Robotics, IT propel $5.5B investment in Pittsburgh region
Pittsburgh Post-Gazette
Deal-making in the information technology and robotics sector reached record levels as capital investment in the Pittsburgh region rose to $5.5 billion in 2017, the thirdhighest annual amount since economic development officials began tracking deals 11 years ago.
The total investment was revealed on Tuesday in an annual investment scorecard by the Pittsburgh Regional Alliance, a subsidiary of the Allegheny Conference on Community Development. The report showed 258 total investments and development deals that led to nearly 12,000 new or retained jobs across a 10county region.
The number of deals were up about 5 percent from the previous year, while jobs created or retained were up 3 percent.
The scorecard, while not a scientific survey, is an important gauge of the region’s economy, said Jim Futrell, vice president of market research for the Allegheny Conference. Dollar amounts and jobs are totaled from public announcements made by companies over the year.
By industry sector, IT and robotics topped the list for the first time with 59 deals struck totaling $212 million. Those deals involved creating 1,872 jobs and retaining 98 others. Salaries in the industry average about $94,000, compared with $54,200 for the average job.
Manufacturing, which has recorded the most deals in the region for each of the past five years, was second with 51 deals totaling $165 million.
The rise in deal-making is a good sign for Pittsburgh tech companies and local officials, which have struggled to secure venture capital needed to grow here, the Post-Gazette has reported. The amount is similar to the roughly $229 million in venture capital that 76 Pittsburgh tech companies received in 2016, according to the National Venture Capital Association, a Washington, D.C.based trade organization.
The report highlighted big developments: Argo AI and Uber’s expansions in the Strip District; Aptiv, Near Earth Autonomy and Seegrid expanded or added new jobs.
In terms of capital investment, technology and manufacturing remain dwarfed by $3 billion recorded by the health care and life sciences industry and the $821 million recorded by energy companies.