUAL REPORT | 03 Leadership committed to competitiveness and investment for the Pittsburgh region By staffing the PRA, the Conference took on responsibility for the first time to market our region for business investment. We also got closer to the competitive Our History State Park, the influence of the Conference After decades of transforming