A Wake-Up Call for Downtown

Recently it was widely reported that groups of young people gathering downtown at night went on a “rampage” that involved a subsequent police chase on foot.  There were bystanders injured during this disturbance, including an elderly woman who was sadly at the wrong place at the wrong time.  Simply enjoying what has become an increasingly vibrant downtown area should not be cause for even the threat of harm, much less physical abuse.  Immediate action by City government, and I am not referring to only the police, is needed.

Back in June I was downtown for Stanley Cup viewing in a Market Square restaurant.  Prior to the match I decided to wander a bit to see what new businesses were in old familiar places.  Walking along Wood Street I noted to myself, and did so later to friends, that there was a particularly rowdy group of young men in front of the McDonald’s outlet.  Being older, and less cocksure of my abilities these days. the scene made me very uncomfortable as I squeezed by.  I can understand how any number of visitors or residents, seeing that type of behavior at the relatively early pre-8PM time, would think twice about strolling downtown again.

The bottom line here is that Pittsburgh’s downtown “ecosystem” is physically compact and metaphysically still in a rebirth phase.  Everything is scrutinized under a media reported magnifying glass.  It cannot sustain incidents that result in physical harm as well as negative reports of such and still expect to develop day-and-night vibrancy.  City officials must work with law enforcement but also with the appropriate social service agencies to address the causes as well as the very presence of this behavior.  Crime is a complicated issue that results from a complex sets of circumstances.  However, that can never excuse inaction on the part of those responsible for the public welfare.

In Case You Haven’t Seen This One

In the May issue of “Conde Nast Traveler” magazine that featured their Hot List of the 60 “hottest” hotels in the world, Pittsburgh’s Ace Hotel was listed among that group, chosen by their editors.  It’s a nice piece of city publicity to have one of the “dots” on their “hot list” map be Pittsburgh.

But for those who appreciate a good written review, it was the June/July Summer issue of the same magazine that had more words on Pittsburgh as a “cool” travel destination this summer.   Some quoted excerpts, with attribution to “Conde Nast Traveler” include:

“Cool means a food scene that’s both current and cozily retro, globally informed yet grounded in place.  Where thirty and seventy somethings drink at the same perfectly aged bars.”  [Blogger’s note: If that social interaction DOESN’T happen in other places then as a society we’re in deeper trouble than many believe this election season.]

“Cool means a fanatical sports town that’s also defined by high culture …where Roberto Clemente and Andy Warhol are held in equal esteem.”

And the money shot here:

“If Pittsburgh isn’t a contender for the coolest city in America right now, someone’s got “cool” all wrong.”

Oh ya.  Just don’t get all ahead of yourself Pittsburgh.  Note that “cool”, like its cousin “hip”, can never be self-declared.  It can only be bestowed and must never be referred to by the cool one; to do so takes it all away and is the antithesis of the term.  Once you declare yourself cool or hip, you are no longer.  Walk the walk and never, ever talk the talk.  I have confidence Pittsburgh understands that.

A Good Development in the Start-Up Scene

This week a piece in the Pittsburgh “Business Times” announced that Jason Yablinsky, VP of Finance for local jobs recruitment platform company Jazz [formerly named The Resumator] is leaving that firm to become CEO of a brand new startup, SubCentral.io.  Good for Mr. Yablinsky but more importantly this speaks to the growing strength of Pittsburgh’s startup scene.

SubCentral.io has received an initial investment of half a million already and already has five employees.  Jazz itself is well on its way to greater success by all accounts and is thus spinning off talent to other ventures.  Most importantly, the fact that staff feels comfortable enough to jump from one startup to another newer [re: riskier] one means that Pittsburgh is building an ecosystem of companies that rely on similar skill sets.  When people make decisions about job locations, one consideration is always “If I have to leave a position, will there be other job opportunities for me within the same area?”  Regions around Seattle , Boston and the Silicon Valley all provide a large enough pool of jobs that people looking to build their careers are confident in accepting jobs in those areas.  Pittsburgh needs more of that and seems well on its way.

A small story with big, positive implications.  Congrats to all.

Our Employment Problem, Part 2

OK let’s start out with this: it has nothing to do with the weather.  Or even the perception of the weather. One person’s chaff is another’s wheat, you might say.  So to all those regional crepe-hangers who claim Pittsburgh’s growth is held back by its weather, I say “you need to get out more”.  Do you think higher growth locales like Chicago, Minneapolis or Boston have better weather?  Really?  OK. Now let’s get serious.

I still believe Pittsburgh and the Tri-State region’s job creation woes can be helped with more, better, increased, and improved education of its citizens.  For this piece allow me to present empirical evidence based on anecdotal reports, with a nod to a couple statistics.

In Part 1 of this commentary I referenced the “Tribune Review” article that featured a Fayette County resident working as a part-time supermarket cashier.  The gentleman is 20 years old and has already moved back to Fayette County after trying his job luck in Orlando, FL where he found he couldn’t make ends meet even in that high growth market.  But now he’s thinking of moving back to Orlando.  Let’s not “pile on” when analyzing this young man’s path however, at age 20, with no defined job skills and what would seem to be no post high school degree, his prospects in Fayette County or Orlando or just about any other economically integrated area on planet Earth are severely limited.  Changing locations will solve little if anything long term.

Also as mentioned in Part 1, the Uber Advanced Technology Center’s Director, John Bares, is seeking dozens more staff members and is recruiting candidates from California’s Bay Area.  I imagine there will be some resistance by residents of weather-perfect northern California over a move to a less benign Great Lakes climate.  But notwithstanding the list of positive traits that Pittsburgh can offer aside from climate, why, with over two dozen major colleges and universities in the region producing thousands of graduates annually, does Mr. Bares need to turn to California for staff?  The only answer is a disparity of skill levels but more specifically it is clear Pittsburgh’s institutions are not educating enough residents with skills needed in this economy.

My final anecdote comes from Austin, TX, a city that Pittsburgh is getting a lot of comparison with these days.  In the past year, Austin has seen thousands of high tech jobs created from companies as diverse as Apple (which has over 1,000 employees and has announced another 2,300 more to be hired in the next 18 months), Home Depot [financial security software development], General Motors (software jobs, not manufacturing), Athena Health [medical software] and Conde Nast (again, software programming for the publisher’s digital media).  And the reason cited by all these new entrants into Austin’s job market: the availability of talent.  Austin has a fifth the number of higher education institutions that Pittsburgh does.  But the University of Texas is a powerhouse school with large programs in engineering, computer science and artificial intelligence.  And to say UT constantly churns out graduates in those fields is putting it mildly.

So here’s the statistical comparison set, and pardon that it’s a bit dated from the 2010 US Census, specific to educational attainment for Pittsburgh’s and Austin’s Metropolitan Statistical Areas (a large city and its surrounds that are connected by employment numbers).  In 2010 Pittsburgh’s MSA had 28.8% of its population with a bachelor’s degree or higher.  Austin’s MSA had 46.6% of its population with bachelor degrees or higher.  Does education translate into economic success? I believe so.  Using per capita income as one countermeasure, US Census statistics for samples taken in 2013 have Austin’s MSA pegged at 21st in the country with per capita income at $24,500.  Pittsburgh is 90th with per capita income at $20,900.  In absolute dollar terms, not huge, but as measured on the overall ranking, and when you account for the nearly $4,000 per person difference across similarly sized metro areas of 2 million plus people, the comparison of income levels is striking.

It’s education.  Period.  As I finished this piece I had trouble developing a summary paragraph.  But later in the day I read the following in the May/June 2016 issue of “Foreign Affairs” magazine.  With credit to Jacob S. Hacker and Paul Pierson in their excellent article “Making America Great Again: The Case for the Mixed Economy”, allow me to quote verbatim.  “the most important thing that big states [defined in their piece as “countries” not US “States”] started doing was educating their citizens.  More growth commenced when people rapidly increased their ability to do more with less.  They were able to do more, in part, because they knew more, and they knew more, in part, because they were taught more.”  QED.

Our Nagging Employment Problem, Part 1

Chris Fleisher in a weekend Pittsburgh “Tribune-Review” article [go here: http://triblive.com/business/headlines/10310205-74/growth-job-region] nails it when reporting on the surprisingly stubborn low job growth in southwestern Pennsylvania.  Job creation in our region is quite simply the most important issue the region faces.  It’s not an exaggeration to state that this is the Pittsburgh region’s existential issue.

Over the past couple years since I’ve been putting my thoughts to electronic “paper” in this blog, I think it’s clear that most of my pieces focus on jobs and income.  Both must increase if the region is to continue to provide residents with the lives they deserve.  And I admit it: I am completely stymied as to why the region continues to lag woefully behind just about every other place in the country when it comes to job creation.  For all the accolades Pittsburgh now garners, in the final analysis, those count for diddly-squat if residents can’t make a good living.

It’s been widely reported that an Uber executive publicly noted that he could “hire 100 more people tomorrow if…” he could find candidates with the right qualifications.  That’s NOT a “good problem” to have.  So here we are: Pittsburgh attracts one of the world’s hottest “new economy” companies to set up a major facility and now they have trouble staffing it.  What gives?  What about the hundreds of eager computer science grads who come out of the region’s colleges and universities?  Not qualified?  Oh but then we read that Pittsburgh is still having trouble retaining young people who are leaving for higher paying areas like the big coastal centers. Really?  Is it simply that companies like Uber can come into town paying third-world salaries because Pittsburgh has a lower cost of living than Palo Alto?  I bet not. So is it just that Pittsburgh’s college grads are so much more sophisticated than those coming out of UNC who stay in the Research Triangle, or those out of UT who then stay in Austin, or those silly grads from Stanford and Cal who triple up in $4000 a month one bedroom apartments in San Francisco?  I bet not and I’m sure I’ll win that one.

You understand my confusion?  And concern.  No region holds onto all its children.  There are a million ways in this world to make your success and there is a whole planet’s worth of locales in which to do that. But if a region is not generating enough new jobs to retain those individuals for whom staying put is the easiest path, how can we possibly expect to attract and hold new residents who will by definition expand the economic and intellectual vitality of the area?

However, having said all that, I still believe there’s a solution here.  Part 2 to follow.

Something Good and Something Getting Better

Something good – really good - is that the August Wilson house in the Hill District is finally getting the long term funding it deserves as the home of what many believe [this blogger for one] is Pittsburgh’s greatest 20^th century playwright.  This is an example of the vision of many individuals being translated, transformed really, into concrete action.  Bravo. More of this please.  The Hill District has been the too-often unacknowledged cauldron of so much creativity vis a vis its music [primarily jazz] scene, journalism [The “Pittsburgh Courier”], arts [photographer Charles ”Teenie” Harris] and theatre [Mr. Wilson’s work as well as other theatre and cabaret ventures].  Let us celebrate that history to build a new one for what some of us believe can become the living room atop downtown’s front door entrance.

Getting better is the region’s air quality.  In the latest American Lung Association “State of the Air” report on the air quality in the nation’s metro areas, Pittsburgh is still at an unacceptably low level – 14^th worst in the nation.  BUT that is better than just a few, like five, years ago when we were the second worst metro area, only outranked by either Los Angeles or Bakersfield.  More importantly, there has been steady improvement in all measurement categories year over year.  Let’s keep it going.  It’s amazing that a very small number of industrial emitters, and a couple as far away as Weirton, WV, have such a detrimental effect on Pittsburgh’s air.  Still, progress is progress.  Pittsburgh got complacent for a bit when the skies brightened after decades of grey.  Let’s continue to support those who work to get our air quality into the TOP 10.

Audrey Russo Gets It!

What an exciting thing to read in the latest NEXTPittsburgh Web site edition comments by Audrey Russo of the Pittsburgh Technology Council.

Yes, yes and more yes those of us that love Pittsburgh are thrilled with all the positive attention our city has recently received from both national and international sources, some of whom, other than those ubiquitous “best of” lists, actually matter.  But there is a discomfort about this and I suspect it comes from informed Pittsburghers realizing there remains a lot missing from those rosier views of our fair city.  Audrey Russo is one of those informed realists.

Here’s the money shot quote from NEXTPittsburgh’s piece with the cumbersome title “What We Love And Don’t Love About All The National Press Pittsburgh Is Getting”:

“Despite the significant press, new Census Bureau estimates show the Pittsburgh metropolitan area lost 5,051 people last year. It’s down 3,240 overall since the 2010 census, the only one of the nation’s 30 largest metro areas to have lost population.

That worries Audrey Russo, president and CEO of the Pittsburgh Technology Council, who works to cultivate relationships with investors outside the region, because telling the city’s story isn’t enough.

“There’s not real investment happening here and let’s face it, that’s what matters,” says Russo, who acknowledges she’s “the biggest fan” of cool things happening in Pittsburgh but she’s troubled by the population loss.

Pittsburgh doesn’t need to grow as quickly or as much as Raleigh, N.C., but it needs to keep up, Russo says. “It’s not a marketing campaign—it’s not the days of New York saying, ‘We’re the Big Apple.’ The world is a different place and you can’t fool people. It’s a campaign to get investment here. It’s a matter of designing public policy to be attractive, and making sure the relationships are cultivated.””

Here’s the link to the whole article.  And thank you Audrey Russo.  There’s still a lot of hard, fun, rewarding, frustrating work to be done on building a better Pittsburgh.  Long may Ms. Russo and people like her work in and for Pittsburgh.

http://www.nextpittsburgh.com/