Pittsburgh - Economy

Economy

Main article: Economy of Pittsburgh See also: List of corporations in Pittsburgh

The growth of Pittsburgh and its economy was caused by the extensive trade in steel through the 1970s. Pittsburgh has since adapted to the collapse of the region's steel industry. The primary industries have shifted more to high technology, such as robotics, health care, nuclear engineering, tourism, biomedical technology, finance, and services. As of 2007, the total annual payroll of the region's technology industries, when taken in aggregate, exceeded $10.8 billion, and as of 2010, there were 1,600 technology companies. Reflecting the citywide shift from industry to technology, some former factories have been directly renovated into modern office space. For example, Google operates an office in a former Nabisco factory, a complex known as Bakery Square. Some of the factory's original equipment, such as a large dough mixer, were left standing in homage to the site's industrial roots. Pittsburgh's generally successful shift away from its industrial past has led to it being characterized as "the poster child for managing industrial transition".

Pittsburgh has grown its economic base in recent years to include technology, retail, finance, education, and medicine. Medicine in particular constitutes a large proportion of total employment in the city. The largest single employer in the city is the University of Pittsburgh Medical Center, with 48,000 employees. Combining that figure with all other hospital, outpatient clinic, and doctor's office positions, yields a count of 116,000 jobs, approximately 10% of the jobs in the region. One analyst has noted that "That's both more jobs and a higher share of the region's total employment than the steel industry represented in the 1970s."

Education is another major industry in the region. The largest single employer in that industry is the University of Pittsburgh, with 10,700 employees.

Pittsburgh still maintains its status as a corporate headquarters city, with eight Fortune 500 companies calling the city home. This ranks Pittsburgh in a tie for the eighth most Fortune 500 headquarters in the nation. In 2006, Expansion Magazine ranked Pittsburgh among the top 10 metropolitan areas in the nation for climates favorable to business expansion.

Several Fortune 500 corporations have headquarters in the city or the surrounding area. These include PNC Financial Services, PPG Industries, U.S. Steel, H. J. Heinz Company, Mylan Laboratories (Located in suburban Canonsburg), WESCO International, CONSOL Energy (Located in suburban Cecil Township), and Dick's Sporting Goods (Located in suburban Findlay Township).

Pittsburgh and the surrounding region is also home to Allegheny Technologies, American Eagle Outfitters, Kennametal, Atlas America, Bayer USA and the operations center of Alcoa. Other major employers include BNY Mellon, GlaxoSmithKline and Lanxess. The city and the surrounding region serve as the Northeast U.S. regional headquarters for Nova Chemicals, Deloitte Touche Tohmatsu, FedEx Ground, Ariba, and the RAND Corporation. 84 Lumber, Giant Eagle, Highmark, Rue 21, and Genco Supply Chain Solutions are major non-public companies with headquarters in the region. Other major companies headquartered in Pittsburgh include General Nutrition Center (GNC) and CNX Gas (CXG), a subsidiary of Consol Energy.

The nonprofit arts and cultural industry in Allegheny County generates $341 million in economic activity and supports over 10,000 full-time equivalent jobs. Revenues of nearly $34 million are generated through local and state tax.

The region is also becoming a hub for natural gas and oil extraction in the Marcellus Shale formation.