Written by David Stasiukaitis, CEO, Low Country Case & Millwork
Have you ever wondered why there are so many Steelers fans spread across the United States? Yes, they are a very good football team; however, a more feasible explanation is that most of those fans (or their families) probably used to live in Pittsburgh.
A few weeks ago, I joined the Chamber along with 50 other business leaders in Pittsburgh for the Metro Leadership Visit. Together, we embarked on a unique experience, exploring how Pittsburgh has been transforming itself all while developing important relationships. I left Pittsburgh inspired, filled with new knowledge we can apply to our community.
A Declining Population
During the early 1980’s, the United States steel industry collapsed, resulting in over 150,000 jobs lost in Pittsburgh and ultimately about 10% of the region’s population left. To make matters even worse, due to the unions’ seniority policies, most of the exodus included young adults, who also took their future families with them. This widened the population’s age gap and it has continued to plague Pittsburgh ever since. In 2021, Pittsburgh had the highest natural population loss (more deaths than births) of any American metro area. During that same year, 19.7% of Allegheny County’s population, one of Pittsburgh’s largest metros, was over 65 years old.
So, how do you fix a declining population?The answer must be in-migration. In Charleston, we often take for granted that we have a large and seemingly never-ending flow of in-migration. Without that luxury, Pittsburgh has been forced to be much more intentional in how they attract new citizens. Not to mention, they had to completely reshape their economy, going from a steel producing powerhouse to a hub of technology, innovation, healthcare and finance. This took an extraordinary amount of intentionality, collaboration and (of course) resources. Today, Pittsburgh is a leader in aerospace, AI, medicine, education, health care, robotics, software engineering and other tech-forward industries.
Collaborative Shift from Steel City to Tech City
It starts with a clear vision and roadmap from your elected officials. Pennsylvania has been a purple state since the late 1980’s. With no party fully in charge, collaboration is the only way to create the essential changes and progress needed. Next comes the private sector including academia, businesses, manufacturing and non-profits. Working together, this consortium helped to bring Google’s regional headquarters in 2006, followed by tech headquarters for Duolingo, 4moms, Astrobotic and many others. They have also attracted corporate offices for American Eagle, Apple, Amazon, Facebook, GNC, Uber and the list goes on. People will not move to a city if it doesn’t have high quality, good paying jobs, something they have plenty of now. Private public partnerships and collaboration have been key to Pittsburgh’s turnaround.
Of course, when you are redefining your city as a tech hub, it doesn’t hurt that Pittsburgh was already home to both Carnegie Mellon University (CMU) and the University of Pittsburgh (Pitt). CMU is recognized as having one of the first computer science programs in the world and continues to rank as one of the best. They are known to collaborate with companies such as Apple, Intel, Caterpillar and Disney, helping to expand technology ties in Pittsburgh. CMU’s Manufacturing Futures Institute (MFI) and Advanced Robotics for Manufacturing Institute (ARM) are on the cutting edge of the robotics industry. Similarly, Pitt launched the Innovation Institute in 2013 which focuses on accelerating innovation on the path to market. These universities have been key in providing a skilled labor force, which then attracts new businesses and has ultimately been a huge factor in redefining the economy.
Birthplace of American Philanthropy
Speaking of resources, Pittsburgh is often considered the birthplace of American philanthropy, as Andrew Carnegie, Henry Clay Frick, the Heinz family and other successful 19th century industrialists promoted using their wealth to benefit the community. Andrew Carnegie once said, “the man who dies thus rich dies disgraced.” Today, there are over 4,000 foundations in Pittsburgh with almost $79 billion in assets. Without question, these foundations helped save the local economy from collapse in the 1980’s by playing an active role in economic development and neighborhood revitalization.
Perhaps the most important of these investments was made by H.J. “Jack” Heinz II, who helped found the Pittsburgh Cultural Trust (PCT) in 1984. The PCT oversaw one of Pittsburgh’s most historic transformations: turning a seedy red-light district into a 14-block arts and entertainment/residential neighborhood called the Cultural District. This District is one of the largest land masses “curated” by a single non-profit arts organization in the United States. The PCT owns 28 properties totaling 1.2 million square feet. They host Broadway, cabaret, magic, comedy and all types of visual arts throughout their venues. It’s estimated the Cultural Districts attracts over two million visitors annually and has a $303 million economic impact. Truly an incredible legacy and an invaluable source for improving residents’ quality of life and bringing visitors into the city.
Transformation Through Intention
Overall, Pittsburgh is a prime example of a city who put too many eggs in one basket and ultimately paid the price. However, from the ashes they have had a remarkable transformation. It took strong leaders who were not afraid of risks, to provide a clear vision and direction for the city. Then, through extraordinary collaboration and intentionality, they put all the right entities on the bus and into the right seats.
Finally, the non-profits, foundations and local government provided the fuel needed to take the city to their new destination. While they certainly have not arrived yet, they are well on their way and, from an outsider’s perspective, the journey has been nothing short of epic. Learning from other communities, both their successes and challenges, can help us generate innovative solutions for our region.
By coming together to address shared challenges, we can create a thriving future for all. I hope you will join us for next year’s Metro Leadership Visit, it is a trip unlike any other.
