Shapiro visits Pittsburgh, grumbles that he's 'sick and tired of losing to Ohio' in economic development

Speaking Wednesday against a backdrop of robot arms and equipment at a Pittsburgh tech hub, Gov. Josh Shapiro pitched his vision for a long-range economic plan that he said was critical to keeping Pennsylvania competitive.

The Democrat shared the highlights of a 10-year proposal during a visit to Pittsburgh’s Mill 19 in the Hazelwood neighborhood, the location of a former steel mill that now houses a large redevelopment and the robotics facility at the Carnegie Mellon University Manufacturing Futures Institute.

Shapiro pledged that his plan would help grow the workforce, attract new businesses, and prepare sites so they are pad-ready for development.

The visit came about a week ahead of Shapiro’s annual budget address, where he will lobby state lawmakers on his economic and spending proposals.

Shapiro, who spent about an hour at the facility, said that neighboring states like Ohio, New York and New Jersey all invest more in economic development than Pennsylvania. He said he wants to see his state compete better against its neighbors.

“I am sick and tired of losing to Ohio,” Shapiro said during a press conference before union heads, business leaders and local politicians.

The Shapiro administration will focus on funding for five key industries: agriculture, energy, life sciences, manufacturing and robotics and technology. Shapiro said the plan is the first statewide economic development blueprint in nearly two decades.

He seeks to devote $25 million to small businesses and commercial corridors, and $10 million for the state’s agricultural industry, according to The Associated Press. Another $2 million would be targeted to workforce development and creating internships that will help keep workers in Pennsylvania, the AP said.

Shapiro said Wednesday he will provide more specific funding request amounts following his budget address next week.

The state, and especially the Pittsburgh region, has struggled to fully rebound to its pre-pandemic employment figures, even as unemployment is at historic lows. The worker shortage has led to impressive wage increases for many employees, but some leaders worry the shortages could be dragging down the state’s broader economy.

The Pittsburgh metro area, for example, has one of the slowest post-pandemic economic recoveries in the nation. Pittsburgh metro area employment is still about 24,000 jobs below its pre-pandemic peak in 2019, according to the U.S. Bureau of Labor Statistics. Pittsburgh politicians have been attempting to address this by boosting wages and childcare efforts.

Shapiro was met by local leaders including Pittsburgh Mayor Ed Gainey, Allegheny County Executive Sara Innamorato and Carnegie Mellon University President Farnam Jahanian. Robot arms and other high-tech equipment rested behind him as he delivered a 20-minute speech.

Some attendees noted how the redevelopment of the former steel mill site into a technology hub was an example of what could be replicated if the state invests in Shapiro’s economic plan.

Cranes and bulldozers worked outside during Shapiro’s speech, preparing land in surrounding Hazelwood Green for new development projects.

Innamorato praised Shapiro’s plan and said Southwestern Pennsylvania is in a complex economic situation, where growth isn’t hitting all residents equally. She said that Shapiro’s blueprint invests in people and businesses, adding that more investment in the region is needed to help Allegheny County reverse its declining population.

Shapiro’s economic plan also highlighted specific industries in Western Pennsylvania that have already announced plans for expansion, including a joint innovation hub run by the Air Force and Space Force on Pittsburgh’s North Side, a new Etna-based, nuclear-battery headquarters for Westinghouse, and photonics company Excelitas Technologies moving its headquarters to Pittsburgh’s Strip District.

But Shapiro said there should be more business growth and expansion in Pennsylvania.

A big part of Shapiro’s vision would involve funding for site redevelopment.

Shapiro said Pennsylvania is losing out to other states like Ohio because it lacks locations that are already connected to utilities and can be built on quickly without much red tape.

The governor said his administration has already cut down on the time it takes to receive business permits. He noted that the state’s corporate tax is decreasing to under 5% by 2031. Creating more sites ready for development and offering additional economic incentives are crucial for Pennsylvania to compete, Shapiro added.

Ahead of his budget address next week, the governor is urging state legislators to invest in the economic development plan.

“We have a great foundation in this state that we must capitalize on,” Shapiro said.

The governor will need support from state legislators on both sides of the aisle to push forward his plan, since Republicans control the Senate and Democrats lead the House. He said he was confident that the legislature will work with him, despite a protracted budget fight that occurred last year.

While the Pittsburgh event was attended by mostly Democrats, labor union heads and business leaders, there was some bipartisan support. In attendance was state Rep. Rob Mercuri, R-Pine.

Shapiro said his plan means the state is ready to up its business activity, but it needs support and it needs money.

The governor warned that Pennsylvania will continue to lose out to other states if it doesn’t invest directly in things sought by businesses, such as more state funding for higher education and public transportation, additional incentives for start ups, and investments in affordable housing and revitalizing main streets.

“I have heard state lawmakers complain that we keep losing out,” Shapiro said. “Well, write the check.”