Pittsburgh Listed in the U.S. Top 25 Metro GDPs

Pittsburgh has been named the 23rd U.S. metro area with the highest gross domestic product (GDP), according to the latest report from the Bureau of Economic Analysis. The report lists Pittsburgh's GDP at $131.265 billion in 2013, a 3.3% increase from 2012. Since 2001, the city's economy has been growing pretty steadily overall. The rising rank could signal a growing business climate in the region. The Pittsburgh Business Times', Paul J. Gough, weighed in on the report saying:

The gross domestic product, also known as the gross national product, is the dollar amount of all goods and services within a national border. The Pittsburgh region's share of the GDP has been growing steadily from $88.75 billion in 2001 until the most recent figures. It only declined one year, in 2009, due to the impact of the recession.

But the region lags when it comes to change since 2010, according to a Buffalo Business First analysis of the federal data. It's 12.6 percent growth since 2010 puts it only at No. 124 in terms of three-year change.

Pittsburgh's GDP is higher than any other metro region in Pennsylvania except Philadelphia (No. 8, $383.4 billion). It's ahead of neighboring big cities including Columbus, Ohio (No. 30, $114.25 billion), Cleveland (No. 26, $122.88 billion) and Buffalo, N.Y. ($51.63 billion, No. 56).

The largest part of Pittsburgh's GDP is in the financial category, which contributed $24.735 billion in 2013, up slightly from 2012. That includes finance, insurance, real estate, rental and leasing activity. Professional and business services were the second highest at $21.189 billion.

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Is Pittsburgh the Future of Tech?

Pittsburgh used to be known as the city of steel, but in recent years, it has been more commonly associated with something else-technology. Technology startups and the entrepreneurs that fuel them are being mentioned more frequently in media and the business world. In a recent Forbes article, the Young Entrepreneur Council pointed to Pittsburgh's renaissance as a source of learning for entrepreneurs. From Steve Case's Rise of the Rest Tour to Peduto's tech roundtables, Pittsburgh is getting some major attention from both the tech industry and the entrepreneur community. Just this week, tech leaders gathered in Pittsburgh at the Thrival Festival and discussed, "what's next for tech?" Here's what they had to say:

Hardware and software coming together. Women. CEO-level talent. More venture capital.

These are some of the things that will make Pittsburgh's tech future, according to a group of local entrepreneurs who gathered on Thursday night at AlphaLab Gear to talk about technology in Pittsburgh and how it will transform the city.

Dennis Yablonsky, chief executive officer of the Allegheny Conference on Community Development, moderated the event.

Yablonsky said there are two things he thinks will solidify Pittsburgh as a tech hub. One is local venture capital. There's not enough, he said, and when Pittsburgh companies are funded from the outside, he believes they tend to leave. 

“If the lead investor is in Pittsburgh, the company will stay in Pittsburgh,” he said. 

Yablonsky said the area also needs more executive talent and a great source is “boomerangers” like him, people who left the city in their youth, and now, because of a low cost of living and opportunities to succeed, see the right reason to return.

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What are your thoughts? Can Pittsburgh really be the future hot spot for technology?

Are Collaborative Workspaces Good for Startups?

A newer trend in office design has been to create either open or collaborative workspaces. Collaborative workspaces are offices design to emit a free-flowing and sharing environment. Sometimes they are reserved to one company and other places may be a central hub for a group of like-minded professionals to gather and do work together. Some of the benefits listed in favor of collaborative workspaces is that is foster collaboration and productivity. On the other hand, they are also criticized for impeding productivity with noise and chatter. What do you think about collaborative workspaces? 

A recent Forbes article had a few thoughts for them:

There’s more to innovation than finding clever people and throwing them into a conference room in hopes that game-changing collaboration will follow. Today, to drive innovation and attract the best talent, it’s crucial to create workspaces that cater to diverse forms of collaboration.

In the same article, writer Sarah Miller listed four collaborative office qualities and how they foster innovation and teamwork.

- Space that is flexible: Workspace that is movable and reconfigurable supports spontaneity. Flexibility can come in the form of mobile furnishings, roving white boards, or even architectural elements like sculpture that allow users to configure the space to their immediate needs. Example: Google. 

- Space that inspires: Natural lighting and exterior views stimulate and sustain creative thinking. One factor linked to innovation edge is an ability to imagine and visualize the future. Spaces that contain fantastical images and access to technology tools help employees construct new scenarios for markets, products, and services are key in this endeavor. Example: Facebook. 

- Space for small teams: The best collaborative work is done by teams of 2 – 8 people. Cozy spaces located near an individual’s dedicated work area are ideal for small team gatherings, and encourage frequent use. These spaces need to offer full connectivity, too. Example: Groupon

- Space that reflects culture and brand: In a global economy, recalling that the work you’re doing in one geography impacts customers in other geographies is paramount. Connecting employee efforts to pride in past success creates engagement and a willingness to drive future change. Displays of existing products or collective achievements also inspires pride and risk-taking. Read the full article here.

In Pittsburgh, there are a few collaborative workspaces that are not central to a particular company. One of those is called The Hardware Store, a co-working office space where professionals can work with other professionals. The group is holding a Fall Picnic and Pitch Fest at its headquarters on September 18 that entrepreneurs may want to check out.

Labor Day in Pittsburgh

Labor Day, also known as the unofficial end of summer, is this weekend. It is also the holiday dedicated to all those in the workforce and is best celebrated by just taking the day off. We know, if you're an entrepreneur, days off can sometimes be hard to come by. However, this is one weekend that you really should rest, relax and have fun. In Pittsburgh, there are tons of fun activities that you can do this weekend too. Here are a few: 

Take a hike

We have an amazing and beautiful park system in the city. Frick, Highland, Riverview and Schenley Parks all have a developed trail system with easily walkable trails (and bike trails) covered with lush canopies of trees. Grab a friend, your friend’s dog or your mom and take a stroll. When you are done, you can walk to have a bite near any one of the many eateries within walking distance. Your tax dollars at work for good! www.pittsburghparks.org

Ride a bike

For those less inclined to hike, you can ride — even if your bike is out of commission. Head down to Golden Triangle Bike rental and grab some wheels. Hit the Three Rivers Heritage trails along the Allegheny and the Mon rivers. Complete info at www.bikepittsburgh.com (and you can reserve a bike in advance.)

Slip into a kayak

“Yep, we got dem kayaks n’at dahn on the river.” And they are very cool— in more ways than one. With temperatures rising you can head to the North Shore under the Clemente Bridge to rent your gear and paddle along for a tour of the city you will never forget. Reasonable rates and instruction included. www.kayakpittsburgh.com.

Visit the county parks before Labor Day

Allegheny County’s free Summer Concert Season ends this weekend. Head to South Park to see the River City Brass Band on Friday night, set up your chair early and then drive to the other side of the park to see the bison at the game reserve. Totally Cool. Over at Hartwood Acres, the Allegheny County Music Festival will feature Rusted Rood, Derek Woods Band and so much more. Hartwood has a $20 per car donation to benefit children and youth served by the Department of Human Services. Food trucks (yum) at both. http://​www.alleghenycounty.us/

Get wet, kinda.

Well, we do that a lot around here, but here is a new twist. Park the car before dusk and take a walking tour of all of the neat fountains in the Golden Triangle. We all know about the grand dame, the Point State Park fountain, But you should also visit the water feature at PPG Place, fountains at Gateway Center, large water walls at Point Park University and Heinz Hall, or the large water structure at Katz Plaza. The latest romantic spot is Mellon Square, where a three-year, multi-million-dollar restoration reminds you why the American Planning Association listed it as one of the 10 great public spaces in America. There are more, just walk around.

Let’s go to the Fair!

Lot of county fairs this weekend in the outskirts and they are a blast. Take in 4H competitions, food, music and more. On deck are the Indiana County Fair, The Great Stoneboro Fair, The Cambria County Fair and the Big Knob Grange Fair. A complete list can be found at www.pafairs.org.

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Where Are All The Women Entrepreneurs?

Lately, there have been several articles, studies and other pieces of media that ask the question: where are all the women entrepreneurs? The recent fourth annual OPEN State of Women-Owned Business report provides some insight into the world of female business owners. The report analyzes various aspects of existing female-owned businesses. Some of the highlights of the report are:

• As of 2014, there are 9.1 million women-owned businesses in the U.S. 
• Nationally, the number of women-owned businesses has grown by 68% since 1997. 
• Pennsylvania is number 7 on the list of top ten states with the highest number of female business owners. 

Although the report listed some positive figures, there are still some areas for improvement. Here are a few highlights from the report that are worth remembering too.

• While the numbers of women-owned firms continue to grow in number and economic clout, the average size of women-owned firms has not changed appreciably over the past 17 years. 
• Women-owned firms are still much smaller than the average U.S. business. 

Read the full report here.

What else can we do to promote a more diverse entrepreneurial community in Pittsburgh and other areas? If you have suggestions, feel free to share them with us in the comments or on our social pages.

Finding Office Space in Pittsburgh

Finding the perfect office space for your business is hard. According to a new study by Avison Young, the growing success of Pittsburgh as a hub for businesses also makes it one of the cities with the lowest office vacancy rates in the US.

Its 8.7 percent vacancy rate is just behind Columbus, Ohio, (8.6 percent) and San Francisco (6.4 percent), Avison Young said in its Office Market Report Mid-Year 2014.

"Continued success is the story of Pittsburgh's office market at mid-year 2014," the report said.

Specific deals mentioned include the Bakery Square 2.0 expansion by Google, the sublease by UPMC at Heinz 57 Center and Michael Baker International's pending move of its headquarters from Moon Township to 500 Grant St. Read more about the study here. 

There are some programs and organizations in Pittsburgh that aim to make business space more available to Pittsburgh startups and small businesses. In addition to other local entrepreneurship advocacy, Riverside Center for Innovation along with North Side Industrial Development Co. (NSIDC) redevelops brownfields, sites that are abandoned and potentially contaminated, into places for new businesses. To learn more about NSIDC and their brownfield work, view the blog here. Visit the RCI website to learn more about our office options and programs. 

City Of Pittsburgh Looking For More Ways To Support Startup Accelerators

We like to think that Pittsburgh is a growing hub for innovation and small business. Now, with events like Steve Case's Rise of the Rest Road Tour, even more people are taking notice of the city for its startups and entrepreneurs and the accelerators behind them. Mayor Peduto has focused a series of round table discussions on technology, with the most recent one focusing on how city government can help support accelerators. Below are some of the major highlights: 

Infrastructure is still an issue 

Leonore Blum, distinguished career professor of computer science at Carnegie Mellon University and founding director of Project Olympus, said it can be difficult to attract investment from the West Coast if those investors can't get here easily.

"Without daily service to the West Coast, those investors come in, harvest the companies and take them away," Blum said.

And it's not just air service that can be an issue. Mark Musolino, director of RevvOakland, said having better transportation options in the city is needed to attract and keep talent in addition to marketing Pittsburgh as a destination for aspiring entrepreneurs. 

Connecting underrepresented populations to opportunities 

While resources have been put in place to foster technology startups, Peduto said the city has to think about entrepreneurship beyond that scope. 

"How do we make sure the person that works at Pep Boys and wants to open their own service center has the same opportunity and access as a software developer at Carnegie Mellon?" Peduto asked.

He said the goal is to create ladders of opportunity for everybody, especially in neighborhoods that have been left out of the city's redevelopment.

Bill Generett, director of Urban Innovation21, said when companies locate in a community, it spurs other economic development.

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