Aug 3, 2024 By Rick Shrum 4 min read

The decision to expand is benefiting many Southwestern Pennsylvania businesses – and this region – according to a recent report from the Allegheny Conference on Community Development.

The report, “The Impact of Regional Business Expansion: Why ‘Growing Our Own’ Matters,” was produced by the conference’s Strategy and Research team.

Allegheny Conference, a Pittsburgh-based civic leadership organization, serves 10 counties in the southwestern corner of the state: Allegheny, Armstrong, Beaver, Butler, Fayette, Greene, Indiana, Lawrence, Washington and Westmoreland.

The group found that over a 17-year period – 2007 through 2023 – 65% of all publicly announced investments were expansions of existing businesses. Research also showed that 83% of new and retained jobs were the result of expansion projects, which also accounted for $15 billion in capital expenditures (funds that companies use to acquire, upgrade and maintain physical assets).

Researchers reported that “more than 3,400 investment announcements were made between 2007 and 2023,” leading to a total of 233,954 new and retained jobs. Data show that these announcements by companies generated an average of 101 jobs, compared with 43 for non-expansion announcements.

Staff members also found that “existing expansions tended to vary by sector” during the report period. For example, they reported that these expansions led to “an above average share of announcements for both Advanced Manufacturing and Technology and Robotics, while just over half of Energy announcements were existing expansions.”

“Business expansions are an economic driver for this 10-county area, said Stefani Pashman, CEO of the Allegheny Conference. She said in a statement: “Employers in growth mode create jobs, and job creation is one of the conference’s economic development priorities for the region.

“Through our Pittsburgh Regional Alliance affiliate, we’re working worldwide to attract businesses looking to grow to Southwestern Pennsylvania, but the highest return on our efforts comes from companies already established here and looking to expand their operations.”

Not surprisingly, UPMC had the most expansion announcements in the region over the 17-year period. The Pittsburgh-based health system, according to the report, announced 24 such projects resulting in 4,691 new jobs and nearly $2.4 billion in capital investment.

All of that, of course, was before Washington Health System joined the health-care giant in June, becoming UPMC Washington and UPMC Greene – enabling the giant to grow a little more.

Two other high-profile Pittsburgh companies fared well in the report. Duolingo, a technology firm, has gone from startup to a consistently growing business that has announced 10 expansions since 2012, leading to an anticipated 361 new jobs. And robotics company Seegrid has made eight such announcements, resulting in 297 anticipated new positions.

Two Washington County manufacturing companies were listed prominently in the conference’s report. Perryman Co., a global leader in production of titanium products, made a half-dozen expansion announcements during the 2007 to 2023 report period. Those efforts helped to generate 310 new jobs and $360 million in capital investments, enabling the Houston-based company to increase its production and administrative capacity locally.

Allegheny Technologies Inc., a producer of titanium and titanium alloys, made two investments that led to the creation of 100 new jobs, the retention of 3,100 positions and more than $1.2 billion in capital investment. That was the largest investment by an existing manufacturer in the 10 counties during the report period. That money went toward a new mill in Brackenridge.

ATI, which moved its headquarters from Pittsburgh to Dallas two years ago, has nine production facilities in Southwestern Pennsylvania, including a Canton Township plant that manufactures specialty rolled products. ATI has about 22 locations nationwide.

Washington County businesses accounted for 52 announced expansions during the 17-year period. Greene, according to compiled data, had 10.

Advanced Acoustic Concepts, a Fayette County technology manufacturer, distinguished itself. The Lemont Furnace business made five expansion announcements that resulted in 76 new jobs and $17.1 million in capital investments.

Regional companies that made publicly announced expansions during the 17-year period also included Penn Highlands Healthcare (Monongahela, Connellsville), Loves Furniture (Washington, Allegheny and Westmoreland counties) and Rye Development (Washington, Greene, Allegheny and Beaver).