Gov. Shapiro visits Pittsburgh to outline investment priorities in state economic development plan
Gov. Josh Shapiro on Wednesday announced a statewide economic development strategy that will prioritize investments into five core sectors: agriculture, technology, life sciences, manufacturing and energy.
Data showed those industries to be high growth and high value, planning documents said.
Speaking at Hazelwood’s Mill 19, a modern technology center built under the rusted hull of the former Jones & Laughlin steel mill, Mr. Shapiro said it was the state’s first such plan in 20 years.
“It is going to be the bible that we refer to over and over and over again when it comes to our funding decisions,” he said.
Darrin Kelly, president of the Allegheny Fayette Labor Council, saw symbolism in the 44-page outline.
“This economic development strategy is more than a document, this is our economic rebirth,” said Mr. Kelly, who grew up a stone’s throw from the J&L mill and still remembers the sense of devastation when it closed.
Mr. Shapiro called his ten-year strategy “a roadmap to capitalize on the Commonwealth’s strengths and reignite our economy.” Many of its recommendations will be reflected in his budget address next Tuesday.
They include $25 million to support small businesses and commercial corridors, $10 million for agriculture innovation and $2 million for ‘Career Connect,’ a program offering internships designed to keep young people from leaving the state.
The plan comes with its own website: pagetsitdone.com.
It outlines a vision for 2033 where Pennsylvania is “a premier state to do business” with a “resilient economy” and opportunities for all people. Specifically, the plan seeks to make Pennsylvania a top 10 state for business and median wage growth. It is currently 15th and 35th in those categories, based on CNBC rankings and U.S. Census data.
The plan considers concerns that Pennsylvania is falling behind neighboring states like New York and Ohio, which spend up to 16 times as much on development incentives. It states that a widening labor gap will require better workforce training and “transformational change” in higher education.
Current spending on academic research and development isn’t translating to commercialized tech, the plan states. And overall spending on education is comparatively dire, Mr. Shapiro said.
“We rank 49th in the nation for state investment in higher education, 48th in the nation in student affordability,” he said. “Our failure to invest in higher education over years has closed the doors of opportunity.”
Local leaders including state Sen. Jay Costa, state Rep. Aerion Abney, Allegheny County Executive Sara Innamorato and Pittsburgh Mayor Ed Gainey praised the governor’s vision and pledged their support.
“It really does take a village,” said Don Smith, president of the Regional Industrial Development Corporation. He said partnerships are “the Pittsburgh secret sauce to success.”
Rick Siger, secretary of the Department of Community and Economic Development, said all 67 counties in Pennsylvania contributed feedback to the plan, which he hoped reflected their interests and created “common cause.”
The plan will also lead to a restructuring in his department, which is hiring a new deputy and chief commercial officer.
Mr. Shapiro praised Mr. Siger, a “yinzer,” for delivering a series of wins that are making it easier for businesses to move to Pennsylvania. He said permit processing is down from eight weeks to three days; companies like Re:Build Manufacturing are partnering to redevelop factories like the Alcoa aluminum plant in New Kensington; and others are relocating from Boston to Pittsburgh, which Mr. Shapiro said is “extra special” since he grew up hating the Celtics.
But the governor acknowledged that more work is needed.
Some businesses told him and Mr. Siger that it was “nearly impossible” for them to come to Pennsylvania because sites aren’t ready. Re:Build is the “rare exception,” not the norm, Mr. Shapiro said.
Evan Robinson-Johnson: [email protected] and @sightsonwheels
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