PHOTO BY DAVE DICELLO

The Pittsburgh economy is getting a lot more bang for its buck from companies already here rather than from new ones opening or moving to the region.

That’s an analysis by the Allegheny Conference on Community Development that has tracked more than 3,400 business investment announcements in a 10-county area over the last 17 years — from 2007 to 2023.

During that period, more than 81% of 233,954 new and retained jobs came from existing companies, for a total of 191,479 jobs, said Jim Futrell, a market research consultant with the conference, during a webinar presentation on Thursday.

And between 2007 and 2023, expansions have generated nearly $16 billion in capital investment in the region — 54.8% of all announced capital investment, according to the conference’s new report, “The Impact of Regional Business Expansion: Why ‘Growing Our Own’ Matters.” 

“Existing businesses are driving the lion’s share of business activity in Western Pennsylvania,” said Majestic Lane, conference chief equity officer who moderated the session.

With this information, the conference is “stepping up efforts to discover more opportunities that can lead to additional growth by businesses that are established in southwestern Pennsylvania,” according to the report.

Advanced manufacturing and technology and robotics accounted for the largest shares of these expansions, followed by health care/life sciences and financial services. 

For single companies, UPMC, the region’s largest employer, accounted for the most expansion, adding 4,691 new jobs and nearly $2.4 billion in capital investment, according to the report.

Among some local “household brands,” ATI announced a new mill in Brackenridge, which helped contribute to the need for 100 new jobs and 3,100 retained jobs. BNY Mellon added 1,205 new jobs and PPG Industries added 452 jobs at three locations in Allegheny and Butler counties.

In manufacturing, for example, Perryman Company, a titanium manufacturer in Washington County, announced a half dozen expansions that have generated 310 new jobs and $360 million in capital investment.

In the tech sector: 

• Duolingo, one of the region’s most high-profile technology startups, has had 10 expansions in its language learning initiatives since 2013, resulting in 361 new jobs. 
• Robotics company Seegrid anticipates 297 new jobs.
• Advanced Acoustic Concepts, a technology manufacturer in Fayette County had five expansion announcements adding 76 new jobs and $17.1 million in capital investment.
• Eos Energy Enterprises, which began operations in Turtle Creek in 2020, is ramping up production of zinc-based energy storage battery technology. In 2023, it announced a $500 million investment in new production capacity that would eventually add 500 jobs.

The analysis shows the impact of existing companies in our region and the need to help them “thrive and grow,” Futrell said.

Among the initiatives to help companies continue to expand, the conference is conducting market research and data assistance in relocation decisions, identifying real estate opportunities to help facilitate site searches and visits, strengthening connections with partnerships, federal funding opportunities and more.

As an immediate goal, it hopes to assist in retaining and expanding at least 130 companies throughout the Pittsburgh area by the end of 2024, according to Alisa Balestra, conference senior director of economic development research and strategy.