K2 Category

Economic Outlook

Job Growth

The Pittsburgh market area continued its ahead-of schedule recovery in 2012. Service sector job growth picked up as manufacturing gains eased.  Given the broader array of opportunities that service industries offer, labor force growth also accelerated throughout the year. This development suggests a high degree of confidence in local conditions. Job seekers are pouring back into the local marketplace even as national labor force participation sputters. Consumer spending remains a healthy driver of Pittsburgh’s economic recovery. Hiring within the leisure and hospitality industries, and job growth in retail are both maintaining year-over-year growth paces not seen in the market area since the early 2000. Locally-targeted consumption is a surefire path to sustainable economic growth, as such spending creates even more jobs locally. Pittsburgh near-term outlook is thus far continued improvement throughout 2013.

Future Economic Drivers

Income growth slowed in 2012 as Pittsburgh’s recovery found a steady-state in the absence of accelerating national-level conditions. Income gains are still strong in comparison to the market area’s historical trends. The value of this pattern is enhanced by the fact that consumer price inflation is subdued, allowing wage growth to support even greater local spending, and thereby stronger employment growth prospects. One budding element of the Pittsburgh market area’s growth potential that is currently underperforming is natural gas development. Low natural gas prices nationally have delayed expansion in the region’s Marcellus Shale natural gas reserves, which is in its infancy in terms of drilling activity and development. Once prices rebalance in this market, new hiring in the industry should add a substantial boost to income growth in Pittsburgh.

Major Public Companies with a Presence in Pittsburgh

Alcoa (Metals/Mining); Allegheny Energy (Energy); Allegheny Technologies (Industrial); American Eagle Outfitters (Retail/Consumer Goods); Ampco Pittsburgh (Industrial); ANSYS (Technology); Atlas Energy (Energy); Atlas Pipeline[1] (Energy); Black Box (Technology); Consol Energy (Energy); Calgon Carbon (Industrial); Dick's Sporting Goods (Retail/Consumer Goods); DynaVox (Technology); Education Management Corporation (Education); EQT (Energy); Federated Investors (Financial); GNC (Retail/Consumer Goods); Google; H. J. Heinz Company (Retail/Consumer Goods); Holliday Fenoglio Fowler (Financial); Horsehead (Industrial); Huntington Bancshares (Financial); II-VI (Industrial); Kennametal (Industrial); Koppers (Industrial); L. B. Foster[2] (Industrial); Mastech[3] (Services); Matthews International[4] (Energy); McKesson[5] (Health Care); Michael Baker[6] (Industrial); Mine Safety Appliances (Industrial); Mylan (Medical); Nova Chemicals (Industrial); PNC Financial Services (Financial); PPG Industries (Industrial); RTI International Metals (industrial); rue21 (Retail); TMS International [7](Services); Tollgrade[8] (Technology); Universal Stainless & Alloy Products[9] (Industrial); U.S. Steel (Industrial); WESCO International (Industrial); Wabtec (Industrial); Westinghouse Electric Company (Industrial); Wizzard Software[10] (Technology).

Largest Employers

Westinghouse Electric Co. 5,600; Allegheny County 6,817; BNY Mellon 7,600; West Penn Allegheny Health System 10,117; Giant Eagle Inc. 11,119; University of Pittsburgh 12,448; Commonwealth of Pennsylvania 13,600; U.S. Government 19,416; UPMC 42,900.

 

 

What Others Are Saying

“The 10 Best Places To Buy A Home Right Now” — Forbes.com
“Top 5 of “America’s Lowest-Risk Housing Markets” — SmartMoney.com

 

Breaking Pittsburgh News

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