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www.alleghenyconference.org

Following the recent G-20 Summit, Pittsburgh is on the global map as never before, receiving favorable news coverage in

thousands of stories in hundreds of publications and broadcast outlets around the world. We are known as a global model

for economic, environmental and quality of life transformation.

Together,wehaveput ourregionbackin theglobalgame. Wemustnowaskourselves isthe Pittsburghregion trulyprepared

to win that game?

The recession came late to our region, but it did come. Unemployment has increased and business investment has slowed.

As the global economy begins to recover, other regions around the world are poised to grow faster than ours. They have

younger, growing populations and in many cases, more favorable business climates.

TheAllegheny Conference on Community Development is committed to continuous improvement in our regions economy

andquality oflife.As youwillreadin thisspecialreport,weare workingtocreatea morecompetitiveregionby tacklingtough

issues in civic policy, business climate and transportation infrastructure. We are seeking to reinforce our historic position as

a gateway to opportunity by attracting business investment and talented workers to fill the jobs that are being created here.

And we are exploring emerging opportunities in energy, a historic strength and a hotbed of innovation in our region.

If we focus on these priorities with single-minded determination, we can continue to build on the foundation that we have

created over the past 30 years and ensure sustainable prosperity for our children and grandchildren.

And, yes, we can win the game.

John P. Surma

Chair,Allegheny Conference on Community Development

Chairman & CEO, United States Steel Corporation

From the Chair

BACK TO FUNDAMENTALS

Building Bridges Across the Globe.

2500 lawyers in 32 locations

www.jonesday.com

Jones Day is proud to serve the Allegheny Conference on

Community Development in its efforts to improve the economy

and quality of life of the Pittsburgh region. As the world continues

to shrink and international business continues to expand, were

also committed to providing high-quality legal services to meet the

changing needs of clients from Pittsburgh to Paris and beyond.


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ORPORATEUPPORT

icks Sporting Goods0,000 sq. ft. expansion

50M investment

cupying 116 of some 6,000 available acres near

Pittsburgh International Airport, this ground up

bal headquarters construction is one of the re-

nslargestheadquartersprojectsin thelastdecade.

vingoutgrown itsformerheadquarters,Dicksex-

ctsto employ1,700at thenew facility.Underscor-

a wave of Airport Corridor growth and in a

ggish economy Thermo Fisher Scientificl occupy the former Dicks headquarters, also in

dlay Township.

ducation Managementorporation (EDMC)0M+ investment0 new jobs, 2,500 retained

ntralizing, expanding and enhancing its com-

ny-wide IT and corporate services capabilities

d bolstering its Online Higher Education division

he region, the company moved forward through

operation by the Governors Action Team, the

A,Allegheny County, City of Pittsburgh and the

entives consultant Ryan. The investment in-

des a newAllegheny Count y data center, and ex-

nsion of its downtown Pittsburgh headquarters

d Strip District online higher education facility.

"Allegheny County was a highly competitive lo-

cation for such a sizeable EDMC investment,

largely due in part to the regions outstanding

workforce,from which we can attract and re-

tain the caliber of employees that can support

our growth as one of North Americas largest

providers of post-secondary education.

EDMC CEO Todd Nelson

Trelor & Heisel, Inc.14,680 sq. ft. expansion

Trelor& Heiselis purchasingand renovatingthe for-

mer Huntington Bank building in downtown New

Castle for use as a new national headquarters. Lo-

cated in the Lawrence County Enterprise Zone, the

new facility provides space to grow the companys

thriving professional insurance administration busi-

ness, which currently comprises 13,000+ clients.

ADVANCEDMANUFACTURINGSerious Materials Inc., anticipating increaseddemand because of federal stimulus incentives and

new state programs, acquired the former Kensing-

ton Windows plant in January, re-tooling it to pro-

duce energy-efficient windows and with them,

green advanced manufacturing jobs. The Califor-

nia-based company re-hired a number of the man-

ufacturing-savvy employees who lost jobs when

Kensington Windows closed in October 2008 and

hopes to hire more employees.

Vision Products, Inc.400,000 sq. ft. expansion20-30 new jobs

Themanufacturerof sampleanddisplayproductsfor

thebuildingand constructionindustryhas purchased

the Eljer Plumbingware building in Ford City and

will move operations from the New Kensington

Schreiber Industrial Park site, allowingVision Prod-ucts to introduce new products that previous manu-

facturing space limitations prohibited.

Selectrode Industries75,000 sq. ft. expansion14 new jobs, 41 retained

Continuing to grow, resulting in the purchase of ad-

ditional land for the construction of a state-of-the-

art manufacturing facility for special welding

alloys for private label resellers, Selectrodes new

facility will also house R&D and custom imprint-

ing operations. Environmentally friendly design is

being used to conserve electricity and water.


ttsburgh is a world-class city it represents the transition of the U.S. econ-

y from an industrial state to a mix of strong industry steel but also now

tech and clean energy. It has transformed itself and serves as a model

turning the page to a 21st century economy.

U. S. President Barack Obama

hough not recession immune, Pittsburghs balanced economy has out-

formed the nation as well as the average of its 14 benchmark cities, including

ston, Charlotte, Minneapolis and Philadelphia. Recognizing and building on

historic strengths manufacturing, finance, business services and energy

while investing in the industries of the future, Pittsburgh leverages its intel-

tual assets to nurture innovation and breed new companies in health care, life sciences and information and communications technology.

e Pittsburgh RegionalAlliance (PRA), an Allegheny Conference affiliate, works across the public and private sectors in cooperation with

cted officials, economic development professionals and the real estate community to attract capital investment and create jobs in south-

stern Pennsylvania. Here are just a few examples of 2009s wins the results of a model regions winning partnerships.

HEALTH CARE & LIFE SCIENCES

BeamOne25,000 sq. ft. lease, $9M investment

Targeted marketing of the regions strengths in the medical device arena and

collaboration from economic development partners, including the Governors

ActionTeam,the PRA,CDCof ButlerCountyandCBRichard Ellis,arebring-

ingBeamOne,a California-based medical devicesterilizationcompanyto Clin-

ton Township. Massaro Corporation is building BeamOnes new facility that

will serve regional medical device companies whose products must meet reg-

ulatory and processing sterilization requirements. Using electron beam tech-

nology, BeamOne will provide sterilization locally, so medical manufacturers

no longer need to ship products out of state for sterilization.

MEDRAD will definitely benefit from BeamOnes decision to operate a

facility here. Lower operating costs,faster delivery of our products and

improved service to customers make BeamOne a win for MEDRAD and

a win for the region. MEDRAD, Inc. President and CEO John Friel

INFORMATION &COMMUNICATIONS TECHNOLOGYBossa Nova Robotics, founded in 2005, quickly moved from CarnegMellon start-up to standout after introducing its personal entertainment robo

this July. The company now brings Prime-8, a robotic gorilla, and Penbo,

interactive penguin, to families worldwide with a new line of personal robo

coming in 2010.

RedZone Robotics is providing a high tech, environmentally friendly rbotic solution for revealing the state of buried, aging and yet critical was

water (sewer) infrastructure. RedZone offers a robotic solution for unearthi

critical information about buried wastewater assets faster resulting in smar

management decisions. Following years of record year-over-year grow

RedZone announced a revolutionary new product, completed an acquisitio

and stepped up sales and marketing investments in 2009.

Seegrid Corporation30,150 sq. ft. lease

Pittsburgh is a perfect home for Seegrid because of its strong ac

demic research community, a network of entrepreneurial visionarie

and an extremely talented workforce.

Seegrid Director of Product Strategy Brad Wyla

This materials-moving robot innovator/manufacturer is moving much of its o

erations into a new RIDC Park West facility to accommodate its quadrupling

size. Currently located in Lawrencevilles Chocolate Factory, Seegrid, a CM

spinout, isleasingthe formerUSAirwaysstoragefacility tobring alloperatio

including design and engineering, sales, assembly and implementation, und

one roof. Currently, Seegrids robot manufacturing is done in Massachuse

butbeginninginJanuary,thefirstof hundredsof Seegridrobots willbeassemb

here. Seegridcontinuesto addnewcustomersand willlaunchits nextgenerat

industrial mobile robot, the latest SEEGRID GP8, this December.

ENERGY: Innovative, Deep-Seated, Diverse Regional IndustryAnumber ofenergy-related projects havematerializedthis year,underscoring theregionsemergingpositionas aninnovatorand globalsupply chainleaderin b

traditional and alternative energy.

Flabeg209,000 sq. ft., first U.S. facility of its kind

300 green advanced manufacturing jobs

In October, Germany-based Flabeg, a long-time leading manufacturer of au-

tomotive mirrors in the region, cut the ribbon on its newest venture in Pitts-

burgh, a ground up 209,000 sq. ft. manufacturing facility in Clinton Commerce

Park for solar thermal mirrors used to help generate electricity at large-scale

solar power plants.

Baker Hughes Oilfield Operations60,000 sq. ft. expansion, $12M investment175 new jobs in five years

The Pittsburgh regions Marcellus Shale play, one of the nations largest natural

gas reserves, is prompting oil and gas service firms from around the country to

locate here. Texas-based Baker Hughes Oilfield Operations is expanding into a

20-acresitein WestmorelandTechnologyPark witha $12million servicecen

and future plans to build additional warehousing, offices and storage space.

Cudd Energy Services is joining its sister company, Bronco OilfiServices, in Greene County. With a 20-person staff already in the regiCudd anticipates hiring approximately 40 more field workers in 20

Stream-Flo USA, a supplier of oilfield and gas well products and servichasopeneda 6,000sq. ft.facilityinIndiana,Pa. ExpressEnergy,whichpects to hire 50 employees, has leased 12,000 sq. ft. at the Angelo Wareho

in Perry Township. Red OakWater Transfer has moved into a new fa

ity in Hickory and employs 42 people with the possibility of hiring 50-1more in coming years.

Milestones fora Model Region:

009 Business Investment Wins


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NATUREOF

NATIONAL ENERGYTECHNOLOGY LABORATORY

FLABEGPittsburgh is a clean tech leaderand integrated energy solutionsprovider to the world.

Technologies developed by regional innovatorslike these are helping to sustainably energize theplanet and create a stronger,greener Pittsburgh.

Along with Carnegie Mellon University and the University ofPittsburgh, is advancing efficient and sustainable energysolutions; part of the more than $1 billion of energy-relatedR&D conducted in the regi on annually.

Financial Services 20%

Manufacturing

14%

Professional &Business Services13%

Health Care &Education11%

Government8%

Retail Trade6%

Wholesale Trade6%

Construction 4%

Transport & Warehousing 4%

Info & Comm Technology 3%

Utilities 3%

Natural Resources & Mining 2%

Other 6%

Pittsburghs prosperity is powered by key industry sectors, illustrated here by their contribution to thegross regional product.This diverse and balanced portfolio is enhanced by Pittsburghs progressivedevelopment of sustainable technologies and clean energy solutions and components. Grounded inoil,natural gas and coal extraction expertise that dates back 150 years, the regions energy economynow includes more than 700 firms spanning extraction, supply chain and innovation for traditionaland alternative energy resources. These firms contribute more than 10% of the gross regionalproduct,support some 105,000 jobs and generate $13.7 billion in annual economic activity.

CREATING BALANCE THROUGH DIVERSIFICATION

WESTINGHOUSEELECTRIC COMPANY

Dominating the worldsnuclear energy technology.

PLEXTRONICS

Developing new applicationsfor conductive polymers thatadvance solar technology.

EATON CORP.

Engineering electricalefficiency solutionsfor new and existingbuildings.

PHIPPSCONSERVATORY

ne of the worlds most energyficient and sustainablenservatories with a livingucation/research center thatll exceed the highest greenilding standards.

CONVERTEAM

ng expertise in traditionalctrical power productsdevelop converters andnerators for renewableergy applications worldwide.

UNITED STATESSTEEL CORPORATION

Manufacturing new steels tohelp the automotive industrymeet stricter fuel efficiencystandards.

DAVID L.LAWRENCECONVENTIONCENTER

e worlds first conventionnter to be green over itstire life cycle, and one ofe worlds largest LEEDld convention centers.

BPL GLOBAL

Providing intelligent power gridsoftware solutions and servicesthat better manage demand,integrate distributed energyresources, improve servicereliability, and optimize costand capital productivity.

RIGHT WHEREIT COUNTSFinancial andBusiness Services

Global institutions with headquarters or major business units hereinclude BNY Mellon, Citizens Bank, Federated Investors, Jones Dayand PNC.Two of the worl ds largest law firms K & L Gates andReed Smith are headquartered here, as is Pennsylvanias largesthealth insurer, Highmark.

BUILDING ITBETTERAdvancedManufacturing

Top manufacturers like Alcoa, Allegheny Technologies, Bayer,Bombardier, Eaton, H.J. Heinz, Koppers, LANXESS, NOVA Chemicals,PPG Industries, U. S. Steel and Westinghouse thrive here.While smallerprecision tooling and machining companies meet global demands forthe components that keep the worlds machines running.

BODY OF WORKBREAKTHROUGHS

Health Care andLife Sciences

Pittsburghs health services sector,with nearly 184,000 employees,buildson a legacy of biomedical innovation to create a robust network thatscultivating lifesaving technologies,medical device advances,regenerativemedicine and pharmaceuticals.Mylan and GlaxoSmithKline ConsumerHealthcare are part of this network, as is UPMC,which has grown into theregions largest employer and an $8 billion global health care enterprise.

HIGH TECH ATNEW HEIGHTSInformation andCommunicationsTechnology

Nearly 1,600 technology firms including Ansys,Apple, Black B ox,Comcast, Google, Intel and Mastech are here and employ some 32,000people.A tech-savvy talent pipeline and robust network of organizationsthat support and finance innovation continue to grow Pittsburghsknowledge-based economy.

THE PNC FINANCIALSERVICES GROUP

Constructing more greenbuildings than any othercorporation in the world.

Its new parabolic solar mirrorplant represents one of thelargest recent manufacturinginvestments in the region.

BRAIN POWERAT FULL POWEREducation andResearch

The regions intellectual capital includes two Tier One research institutions Carnegie Mellon University and the University of Pittsburgh in addition to

33 other regional colleges and universities. And 100 corporate research anddevelopment centers keep Pittsburgh in a pacesetter position.

CONSOL ENERGY

A multi-faceted energy producerof both coal and natural gas andoperator of the U.S.s only privatecoal R&D facility.

PPG INDUSTRIES

Developing more environmentally

friendly building materials, alongwith new applications in wind andsolar for their traditional products.

EQT

Drilled the worlds first natural gaswell and is pioneering new drillingtechnologies to unlock the potentialof the Marcellus Shale the worldslargest untapped proven reserve ofcleaner burning natural gas.

GROSSREGIONALPRODUCT



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G-20 summitin Pittsburghshowcasedour regionasa globalproviderof sus-

able energy solutions. After all, Pittsburgh was the birthplace of the oil and

industryand wasenergizedby plentifulcoal reserves.Pittsburgherselectrified

world with alternating current and developed commercial nuclear energy.

day, more than 700 regional firms participate in the global energy supply

in,withthe potential formany moreto becomeinvolved.Beyondcoal, natural

and nuclear power, regional companies are making wind and solar energy

mponents; smarter grids that are more responsive to fluctuating supply andmand; and intelligent building systems that help to reduce demand.

en better and much more important for the long run is the commitment

usiness leaders across energy sectors to work together to provide sustain-

e energy solutions, said Allegheny Conference CEO Dennis Yablonsky.

tsburghs historic spirit of collaboration, diversity of energy resources and

ovation know-how uniquely positions our region to create and implement

st century energy economy.

wingenergycompanieswill needcapitaland businessservicessupport,cre-

g opportunities in our largest economic sector, financial services.And even

se in health care and life sciences can participate as they already are by

pting intelligent building systems to save energy and reduce costs.

Significant Regionalconomic Generator

energy sector is alive and well in southwestern Pennsylvania, with more

n $1 billion spent annually in public and private energy innovation funding

ugh our universities, corporate facilities and federal labs. Pittsburgh is the

me of the National EnergyTechnology Laboratory (NETL), one of a handful

ederal Department of Energy research centers and the only one devoted to

il fuel research as the future of carbon capture and sequestration.

umber of energy-related projects have materialized here in 2009, indicating

depth of the regions energy industry strength (see page 3). Many of these

oil and gas industry players, attracted by the enormous Marcellus Shale for-

ion underlying much of Pennsylvania, while others contribute to the global

rgy supply chain and wind and solar power industries.

The Energy Alliance ofSouthwestern Pennsylvania:Strategic Partnership forTomorrows Energy Solutions

In September 2009, as G-20 leaders convened here to discuss the global econ-

omy, an unprecedented group of Pittsburgh-based energy companies and uni-versities stepped forward to share their commitment to our growing energy

economy. In an open letter in the Pittsburgh Post-Gazette, the leaders of 12 or-

ganizations acknowledged the growing global energy demand and pledged to

find solutions to the worlds energy challenges together. We believe that Pitts-

burgh will play a leading role in creating the new energy economy, they said.

Since then, a group of energy company CEOs and university leaders have

formed the EnergyAlliance of Southwestern Pennsylvania, a virtual organiza-

tion focused on developing and executing a regional strategy for Pittsburgh

energy industry growth.TheAlliance intends to advance a common strategy by

coordinating existing networks and organizations to advocate for improve-

ments to our regions competitiveness, thereby creating an even better climate

for energy company formation. Through shared policy, advocacy, communica-

tions and marketing efforts, theAlliance seeks to position our region as a global

leader in energy innovation, production and related manufacturing. In so doing,

it will assist southwestern Pennsylvania in growing this exciting component of

our economy, retaining existing jobs, creating new ones and enabling prosper-ity for all residents.

Talented people have always followed a variety of trails to Pittsburgh. Having

worked in Aliquippa, Beaver County and then Washington, D.C., Lisa King-

Washington recentlyfound herwayhome tojoin WestinghouseElectricCompany

asa corporaterecruiter. She toldPopCity inan interviewfeatured on www.Imag-

inePittsburgh.com , the engineers that we are hiring are looking for a clean, re-

liable energy source that will take us past 2030. That's not futuristic.

Westinghouse is one example of the exciting opportunities that are emerging in

thePittsburghregion,and anexample ofone ofour greatestchallenges educat-

ing, training and attracting skilled workers to fill new jobs as well as jobs being

vacated by retiring Baby Boomers (18% of our current workforce is 55+ years

old). Tobuild sustainableprosperityfor theregion, wemust ensurethatboth our

existing businesses and our workforce can innovate and adapt to meet a rapidly

changing global economy.

Simple demographic realities make the business case for a workplace focus on

thisissue,said RandyDearth,presidentand chiefexecutiveofficerof LANXESS

Corporation and chair of theAllegheny Conference Workplace program. But to

attract and retain diverse talent, we must demonstrate that existing diverse popu-

lations are also successful.

Enhancing the Talent Pipeline

The Conference Workplace program supports an action-focused agenda to help

buildgreatereconomicinclusion,especiallyfor minority populations,andthereby

amore diverseand globallycompetitiveregionalworkforce. It isfocusedon three

critical tasks:

Creating a younger and more inclusive workforceby retaining existing

diverse populations and more college and university graduates, and buildingthe skills needed to support key regional sectors.

Creating a well prepared workforce where both adults and young people

understandour diverseeconomyandare ableto effectivelyattainthe skillsand

education needed to secure family-sustaining employment in our region.

Creating a more accessible and connected workforce where employers

and job seekers can find each other with ease. Last year, the Conference

launched www.ImagineMyNewJob.com , a one-stop, comprehensive job

search engine that aggregates all the electronic job postings within a 71-mile

radius of Pittsburgh, covering all 10 counties.

Starting EarlyBuilding a globally competitive workforce needs to begin in school. In 200Pennsylvania adopted ambitious Career Education and Work Standards th

mustbemet byall students attendingK-12schools in thestate,meantto ensthat every high school graduate has an effective post-secondary education acareer plan. The Pittsburgh Regional Compact www.PittsburghRegionCompact.org supported by the Conference, advances those objectiveshelping to connect regional businesses with school career awareness activiti

Asa result,studentsareexposedto anarray ofcareeropportunitiesandare awof regional workforce needs and opportunities and how to prepare for them.

A competitive workforce includes people with the required skills to fit evejob classification level. While our regions outstanding four-year colleges a

universities help to fuel our ability to innovate and prosper, many of the comdecades new jobs will require only some college training. Many of these w

the largest projected job growth are classified as middle skill level and do require a four-year degree.

Regional community and technical colleges are able to adapt quickly to cha

ing technologies and skill demands in the workplace. Beyond providing exclent education with affordable tuition (which boosts accessibility), theinstitutions can also help displaced workers and other residents to rapidly

come employable as skill requirements change and new jobs are created. TWorkplace program is working to help support deeper and more continu

connections among industries and these educators.

President Barack Obama has touted Pittsburgh as a model for creating the joof the future. TheseWorkplace initiatives will provide the tools to ensure t

skilled talent, from inside and outside our region, can both imagine and bua bright future including promising careers here.

The Globally Competitive Workplace:How Talent Drives Regional Success

Energizing Our Economy:Working Together on Diversified Energy Solutions

Withthe PittsburghRegions combinationof naturalresources,engineeringand manufacturingcapability, and innovationsources, we can do for energy what Silicon Valley did for computing and become the nations new energy capital.

Allegheny Conference CEO Dennis Yablonsky

ur regions energy sector is contributing:

13.7 billion (more than 10% directly/indirectly) of ourGross Regional Product

05,000 direct/indirect jobs

One fourth of 2009 business expansion announcements29 companies as of mid-November)


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he Budget andur Business Tax Prioritiess has been a difficult budget year for the Commonwealth. Given the ex-

ted impact of the downturn on state revenue sources, the new budget spends

4 million less than last year.

espite these challenges theAllegheny Conference maintained its focus on

tinued improvement to our regions competitiveness, said Carlos Cardoso,

ir of the Business Climate Committee and chairman, president and CEO

Kennametal.

oughnegotiationswith Senateleadership,the Conferencewasable toachieve

me of the goals set by its Business Climate Committee and CompetePA, the

ewidecoalition focusedon specific businesstaximprovementsand Pennsyl-

iasuncompetitiveCorporateNet Income(CNI)tax inparticular.A founding

mber, theConferencestaffstheCoalition,whichenablesmore than130 Penn-

ania employers (more than half of the states private sector employment) to

ak with one voice about reforms that support regional economic prosperity.

Specifically, the final state budget included an increased cap on net operating

loss (NOL) carry-forwards, which makes it easier for start-up companies, those

in cyclical industries and others to carry a greater amount of their losses for-

ward to decrease current tax liability an option that is all the more critical dur-

ing difficult financial times. The current NOL cap, the greater of $2 million or

12.5%, will increase to $3 million or 15% in FY 2009/10, and $3 million or

20% in FY 2010/11.

We also strongly supported an increase in the sales factor formula used to cal-

culate the CNI tax payments from the current 70% to 83% in FY 2009/10,

and 90% in 2010/11. This increases the CNI taxs emphasis on a companys

sales rather than its payroll or location, thereby encouraging investment and jobcreation rather than penalizing it. This improvement in the sales factor is the

first since 2006 when it was increased from 60% to 70%.

Unfortunately, while no broad-based tax increases were enacted, there will be

a delay in the Capital Stock and Franchise Tax phase out with the rate frozen

at 2.89 mills for three years. We supported language inserted to smooth the

retroactivity of these payments. Payments for 2009 tax liabilities will not be

due until the first quarter of 2010 and they will not incur interest or penalties.

Well-planned transportation investments help drive the regional

conomy and improve the quality of life for the Pittsburgh region.

Peter J. Kalis, Global Managing Partner, K&L Gates andChair,Allegheny Conference Transportation & Infrastructure Committee

s year southwestern Pennsylvania enjoyed three major transportation im-vements on which the Conference, working with its regional partners, has

used for many years.

ore Flights

service has been a major challenge for most of this decade. Without non-p service to Europe, Pittsburgh risked losing out in the global marketplace.

tunately, in true Pittsburgh fashion, it was public-private partnerships thatde a real difference. Delta Airlines began flying nonstop from Pittsburgh

aris in June, thanks to a partnership effort between the Allegheny Confer-e,Allegheny County, the State of Pennsylvania and theAllegheny County

port Authority. The risk-sharing partnership helped convince Delta tonch the service despite the global recession. And the community has re-nded, using the flight as the regions gateway to Europe, the Middle East,

other destinations that can be reached via Delta and its partner,Air France.s, United launched new nonstop service to theWest Coast, and AirTran ex-

ded its network.

Greater Pittsburgh regional business community must continue to supportvice to these critical destinations or risk losing it.

A New Interstate

Just a few weeks ago, the region expanded its interstate highway network withPennDOTs announcement of ParkwayWest and Route 60 being designated as

Interstate 376 from Downtown Pittsburgh north to I-80 in Mercer County. Thisis important because it makes it clear to site selection consultants and other

business investment decision makers that our transportation systems are wellconnected that our interstate highway system connects to Pittsburgh Interna-tional Airport, to the Turnpike and to I-80. It also culminates more than a

decade of hard work by many partners, including the Tri-County Airport Part-nership. Staffed by the Allegheny Conference, T-CAP is a joint effort by Al-

legheny, Beaver and Washington counties, along with the Allegheny CountyAirportAuthority, to work cooperatively on major economic development proj-

ects in the airport corridor.

Transit Reform

The Port Authority of Allegheny County began a major redesign of its bus-and-rail network to make the system more effective and increase ridership.The move is the latest step in a series of changes undertaken since the Confer-

ence began working with the agency in 2006. The initial goal was to stabilizethe Port Authoritys financial situation. The second goal, accomplished last

year, was for the agency to secure a fair and competitive new labor agreement.Now the comprehensive redesign of the Port Authoritys routes the first since

the agency began in the 1960s will increase the amount of service providedto residents and will better match service to the needs of todays economy.

Our Regions Competitiveness:Providing Sustainable Prosperity

When the world arrived in September forThe Pittsburgh Summit 2009,

they experienced a region that has engineered one of the great Ameri-

can comebacks. From dependence on a single industry 30 years ago we

have built a strong foundation in technology, advanced manufacturing,

financial and business services, health care and life sciences, and our

emerging leadership in energy. We have created an enviable quality of

life, adding outdoor recreation assets to our nationally-recognized

strengths in arts and culture.

Yes, we are back in the game. But what do we have to do to position

our region to win the game? We must stay focused on the critical issues

that will determine success or failure over the long term.

Our business climate holds us back, especially Pennsylvanias high cor-

porate net income tax rate, which serves as a red flag to employers con-

sidering relocation here. Our fragmented government structure is an

obstacle as well, increasing the cost of doing business in our region.

And improved air service remains a high priority. We cannot succeed

in the global economy without robust connectivity in North America

and to the rest of the world.

Workforce issues may be our real Achilles Heel. Although total em-

ployment in the region continues its upward trend, with more than

24,000 open positions across our 10 counties despite the recession, our

population is declining. Our domestic immigration rate is slow, and our

international immigration rate is close to nonexistent. And we need todo more to create opportunities for African-Americans.

The good news is we are in a much better position to address

these issues than at any time in the past 30 years. Our economy

is diverse and balanced, with five pillars to

support our future: advanced manufactur-

ing, financial and business services, health care

and life sciences, information and communica-

tion technology, and energy, all bolstered by

innovation flowing from a strong university

and research community.

Our biggest opportunity in the near and long term is likely to be in de-

livering energy and environmental solutions to the world. To realize

this potential, all of us will have to work together. Our other established

industries can help even as they benefit.

Advanced manufacturers can become suppliers of key components for

everythingfrom windmillsto nuclearpowerplants. Growingenergycom-

panies will need capital and business services support, creating opportu-

nitiesin ourlargesteconomicsector, financial services.And eventhosein

health care and life sciences can participate as they already are by

adopting intelligent building systems to save energy and lower costs.

Energizingour economy willrequirehard workacrossthe entireAllegheny

Conference agenda.

There are significant public policy issues to be addressed, especially

around the Marcellus Shale play. The state has tabled for the moment

an extraction tax but the debate is not over. Water resources must be

well-managed to realize the full potential of the shale. And much can

be done by state and local government to encourage the use of natural

gas in transportation and industry.

There are marketing opportunities as well. Take wind, for example. Our

region is as well-positioned as any in the country to supply component

parts.Andunlike coaland naturalgas,there isno establishedsupply chain.

There is no reason why our region cannot build the supply chain.The job opportunities are potentially enormous from Ph.D. physicists

and engineers of all kinds to welders and machinists, and everything in

between. Plus all the business support positions it takes to sustain and

grow an enterprise.

Our region has successfully built global in-

dustries before from glass and steel to electricity

and health care. We can do it again.

Dennis Yablonsky

CEO, Allegheny Conference on

Community Development

The Work Isnt Over:Further Municipal Pension ReformPennsylvania taxpayers may soon find that a problem they might have thought

the state had fixed hasnt gone away after all. Its the consequences of chronicunderfundingof manyof Pennsylvaniasmunicipalpensionplans. InSeptember,

some incremental progress was made on the issue with the passing of Act 44.

This law provides short-term cash flow relief from an imminent fundingcalamity, saidMorganOBrien,chair of theAlleghenyConferenceCivic PolicyCommittee and president and CEO of Duquesne Light. However it does not

address the underlying problems with municipal pensions or include the costcontainmentprovisions necessaryfor long-termmunicipalpensionplan health.

Pennsylvania has more than 3,000 separate local government pension plans 25% of all such plans in the natio n. Two-thirds of these have 10 or fewer active

members, which results in high per capita administrative costs and low annualreturns. Even before the economic downturn, 190 plans in 169 municipalities

had asset-to-liability funding ratios of less than 70%. Furthermore, the mostrecent available data shows that Philadelphia and Pittsburgh are in the most

severe trouble, with unfunded liabilities of approximately $3.8 billion and $500million respectively.

Theeconomicdownturnhas turneda badsituationinto alooming fundingcri

Only further reforms can ensure that government entities can keep their retment promises to employees while continuing to deliver necessary services a

keepingtaxesfrom rising.The PennsylvaniaEconomy Leagueof SouthwesPennsylvania,anAlleghenyConference affiliate,has identifiedkey tacticsforform, including such cost containment provisions as:

state management of and control over severely distressed pension pla

no benefit plan enhancements permitted unless a plan is atleast 90% funded;

authorization of all municipalities to offer optional defined contributiplans to all employees; and

benefits based on regular, base salaries but not on overtime, longevity

or other bases of compensation.

The Conferenceurges theGeneralAssembly to continue this needed munici

pension practice reform beyond Act 44 and stands ready to assist legislatordeveloping, providing education on and advocating for new legislation that a

dresses the long-term problems with the current municipal pension structand funding.

aking Connections ransportation Challenges and Opportunities

WHATS NEXT?


7/7

AAA East Central

ABARTA, Inc.

Abay Ethiopian Restaurant

About Pittsburgh, Inc.

Acusis

AECOM

AHRCO

Alcoa Foundation

Alcoa Inc.

Allegheny College

Allegheny County Airport Authority

Allegheny Technologies Incorporated

Alpern Rosenthal

AMCOM Office Systems

American Bridge Company

American Eagle Outfitters, Inc.

American Textile Company

Ansaldo STS USA

Applied Systems Associates, Inc.

Aquatech International Corp.

Arch Street Management, LLC

ARDEX America, Inc.

ASKO, Inc.

Astorino

Atlas Energy Resources, LLC

Atlas Services Corporation

BAA Pittsburgh, Inc.

Babst, Calland, Clements & Zomnir, P.C.

BASF Corporation

Bayer CorporationBerner International Corporation

B.K. Simon Foundation

BNY Mellon

Bombardier Transportation

Boyden

BPL Global, Ltd.

Brayman Construction Company

Brunner, Inc.

Buchanan Ingersoll & Rooney PC

Burns & Scalo Real Estate Services, Inc.

Burt Hill

Business Records Management, LLC

Calgon Carbon Corporation

Campos, Inc.

Carlow University

Carmeuse Lime & Stone

Carnegie Library of Pittsburgh

Carnegie Mellon University

Catalyst Connection

CB Richard Ellis Pittsburgh

CBS Radio

Celerant Consulting, Inc.

Centimark Corporation

CH2M Hill/IDC Architects

Chaska Property Advisors, Inc.

Chatham University

Chesapeake Energy Corporation

Chester Engineers, Inc.

Children's Hospital of Pittsburgh

Chip Ganassi Racing Teams, Inc.

Citizens Bank of Pennsylvania

Claude Worthington Benedum Foundation

CNX Gas Corporation

Cohen & Grigsby, P.C.

Colcom Foundation

Columbia Gas of Pennsylvania, Inc.

Comcast Spotlight

Community College of Allegheny County

Concurrent Technologies Corporation

Confluence Technologies Inc.

CONSOL Energy, Inc.

Cowden Associates

CSX Transportation

Cygnus Manufacturing Company

D.B. Root & Company

Del Monte Foods

Deloitte & Touche USA LLP

Development Dimensions International, Inc.

Dickie McCamey & Chilcote, P.C.

Ditto Document Solutions, Inc.

Dollar Bank, FSB

Dominion

Duane Morris LLP

Duquesne Club

Duquesne Light Company

Duquesne University

Eastman Chemical Resins, Inc.

Eat'n Park Hospitality Group, Inc.

Eaton Corporation

Eckert Seamans Cherin & Mellott, LLC

Eden Hall FoundationEducation Management Corporation (EDMC)

Ekker, Kuster, McConnell & Epstein, LLP

Elliance

Elliott Company

Ellwood Group, Inc.

EQT Corporation

Ernst & Young

ESB Bank

Fay-Penn Economic Development Council

Federal Home Loan Bank of Pittsburgh

Federal Reserve Bank of Cleveland

Federated Investors, Inc.

FedEx Ground

Fifth Third Bank

First Commonwealth Financial Corporation

FirstEnergy Corporation

First National Bank

First Niagara Bank

Five Star Development, Inc.

Fragasso Financial Advisors

FSN Pittsburgh

GAI Consultants, Inc.

Gannett Fleming Inc.

Gateway Financial Group, Inc.

Gateway Rehabilitation Center

General Industries

Getting to the Point, Inc.

Giant Eagle, Inc.

GlaxoSmithKline

Glimcher Group Inc.

Grant Street Associates, Inc.

Greater Pittsburgh Arts Council

Grubb & Ellis Company

H. J. Heinz Company

Hefren-Tillotson, Inc.

Henderson Brothers

Heritage Valley Health System

Heyl & Patterson, Inc.

Highmark Blue Cross Blue Shield

Hoechstetter Printing Co.

Housetrends Magazine of Pittsburgh

Howard Hanna Real Estate Services

iGate Corporation

IKON Office Solutions

Imperial Land Corporation

Indiana University of Pennsylvania

Industrial Scientific Corporation

James Gallery

Janney Montgomery & Scott, LLC

JENDOCO Real Estate

Jennmar Corporation

Jewish Healthcare Foundation

Jones Day

K&L Gates

Katherine Mabis McKenna Foundation

KDKA-TV

Kennametal Inc.

Kennywood Entertainment Company

Koppers Inc.

KPMG LLP

L. B. Foster CompanyL. Robert Kimball & Associates

Lamar Advertising Company - Pittsburgh

Langholz Wilson Ellis, Inc.

LANXESS

LaRoche College

Louis Plung & Co. LLP

Macy's

Magee-Womens Hospital of UPMC

Malin, Bergquist & Company, LLP

Manchester Bidwell Corporation

MARC USA

MARSH USA Inc.

Massaro Corporation

McCune Foundation

McKamish Inc.

McKesson Automation

McKinsey & Company

MediAmix Studios Pittsburgh

MEDRAD, Inc.

Meyer, Unkovic & Scott LLP

Michael Baker Corporation

Mine Safety Appliances Company

Mizrahi, Inc.

Montgomery & Rust, Inc.

Morgan, Lewis & Bockius LLP

Mt. Lebanon Office Equipment Co., Inc.

Mylan, Inc.

NAI Pittsburgh Commercial

National City

NCS Enterprises LLC

Nemacolin Woodlands Resort

New Perspective

NOVA Chemicals Corporation

Orbital Engineering, Inc.

Oxford Development Company

P.J. Dick, Inc.

ParenteBeard LLC

PBS&J (Post, Buckley Schuh & Jernigan)

PEAK Technical Services, Inc.

Penn State Beaver

Penn State Center Pittsburgh

Penn State Fayette

Penn State Greater Allegheny

Penn State New Kensington

Pennsylvania American Water

Pennsylvania TRANE

Pepper Hamilton LLP

Performance Drivers, Inc.

Philips Home Healthcare Solutions

Phipps Conservatory and Botanical Gardens, Inc.

Pipitone Group

PITT OHIO EXPRESS

Pittsburgh Athletic Association

Pittsburgh Business Times

Pittsburgh Cultural Trust

Pittsburgh Penguins

Pittsburgh Pirates

Pittsburgh Post-Gazette

Pittsburgh Quarterly

Pittsburgh Steelers

Pittsburgh Symphony OrchestraPittsburgh Technology Council

Plextronics, Inc.

The PNC Financial Services Group, Inc.

Point Park University

Pop City Media

PPG Industries, Inc.

Precision Therapeutics

Presenting Pittsburgh

Pressley Ridge

PricewaterhouseCoopers LLP

Rampart Hydro Services

RAND Corporation

Range Resources - Appalachia, LLC

Reed Smith LLP

Richard King Mellon Foundation

R.J. Lee Group, Inc.

Robert Morris University

RTI International Metals

Russell Standard Corporation

Sanford-Brown Institute

Schnader Harrison Segal & Lewis, LLP

Schneider Downs

SDLC Partners, LP

Seton Hill University

Shady Side Academy

Shenango Incorporated

Sheridan Broadcasting Corp.

Siemens

Sisterson & Co. LLP

Slippery Rock University

Snavely Forest Products

Snyder Associated Companies, Inc.

Solenture, Inc.

Staley Capital Advisors

Standard Steel, LLC

The Buhl Foundation

The Buncher Company

The Cedars of Monroeville

The Elmhurst Group

The Grable Foundation

The Hawthorne Group, Inc.

The Heinz Endowments

The Hillman Company

The Hillman Foundation

The Huntington National Bank

The Mario Lemieux Foundation

The Pittsburgh Foundation

The Roy A. Hunt Foundation

The Tomayko Group

The Weavertown Group

The Webb Law Firm

The Williams Companies

Thiel College

Thorp Reed & Armstrong LLP

ThoughtForm, Inc.

TRACO

Trans Associates Engineering Consultants, Inc.

TriState Capital Bank

Tube City IMS

Tucker Arensberg, P.C.

Turner Construction CompanyUnited States Steel Corporation

University of Pittsburgh

UPMC

URS Corporation

US Airways

Value Ambridge Properties Inc.

VAMCO International, Inc.

Verizon - Pennsylvania

Verizon Wireless

Vocollect

Wabtec Corporation

Washington & Jefferson College

Waste Management

WDUQ - FM

Wells Fargo Insurance Services

WESCO International, Inc.

West Penn Allegheny Health System

Western Pennsylvania Conservancy

Westin Convention Center Pittsburgh

Westinghouse Electric Company

Wetzel Consulting

Whirl Magazine

Williams Coulson

Willis HRH

WordWrite Communications LLC

WPXI-TV

WQED Multimedia

WTAE-TV/Channel 4

WYEP

REGIONAL INVESTORS COUNCILMany thanks to our more than 300 Regional Investors Council

members whose leadership, commitment and hard work have

improved the economic competitiveness of the Pittsburgh region and

enhanced the great quality of life it offers. Across 10 counties, our

Regional Investors represent the diversity of our economy and account

for more than 20 percent of the regions private sector workforce.

We invite you to join our Regional Investors Council as we imaginea brighter future and make it happen together.

For more information about the Regional Investors Council of the Allegheny Conference on Community Development,please contact Kelli Wall at 412.281.4783 ext. 4537

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