JANUARY 2012

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Pittsburgh's Successful Transformation Story Continues to Echo


The Pittsburgh region was recently highlighted in the December 2011/January 2012 issue of fDi, or Foreign Direct Investment, a Financial Times publication read by business investors and decision makers globally. The Pittsburgh Regional Alliance (PRA) hosted fDi journalist Michal Kaczmarski in the fall of last year during a multi-day visit to the Pittsburgh region. Kaczmarksi's article, "From Steel to Silicon," details his first visit to Pittsburgh and the region's transformation story, with an emphasis on research, innovation and commercialization. He notes that "Pittsburgh today is more reminiscent of the cities in California's Silicon Valley than it is of struggling Rust Belt cousins Detroit and Flint."

He profiles entrepreneurs who decided to remain in the region after college – or relocate here from bigger cities – because of our network of opportunities to start and nurture their businesses. "The key to Pittsburgh's success lies in its workforce," writes Kaczmarski. Part of Google's – one of the companies highlighted – purpose of moving to Pittsburgh was to be close to the talented graduates coming out of the nearby universities, especially Carnegie Mellon.

Read the full story

	Wind Energy Supply Chain: Pittsburgh's Story As renewable energy industries such as solar and wind continue to grow nationally, it's important to evaluate the already existing occupational and industrial infrastructure within the region to determine our true renewable energy potential. The Pittsburgh region is already positioned favorably for the wind energy supply chain and it has even greater potential for growth, especially when compared to its benchmark communities and the nation as a whole. Many of the industries along this supply chain are already established (and highly concentrated) in the Pittsburgh region: metals, plating and electronics. While not all of these industries are necessarily involved in the wind energy market, there is great potential, and that could register real economic gain for the region. The following analysis of the potential wind industry is based on a methodology developed by the U.S. Department of Energy funded Renewable Energy Policy Project (REPP). The REPP process breaks down renewable energy industries into their individual supply chain industries. REPP then tracks these industries based on employment numbers. See Appendix A for a complete city/industry breakdown and further notes on methodology. It is important to note these findings are for a potential wind supply chain. Pittsburgh already has over 70 companies directly involved in the wind supply chain including ABB, Alstom Grid, Brad Foote Gear Works, Converteam (recently acquired by GE), Kennametal, PPG Industries, and many others. Wind firms such as Gamesa, GE Wind and Iberdrola are also located in Pennsylvania. For the purpose of focusing on the potential supply chain, the industries analyzed cover a wider range of markets, not all of them necessarily tied to energy, let alone wind energy. However, the findings provide an overview of the workforce and manufacturing infrastructure necessary to produce products for the wind industry supply chain in the future. Read More

More Economic Development News

Wombat Securities Targets the Weakest Link for Cyber Success, Hiring
"Wombat Security Technologies in Oakland has moved beyond its anti-phishing tools and pools to offer companies a wider, more comprehensive approach to cyber security. Its latest release, Security Training Platform, gives firms a new level of cyber security support. The offering has proven so successful that Wombat has doubled its customer base in the last eight months, has added many Fortune 500 companies [to its client list] and plans to hire." Read more

Premier Innovations Launches Taxi App, Hiring
"Strip District-based Premier Innovations Group believes every responsible drinker deserves a DrinkyPal, an appropriately named iPhone app that is accessed through a QR code on Clique vodka bottles. The DrinkyPal app lets any user pull up a list of the nearest taxi companies and the nearest list of hotels to help prevent drinking and driving. The company, with corporate headquarters in the Penn Rose Building, is planning for more growth and hiring." Read more

Region Shows Solid Job Gains
"Unemployment in the Pittsburgh region came in two full percentage points below the nation's nine percent rate for October, the Pennsylvania Department of Labor and Industry reported last month. The region's unemployment rate for the month fell another four-tenths of a percentage point in October to seven percent, from 7.4 percent in September. It was unequivocally good news." Read more
In a related article, "The Pittsburgh region is in select company, one of only five of the top 100 major metropolitan areas in the United States to hit their highest employment levels in a decade in October 2011. Pittsburgh and four metro regions in Texas – Austin, El Paso, Houston and McAllen-Edinburg – were the only ones in October 2011 to do so, according to an On Numbers analysis of U.S. Bureau of Labor Statistics data." Read more

Region Climbing Out of Recession Faster Than the Rest of the Nation
"Western Pennsylvania appears to be climbing out of recession faster than the rest of the nation, which received the good economic news last month that the national unemployment rate fell to its lowest point in more than two-and-a-half-years under certain statistical counts. State figures released this week show that the Pittsburgh region alone gained 13,600 jobs [in October], accounting for nearly 14 percent of net job gains across the country." Read more

Axion Power Revs Up Renewables with the PowerCube, Predicts Major Hiring and Growth
"The New Castle-based manufacturer Axion Power has spent the last seven years developing the revolutionary battery based on patented PbC Technology, a unique system that captures energy and provides short-term storage, including wind and solar generated energy, for utility-scale energy producers. Axion reported revenues of $9M in 2011 and expects to top $10M in 2012, projecting company growth, hiring and expansion." Read more

Blue Belt to Expand Here Despite Acquisition
"Blue Belt Technologies Inc. will expand as a result of its acquisition by private equity firm HealthpointCapital LLC. Blue Belt, a Carnegie Mellon University spinoff founded in 2003, is getting ready to commercialize a bone-cutting device suited for use in joint replacement and other procedures." Read more

Chicago Law Firm to Enter Pittsburgh
"Pittsburgh law firm Walsh, Collis & Blackmer PC will become the 12th office of Chicago-based Litchfield Cavo LLP, effective Jan. 1. Walsh, Collis & Blackmer, a full-service civil litigation defense firm, employs 13 lawyers and is largely focused on clients throughout Pennsylvania, West Virginia and eastern Ohio." Read more

Calgon Carbon Expansion Likely to Continue
"Calgon Carbon Corp. in Findlay Township recently expanded their office space within its 44,000 SF building in the McClaren Woods Business Park and has long-term plans to build a larger facility in the area. The need for growth comes from an increase in demand for the company's UV Ballast Water Treatment System, which uses ultraviolet light to disinfect the water that ships take in and out of ballasts." Read more

Stemnion Site Expected to Generate 220 to 1,000 Positions
"Stemnion Inc., a Pittsburgh company that is developing human cell-growth technology to heal burn victims, promised to place a manufacturing operation in the city in return for extending $1M in loans from a county agency. The company projects that within five years it could employ 220 employees, and by 2021, as many as 1,000." Read more

Pennsylvania's Wind Power Industry Grows
"Pennsylvania's wind power industry continues to grow, as more ridges in Fayette, Somerset, Cambria and Blair counties become home to wind turbines. Industry analysts and observers say that growth –
seven wind farm projects in three years and five under construction – stems from the state's requirement that utilities buy renewable energy, a production tax credit, and improved technology that makes wind turbines more efficient." Read more | Read more about the Pittsburgh region's wind energy opportunity in this month's edition of the Research Roundup

The Resumator Launches Facebook App; Looking for New Office Space
"In its ongoing mission to take the hassle out of hiring, The Resumator now has a Facebook app that allows companies to accept applications directly through the social networking site. It's part of the company's plan for more integration with social media. The Resumator, which is going through its own growth spurt, has 10 positions listed on its Facebook page." Read more

	READ ALL ABOUT IT! ImaginePittsburghOnline.com is the news blog of the Allegheny Conference on Community Development and its affiliates, which includes the Pittsburgh Regional Alliance. ImaginePittsburghOnline.com highlights news and events related to economic growth, job creation and quality-of-life issues in southwestern Pennsylvania. Learn more about issues impacting the Pittsburgh region at ImaginePittsburghOnline.com.

Marcellus Shale Prompts Sadler Law to Open Pittsburgh Office
"Houston-based Sadler Law has opened a Pittsburgh-area office. The office, located in Canonsburg, is home to a team of 15 – a combination of lawyers, clerks and support staff. It joins the ranks of other Houston [Texas] law firms that have opened Pittsburgh offices because of clients' involvement in Marcellus Shale." Read more

Natural Gas Pipeline Project Gets Federal Approval
"Spectra Energy Corp. received federal approval for a pipeline expansion to take shale gas from Pennsylvania to the East Coast. The company will expand its pipeline system which runs through Greene County and elsewhere in southern Pennsylvania with its approval from the Federal Energy Regulatory Commission. The work will be finished in late 2012 and add 200 million cubic feet of capacity per day." Read more

CONSOL COO: Drilling Boom to Continue
"Tapping the Marcellus Shale formation for natural gas has already boosted Indiana County's economy, but there's room for even more dramatic growth, a drilling industry leader said last month. The drilling boom has meant new jobs for Indiana County residents and has injected millions of dollars into a ripple effect through local goods and service providers. 'Look for the numbers to only get bigger,' said Bart Hyita, chief operating officer of CONSOL Energy Inc." Read more

Butler County Cranks up Gas Processing Plant Construction
"Construction will ramp up on a natural gas processing plant in Butler County, part of what could be a buildup of several plants there, industry and state officials said last month. The plants are designed to give special capacity to pipe away shale gas that comes up mixed with liquid fuels, which is common in Butler County and has led to increased attention there." Read more

Oklahoma Company Buys Plot at Starpointe
"Oklahoma-based Mathena Inc. hopes to be operating out of a new location in the Starpointe business park near Burgettstown by mid-2012. Washington County commissioners approved the sale of a 3.1-acre lot in Starpointe to Mathena, which plans to construct a regional maintenance and service facility. Once Mathena moves to Starpointe, there is a potential that the size of the work force will double." Read more

K&L Gates Opens in South Carolina with Seven Partners
"Downtown-based legal giant K&L Gates has continued its geographic expansion by opening a new office in South Carolina formed with the addition of seven partners from Parker Poe Adams & Bernstein. The Charleston location makes for the firm's 40th office and follows its Sao Paulo launch in November." Read more

Casey, Toomey, Murphy, Doyle, Shuster, Altmire and Critz Announce Last Hurdle Cleared for Moon Commissary
"U.S. Senators Bob Casey (D-PA) and Pat Toomey (R-PA) and Congressmen Tim Murphy (R-PA), Mike Doyle (D-PA), Bill Shuster (R-PA), Jason Altmire (D-PA) and Mark Critz (D-PA) announced that the long-awaited Moon Township Commissary project can move forward without delay. 'The bottom line is that it is now a certainty that southwestern Pennsylvania will get a newly constructed first-class commissary to serve our first-rate eligible retirees and military community,' Senator Casey said." Read more

Governor Corbett to Lead International Trade Mission in 2012 to Expand Economic Opportunities for Pennsylvania
"Governor Tom Corbett will lead a delegation of Pennsylvania business leaders on a trade mission to France and Germany this spring that will focus on connecting Pennsylvania companies with potential export partners and encouraging international businesses to invest in the Commonwealth. The March 2012 mission will be privately funded and organized by the Team Pennsylvania Foundation, a private non-profit partnership with the commonwealth." Read more

DCED Secretary Announces Allocation of Federal Funds to Support Small Business Job Creation
"Department of Community and Economic Development (DCED) Secretary C. Alan Walker announced last month the allocation of $29.2M of funding from the U.S. Department of the Treasury's State Small Business Credit Initiative (SSBCI) to economic, community and technology development partners throughout Pennsylvania. 'The Corbett administration is committed to supporting our small businesses, and the best way to do that is by partnering with the private sector to maximize resources,' said Walker." Read more

Scientific Literacy Gets $1M Boost
"Chevron and six other partners are giving the Carnegie Science Center $1M to create a new center to improve science, technology and math education in the region. 'We think the Chevron Center for STEM Education and Career Development can be a vehicle for inspiring students to pursue careers in science and technology,' said Bruce Niemeyer, Chevron's vice president of the Appalachian/Michigan Business Unit in Moon." Read more

PNC Wants New Tower to Inspire
"PNC is hoping that its new $400M skyscraper downtown will not only serve as a classy headquarters for some 3,000 employees but will be a 'piece of architecture that stimulates and inspires' generations of Pittsburghers. The 33-story building, to be built on Wood Street between Fifth and Forbes avenues, will feature a so-called 'solar chimney' that will help to cool the structure, casual workplaces known as 'sky gardens' and a glass skin so transparent that pedestrians will have no trouble seeing what's going on inside." Read more 

Delta to Add Six Flights to LaGuardia from Pittsburgh
"Delta Air will offer six daily flights between Pittsburgh and New York's LaGuardia International Airport beginning in July, the Allegheny County Airport Authority said last month. The additions from Delta Air Lines come with its new hub at LaGuardia that is a result of its switching landing slots with US Airways at Dayton International Airport. Delta already flies between Pittsburgh and New York's JFK International." Read more

Pittsburgh International Airport Passenger Traffic Report for October 2011
"Year-to-date passenger traffic at Pittsburgh International Airport is 2.4 percent ahead of last year's pace at the end of October, according to the Scheduled Airline Traffic Report prepared by the Allegheny County Airport Authority." Read more

Grant to Boost Solar Power in Region
"Citizens for Pennsylvania's Future will use a $315,700 grant from the Department of Energy to increase generation of solar power in southwestern Pennsylvania. The Harrisburg-based environmental group, known as Penn Future, will work with local authorities to help businesses and homeowners install rooftop solar cells. Specifically, the groups will try to reduce regulations and costs to installing rooftop solar by creating a model zoning ordinance, offering low-interest loans, creating a public-private solar investment fund and engaging in group purchasing." Read more

Region Picks up $15+M in End-of-the-Year Venture Deals; Hiring and Other News
"More than $40M settled in the region during final quarter 2011 activity, including venture capital dollars and grant funding, some promising to bring company hiring." Read more

WESCO to Acquire RS Electronics
"Pittsburgh-based WESCO said last month that it would acquire RS Electronics, an electrical products distributor in Livonia, Mich. Terms of the deal weren't announced, but WESCO said the closing is planned for January. RS Electronics has branches in the Southeast and Midwest and about $60M in annual sales." Read more

Allison Custom Fabrication Acquired by Fenner Dunlop
"Allison Custom Fabrication in Allison has been acquired by Fenner Dunlop Americas, the companies said last month. Terms of the deal haven't been disclosed. Allison Custom Fabrication designs engineering and conveyor systems for the coal industry. Fenner Dunlop manufactures conveyer belts for mining and other markets." Read more

MarkWest Plans $1.8B Buyout of Marcellus JV
"MarkWest will spend $1.8B to buy the remaining 49 percent of its joint venture in the Marcellus Shale. MarkWest will purchase the Energy & Minerals Group's share of the companies' MarkWest Liberty Midstream & Resources LLC joint venture in the Marcellus Shale that includes southwestern Pennsylvania acreage, the companies said." Read more

Federal Reserve Bank OK's FNB Acquisition of Parkvale
"FNB Corp.'s planned acquisition of Parkvale Financial Corp. got another regulatory OK last month, with the Federal Reserve Bank of Cleveland approving the $130M deal. New Year's Day was the expected closing day for the acquisition, which would create the Pittsburgh region's third largest retail bank." Read more

PNC's $3.45B Deal for RBC Bank Approved by Federal Reserve
"The Federal Reserve Board has approved PNC Financial Services Group's acquisition of RBC Bank (USA), the U.S. retail banking subsidiary of Royal Bank of Canada, for $3.45B. RBC has roughly $27B in assets and 424 branches in North Carolina, Florida, Alabama, Georgia, Virginia and South Carolina. The deal is expected close in March 2012. The combined company will have 2,870 branches, ranking it fifth among U.S. banks, up from the No. 7 spot." Read more

Goodbye Diet Denial; Pitt's eButton Records Every Bite and Nap
"University of Pittsburgh researchers are developing a wearable button that contains an electronic surveillance system that records every bite you take, every exercise you avoid, leaving little to the imagination. The device, which is worn on the chest like a pin, contains a mini camera, accelerometer, GPS and other sensors that record every aspect of your life." Read more

CMU's Public Transit App Expands to Android Devices
"Carnegie Mellon University has expanded a project that tracks the location of public transit vehicles using riders' smartphones. The university has released an Android version of Tiramisu, the application that allows riders to tell other riders where and how full buses are." Read more

Applachian Lighting Announces Embedded ALLink™ Wireless Control for LED Garage Lights
"Appalachian Lighting Systems, Inc., (ALSI) recently announced a new version of the company's solid-state parking garage/canopy light series that features embedded ALLink™ wireless control and monitoring. The ALLED® CL Series, featuring 21-, 33- and 41-watt fixtures designed to replace 70- to 175-watt high intensity discharge (HID) lights in parking garage and canopy applications, can now be wirelessly controlled and monitored for light level scheduling, smart metering, power issue detection and maintenance alerts." Read more

Pittsburgh Airport Named One of Safest
"Pittsburgh International Airport has been given the title of the fourth safest airport in the United States, according to Travel + Leisure Magazine. Travel + Leisure looked at 35 airports around the country. Pittsburgh made the list for, among other reasons, its snow/ice removal process." Read more

Pittsburgh is No. 1 "Most Secure Place to Live" in the USA
"Topping the charts for the safest large metropolitan area to live was Pittsburgh, Pennsylvania, which came out top of all metro areas with a population of 500,000 or more. The city moved up ten places from the previous year, well above its all time rank of ninth safest city, which it earned back in 2005. Farmers Insurance Group pointed to the city's low personal crime rate, low housing depreciation and the low number of car accidents as the main factors behind its safety rating." Read more

EVENTS

January 12 – SMC Annual Legislative Reception
Join SMC for a relaxed, social evening with food and spirits. Take this opportunity to speak with elected officials who make the laws and regulations that directly impact your business. From 6:00-7:30 p.m. at the Sheraton Station Square. Cost is $30 Members/$40 Non-Members.

January 18 – Breakfast Briefing: Jeff Broadhurst, President and CEO, Eat'n Park Hospitality Group
Join Jeff Broadhurst, President and CEO of Eat'n Park Hospitality Group, from 7:00-9:15 a.m. at the Rivers Club as he details the entrepreneurial story of one of our region's most recognized businesses. As his business operates in a highly competitive environment, Mr. Broadhurst will describe the important role that technology plays in driving their success – from managing restaurant logistics to ensuring guest satisfaction to giving back to the community. Cost is $40 Member/$175 Non-Member.

January 19 – NAIOP Chapter Meeting: State of the Economy Update
Join NAIOP for their January chapter meeting featuring speaker Gus Faucher, senior vice president and economist, PNC Financial Services, starting at 7:30 a.m. at the Omni William Penn. Cost is free for NAIOP Members and $40 for Non-Members. RSVP is required.

January 26 – Creative Clash! The Future of Creativity, Technology and a New Innovation Community in Pittsburgh
Heralding the Council's new Creative Technology Network, and presented in partnership with the Carnegie Museum of Art, Creative Clash! will explore Pittsburgh's history and future as a key innovator at the intersection of art and technology. Today, industries including design, gaming, filmmaking, advertising, education, fine-art, production, robotics, digital media – and much more – are coalescing to make Pittsburgh home to a thriving creative technology community. Presented by the Pittsburgh Technology Council from 5:00-8:00 p.m. at the Carnegie Museum of Art. Cost is $40 Member/ $170 Non-Member.

January 27 – January Breakfast Briefing featuring Jon Delano, KDKA-TV
The Washington County Chamber of Commerce invites members and their guests to attend the first Breakfast Briefing of 2012 featuring Jon Delano, Money & Politics Editor at KDKA-TV2. Join the Chamber for networking with the chamber membership and to hear Mr. Delano offer his insights into the importance of Pennsylvania in next year's presidential and congressional elections. Held at the Hilton Garden Inn at Southpointe from 7:45-9:00 a.m. Cost is $20 Member/$30 Non-Member.

January 28 – Indiana Expo 2012
Join the Indiana County Chamber of Commerce for the 2012 Expo from 10:00 a.m.-4:00 p.m. at the Indiana Mall. Network with regional businesses and listen to the seminars that will take place throughout the day. Also, there will also be non-stop musical entertainment for your enjoyment. Cost is free to attend.